PART II SELECTED CURRENT ISSUES IN THE FOREST SECTOR Forests and poverty alleviation his chapter focuses on the role of forests, chapter specifies two types of poverty alleviation particularly natural ones, in poverty associated with forest resources, as seen at the alleviation in developing countries. While some household level. These are attention is given to the potential of planted poverty avoidance or mitigation, in which forests and agroforestry to alleviate poverty, forest resources serve as a safety net or fill space constraints allow only a passing reference gaps, for example by providing a source of to trees outside forests. Thus, while not petty cash; tempting to provide an extensive analysis of poverty elimination, in which forest the chapter defines forest-ba resources help to lift the household out of poverty alleviation, examines the potential of poverty by functioning as a source of forests in this regard, notes obstacles to progress, savings, investment, accumulation, asset identifies conditions that may strengthen the building and permanent increases in income role of forests in alleviating poverty, and welfar proposes several strategies to impro The term"forest-based poverty alleviation contributions of the forest sector lus covers situations in which forest resources I Forests can be vital safety nets, helping rural are used either to avoid or to mitigate poverty, people to avoid, mitigate or rise out of poverty. and situations in which they are used to This function is unknown to many policy-makers eliminate poverty. Forest-based poverty and planners because it is not well understood or alleviation cannot be carried out in isolation. It explained. One reason is that the contribution of tends to be linked to other land uses, in forests to poor households is largely unrecorded particular agriculture, grazing and mixed in national statistics, as most of it is for systems of crop and tree growing subsistence or for trade on local markets. In There are three main ways of achieving fores addition, most wealth from timber goes to better- based poverty alleviation: preventing forest off segments of society, while some aspects of the resources from shrinking if they are necessary for access to and processing of timber resources maintaining well-being("protecting the pie); actually inhibit their potential to assist making forests accessible and redistributing marginalized people. Despite these obstacles, the resources and rents("dividing the pie contribution of forests to poverty alleviation can differently"); and increasing the value of forest be increased, provided that decision-makers production("enl nlarging the pie"). All are vital, recognize and act on this potential but they are applied differently, depending on forest use and the strategies adopted DEFINITION OF TERMS It is also recognized that, in examining the overty can be defined as a pronounced forest-poverty relationship, there is a need to deprivation of well-being related to lack of consider all types of disadvantaged people, material income or consumption, low levels of irrespective of their level of poverty or of education and health, vulnerability and exposure whether they are landless or have access to land to risk, no opportunity to be heard, and Even small differences in the level and type powerlessness( World Bank, 2001). Thus, poverty household assets influence how forest people alleviation can be defined as the successful use their local resources( Barham, Coomes and lessening of the deprivation of well-being. 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