There is a clear consensus that, in most tropical situations, forestry cannot be sustainable unless there is effective participation by local people and other stakeholders. Indeed, it is argued that it should not be necessary to use terms like "participatory forestry" - if forestry is not participatory it is not true "forestry".

However, in the "Study of the Experience and Understanding of PFM among ODA Staff", it is reported that "one of the most frequently expressed concerns was related to the evidence that PFM projects are not providing sufficient incentive to local stakeholders to induce them to participate, or to involve themselves fully or in a sustained manner. It was argued that this was often because not enough attention has been paid to this issue at the design and preparatory stage" .

It is argued here that this in turn results at least partly from the lack of appropriate and tested economic methodologies and tools for undertaking a more rigorous and systematic analysis of stakeholder incentives in PFM. For example, at present there is no basic applied tropical forestry management economic text accessible to project analysts or managers.

The research is programmed to be conducted in Latin America (Mexico and Bolivia), West Africa (Ghana) and Asia (Nepal), although the project should have impacts in all tropical forest areas. The field locations have been chosen to ensure a wide geographical coverage, to capture and build on some of DFID’s most important experiences in PFM, and to take in a range of PFM situation - for example, in the level and time period of participation, the type of forest products, and the institutional and cultural settings.

Promotion of more effective analysis, design and management of PFM projects through:

* reviewing methodologies and experiences in the economic analysis of stakeholder participation.

* testing "best bet" methodologies in a range of PFM situations.

* developing an accessible manual for the economic analysis of PFM projects.

* improved understanding of stakeholder incentives.

• A manual on the economic analysis of stakeholder incentives in PFM, consolidating the findings of a literature review, case study applications of "best bet" methodologies, and other practical economic applications in PFM situations. It will be published in English and Spanish, and key target stakeholders will be trained in its use.
• Shorter written outputs with the main findings and conclusions of the research for DFID advisors and others without time to read the longer outputs.