Case analysis of three community-based forest management projects [in Luzon, Visayas, and Mindanao, Philippines]

The paper provides an analysis of three Community-Based Forest Management [CBFM] Projects, with focus on the economic aspect. The paper also identifies practical economic principles to ensure a mutually beneficial partnership among the key stakeholders in CBFM projects, and evaluates the financial feasibility of the selected projects. The CBFM projects included in the study are those of the Don Mariano Perez Farmers Multipurpose Cooperative, Inc. (Luzon), ANAK-Jamindan, Inc. (Visayas) and the Sta. Maria-Magkalape Tree Planters Association (Mindanao). The relationships between and among stakeholders, as well as their reasons for being involved in the project, were analyzed. A financial analysis was conducted to evaluate the profitability of the tree plantation component of the projects, using the Net Present Value and Internal Rate of Return as criteria. The results of the study show that the most important benefits of the communities from the CBFM projects are employment and livelihood opportunities. The results also reveal that the early and regular provision of benefits and assured markets are critical to the success of the project. The tree plantations of the Don Mariano Perez Farmers Multipurpose Cooperative, Inc. and the Sta. Maria-Magkalape Tree Planters Association were found to be financially feasible, but that of ANAK-Jamindan was not. The benefit=sharing scheme between the government and the people's organizations that is based on gross sales was found to be disadvantageous to the latter, and could discourage them from undertaking value-added processing. For this reason, the Sta. Maria-Magkalape Tree Planters Association ceased its operations in 2001 because it can no longer afford to pay the share of the government. Finally, the CBFM projects still need financial and technical support from the government, without which they may not be able to sustain their activities