Formalization processes come with both benefits and risks, which require ongoing assessment, monitoring and mitigation. Case studies of formalization conducted in other natural resource sectors indicate that even well-intentioned processes can lead to exclusion, criminalization, barriers to entry and elite capture, which could disproportionally and negatively affect smallholders and operators, together with negative environmental impacts. If well-conceived and monitored, formalization could increase transparency and clarity of users rights, reduce conflict and improve working conditions and local economic benefits.
Topic: timber trade, timbers, markets, policy, certification
Series: CIFOR Infobrief no. 85
Publisher: Bogor, Indonesia, Center for International Forestry Research (CIFOR)
Publication Year: 2014Creative Commons Attribution 4.0 International License.