The principal development problem addressed by the project is the loss of forest and tree cover, and in particular the loss of tree species diversity, from the dry tropical forest zone of Mesoamerica. Though this loss of forest cover has been documented for both study sites, there is a marked lack of understanding of the underlying socio-economic factors or the precise conservation implications. The project aims to contribute to an improved understanding of this problem, particularly regarding the financial and non-financial incentives influencing farmers' decision-making about tree and forest management.

One of the main development concerns addressed by the project is the desire to achieve a better balance between conservation and development in the study area. While several environmental NGOs are active in this field, they have a need to found their work with communities on better empirical evidence. Current extension strategies are based on poor understanding of the specific needs of different target groups in communities, and on how best to help farmers overcome constraints to conservation and utilisation of tree resources. There is little understanding of how farmers' decisions about tree-management affect tree species diversity or of the exact impact of decreasing biodiversity on farmers' livelihoods. Many NGOs are, therefore, only able to promote basic "technical fixes" such as tree-planting with a narrow range of species, rather than offering advice on a broad range of issues (tenure, legal questions, market information) and activities (from planting to natural forest management).

To evaluate the potential for conservation of tree species diversity through use within the farm-forest landscape in the tropical dry forest zone of Mesoamerica.

• An annotated checklist of tropical dry forest tree species developed for the case study areas. This will consist of a species database including botanical, socio-economic, and economic information relating to each species.
• A methodology developed to integrate the botanical, socio-economic and economic information held in the species database into categories of "conservation through use" potential.
• The conservation, economic and socio-economic value of forest remnants and their surrounding agricultural interfaces in two fragmented tropical dry forest case study areas will be analysed.
• Strategies for the conservation and use of tropical dry forest tree species diversity will be recommended.
• Research results effectively disseminated, especially in the Central American region.