Economic Development - The forest product industry is a source of economic growth and employment, with global forest products traded internationally in the order of US$186 billion, of which developing countries account for 20 percent. In developing countries, forest based employment accounts for 32 million jobs.

Integrating Forests into Sustainable Economic Development

Forests are one of the most mismanaged resources in many countries. This is because forests are seriously undervalued, many of their environmental benefits do not enter markets and poor governance has fueled illegal activities. The rapid rates of deforestation in the last decades are largely a result of the spillover of poor policies in other sectors and lack of governance in the forest sector itself.

Poverty reduction – More than half a billion people living in extreme poverty depend on forests for their livelihoods. Forests help create jobs, develop trade, and provide housing and other important resources for improving the lives of people.

Harnessing the potential of forests to reduce poverty

Effectively addressing the poverty issues related to forests is not straightforward. Experience has shown that remedial strategies can generate internal conflicts. If not done correctly, assisting groups of poor people living in or near forests in developing their abilities to service forest products markets can increase competition for the forests; exclude the access by the poorest of the poor to essential forest products; or disrupt communal systems for management by groups that traditionally have relied on common property forest resources for meeting essential fuel wood, grazing and other needs.