Policy options for improved integration of domestic timber markets under the voluntary partnership agreement (VPA) regime: Lessons from formalization case studies

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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.

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