Leasehold Forestry- A New Mode of NR Management

General Background Forest area – 39.6% Agrarian economy – Per capita arable land 1954 1998 0.6 hac. 0.15 hac. Land holding upper 5% lower 60% 40% 20%

Project Background Project Duration Project Coverage 1992/93 to 2002/2003 Project Coverage 10 Mid Hill Districts

Programme Area (26 districts) Nepal Programme Area (26 districts)

Objectives The project had two objectives: alleviate poverty of poor rural households. rehabilitate the degraded forestland in the hills.

Strategies Handover degraded forest land to the people below poverty line for the period of 40 years Degraded land Shrub land Land below 20% crown cover Rescued encroached land Ecologically fragile land Recovered river bed

Strategies Continued...... Eligibility criteria to be member of LHF. a. 0.5 hac. land per family. b. per capita income per year, Rs 6100. Use of PRA tools then differentiates them into poor, very poor and ultra poor.

INTERVENTION IMPACT INTERCOURSE Increased family welfare and improved livelihood Increased manure Reduced pressure on forest vegetation Opportunity to attend more meetings, training and literacy class Opportunity to diversify income sources Increased availability of livestock products Increased household income Improved education and social status for women Improved environmental conditions Increased food production and sufficiency Increased income from livestock products Increased time available for women Increased stall feeding Increased quality and productivity of livestock Leasehold group formation and forest hand-over Training and inputs Access to credit Increased fodder from leasehold and private land

Outcomes Enhancement in human capital: increase in food security (16% per person per month) improvement of quality of food. time saving in collecting fuel wood and fodder (2.5 hours per household per day)

Enhancement of Social Capital: rise in literacy and empowerment of women. decision making. before 5 years after 10% women only 25% women only 30% joint 55% joint 60% male 20% male only

Improvements on physical assets. increase in livestock number. better housing condition.

Improvement on Natural Capital: increase in greenery and bio-diversity. increase in productivity.

Lessons learnt Strengths Individual/quasi individual ownership in decision making - easier, simpler and effective. Against social exclusion.   Constant and continuous monitoring. through locally based women community mobilizers. Participatory approach.

Continued..... Income directly goes to the household level. Vulnerabilities reduced by saving and credit Multiple sources of livelihoods. Environmental amelioration through simple land management practices Pro poor Leasehold Forestry is Pastoral based, meat supply is in shortage, so there is no dearth of market.

Continued..... Weaknesses Vulnerable to external interference. Difficult to accommodate all due to large number of ultra poor.  Gestation period long for degraded land. Limited outreach of the Bank. The policy and legal framework for LHF are still insufficient.

Opportunities Forest area has the potential capacity to reduce poverty through silvo-pastoral management. institutionalization of poor. empower (social inclusion). target focused

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