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Linking the Formal and Informal EconomyConcepts and Policies$
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Basudeb Guha-Khasnobis, Ravi Kanbur, and Elinor Ostrom

Print publication date: 2006

Print ISBN-13: 9780199204762

Published to Oxford Scholarship Online: September 2006

DOI: 10.1093/0199204764.001.0001

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Turning to forestry for a way out of poverty: is formalizing property rights enough?

Turning to forestry for a way out of poverty: is formalizing property rights enough?

Chapter:
(p.195) 11 Turning to forestry for a way out of poverty: is formalizing property rights enough?
Source:
Linking the Formal and Informal Economy
Author(s):

Krister Andersson (Contributor Webpage)

Diego Pacheco

Publisher:
Oxford University Press
DOI:10.1093/0199204764.003.0011

How can formal, national-level policies be structured so that they enhance rural people’s capabilities for sustained improvements of their quality of life? This paper analyses this question in the rural context, drawing upon first-hand observations of the consequences from a recent public policy reform in Bolivia’s forestry sector. It examines the effect the new legislation on forest users’ incentives to invest in forestry activities as compared to other production alternatives. Data from six smallholder communities in the tropical lowlands showed that although formalized forestry activities can be relatively profitable for smallholders, complicated acquisition rules and traditional policy bias against agricultural activities often make forestry a less attractive land use alternative.

Keywords:   Bolivia, property rights, rural development, forestry

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