Review of Implementation of the Master
Plan for the Forestry Sector:
Achievements and Lessons
A Synthesis Report
April 2014
The Ministry of Forests and Soil Conservation
Singh Durbar, Kathmandu
MPFS Synthesis Report
CONTENTS
Page
FOREWORD
III
ABBREVIATIONS AND ACRONYMS
IV
EXECUTIVE SUMMARY
V
1
1
INTRODUCTION & BACKGROUND
1.1
The MPFS and the Forestry Sector Strategy
1
1.2
Synthesis and Peer Review
1
1.3
MPFS Outline
1
2
MPFS PROGRAMME ACHIEVEMENTS AND ISSUES
2
2.1
Community & Private Forestry
2
2.2
National & Leasehold Forestry
2
2.3
Wood-based Industries
3
2.4
Medicinal & Aromatic Plants & Other Minor Forest Products
4
2.5
Soil Conservation & Watershed Management
4
2.6
Conservation of Ecosystems & Genetic Resources
4
2.7
Forest Policy & Legal Reform
5
2.8
Institutional Reform
6
2.9
Human Resources Development (HRD)
7
2.10
Research & Extension
7
2.11
Resource Information & Planning Assistance
8
2.12
Monitoring & Evaluation
8
2.13
Climate Change and Forestry
9
2.14
Gender, Social Inclusion and Poverty Alleviation
9
3
CRITICAL FACTORS
11
3.1
Factors External to the Forestry Sector
11
3.1.1
Political change
11
3.1.2
Economic change
11
3.1.3
Demographic change
11
3.1.4
Communications and infrastructure
11
3.1.5
Other influential policies and laws
12
3.2
Forestry Sector Factors
12
3.2.1
Institutional modalities
12
3.2.2
Forestry sector finance
12
3.2.3
International development partners
13
3.3
International Factors
13
3.3.1
Nepal’s international commitments
13
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MPFS Synthesis Report
3.3.2
4
International best practice
LESSONS LEARNT
4.1
13
15
Lessons for the Management and Utilization of Forest Resources and
Conserving Biodiversity
15
4.2
Lessons for the Policy and Legal Framework
16
4.3
Lessons for Forest Sector Institutions
17
4.4
Lessons for the Forestry Sector’s Contribution to Economic
Development
19
4.5
Lessons for Addressing Poverty and Social Exclusion
20
4.6
Lessons for Nepal’s Climate Change Agenda
20
5
FUTURE DIRECTIONS AND OPTIONS
22
5.1
The nature of Nepal’s forestry sector strategy
22
5.2
Forestry sector governance and administration
22
5.3
Management of Forest Resources
23
5.4
Forest sector contribution to economic development
24
5.5
Forestry sector contribution to social inclusion and poverty reduction
24
5.6
Forest biodiversity and environmental conservation
25
5.7
Forestry sector response to climate change
25
6
CONCLUSION
26
6.1
Sustainable management of forest resources
26
6.2
Resource tenure and people's rights
26
6.3
Employment and economic growth
27
6.4
Partnership and collaboration among state, civil society and the private
sector
27
ANNEX 1 – MASTER PLAN FOR THE FORESTRY SECTOR (OUTLINE)
28
ANNEX 2 – MPFS IMPLEMENTATION AND ACHIEVEMENTS MATRIX
31
ANNEX 3 – NEPAL’S INTERNATIONAL COMMITMENTS
41
ANNEX 4 – A FRAMEWORK FOR FORESTRY SECTOR GOVERNANCE
42
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MPFS Synthesis Report
FOREWORD
The Master Plan for the Forestry Sector (MPFS), 1988-2011 has been the major forest policy framework
for conservation and management of Nepal’s forests for the last 25 years. Over this period and until the
end of the MPFS in July 2011 there have been significant political, economic and environmental changes
in the country. The forestry sector itself has faced a number of unfolding challenges and opportunities,
resulting from changes within and outside the sector, the country as well as globally. Such issues
demanded a comprehensive review of the MPFS as a basis for a new, more relevant and innovative
strategy for the future. Realizing this Ministry of Forests and Soil Conservation (MFSC) undertook a
thorough review of MPFS as a step in the preparation of the new Forestry Sector Strategy (FSS).
Several government and non-government organizations, associations, agencies, and persons contributed to
the entire review process, and MFSC highly values and appreciates their support. MFSC would also like to
extend its sincere thanks to Multi-Stakeholder Forestry Program (MSFP) and Hariyo Ban Program for
supporting the review process.
MFSC would like to thank the team involved in reviewing MPFS and preparing the FSS for their sincere
efforts in producing this report. MFSC acknowledges the sincere effort of Joint Secretary Mr. Ram Prasad
Lamsal in coordinating the whole effort. MFSC would also like to extend its appreciation to Dr. Keshav
Raj Kanel, Dr. Dhruba Prasad Acharya, Dr. Binod Bhatta, Dr. Bharat Kumar Pokhrel, Ms. Madhu
Ghimire, Mr. Nav Raj Baral and Mr. Peter Branney for their respective contributions in shaping this report.
MFSC would also like to recognize Mr. Krishna Prasad Acharya, Joint Secretary, MFSC; Dr. Bishwa Nath
Oli, Director General, Department of Forests; Resham Bahadur Dangi, Deputy Director General,
Department of Forests; Mr. Pem Kandel, Director General, Department of Soil Conservation and
Watershed Management; Dr. Maheshwar Dhakal, Department of National Parks and Wildlife
Conservation; Mr. Hasta Bahadur Thapa, Department of Forest Research and Survey; Mr. Ram Nandan
Sah, Mr. Tirtha Raj Joshi, Dr. Anuj Sharma and Mr. Bishal Ghimire from Department of Forests, for their
support and assistance in the process.
MFSC would also acknowledge the contribution of Mr. Yajna Nath Dahal, Mr. Kumud Shrestha, Dr.
Jaggannath Joshi, Mr. Pashupati Nath Koirala, Mr. Krishna Prasad Osti, Mr. Dil Raj Khanal, Dr. Bikram
Tamang, Ms. Sangita Bista, Mr. Nagendra Regmi, and Mr. Injun Acharya, for collecting required data and
preparing an initial draft of various sectoral program reports of MPFS. MFSC also thanks Ms. Dibya
Gurung for her input in the GESI section of review report, and Ms. Surabhi Pudaseni for her contribution
in editing this report.
MFSC would like to extend its sincere appreciation to Office of the Auditor General, Ministry of Finance,
Financial Comptroller General Office, all departments of MFSC, Timber Corporation of Nepal (TCN),
Forest Products Development Board (FPDB), Herbs Production and Processing Company Limited
(HPPCL), Trade and Export Promotion Center (TEPC), Singhadurbar Vaidyakhana, Gorkha Ayurved
Company, Agro Enterprise Center of Federation of Nepalese Chamber of Commerce and Industry (AECFNCCI) and Nepal Herbs and Herbal Products Association (NEHHPA) for providing highly needed data
and information relevant to the review.
Furthermore, MFSC would also like to thank various institutions and professional associations, including
Nepal Forester’s Association (NFA), Federation of Community Forest Users in Nepal (FECOFUN),
Association of Collaborative Forest Users of Nepal (ACOFUN), Nepalese Federation of Forest Resource
User Group (NEFUG), Himalayan Grassroots Women’s Natural Resources Management Association
Nepal (HIMAWANTI-Nepal), Federation of Forest Based Industry and Trade, Nepal (FenFIT), Nepal
Federation of Indigenous Nationalities (NEFIN), Dalit Alliance for Natural Resources (DANAR) and
National Forum for Advocacy Nepal (NAFAN) for their inputs in the review process.
Lastly, MFSC would like to extend its sincere appreciation to all individuals and organizations that have
contributed directly or indirectly to the process of preparing this report.
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MPFS Synthesis Report
ABBREVIATIONS AND ACRONYMS
BZMG
CF
CFUG
DFO
DFRS
DFSP
DoF
DSCWM
EIA
EPA
FLEG-T
FPDB
FSCC
FSS
GDP
GESI
GIS
GoN
HPPCL
HR
HRD
IT
LAPA
M&E
MAP
MEA
MFSC
MIS
MPFS
NAPA
NFC
NGO
NRS
NTFP
PA
PES
PRSP
REDD+
SWAP
SWC
TCN
TFAP
VAT
VDC
Buffer Zone Management Group
Community Forest
Community Forest Users Group
District Forest Officer
Department of Forest Research and Survey
District Forest Sector Plan
Department of Forests
Department of Soil Conservation and Watershed Management
Environmental Impact Assessment
Environment Protection Act
Forest Law Enforcement, Governance and Trade
Forest Products Development Board
Forestry Sector Coordination Committee
Forestry Sector Strategy
Gross Domestic Product
Gender, Equity and Social Inclusion
Geographical Information System
Government of Nepal
Herbs Production and Processing Company Limited
Human Resources
Human Resources Development
Information Technology
Local Adaptation Plan of Action
Monitoring and Evaluation
Medicinal and Aromatic Plant
Multi-lateral Environmental Agreement
Ministry of Forests and Soil Conservation
Management Information System
Master Plan for the Forestry Sector
National Adaptation Plan Of Action
Nepal Fuelwood Corporation
Non-Governmental Organization
Nepali Rupees
Non-Timber Forest Product
Protected Area
Payment for Ecological Services
Poverty Reduction Strategy Paper
Reducing Emissions from Deforestation and Degradation
Sector Wide Approach
Soil and Watershed Conservation
Timber Corporation of Nepal
Tropical Forest Action Plan
Value Added Tax
Village Development Committee
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MPFS Synthesis Report
EXECUTIVE SUMMARY
The Master Plan for the Forestry Sector (MPFS), prepared in 1986-88, ended in July 2011. It is soon
to be replaced by a new Forestry Sector Strategy (FSS). Implementation of the MPFS has resulted in
many achievements, opportunities and challenges. These have been reviewed and documented in a
series of papers prepared by national researchers and consultants using a process of information
analysis, literature review, consultation workshops and interviews with key informants. This synthesis
document is based on these detailed reviews and provides a concise summary of their main points and
findings as a contribution to the preparation of a new FSS.
The MPFS itself was structured around 6 Primary Development Programs and 6 Supportive Programs
each with a specific aim. These programs were separately analyzed and their achievements,
implementation issues and main gaps were identified in these reviews.
Amongst the 6 primary development programs, the Community and Private Forestry Program had
significant impact and largely achieved its aims. Community Forestry has contributed to halting forest
loss and degradation (especially in the Middle Hills) and has enhanced the livelihoods of the large
numbers of rural people. Main issues were the limited impact that community forestry has had on
rural employment and the local economy and the general under-utilization of community forests as
well as erosion of the legal autonomy of forestry groups by a series of administrative orders and other
decisions that have hindered better forest utilization and growth of forest-based enterprises. By
contrast the National and Leasehold Forestry Program made more limited progress. Although
leasehold forestry which evolved into Pro-Poor Leasehold Forestry has been a successful approach
(albeit on a relatively small scale) other components including lease of national forest for commercial
management by private operators and implementation of sustainable forest management by state
agencies has not taken place. As a result many remaining areas of unmanaged national forest suffer
from degradation and deforestation (especially in the Tarai and High Mountains). Collaborative Forest
Management as a potential approach for this is not yet fully operational or effective and Nepal’s wood
production is still unsystematic without planned involvement or investment by the private sector.
There is a thriving trade in illicit timber and ongoing threats to unmanaged national forests come from
infrastructure development and urban expansion as well as open access for grazing and encroachment.
The Program for Wood-based Industries has achieved very little. A huge gap still exists between
demand and supply for wood and market-led economic liberalization policies for timber and other
wood products were not effectively pursued as planned. Consequently the assured supply of forest
products needed to sustain and enhance Nepal’s forest based industry does not yet exist although
increasing supplies of raw materials are coming from sustainably managed community and private
forests. Main issues include over-regulation and frequent policy changes as well as interference by
other agencies e.g. police, local government etc. and promotion of timber imports. These all affect the
allocation of forests and the harvest, sale and transport of forest products. This in turn creates
disincentives to legitimate private investment and sustains an illegal forest product trade. Similarly the
Medicinal & Aromatic Plants & Other Minor Forest Products Program has had only limited
success. Although there is now much greater awareness, interest and grass-roots experience of
enterprises based on these products and many rural communities and households are involved in some
way, the sub-sector is still characterized by unsupportive and restrictive regulations, taxes and
procedures that, coupled with inadequate phyto-sanitary and testing facilities to support international
trade, adversely affect the establishment and management of such enterprises. NTFPs/MAPs-based
enterprises remain small and fragile and there is only limited private investment with few products
reaching international markets. Beneficiaries tend to be middle-men and traders rather than rural
households and some higher value products suffer from illegal trading. There has been moderate
success with the Soil Conservation and Watershed Management Program, which, even though it
did not achieve its physical targets resulted in some important impacts – especially in specific
localities. However, physical achievements of this program are relatively insignificant compared with
the actual requirements for soil and watershed conservation across the country – especially as these
are exacerbated by climate change effects, rural road construction and haphazard collection of
building materials from river courses. A specific policy on watershed conservation lacking and there
is only limited coordination between MFSC and other agencies such as local government, civil society
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MPFS Synthesis Report
and community groups and between MFSC and other ministries. The Conservation of Ecosystems &
Genetic Resources Program has been relatively successful and there is now a network of protected
areas (PAs) contributing to conservation of ecosystems and biodiversity and covering 23% of the
country’s land area. Populations of several charismatic species such as tiger, rhino and wild buffalo
have increased although many other species (especially birds) are in decline. Conservation policies
have moved away from 'people exclusionary' and 'species focused' towards 'people-cantered’
approaches and buffer zone management groups have enabled local people to benefit from PAs. In
popular national parks visitor numbers and revenues have increased significantly. Main issues include
a shortage of specialized staff and a contested legal framework for PAs (including processes of PA
declaration, governance, power sharing, equity and benefit-sharing). Increased visitor numbers
combined with infrastructure development have had adverse effects at certain locations and human
wildlife conflicts have increased. Illegal trade and wildlife poaching has not been effectively
controlled despite the engagement of the Nepal Army. Climate change and infrastructure development
are adversely affecting biodiversity conservation.
Of the 6 supportive programs of MPFS the Forest Policy & Legal Reform Program has proved to
be highly critical. With successful policy and legal reform, individual programs under MFSP have
tended to be successful but where such reforms have not been made or implemented affected
programs have been far less successful. The Forest Sector Policy (1989) (included in the MPFS) and
the Forest Act (1993) are considered as having been amongst the most influential, innovative and farsighted elements of the MPFS and policy directions determined by MPFS and the subsequent legal
reforms made a significant contribution to shaping the direction of Nepal’s forestry sector and the
institutions operating within it. However, there have been important challenges including:









Need for deregulation to support more effective harvesting, utilization and transport of forest
products (both wood and non-wood) and to reduce unnecessary transaction costs.
Need for transparency and consistency in the application of royalties and taxes to ensure that
legitimate sources of government revenue are maintained whilst not stifling the activities that
are being promoted.
Weak coordination and synergy of policies across different sectors and within the forestry
sector itself.
Unclear policies affecting forest land use and forest management modalities and frequent ad
hoc regulation and politically motivated decision-making.
Inconsistency in roles and responsibilities vis the Forest Act (1993) and the Local
Government Act (1999).
Limited stakeholder engagement in policy processes at different levels.
Inconsistencies between policies and legislation (including various orders, circulars and
regulations).
Excessive application of regulations under the Environment Protection Act (EPA) being
applied to activities in the forestry sector (especially small-scale harvesting and enterprises).
Poor policy and regulatory dissemination.
The MPFS contained an institutional development plan that was the basis for an Institutional
Reform Program focusing on reform of government forest sector institutions in line with the
requirements of the MPFS. Significant restructuring of the MFSC took place in 1989 broadly in line
with this but later reforms in 1993 and 2000 were driven from outside MFSC and have not been
consistent with the needs of MPFS. Other institutional reforms including the restructuring or
dismantling of Government parastatals did take place with only TCN, the Forest Products
Development Board (FPDB) and the Herbs Production and Processing Company Ltd. (HPPCL)
remaining. Attempts to constitute standing committees enabling different stakeholders to contribute to
sector governance have not been properly institutionalized and frequently lack real power to hold
government agencies to account. Whilst there have been many changes in Nepal’s institutional
landscape including the rise of an active and vocal civil society (including non-government forestry
professionals), decentralized government, expansion of community based organizations and greater
public awareness of the need for transparency and accountability amongst government institutions,
reforms within MFSC have not kept pace with these and government forestry sector institutions are
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MPFS Synthesis Report
viewed as archaic and largely ineffective in meeting the needs of a changing society. Closely linked
with this was the Human Resources Development Program that aimed at ‘reorienting and retraining
of forestry professionals’. Much was achieved in terms of professional training through a
comprehensive training program but entrenched cultural and attitudinal issues were insufficiently
addressed and are still important constraints for forestry sector institutions. The MFSC’s Gender,
Equity and Social Inclusion strategy has contributed towards a breakdown of some of these barriers
but has been inadequately put into practice. Non-approval and non-implementation of the
comprehensive Human Resources strategy for MFSC means that MFSC still lacks many of the key
HR systems that characterize a modern and effective government agency including: guidelines and
principles for recruitment, terms and conditions, code of conduct, transfer, performance appraisal,
career path, counseling, training, promotion and grievance handling. An expansion of forestry
education in Nepal has led to an increase in non-government forestry professionals whilst government
programs lack specialist staff and MFSC generally lacks quality managers and administrators. It is
questionable whether existing HR systems in MFSC can deliver the types of specialized knowledge
and capacities required to administer Nepal’s forest sector.
Research & Extension Program achievements have been limited. Research itself has suffered from
poor funding and frequent shifts in the status of the key government research agency whilst extension
is similarly hampered by ambiguous responsibilities between different divisions and departments and
also between the central HQ and Regional Centers. There is no forestry research policy identifying
priority areas although there has been a shift towards the needs of community forestry – especially for
natural forest management and farm-forestry although the uptake and impact of this research is not
well documented. Other current research needs, especially climate change related aspects, are not well
catered for and research tends to be viewed in terms of formal scientific knowledge rather than mutual
exchange of information and solutions to field-based problems. There has been a rise in the relevance
and impact of forestry-related research conducted outside government institutions largely cantered
round community forestry that has meant that the future direction and role of DFRS is being
questioned especially since many research staff have left government service or are frequently
unmotivated. Despite the Resource Information & Planning Assistance Program a definitive
current national forest inventory does not yet exist (although it will be produced soon with support
from the Finnish Government). The sector has suffered due to a lack of disaggregated data for
planning at different levels and even where data sets exist these are in different departments and
offices. MFSC has institutionalized a participatory planning process (unlike most other ministries)
that operates from grass roots level up through VDCs to districts and national level. A major
achievement has been the incorporation of policy provisions for equitable representation and benefit
sharing in community forestry into actual plans and constitutions at grass-roots level. The provisions
of the Monitoring & Evaluation Program remain largely unimplemented. Monitoring following the
requirements of the National Planning Commission has been carried out but this is insufficient to
capture the intended impacts of MPFS and to guide future planning processes for the forestry sector.
There has been no interim monitoring or evaluation of the MPFS – therefore mid-term changes and
corrections have not happened. Consequently it is difficult to fully assess wider forest sector
achievements and impacts under MPFS.
Two areas not covered in the MPFS were Climate Change and Forestry and Gender, Social
Inclusion and Poverty Alleviation. A review of progress with both these has shown that there have
been some important achievements including the development of climate change policies and the
plans for adaptation (NAPA) and mitigation in the forestry sector (REDD+). These represent policy
shifts that need to be explicit in the new Forestry Sector Strategy. Poverty, social inclusion and gender
aspects of forestry have had considerable attention despite their limited emphasis in MPFS. MFSC’s
GESI Strategy (2006) was an important milestone which identified key change areas but in practice
implementation mechanisms are virtually non-existent and the forestry sector remains maledominated in its government organization and, with the exception of community-based forestry,
policy provisions for gender mainstreaming are not backed up by relevant legal provisions and
operational frameworks. Within MFSC, pro-poor and inclusive working modalities are not generally
practiced and GESI achievements remain elusive.
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MPFS Synthesis Report
Key external factors contributing to or affecting the achievements of MPFS were identified as: (i)
political change; (ii) economic change; (iii) demographic change; (iv) communications and
infrastructure and (v) other influential policies and laws. Factors internal to the forestry sector were:
(i) institutional modalities; (ii) forestry sector finance and (iii) international development partners. The
review also considered the effects of Nepal’s international commitments (multi-lateral environmental
agreements) and the experiences and learning from international best practice in forestry. All these
factors have considerable relevance for the new Forestry Sector Strategy.
The most important lessons learnt from the implementation of MPFS are identified in the areas of:
Management & utilization of forest resources and conservation of biodiversity; Policy and legal
framework; Forestry sector institutions; Forestry sector’s contribution to economic development;
Addressing poverty and social exclusion and Nepal’s climate change agenda. These need to be
incorporated into the new Forestry Sector Strategy and detailed lessons are described.
Future directions and options for Nepal’s Forestry Sector Strategy are identified from the review
process. These include identification of future directions and a series of key questions and/or options
that need to be answered or agreed in the areas of:






Management of forest resources
Forestry sector contribution to economic development
Forestry sector contribution to poverty reduction
Forest biodiversity and environmental conservation
Forestry sector response to climate change
Forestry sector governance and administration
In conclusion, the review process derives a few important guiding principles that can be used to
underpin the approaches of the forthcoming Forestry Sector Strategy. These are: sustainable forest
management; resource tenure and people’s rights; employment and economic growth and partnership
and collaboration among the state, civil society and the private sector. The review identifies a number
of approaches that have been successfully used over the past 25 years and that are consistent with
these principles.
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MPFS Synthesis Report
1
INTRODUCTION & BACKGROUND
1.1 The MPFS and the Forestry Sector Strategy
The Master Plan for the Forestry Sector (MPFS), prepared in 1986-88, ended in July 2011. It is soon
to be replaced by a new Forestry Sector Strategy (FSS). Implementation of the MPFS has resulted in
many achievements, opportunities and challenges. These have been reviewed and documented in a
series of papers prepared by national researchers and consultants using a process of information
analysis, literature review, consultation workshops and interviews with key informants. This review of
MPFS and its achievements and challenges represents the first stage for the preparation of the new
FSS.
1.2 Synthesis and Peer Review
The component programs of the MPFS were reviewed in detail by a series of different individuals.
This document is based on these detailed reviews and aims to provide a peer reviewed synthesis of
their main points and findings as a contribution to the preparation of a new FSS.
1.3 MPFS Outline
The MPFS had 4 long-term and 3 medium-term goals representing local, national and international
priorities and perspectives at the time of preparation:
Long-term goals




To meet the people’s basic needs for fuel-wood, timber, fodder and other forest products on a
sustained basis and to contribute to food production through an effective interaction between
forestry and farming practices
To protect the land against degradation by soil erosion, floods, landslides, desertification and
other effects of ecological imbalance
To conserve the ecosystems and genetic resources
To contribute to the growth of local and national economies by managing the forest resources
and the forest-based industries and creating opportunities for income generation and
employment
Medium-term goals



To promote people’s participation in forestry resource development, management and
conservation
To develop the legal framework needed to enhance the contribution of individuals,
communities and institutions to forest resource development, management and conservation
To strengthen the organizational framework and develop the institutions of the forestry sector
to enable them to carry out their missions
The MPFS itself was structured around 6 Primary Programs and 6 Supportive Programs each with a
specific aim. These programs were described in 13 separate reports, which are listed in Annex 1.
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MPFS Synthesis Report
2
MPFS PROGRAMME ACHIEVEMENTS AND ISSUES
This section contains a summary of the achievements of each of the MPFS programs and identifies
the main issues and gaps. Further details are also included in Annex 2.
2.1 Community & Private Forestry
Program Aim: ‘to develop and manage forest resources through the active participation of individual
people and communities to meet their basic needs’.
The Community and Private Forestry Program of the MPFS made considerable progress and has had
significant impact. Most of the physical targets were achieved or even exceeded and the concept and
practice of community and private forestry has now expanded far beyond that which was originally
envisaged. Key success factors were a largely supportive policy and legal environment; a willingness
to innovate and pilot new approaches amongst service providers (both state and non-government) and
within communities; the changing political landscape of Nepal and the availability of support from
externally funded projects. As a result, there is now about 1.7 million ha of community forest in Nepal
(representing about 29% of total forest) and about 2.25 million households are directly involved in the
program as members of community forestry groups. The program has contributed to halting forest
loss and degradation (especially in the vulnerable Middle Hills) and has enhanced the livelihoods of
the rural people who have been involved whilst giving special focus to the needs of poor and
disadvantaged households. Lessons from the community forestry program have influenced the
development of other development programs in Nepal and also community forestry approaches in
other countries. In Nepal, community forestry is now widely recognized as a successful development
initiative that has achieved impacts both inside and outside the forestry sector. Other associated
components of this program (see Annex 1) for seedling distribution, enhanced use of fuel-saving
devices and biogas installation also made significant progress although there is less quantitative data
available to substantiate this.
Despite these undoubted successes, several issues and gaps remain. The economy of community
forestry remains poorly understood in terms of labor contributions and benefits accrued to different
households and the overall income generated and shared has proved to be difficult to measure. In
addition, community forestry has so far failed to have significant impacts on rural employment and
the local economy. Community forests generally remain under-utilized and their acknowledged
potential to supply more forest products remains unfulfilled. A clear policy for the allocation of
national forest to the various community-based forest management regimes is lacking – especially for
the Tarai (and high mountains) where handover as community forest has been subject to intermittent
delays and ad hoc directives and where the role and scope for other models such as collaborative
forest management are still being piloted and refined. The legal autonomy of forestry groups has been
eroded by a series of administrative orders, circulars and other decisions that have increased the
transaction costs of better forest utilization and has hindered the growth of forest based enterprises.
Similarly, permit systems have adversely affected private tree planting and utilization of forests and
trees on private land. Legal rights for community forest groups to forest tenure and access, use,
harvest and management of forest products are assured through the legislation but have been tempered
through various ad hoc decisions.
2.2 National & Leasehold Forestry
Program Aim: ‘to develop and manage national forests through government agencies or private
sector lessees, complementing community and private forestry’.
Progress with the National and Leasehold Forestry Program of the MPFS has been very limited. Of
the 5 main components (Annex 1) only with Pro-poor Leasehold Forestry has there has been any
significant achievement. No existing national forest has been leased to private parties for commercial
management and utilization as envisaged in the MPFS. At the same time, the concept of leasehold
forestry took a different direction from that envisaged in MPFS to become pro-poor leasehold forestry
that is now characterized as being an effective complement to community and private forestry
although still operating at a comparatively small scale. Partly because components for commercial
management and utilization of national forest have stalled many remaining areas of unmanaged
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MPFS Synthesis Report
national forest (especially in the Tarai and high mountains) continue to suffer from degradation and
deforestation although recent and accurate data are not available. These forests do not fulfill their
potential to sustainably supply forest products. Few, if any areas of forest are being managed by
government agencies on a sustainable harvest basis for commercial timber supply and earlier pilot
attempts to develop sustainable harvesting systems for natural forests have not been widely applied to
block forest management. Amongst government staff and also within non-government service
providers, there has been an improvement in knowledge and capacity concerning silviculture and
sustainable forest management although there are few opportunities available to put this into practice
except in one area under Collaborative Forest Management.
Consequently, wood supplies to wood-deficit areas have not been adequately developed thus affecting
the growth of wood-based industries (see section 2.3). Currently, wood production is largely
unsystematic without any planned involvement or investment of the private sector and there is a
thriving trade in illicit timber (mainly in the Tarai). Further threats to unmanaged national forests
come from infrastructure development and urban expansion – neither are systematically planned or
compensated. Unmanaged national forest tends to be treated as open access for grazing, encroachment
and other uses and many forests have visibly deteriorated over the past 25 years. A classification
system for forest land has not been implemented and there is continuing uncertainty over the
management modality for much of the national forest (especially in the Tarai and high mountains).
Conversion of national forests to Protection Forests, National Parks and Conservation Areas has in
many cases antagonized local communities who feel their needs are not considered. District forest
sector plans (DFSPs) have attempted to resolve such issues at local level through a consultative
process but their legal status of DFSPs remains unclear and their implementation is very weak.
2.3 Wood-based Industries
Program Aim: ‘to facilitate the conversion of wood into commodities needed by the people and to
contribute to economic development through industrialization’.
Under the MPFS there were to have been a series of actions incorporated into the 8th-10th 5-year plans
and the two 3-year interim plans to achieve this aim. Such actions were not effective in maintaining
an effective balance between the demand and supply of timber products whilst a market led economic
liberalization policy for timber and other wood products was not effectively pursued. Consequently
the assured supply of forest products required to sustain and enhance Nepal’s forest based industry as
envisaged did not take place. There is still a huge gap between demand and supply for wood, mainly
in urban/suburban areas and in the Tarai and the supply of raw material remains the major constraint
for the development of wood based industries.
For wood based industries to develop and expand a stable and favorable policy and regulatory
environment is required to attract inward investment and private sector interest. This has not been
achieved for example MPFS recommended relaxing the land ceiling limits in order to promote trees
on private land and suggested a subsidy to encourage private commercial nurseries – neither of these
was ever implemented. It has been difficult to systematically ascertain actual progress with Nepal’s
forest-based industry in the absence of an appropriate monitoring system. Sufficiently supportive
policies have not been put in place to promote forest based industries. The Timber Corporation of
Nepal (TCN) is still involved in the harvesting and processing of timber and this creates a disincentive
to private sector investment and growth. In addition, over-regulation and frequent policy changes in
allocation of forests and in the harvest, sale and transport of forest products as well as interference by
other agencies (police, local government etc.) have also acted as a disincentive to legitimate private
sector investment and involvement in the sector and thus stimulates an illegal forest product trade.
Promotion of timber imports has had the same negative effect on Nepal’s home-grown wood using
industry. By contrast there have been increasing supplies of raw material for forest-based enterprise
originating from community and private forests (especially in the Middle Hills) – this was never
anticipated in the MPFS – although even such supplies suffer from clumsy and often unnecessary
over-regulation.
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MPFS Synthesis Report
2.4 Medicinal & Aromatic Plants & Other Minor Forest Products
Program Aim: ‘to increase the supply of medicinal and aromatic plants and other minor forest
products and to facilitate their conversion into useful commodities and their distribution to local and
foreign markets’.
Various policies and actions on NTFPs/MAPs (non-timber forest products/medicinal and aromatic
plants) were developed under MPFS with the result that there is now much greater awareness, interest
and grass-roots experience of enterprises based on these products. Many rural communities and
households have established or are involved with NTFPs/MAPs-based enterprises although
monitoring systems are still insufficient to generate adequate data about the scale and progress of this
subsector. The sub-sector is still characterized by unsupportive and restrictive regulations and
procedures including regulations on establishment of such enterprises, tax, royalties, VAT, movement
permits, customs permits and export regulations coupled with inadequate phyto-sanitary and testing
facilities to support international trade. Efforts to address some of these issues have only had limited
success. As a result NTFPs/MAPs-based enterprises remain small and fragile and there is only limited
inward investment from private entrepreneurs. In general the main beneficiaries of NTFPs/MAPs
appear to be middle-men and traders rather than poor rural households despite the acknowledged
potential of these products for rural livelihoods and jobs. Production of many NTFPs/MAPs from both
wild sources and cultivation still remains far lower than their potential whilst some high value
products e.g. yarsha gumba suffer from illegal trade. Very few products have reached international
markets.
2.5 Soil Conservation & Watershed Management
Program Aim ‘to protect the land against degradation and conserve its values through the
mobilization of national and local resources’.
This program focused on land treatments to protect critical areas and to restore those areas already
damaged. Alongside this was a component for conservation education and extension. Although the
physical targets of MPFS were not fully achieved, the program has made some progress and has
resulted in some important impacts – especially in specific localities. Additional actions (not
identified in the MPFS) including focusing on the highly vulnerable Chure watersheds, climate
change related actions (including people’s participation in hazard mapping, vulnerability and risk
assessment and early warning systems) and training and extension activities for both government
agency staff and local people have also been carried out. However, regardless of the scale of the
physical achievements of this program, these are still relatively insignificant when compared with the
actual requirements for soil and watershed conservation in Nepal and many areas remain untreated
especially as these requirements are now exacerbated by climate change effects, widespread rural road
construction and haphazard collection of building materials from river courses (especially in the
Chure and Bhabar areas).
Watershed surveys at different levels have been conducted although unfortunately monitoring has not
been regular enough to assess the overall impacts of this program. Although there is a Soil and
Watershed Conservation Act (1982) and associated regulations these are not implemented nor
amended to bring them up to date. In addition a specific policy on watershed conservation that could
assist in bringing together different sectoral programs is lacking. This has led to reduced opportunities
for coordination and collaboration between Ministry of Forests and Soil Conservation (MFSC)
departments and with local government, civil society and community groups and between MFSC and
other ministries. Where local groups have been established for soil and water conservation purposes
they lack the legal basis of other groups such as Community Forest User Groups (CFUGs).
2.6 Conservation of Ecosystems & Genetic Resources
Program Aim ‘to protect special areas for their ecosystem and genetic resource values as well as for
the provision of amenities and to promote in-situ and ex-situ conservation of plant and animal genetic
resources’.
This program has been relatively successful. Nepal now has a well-developed network of protected
areas (PAs) which contribute to in-situ conservation of ecosystems and biodiversity across the
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country. The coverage of PAs has increased from 10,798 km2 in 1988 to 34,185.52 km2 in 2011
representing 23% of the land area of the country. There has been an increase in the population of
several protected animals including tiger (increased from 98 in 1995 to 198 in 2013), rhino (increased
from 358 in 1988 to 534 in 2011) and wild buffalo (from 63 in 1996 to 259 in 2012). However other
groups (especially birds) are still in decline. There has been a fundamental shift in conservation
policies away from 'people exclusionary' and 'species focused' towards 'people-cantered and
community based' approaches. Buffer zone management and the establishment of Buffer Zone
Management Groups (BZMGs) have enabled local people’s livelihoods to benefit from PAs as well as
biodiversity conservation. Communities, local authorities and civil society organizations are now
directly involved in supporting PA management and associated livelihoods programs and an
ecosystem/landscape approach are now largely followed. The private sector is also involved through
the establishment of tourist facilities. Regarding the other components of this program (Annex 1),
there has been an increase in the number of botanical gardens and zoos and the national herbarium has
been developed and expanded. Breeding programs for a number of key species such as vultures,
elephant and gharial are underway and several successful translocation programs have taken place. In
the most popular national parks visitor numbers have increased and revenues have also increased
accordingly.
Whilst there have been successes, the conservation subsector suffers from a shortage of specialized
staff to cope with the increasingly diverse demands placed on it. The legal framework for protected
areas is still contested around issues such as the process of PA declaration, PA governance, power
sharing between government authorities and local citizens and around equity aspects of benefitsharing. The administrative structures and capacities of government agencies have not been able to
change to reflect the fundamental shift in approach to conservation. Increased visitor numbers to PAs
with concentration of many visitors into a few areas combined with the necessary infrastructure
development to cope with them has had adverse effects. Human wildlife conflicts have also increased
(possibly as a result of successful conservation initiatives) and compensation systems are inadequate.
Illegal trade and wildlife poaching has not been effectively controlled even from PAs and engagement
of the Nepal Army to contribute to this role places a heavy financial burden on MFSC. Climate
change is also adversely affecting biodiversity especially as a result of invasive plant species whilst
infrastructure development such as roads, transmission lines and urban expansion continues to erode
the integrity of the PA network.
2.7 Forest Policy & Legal Reform
Program Aim: ‘to develop the policy and legal framework to facilitate and enhance the contribution
of individual people, communities and institutions to forest resource development, management and
conservation’.
Policy and legal reform was one of the six supportive programs of the MPFS and has proved to be a
highly critical component. For components where there has been successful policy and legal reform,
individual programs under MFSP have tended to be successful whereas when such reforms have not
happened or where they have not been implemented then the relevant programs have proved less
successful. The MPFS itself included a Forestry Sector Policy (1989) that developed the strategies for
implementation of the programs outlined in the MPFS as well as outlining the legal reforms needed to
ensure that each program could be successfully implemented. This policy remained in place
throughout the duration of MPFS until 2000 when a revised Forestry Sector Policy received cabinet
approval (although the main thrust of the 1989 policy was maintained). The policy directions
determined by MPFS and the subsequent legal reforms have made a significant contribution to
shaping the direction of Nepal’s forestry sector and the institutions operating within it. The Forest
Sector Policy (1989) and the Forest Act (1993) are considered as having been amongst the most
influential, innovative and far-sighted elements of the MPFS.
Importantly, policy has not proved to be static and numerous additional policies and legal instruments
have been developed in response to particular issues that have arisen or to support positive learning
based on implementation of the different programs. Despite this there are many policy-related issues
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MPFS Synthesis Report
and challenges that still need to be addressed. Some of the more critical policy and regulatory
challenges include:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
Deregulation to support more effective harvesting, utilization and transport of forest products
(both wood and non-wood) and to reduce transaction costs and unnecessary bureaucracy in
order to attract investors and encourage forest-based industries.
Consistency and transparency regarding the application of royalties and taxes (and VAT) in
the forest sector to ensure that legitimate sources of government revenue are maintained
whilst not stifling the activities that are being promoted through policy.
Better coordination to ensure consistency and synergy of policies across different sectors and
even within the forestry sector itself (see also section 3.1.5)
Clarification and agreement on policies affecting forest land use and forest management
modalities (including PAs and Protected Forests) and removal of ad hoc regulation and
politically motivated decision-making. Policy and legislation should aim to be
comprehensive, transparent and predictable so that frequent departmental directives, orders
and circulars are largely unnecessary.
Addressing inconsistency in roles and responsibilities vis the Forest Act (1993) and the Local
Government Act (1999) and developing policies within the forest sector that enhance and
encourage decentralized decision-making and local involvement.
Better stakeholder engagement in policy processes especially for policy preparation and to
ensure better coordination within MFSC at different levels
Removal of inconsistencies between forest policies and legislation (including various orders,
circulars and regulations). Normally legislation is enacted to enable policies to be carried out
– hence the importance of defining and agreeing on policies before legislating.
Implementation of actions to make forestry parastatal organizations compete on a level basis
with the private sector.
Simplification of the regulations under the Environment Protection Act (EPA) requiring
Environmental Impact Assessments (EIAs) to be prepared for different plans and other
activities in the forest sector (see also 3.1.5)
Improved policy and regulatory dissemination to ensure that other agencies such as the police
(outside the forest sector) are better aware of and support the implementation of forest
policies.
2.8 Institutional Reform
Program Aim: ‘to strengthen the organizational framework in the sector for more efficient and
effective development program implementation’.
The MPFS contained an institutional development plan that aimed to reform government forestry
sector institutions in line with the requirements and provisions of the components of the MPFS and
within the framework of the Nepal’s new forest sector policy and legislative reforms. The most
significant achievements of this reform program were a restructuring of the MFSC and its various
departments that took place almost immediately after 1989 broadly in line with the programs of the
MPFS and taking into consideration their scale and staffing requirements. Further administrative
reforms took place in 1993 and 2000 but these were largely driven from outside MFSC under the
influence of a High Level Administrative Improvement Commission of GoN which required drastic
reductions in staff numbers – especially at central level. Consequently they were somewhat
inconsistent with the staffing needs of MPFS. A positive aspect of the 1993 reforms was the
establishment of a new semi-autonomous entity called the Centre for Forest Research and Survey although this did not last long and it was upgraded to a new Department of Forest Research and
Survey (DFRS). Other institutional reforms proposed in the MPFS and largely put into place
concerned the restructuring or dismantling a series of Government parastatals. Some of these were
privatized (e.g. Bhrikuti Paper Mills, Nepal Paper Industries Ltd, Butwal Plywood factory and Nepal
Rosin and Turpentine Industries Co) others were merged (e.g. Timber Corporation of Nepal (TCN)
merged with the Nepal Fuelwood Corporation) and Royal Drugs Ltd. was shifted to the Ministry of
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MPFS Synthesis Report
Health. At the present time only TCN, the Forest Products Development Board (FPDB) and the Herbs
Production and Processing Company Ltd. (HPPCL) remain as parastatals in the forest sector.
Forestry sector administration is largely governed by the public sector administration of GoN which is
characterized by over administration. Attempts have been made to constitute standing committees
representing different stakeholders to contribute to sector governance at different levels e.g. the
national-level Forestry Sector Coordination Committee (FSCC) and in many districts a District Forest
Coordination Committee (DFCC). These have not been properly institutionalized and they frequently
lack real weight to make decisions or hold government agencies to account. Other attempts made to
reform institutional structures in the forestry sector these have been hampered by wider administrative
regulations outside MFSC. Since 1990 there have been many changes in Nepal’s institutional
landscape including the rise of an active and vocal civil society, decentralized government at district
and VDC levels, expansion of community based organizations and their capacity and greater public
awareness of the need for transparency and accountability amongst government institutions. In
practice those institutional reforms that have taken place have not kept pace with these changes thus,
despite their achievements, government forestry sector institutions are viewed as archaic and largely
ineffective in meeting the needs of a changing society.
2.9 Human Resources Development (HRD)
Program Aim ‘to develop the capability of the human resources in the sector for implementing
forestry development programs and operations’.
The HRD approach in MPFS was “reorienting and retraining of forestry professionals so that they
will shed their traditional ‘police’ roles and adopt new ones as people’s partners in development”. A
number of significant achievements were made reflecting the main components of this program
(Annex 1) although importantly, the comprehensive Human Resources strategy for MFSC prepared in
2004 was never formally approved nor implemented. As a result MFSC lacks many of the key HR
systems that would characterize a modern and effective government agency such as guidelines and
principles for: recruitment, terms and conditions, code of conduct, transfer, performance appraisal,
career path, counseling, training, promotion and grievance handling. MFSC also lacks a
comprehensive and transparent human resources information database. Establishment of a Central
HRD and Training Division and 5 Regional Training Centers enabled a comprehensive governmentled training program to be implemented (mostly for mid-level forestry professionals) covering a wide
range of topics and often with the support of donor funding. This contributed significantly towards
attitudinal and capacity shifts in the forest sector. In addition, forestry education in Nepal has
expanded and there are now several different institutions offering forestry-related qualifications from
certificate level to PhD. This has resulted in an increase in the level of qualifications held by forestry
professionals (complemented by the additional opportunities for overseas study offered through donor
programs). An important change over the course of MPFS has been the rise in numbers of civil
society organizations working in the forestry sector – meaning that many professional foresters now
pursue their careers outside government.
Almost all programs identified that a lack of specialist staff was a constraint to more effective
implementation. Forestry is a diverse and multi-faceted discipline therefore, whilst it remains GoN
practice to transfer individuals between departments and divisions, it is increasingly questionable
whether this can result in the development and continued application of specialized knowledge and
capacity required for administering Nepal’s forest sector. Entrenched cultural and attitudinal issues
are still important constraints for forest sector institutions and individuals (although the MFSC’s
Gender, Equity and Social Inclusion (GESI) strategy has contributed towards a breakdown of some of
these barriers). There are still significant issues relating to equal opportunities for different caste,
gender and ethnic groups. Some of these challenges apply equally to non-government organizations in
the forest sector as to government.
2.10 Research & Extension
Program Aim ‘to strengthen the research and development as well as the extension and public
information capability of the forestry sector and to promote the utilization of the results of research’.
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MPFS Synthesis Report
The achievements of the forestry research and extension program have been limited. Research itself
has continually suffered from poor funding levels and frequent shifts in status of the key government
research agency whilst extension is similarly hampered by ambiguous responsibilities between
different divisions and departments and also between the central HQ and Regional Centers. Although
there is no official forestry research policy identifying priority areas, there has been a shift towards the
needs of community forestry (away from purely technical forestry) – especially for natural forest
management and farm-forestry although the uptake and impact of this research is not yet well
documented. Other current research needs, especially climate change related aspects, are not well
catered for and in general research tends to be viewed in the sense of formal scientific knowledge
rather than mutual exchange of information of different kinds. There has been a parallel rise in the
relevance and impact of forestry-related research conducted outside government research institutions
through NGOs, projects and academic institutions. These have cantered round community forestry
(now a well-researched and documented sub-sector) and other socio-economic aspects of forestry.
Formal partnerships in research between government, academic institutions and NGOs are largely
non-existent and communication and coordination between them remains poor. Many research staff
have left government service and those who remain are frequently unmotivated. It is almost
impossible to assess the contribution that forest research has made towards the effective
implementation of MPFS programs. Considering the availability of non-government research capacity
the future direction and role of DFRS is being questioned.
Extension impacts are also difficult to assess – although forestry continues to receive good media
coverage and the level of awareness at local level is good – at least partially as a result of the efforts
of the actions of MFSC Extension Sections.
2.11 Resource Information & Planning Assistance
Program Aim: ‘to develop within the Ministry of Forests and Soil Conservation a forest resources
information system and capability for surveys, inventories and other information generating activities
and for using management information in long-term and operational planning by the government and
private sectors’.
Responsibility for this program was with DFRS for resource information (mainly forest inventory)
and Planning and Human Resource Development Division within MFSC, Planning Divisions of the
various Departments of the Department of Forestry and Regional Forestry Directorates for planning
activities. Two national forest inventories have been conducted and a third is underway (with support
from the Finnish Government). The 1999 report on national forest inventory, although much quoted
and used has been shown to have many deficiencies – particularly a lack of disaggregated data and the
consequences of being based on data from a series of different inventories carried out by different
methodologies and at different times. As a result definitive, current national forest inventory data do
not yet exist (although they will be produced soon). In addition to this, DoF maintains its own MIS
system and database of CFUGs whilst other data sets exist in different departments and their district
offices (DFOs, Soil Conservation offices and Warden’s Offices). Increasingly these and associated
maps are being used for preparation of DFSPs and other types of local plan. Within MFSC there is an
institutionalized participatory annual planning process (unlike most other ministries) that operates
from grass roots level up through VDCs, Districts and is consolidated at national level. A major
achievement has been the incorporation of policy provisions for equitable representation and benefit
sharing in community forestry into actual plans and constitutions at grass roots level with the support
of government staff and local NGOs e.g. 33% of CFUG committee members to be women; 35% of
group expenditure from their funds to be used for pro-poor activities and 25% for forest development.
2.12 Monitoring & Evaluation
Program Aim: ‘to institutionalize a system for monitoring forestry development operations and their
impacts and for processing monitoring data into information to guide the development process.
The provisions of the monitoring and evaluation program of MPFS remain largely unimplemented.
MFSC has carried out regular monitoring following the requirements of the National Planning
Commission but this is insufficient to capture the intended impacts of MPFS and to guide future
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MPFS Synthesis Report
planning processes for the forestry sector. There has been no interim monitoring or evaluation of the
MPFS – therefore mid-term changes and corrections have not happened. Consequently it is difficult to
fully assess wider forestry sector achievements and impacts under MPFS and monitoring data cannot
be readily used to contribute to better planning of the various MPFS programs. A particularly
important gap has been the lack of information analysis required to fully assess the economic
contribution of the forestry sector to the national economy and to achievement of national goals on
poverty reduction although a series of studies and reports have tried to address this. Various
departments of MFSC have established their own separate monitoring systems which remain largely
unlinked. These include Department of Forests (DoF) which has an Integrated National Database
system and CFUG database and DSCWM, Department of Plant Resources (DPR) and DFRS which all
have monitoring systems covering their specific areas of interest.
2.13 Climate Change and Forestry
Climate change elements were not considered in MPFS although there have been many subsequent
developments and considerable progress made at a strategic level over the past 25 years. The Ministry
of Environment prepared a climate change policy in 2011 which has direct implications for the forest
sector including (i) the proper utilization and conservation of forest resources as a means for
alternative livelihoods (ii) programs for sustainable forest management and soil conservation to
address the impacts of climate change (iii) encouraging carbon sequestration and emissions reduction
in forestry and (iv) adoption of a basin approach for better water management. Nepal’s National
Adaptation Plan of Action (NAPA), again prepared by the Ministry of Environment, develops these
areas into a prioritized national plan for adapting to climate change and for building the country’s
resilience. Several elements of NAPA are directly applicable to the forestry sector such as forest fire
management, control of invasive species, soil and watershed conservation, water source development
and flood control and management. NAPA has been followed by the preparation and implementation
of district and local adaptation plans (LAPAs) that have drawn heavily on participatory processes
learnt from the forest sector. At grass roots level many local forestry groups are now involved in
implementing actions to enhance people’s climate resilience especially of those identified as being
most vulnerable.
Reducing Emissions from Deforestation and Degradation (REDD+) in Nepal coordinated by MFSC
has followed a process for developing and implementing a strategy for reducing forest carbon
emissions and enhancing forest carbon capture to mitigate climate change and benefit from
international markets for carbon. The process of developing a national REDD+ strategy is still
underway. Although both NAPA and REDD+ represent significant shifts in emphasis for the forestry
sector – in practice they tend to reinforce policy directions that were already present i.e. sustainable
forest management and halting forest loss (in REDD+) and enhancing the livelihoods and resilience of
poor rural people (in NAPA).
2.14 Gender, Social Inclusion and Poverty Alleviation
Forestry has a strong gender dimension which in recent years has received considerable attention both
in Nepal and internationally, although it was little emphasized in the MPFS. Likewise, poverty and
social inclusion concerns were not well highlighted in MPFS although these have since come to the
fore in the form of Nepal’s Poverty Reduction Strategy Paper (PRSP) and the country’s Millennium
Development Goals in the late 1990’s. MFSC has made considerable progress in its commitment and
mainstreaming of gender and social inclusion issues across the various programs and institutions.
Critical to this is the MFSC’s GESI Strategy (2006) which identifies 4 change areas for achieving the
aim of making MFSC ‘...a gender and social equity sensitive and socially inclusive organization…’.
These include: (i) GESI sensitive policy and strategy; (ii) good governance and institutional
development; (iii) GESI-sensitive budgeting, programming and monitoring and (iv) equitable access
to resources and benefits. This represents a major achievement in institutional reform (beyond the
provisions of MPFS). At present, women make up about 31% of CFUG committees and for other
group-based forest management modalities they represent 39% (Leasehold Forestry); 12%
(Collaborative Forest Management) and 19% Buffer Zone Management. Within institutions of MFSC
women comprise only 3.3%.
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MPFS Synthesis Report
Although gender and social inclusion issues have been clearly identified and priorities for addressing
them have been clearly spelled out, in practice implementation mechanisms are virtually non-existent.
The forest sector remains male-dominated in its government organization and with the exception of
community-based forestry, policy provisions for gender mainstreaming are not backed up by relevant
legal provisions and operational frameworks. Within MFSC, pro-poor and inclusive working
modalities are not generally practiced and GESI achievements remain elusive. Across the sector,
progress with social inclusion has been uneven and both women and men from socially excluded
groups and from remote areas lag behind in terms of their access to resources, voice and effective
representation in national and local level institutions and processes that influence development
decisions. Despite the progressive sectoral policies represented by GESI, the challenge is still to put
these into action.
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MPFS Synthesis Report
3
CRITICAL FACTORS
This section summarizes the critical factors that have led to the achievements and challenges of the
MPFS and their contribution to its overall impact.
3.1 Factors External to the Forestry Sector
3.1.1 Political change
Nepal experienced major political changes over the duration of the MPFS. In 1990 absolute monarchy
ended with the establishment of a multi-party system and a constitutional monarchy. The new
parliament was at first enthusiastic to devolve powers to communities. This had an important
influence on the thrust and scope of the Forest Act (1993) which assigned considerable rights to local
groups (later reinforced by the 1995 Forest Rules). This also made possible the development of
participatory approaches for pro-poor leasehold forestry, buffer zones and watershed management.
Further devolution was strengthened by the Local Self Governance Act (1999). Although this
introduced some contradictions in terms of jurisdiction over forests it did reinforce the principles of
bottom-up planning and consultation that have since driven planning processes in the forest sector and
which continue today in the form of DFSPs and community-based adaptation plans at VDC level
(LAPAs). Another important effect of the 1990 political changes was the liberalization of civil society
which resulted in large numbers of civil society organizations (NGOs) being formed. These have
become powerful advocates for reforms in the forest sector as well as providing a range of associated
services.
From 1996-2006 the Maoist insurgency severely hampered the functioning of government agencies
across much of the country although CFUGs were able to continue to function (albeit with some
disturbance) and their legitimacy was enhanced through this. The inability of government officials to
reach rural areas during this period developed a key role for NGOs who were able to continue to
support and provide services to community groups. Another effect of the insurgency period was to
enhance people’s awareness of democracy and their rights. This empowered them to become more
vocal in their resistance to prevailing social and gender discrimination. This has had a major effect on
the way that community groups (of all kinds) operate and is now institutionalized (for community
forestry) in the latest version of the CF Guidelines.
3.1.2 Economic change
The national economic structure has altered significantly over the MPFS period. The contribution of
agriculture (including forestry) to GDP has reduced from 60% in 1989 to about 33% today. The past
two decades have seen a huge out-migration of mostly young men to work overseas or to urban areas
and their remittances have now become a major income source for the country and for many rural
families. This has been reflected in an overall reduction in the percentage of people living in poverty
from 42% in 1996 to 25% today and an increase in average per capita income from NRS 43,700 to
62,510 over the same period.
3.1.3 Demographic change
Nepal’s population increased from 18.5 million in 1991 to 26.5 million in 2011. There have also been
distributional changes with the urban population increasing from 5% to 17% and the proportion living
in the Tarai increasing from about 40% in 1991 to over 50% in 2011. The population of many hills
districts has declined over the past 10 years. This has decreases pressure on hill and mountain forests
for subsistence use and has allowed forest to expand into marginal agricultural land that has been
abandoned whilst conversely the shift in population to the Tarai has increased deforestation and forest
degradation in this region.
3.1.4 Communications and infrastructure
Expansion of the road network into almost all districts has improved the accessibility of formerly
remote rural areas creating markets and commercial opportunities for many forest products. Expanded
phone and internet networks have enabled better communications and information flow between rural
and urban areas and between communities. This has enabled greater spread of awareness and ideas
and whilst improved road access increases the possibilities for commercialization of forest
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MPFS Synthesis Report
management, it also introduces the potential for greater levels of illicit use. Road construction itself
has contributed to forest loss and soil conservation issues.
3.1.5 Other influential policies and laws
The forestry sector is directly affected by the policies and laws of other sectors (invariably prepared
and implemented by other ministries). In a number of critical cases there are contradictions between
these and the forest policies implicit in the MPFS. Critical inconsistencies lie with:



The Environment Protection Act (1997) and Rules (1997) which require environmental
impact assessments to be undertaken for a variety of situations and actions within the forest
sector. Whilst the aims of EPA are valid, these requirements hinder the establishment of
forest-based enterprises and the harvesting and trade of various forest products.
The Local-self Governance Act (1999) gives authority to local government to sell forest
products, to collect revenue and impose local tax over forest products. They can also
formulate forest management plan and implement programs to manage forests within their
jurisdiction. This overlaps with the provision of the Forest Act (1993) leaving a number of
unresolved ‘grey’ areas which favor inaction or non-compliance with either one of these laws.
Some of the most contradictory policies and political agendas concern landlessness and land
reform. The High-level Land Reform Commission (2065) and High-level Scientific Land
Reform Commission (2066) both recommend land reform as a strategy to control forest
encroachment particularly in the Tarai and Chure Regions. This sometimes implies
resettlement within forests. This contradicts with the principles of the Forest Act (1993)
which aims to keen an intact forest estate. However it has become clear that protection of the
remaining forest in these regions is not possible without addressing the issues of landlessness
and migration.
3.2 Forestry Sector Factors
3.2.1 Institutional modalities
MPFS was the driving force behind the reorganization of MFSC institutions into its various divisions
and departments which were intended to be the main implementing agencies for the different
programs. Subsequent institutional reforms have tended to scale-down government institutions with
little recognition given to effects of these changes on performing the tasks required under MPFS.
Whilst the nature of Nepal’s society has altered fundamentally over the past 25 years – these changes
have not yet been reflected in a reformed institutional structure. Critical factors and changes affecting
institutional modalities that have taken place include:






A proliferation of civil society organizations of many kinds – often with a range of capacities
and skills to operate in the forest sector.
A shift towards decentralization and local government – to which many government
institutions have already responded by decentralizing their own structures. MFSC is lagging
behind with this.
A demand for stakeholder representation at different levels (local, district national) to
contribute to decision-making processes and to hold government institutions to account.
Public demand for better governance, efficiency, accountability and transparency from
government institutions.
An expansion of the private sector as providers of various services and functions formerly
only available from government.
The politicization of government institutions and government staff (reflecting the wider
influence of politics in Nepali society).
3.2.2 Forestry sector finance
The MPFS contained a projection of the necessary financial resources required to implement the
planned programs consisting of funds from government, international development assistance and the
private sector. Without considering the inputs from the private sector (which are difficult to assess
although are unlikely to represent the 35.4% proposed in MPFS) total actual expenditure was only
about 35% of that projected. Although it is estimated that forestry contributes to about 8% of Nepal’s
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MPFS Synthesis Report
GDP the allocation to different programs of MPFS was substantially lower than that projected and the
percentage share of government allocation to forestry has decreased over time. The critical issues
arising from analysis of forest sector finance are that: (i) overall funding for the forest sector has been
insufficient to meet the demands placed on it; (ii) funds have not been allocated in accordance with
program priorities; (iii) much of the international development co-operation funding has been
channeled outside the systems of GoN (direct funding) and is less transparent and (iv) the effective
financial contributions of communities and the private sector (although possibly substantial) have not
been adequately tracked or recorded through financial monitoring systems.
3.2.3 International development partners
From the start of the MPFS Nepal’s international development partners were expected to play a
crucial role in supporting the proposed programs. As in many other development sectors, a
multiplicity of bilateral and multi-lateral donors have been involved in forestry although often in an
uncoordinated and sometimes geographically isolated way. Coordination efforts by MFSC have been
lacking and the concept that donors would coalesce and effectively mesh their respective development
programs around a common strategy (MPFS) has not materialized. However there have been some
critical recent developments including: (i) an overall reduction in donor support and in the number of
international agencies involved in the forest sector – initially as a result of the period of conflict when
many donors left the sector completely and in some cases closed their programs; (ii) a more recent
emphasis amongst donor agencies on better coordination around a common government program
driven partly by the Paris Declaration on Aid Effectiveness (2005). Examples in the forest sector
include NAPA, REDD+ and the current Multi-Stakeholder Forestry Program and sector wide
approaches (SWAPs) in the education and local government sectors. Since the end of the MPFS in
2011 a common framework around which donors can offer their support and develop their respective
programs has been lacking and the new FSS is now urgently needed to ensure this.
3.3 International Factors
This section summarizes progress against Nepal’s international commitments over the past 25 years
and identifies key challenges and opportunities for the future relating to these.
3.3.1 Nepal’s international commitments
Nepal has ratified, accessed or signed in more than 20 core Multilateral Environmental Agreements
(MEAs) (Annex 3) and is thus required to fulfill them by integrating them into domestic policies and
laws. Whilst national legislation has been enacted covering some of these, others remain unaddressed.
Even where these MEAs have been brought into policy and law, implementation remains weak. For
example despite being a signatory to CITES since 1973, Nepal has an international reputation as
being a conduit on the trade route for illicit wildlife whose final destination is often China. Similarly,
several of Nepal’s wetland sites identified as being important under RAMSAR are under threat from
various causes.
3.3.2 International best practice
The MPFS was designed with considerable influence from the global Tropical Forest Action Plan
(TFAP) which at that time was seen as a vital tool to halt forest degradation. Since then the
international development discourse on forests has shifted its emphasis and into several new
directions. These contribute to a new set of driving forces and influences on forest sector development
and they represent best practice for the future. Whilst Nepal has been an international leader in best
practice vividly demonstrated by its implementation of participatory forest management programs
other best practice areas in the forestry sector that Nepal has not yet embraced include:


An emphasis on forest law enforcement and forestry sector governance (FLEG-T) –
especially relating to trade in forest products. For Nepal this has implications for the
widespread illicit trade in timber and wildlife and the effects this is having on vulnerable
forest areas, especially in the Tarai.
Reform of government forestry institutions with particular emphasis on greater efficiency,
good governance and accountability, institutional down-sizing and out-sourcing, redefining
roles and responsibilities (from being implementing agencies to regulatory authorities) and to
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MPFS Synthesis Report




becoming more financially sustainable through establishing autonomous agencies with greater
control over their own financial resources. Annex 4 gives a generic framework for forest
sector governance that if applied to Nepal’s situation leads to the conclusion that many
challenges still need to be addressed.
Securing forest tenure for local and indigenous communities has created more incentives for
local people to sustainably manage their local resources.
Systems for payment for ecological or climate-related services and their application in the
forest sector. In Nepal this is happening in relation to REDD+ and other pilot PES initiatives
but there are still many missing links such as the relationship between the hydro-power sector
and those who manage forested water catchments.
Closer consideration of the involvement of the private sector in international development in a
variety of roles.
A shift away from monolithic and largely inflexible ‘master plans’ for forestry towards
strategies agreed by all stakeholders, that represent clear directions, approaches and priorities
for different aspects of forest sector development that are flexible enough to respond to
changing circumstances and learning experiences.
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MPFS Synthesis Report
4
LESSONS LEARNT
This section summarizes key lessons learnt from 25 years of implementation of the MPFS. These
lessons can be learnt equally from those factors that have contributed to successes and achievements
under the MPFS as to those that have contributed to failures. They provide important reference points
for a new Forestry Sector Strategy (FSS).
4.1
a.
b.
c.
d.
e.
f.
g.
h.
Lessons for the Management and Utilization of Forest Resources and Conserving
Biodiversity
Participatory approaches have proved to be highly effective for ensuring local commitment,
local benefits and local awareness of plans and processes. They have been applied to
community forestry, pro-poor leasehold forestry, collaborative forest management, buffer zones,
watershed management and other forest and land management modalities as well as to other
national and local planning situations e.g. for MFSC annual bottom-up planning, DFSPs and VDC
level forest sector planning, LAPAs and even for national processes such as REDD+ and NAPA.
There is improved growing stock in many forests (particularly community forests) that have
been effectively protected and managed over the past 25 years. There is now potential to utilize
this through sustainable harvesting. This would increase the availability of forest products beyond
purely local and subsistence requirements. Thus there is now potential for commercial utilization
(not just from national forests) which can be the basis for forest-based enterprises, rural jobs and
cash incomes for poor rural households.
A critical factor for the success of CF is that CFUGs and other forest user groups need to
operate as autonomous, independent and self-governing entities. The legislation that provides
this (mainly the Forestry Act 1993) needs to be ensured in future. Anything that adds to this level
of autonomy is likely to have a positive impact on the functioning and effectiveness of local
forestry groups.
The broad aims of two priority programs under the MPFS (Community & Private forestry
and National and Leasehold forestry) have converged. Since both these programs now aim to
meet subsistence needs for forest products as well as commercialization, expansion of forestbased industries, revenue generation and employment and both give priority to poor and
disadvantaged people they could be merged to create an expanded program that will benefit the
rural poor.
Improved coordination between the primary development programs of MPFS is needed.
This would lead to better achievement across all programs. For example, community and private
forestry can supply raw materials for wood and non-wood based industries and they can also
contribute to the conservation of ecosystems and watersheds. Unfortunately the programs are
administered by different departments in MFSC and a ‘silo’ mentality has tended to prevail that
needs to be addressed in future.
Ineffective implementation of supportive programs of MPFS. The supportive programs of
MPFS (see Annex 1) have suffered from being largely under-resourced and poorly implemented
(especially when compared with the primary programs). The term ‘supportive’ has been
interpreted to mean less important or low priority – whereas in fact these are all vital for the
successful implementation of the whole MPFS.
A large part of the government-managed forest estate lacks effective forest management and
stakeholder participation. This leads to unmanaged forests that are effectively open-access.
Coupled with past political instability and lack of a rule of law, large parts of the national forest
are being converted to agriculture and for human settlement or are subject to illicit timber
harvesting and forest degradation.
DSCWM cannot itself fulfill the entire demand for soil conservation and watershed
management services. Despite localized successes with this program, a more realistic approach
to achieving wider coverage would be to leverage such services from other agencies also
concerned with watershed management and ensure that the sectoral strategies of Forestry,
Agriculture, Irrigation, Roads, Local Development, Environment and Hydropower and others all
include soil and water conservation components. DSCWM need not be the sole implementing
agency for such actions. It needs to re-invent itself from implementer to facilitator with a critical
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MPFS Synthesis Report
role to play in planning, research and technology development, development of appropriate
techniques, technical backstopping, facilitating, and policy influence. At local level its resources
are perhaps better used for coordinating and planning with local authorities (districts and VDCs)
and seeking to leverage funds from other sectors. A clear institutional, legal and policy
arrangement is require for the management of critical watershed areas (including the Chure) that
does not place sole responsibility on DSCWM.
i. Poaching and illegal trade in forest products continues to be a critical issue. The successful
establishment of PAs and the successes with participatory forest management have done little to
curb levels of illegal activity in the forestry sector. This has been exacerbated by civil unrest and
poor rule of law during and after the conflict - despite the resources set against them (such as the
Nepal Army and forest guards). The solution appears to lie elsewhere – through effective
management of resources, reducing poverty, coordinating with law-enforcement agencies and
enhancing good governance.
j. Successes in biodiversity conservation can have adverse impacts. The concentration of visitors
to certain spots in PAs and the need to develop associated visitor facilities is welcome in terms of
Nepal’s economy and growth but needs to be carefully managed to avoid environmental damage.
Improved numbers of certain species e.g. elephants and tigers has the downside of increasing the
level of human wildlife conflict. For this, compensation processes for loss of life or property need
to become meaningful and more responsive.
k. Forest planning and resource information systems need to be improved. Current levels of
forest resource information (and data management systems) are insufficient for effective and
transparent planning in the forestry sector. In the past forest resource data was generated at
regional level (districts) but not disaggregated based on districts or physiographic regions e.g.
Tarai, Siwalik, Mid-hills and High Mountains, nor based on forest management regimes e.g.
government forests, protected areas, private forests, community forests, leasehold forests,
religious forests and protection forests. Without such disaggregated data forest cover change
analysis and planning at macro, micro, watershed, basin and forest level is inadequate. MFSC has
too few qualified staff responsible for updating and analyzing such MIS systems and, a result,
data analysis for forest sector planning and management is weak. Outsourcing data generation,
analysis and synthesis to private agencies within the country could mitigate this shortfall.
l. There is a need to balance natural resource conservation with the needs of development.
Roads, hydro-schemes, power-lines and urban expansion are all necessary for Nepal’s
development but at the same time they adversely affect forests and protected areas resulting in
habitat fragmentation, higher levels of illicit use and pressure for over-use of resources and land.
Conservation cannot be tackled in isolated way through a process of exclusion but by involving
and informing decision-makers, planners and civil society in decisions.
4.2 Lessons for the Policy and Legal Framework
a. The policy framework must be backed up by supportive legislation. Nepal’s 1989 Forest
Policy, strengthened by the powerful legal provisions of the 1993 Forest Act was fundamental to
the successes achieved with the Community and Private Forestry Program and also to a large
extent with the Conservation of Ecosystems and Genetic Resources Program. However, legal
reforms (and changes in the legal framework) are a means to implement policies and as such they
should follow and support agreed policies not pre-empt them. Where supportive legislation was
not put in place (in the case of the National and Leasehold Forestry Program) or where policy and
legal provisions were not fully implemented (as in the case of the Wood-Based Industries and Soil
Conservation and Watershed Management Programs) programs have failed to deliver.
b. Policy process is critical. To be effectively implemented policies need the consensus of those
who are affected by them or of those who will be responsible for their implementation. A
deliberative and open policy development process will ensure that this happens.
c. Other sector policies and laws affect the forest sector. A better understanding of the linkages
between different sectors and a coherent and overarching approach to forest policy development
can contribute to better achievement of policy goals. Without coordination sectoral policies may
contradict, undermine or be inconsistent. An adequate architecture of the forest sector policy and
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MPFS Synthesis Report
legal framework must include sound analysis of linkages across sectors. Recently Nepal’s NAPA
and REDD+ processes are starting to recognize this necessity. Further, this approach needs to be
continued beyond policy making to policy implementation and to the development of a supportive
and unambiguous legal framework to ensure that policies can be implemented.
d. Various government orders, directives, circulars and regulations are inconsistent with forest
policy and laws. All programs of MFSP have been adversely affected by excessive and unclear
regulation and issuance of frequent and ad hoc policies, orders, directives and circulars. This has
particularly affected the Wood-based Industry Program and the National and Leasehold Forestry
Program where government restrictions on collection, transportation and marketing of forest
products and price controls on them have been frequently issued. This results in individual field
staff interpreting government circulars according to their own understanding – especially where
there are ambiguities creating uncertainty, undermining formal legal processes and working
against the rule of law and principles of good governance. For investment and effective
implementation purposes a transparent and predictable regulatory framework and operational
environment are essential. The following steps may be useful for limiting regulatory proliferation
and inconsistencies, and enhancing the operational environment in future:
 Ensure that a coherent and sound forest policy is in place prior to law-making
 Reduce the number of rules after legal analysis to identify overlaps and inconsistencies i.e. by
not creating more rules.
 Adapt the remaining rules to ensure consistency with other existing laws, including those
within and amongst different sectors.
 Translate new legislative acts into working norms and regulations as soon as possible after
new laws have been approved to ensure correct implementation and to avoid uncertainty
e. Implications of the Local Self Governance Act (1999) need to be considered. There is a
critical need to engage with local government at all levels (local, district and national) to enhance
accountability and to follow the spirit of decentralization legislation. Inconsistencies between this
Act and the Forest Act (1993) need to be removed or clarified.
f. The application of environmental regulations for the forest sector needs to be reviewed.
According to EPA (1997) IEE/EIAs are legally binding for a range of forest management
operation as well as for wood-based and NTFP-based enterprises. Not only is this an expensive
and time consuming process it is also beyond the capacity of local people or communities. It is
questionable as to whether these regulations that were intended for environmental protection are
really necessary if applied to a sustainable forest management situation and this needs to be
reconsidered.
g. Stakeholder representatives can be given a voice in various coordination committees at local,
district and national level. However for these to be effectively able to hold government
institutions to account they need to have legitimacy and clearly recognized powers. Otherwise
they simply pay lip service to the principle of participation. The quality of representation is also a
key issue – since this hinders the voice of disadvantaged groups in many of such forums. Capacity
development needs to be linked with stakeholder participation to address this.
4.3 Lessons for Forest Sector Institutions
a. A constraint for most programs is a lack of specialized staff. Despite wide-ranging training
and educational opportunities that have been provided there is an ongoing need to continue to
develop new knowledge and skill-bases amongst forestry professionals and for institutional
arrangements to evolve in new ways to accommodate this. For example:
 Forestry staff need training in technical, managerial and communication aspects of forestry.
As actual forest management becomes gradually more decentralized to entities outside
government, government staff should be more skillful in regulation, monitoring and
facilitation.
 Nowadays many forestry skill areas are available outside government institutions. There have
been successful experiences of utilizing these through contractual, service provider or other
arrangements. This approach can be extended to cover other areas of activity in future.
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MPFS Synthesis Report

b.
c.
d.
e.
f.
Within government institutions there is a need to adapt HR systems so that specialized staff
can if necessary be retained in key positions.
The strongly protection-orientation and command and control attitude of MFSC
administration has not shifted significantly over the period of the MPFS. Such attitudes are
inconsistent with policies (which are largely people-oriented) and with the increased capacities
and capabilities of individuals and in government, civil society and communities and with the
needs of a modern democratic society. Policy shifts need to be matched by fundamental
institutional reforms and changes in attitude amongst individuals if they are to be effective.
Government forestry institutions are characterized by weak management and outdated or
non-existent HR systems. Many individuals within MFSC are skilled and highly competent but
they work within an unmanaged and unorganized institutional structure and follow HR
management systems that are inconsistent with present-day needs. Key issues are:
 Lack of overall HR policy or set of operational guidelines covering the critical procedures for
recruitment, appointment, terms and conditions, performance appraisal, career path
development, codes of conduct, counseling, training, promotion and grievance handling (in
accordance with Nepal's Civil Service Act).
 Lack of a comprehensive and readily available HR database.
 Particularly weak recruitment, placement and transfer systems resulting in decisions that are
unpredictable, untimely and subject to ad hoc influence.
 Promotion systems that do not encourage innovativeness, productivity or demonstrated
performance.
 Training and staff development that are not based on individually assessed needs. Weak
linkage between training and job performance.
 Poor representation of women and other disadvantaged groups at all levels (although this is
true for all government organizations not solely MFSC).
 Loss of quality staff to international organizations and projects (implying that motivation and
incentives to stay within the government system are insufficient).
Forest sector institutions are becoming increasingly diverse. It was assumed that most aspects
of implementation of MPFS would be via government forestry institutions. However, despite the
continued predominance of government institutions the rise of civil society, community groups
and the private sector has been spectacular. There are now many organizations and individuals
outside government with capacities and skills to fulfill a wide range of roles and services that
were formally exclusively carried out by government. The challenge is to capitalize on these and
maintain a balance between the capacities and varying roles of different types of organization
working in the forestry sector. Clear roles and opportunities need to be created for all types of
forestry sector institutions including civil society (NGOs), academia, community-based
organizations, the private sector and government itself. This has implications for government
forestry institutions and the extent to which they need to continue to perform all their existing
functions.
MFSC staff are overburdened with administrative tasks. The focus for most field-level forest
sector activity lies at the District Forest Office. DFOs have largely become administrators rather
than sector specialists and they are expected to undertake a very broad range of administrative
tasks – often beyond their management capability. This is not sustainable and some functions of
DFOs need to be altered or assigned to other parties to address this issue (as in other technical
ministries such as Roads and Telecommunications).
The forestry sector lacks insufficient political engagement and support. Despite the
internationally recognized achievements of community-based forest management in Nepal,
political leaders rarely acknowledge these. Forest legislation does not give enough space for local
level government leaders and political parties in the decision-making process in the forestry sector
in general and at local level in community forestry. New institutional mechanisms taking into
account the concept of federalism and power-sharing in natural resource management need to be
developed during formulation of new forest sector strategy.
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MPFS Synthesis Report
4.4 Lessons for the Forestry Sector’s Contribution to Economic Development
a. Over-regulation is a constraint. Whilst the Forest Act (1993) and associated rules diversify the
management regimes for national forests they also over-burden forest managers with excessive
regulation on the harvest, transport, process and sale of forest products. Similarly over-regulation
on the harvest and utilization of forest products from private forests reduces the incentive for
private forest or tree owners to produce and grow more of these products.
b. Fiscal policy is a constraint. MPFS proposed that royalty rates for forest products would be
adjusted to make them compatible with production costs. This did not happen and revisions of
royalties have taken place on a rather ad-hoc basis. Wood traders and consumers feel that the
present royalty rates for wood are set too high and comparison of Nepal’s royalty rates with those
of other countries seems to confirm this. 13% VAT is imposed on timber sales and some NTFPs
produced from private land whereas there is no VAT on the production and sales of agricultural
commodities thus stifling private farmer involvement in commercialization of such forest
products.
c. Sufficient supplies of raw materials are not being generated from government-managed
forests. Whilst MPFS sought to sustainably utilize government-managed national forests to
promote the forest industry, due to weakness and ineffective management of TCN coupled with
lack of proper management planning and harvesting control this has not happened. Considering
the large forest area concerned, only comparatively small quantities of forest products are
legitimately supplied to industry from government-managed national forest and overall supplies
of forest products are far less than could potentially be produced. Not only does this reduce
government revenues, it also limits the expansion of the wood-using industry and the
commercialization of the forest sector with associated benefits such as cash incomes and jobs.
d. TCN has a distorting impact. Although TCN and NFC were merged and the role and functions
of FPDB were drastically reduced the government still gives preferential treatment to TCN for the
supply of timber (logs) at reduced rates. Despite this, TCN is unable to operate on a fully
commercial basis and its role in distorting markets and creating a dis-incentive for private sector
investment is increasingly being questioned.
e. Coordinating mechanisms for the wood-using industry are lacking. The wood using sector is
becoming increasingly diverse as governmental/semi-government agencies, private industries and
forest user groups and their cooperatives are now operating wood and other forest product based
industries supplying timber and NTFPs into the market. The private sector, although recognized
as being critical to the achievement of economic goals in the forest sector is rarely engaged in a
meaningful and productive way and this coordination gap hinders the engagement of this diverse
group in developing strategies and directions and using their business skills for the wood-based
industry. A representative body with expertise and knowledge of the commercial aspects of the
forest sector is lacking at present.
f. There is a need for a stable regulatory environment to attract investment. For the more than
5,000 wood based industries registered and in operating in Nepal, impractical environmental
standards, dual taxation, inconsistency in the auction system, lack of private sector participation in
policy-making process and lack of transparency in decision-making processes resulting on erratic
and confusing regulations creates uncertainty and challenges to the growth of wood based
industries. A considerable amount of unregulated trade and utilization of forest products exists.
This is partly a consequence of the excessive regulatory restrictions placed on the wood-using
sector.
g. Sources of finance for small-scale forest-based industries are inadequate. Also taxation, loan
regulations and land-related laws are also not favorable for the establishment of small-scale
private and community-based enterprises. They need bank loans and tax breaks to enable them to
become established. Compared with this, larger scale industries have easier access to finance,
taxation opportunities and banking facilities.
h. Commercial leasehold forestry has failed. The MPFS aimed to stimulate private sector
investment in forestry through commercial leases on forest land. The Forest Act (1993) did not
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MPFS Synthesis Report
make any provision for this (for natural forest areas) and as a result the approach has failed. Even
where provision does exist for lease of degraded forest for re-afforestation schemes or ecotourism
to private lessees, many factors including high rental fees and uncertain security of tenure
contribute to act as disincentives to uptake of this.
4.5 Lessons for Addressing Poverty and Social Exclusion
a. The sector provides good opportunities for addressing poverty and social exclusion. Nepal’s
national development policies focus on poverty reduction as an overarching goal. A high
percentage of people in Nepal still live in poverty and still depend on forests for their livelihoods.
Experience has shown that there are good opportunities for the forest sector to contribute to their
livelihoods – and that such opportunities can be enhanced through prioritizing and expanding
those programs that have the greatest impact such as community-based forestry (of all kinds), job
creation (through wood-based industry) and climate resilience.
b. There is an imbalance in roles, responsibilities and powers. Even though an important lesson
has been learnt regarding the need for participatory process across the sector and even though
forestry sector stakeholders do work collaboratively, there still exists a disparity in roles,
responsibilities and power between government and other actors. Key sector stakeholders such as
women, poor people and disadvantaged groups (including Dalit and other marginalized
indigenous communities), although usually nominally represented in various decision-making
forums, have little genuine power and voice and there is still a tendency towards unilateral
decisions and lack of transparency on the part of government and more powerful civil society
actors.
c. Governance is the key to addressing issues around poverty and social exclusion. Early
experiences with community based forestry appeared to show that elites would continue to
predominate and exclusion of others would continue. Poverty and social exclusion weren’t
explicitly recognized at the time of MSFP preparation. This issue was partially addressed by
focusing on enhancement of group governance i.e. changes in the way such groups make
decisions that affect all their members. As a result of this local forestry groups are now amongst
the most inclusive and pro-poor in the country. The MFSC GESI strategy attempts to do this
amongst MFSC institutions – however many elements are have not yet been implemented.
d. Supportive regulations based on field-based learning can contribute to poverty reduction
and social inclusion. Whilst it is not normally possible to legislate against entrenched attitudes
and behaviors, there are examples such as the evolution of CF Guidelines that show that when
based on field-based experience and good practice, regulation can have a positive impact - in this
case on benefit sharing and representation in CFUGs.
4.6 Lessons for Nepal’s Climate Change Agenda
a. The forest sector is critical to Nepal’s climate change agenda. The progress of developing
Nepal’s response to climate change has enhanced public awareness of the important role that
forests play. This is strongly conveyed in Nepal’s NAPA as well as in the strategic processes
being followed for REDD+.
b. Strategic climate change processes need to be integral to Nepal’s forestry sector strategy.
Considerable progress has already been made in developing strategic processes as well as local
planning processes to tackle climate change related problems. Strategies for climate change
relevant to the forest sector (whether for climate change adaptation or for mitigating climate
change) must be integral to future forest sector strategy and the processes being followed e.g. for
developing REDD+ strategy and for NAPA need a direct link for FSS processes. Climate change
is a cross cutting issue and must therefore be considered across all programs not confined to a
specific program in the forestry sector.
c. REDD+ is fully compatible with forestry sector goals. Reducing forest degradation, controlling
deforestation, forest conservation and strengthening sustainable forest management (i.e. REDD+)
are the underlying aims for a healthy and vibrant forestry sector. Expansion of forest, carbon, soil
and watershed conservation measures using systems for Payment for Ecological Services (PES) to
leverage funds is a potentially viable approach for Nepal but it requires much more actionoriented piloting and testing.
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MPFS Synthesis Report
d. Local forest groups provide a strong institutional base for community-based adaptation
planning and implementation. As inclusive and well-governed local institutions, community
forest groups of various kinds can be effective for implementing actions to enhance the climate
resilience of the most vulnerable households.
e. Climate change is already affecting Nepal’s forests. These effects include invasive species,
forest fire, effects on forest regeneration and growth, soil and water conservation, floods and
water source depletion. Although quantitative data are mostly lacking there is sufficient local
experience to demonstrate these effects at present and actions are needed to address them.
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MPFS Synthesis Report
5
FUTURE DIRECTIONS AND OPTIONS
This section synthesizes the main future directions for Nepal’s forestry sector based on suggestions
from the MPFS review and on the preceding analysis. Future directions are determined by the need to
address current and future issues and gaps and by the need to capitalize on learning that has taken
place. For strategic planning it is particularly important to plan for future anticipated needs rather than
solely for the present. Future directions are affected by Nepal’s national and international
development commitments. In many areas a number of different options are possible – these options
require further consultation and discussion before finalizing a forestry strategy.
It has been useful to group future directions and options into a number of key themes representing the
main areas towards which Nepal’s National Forestry Strategy will to contribute. Key themes
identified include:






Forestry sector governance and administration
Management of forest resources
Forestry sector contribution to economic development
Forestry sector contribution to poverty reduction
Forest biodiversity and environmental conservation
Forestry sector response to climate change
The nature of Nepal’s forestry sector strategy
5.1
Nepal’s new FSS will differ from the MPFS in its content and structure. FSS will not be an allencompassing plan but will be a much shorter document - setting out strategic vision, goals,
approaches and priorities for achieving them as well as identifying key responsibilities.

It should be ‘owned’ across the sector – thus achieving sufficient commitment for it to be
implemented by all relevant stakeholders including those in other sectors affected or affecting
the forest sector.

The mode of implementation need to address the many cross-cutting issues such as
governance, gender and social inclusion, climate change.

The forestry sector stakeholders to be involved in monitoring and assessing performance of
the strategy and any necessary future changes in direction.

A multi-stakeholder entity needs to be established to finance the future forestry programs in
an intensive way. An institutional structure needs to be devised to best use the bilateral
development funds to support implementation of the new FSS. Similarly, the future role of
Forestry Sector Coordination Committee need to be clarified for all forestry stakeholders to
articulate their concerns, and responses.
The disadvantaged groups need to be provided with an effective voice in various levels of
coordination committees and in sector governance more generally.
Criteria and indicators need to be developed as part of FSS that will enable regular monitoring
and changes of direction if needed.
The FSS need to be harmonized with other strategies such as: REDD+ strategy, Biodiversity
Strategy, Conservation strategy, Agriculture Development Strategy, Low Carbon Strategy,
Biomass Energy Strategy and also NAPA.




The proposed themes and programs needs to be linked within FSS and become mutually
supportive.

The forthcoming FSS to be made compatible with the upcoming constitutional provisions
such as new state structures.
5.2 Forestry sector governance and administration
Suggested future directions include:
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MPFS Synthesis Report

Reorganize MFSC institutions to (a) better utilize the capacity and potential of nongovernment actors in the forest sector by promoting Private-Public-Community Partnership,
(b) reduce the administrative burden on government forestry sector staff, (c) enhance
technical skills and management capabilities, (d) minimize bureaucracy and (e) to bring into
MFSC better communication and management skills to enhance the image and performance
of the forestry sector.

Revisit and implement the MFSC HRD strategy. Bring it up to date and use it to put in place
HR systems appropriate to the needs of a modern government organization.

Improve the gender and social balance within MFSC institutions in accordance with GESI
and institutionalize GESI within the new FSS.

Align MFSC institutions with local government (at different levels) thus reducing centralized
control and improving linkages with accountable bodies. Formalize district forest
coordination structures and plans.

Draft new legislation to increase clarity, transparency and consistency of legislation ensuring
that it is unambiguous, based on tested approaches and allows for minimal discretionary
powers. Also ensure the role of private sector in the management of forests and the
development of forest enterprises.

Revisit the regulatory framework – especially that which consists of government orders,
circulars and directives with the aim of deregulating these and removing inconsistencies and
contradictory messages.

Investigate social, economic and political causes of non-compliance (with policies and laws)
and adopt strategies to address these causes.

Develop partnerships between academic institutions and MFSC to ensure the provision of
sufficient numbers of professionally qualified staff to meet the future needs of the forest
sector.

Carry out a detailed study to determine which of Nepal’s commitments under international
law are not yet implemented and identify ways in which compliance with these can be
improved.

Build on international best practice by pursuing a program for forest law enforcement (and
trade) in Nepal’s forest sector.

The role and function of the MFSC departments and divisions clarified as whether they
should primarily implement the FSS or they create and support the enabling environment that
will enable others to implement.

The DSCWM need to evolve into an enabling agency to provide technical support for soil and
watershed conservation actions implemented by other departments, local government and
communities.

The future role and function of DFRS and parastatals need to be clarified. It needs to be
explored whether DFRS can function as a semi-autonomous entity. The parastatals- TCN,
HPPCL, and FPDB needs to made competitive and productive by privatizing.
5.3 Management of Forest Resources
Suggested future directions include:

Develop a forest land-use strategy for Nepal to identify the most appropriate management
modality for each patch of forest. Possibly do this at district level – but recognize the need for
this land-use strategy to be agreed by all sectors (not just MFSC) and especially for the Tarai,
Chure and High Mountains where allocation under different modalities is still contested.
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MPFS Synthesis Report

Bring all forest areas under the remit of a management plan. Promote active sustainable
harvesting and management of forests in good condition to generate forest products for forestbased industries (both small and larger scale)

Merge the pro-poor leasehold forestry with the community forestry program for
administrative purposes – whilst recognizing the unique evolution and potential for both of
these models

Strengthen the regulatory environment to enable patches of national forest not demanded by
communities to be leased to private entrepreneurs, or managed under Private Public
Partnership (PPP) for commercial sustainable utilization.

Develop a cross-sectoral watershed conservation policy as part of FSS to integrate soil and
watershed conservation actions into the strategies and plans of other sectors (roads,
hydropower, agriculture, local government and environment) and utilize climate change
adaptation funds for their implementation.

Identify appropriate forest management modality for forests in High mountains and Chure,
and forests that are not community based, or protected areas.
5.4 Forest sector contribution to economic development
Suggested future directions include:

Place more emphasis on commercialization of forest products. Develop strategies to support
and foster forest-based enterprises – especially small-scale enterprises in rural areas. Focus on
strategies to create sustainable jobs, cash incomes and legitimate forest based enterprise that
will benefit poor people and disadvantaged groups such as women, social discriminated
people, geographically isolated households, rural based people and youth.

Work closely with the private sector to identify viable investment opportunities, sources of
finance and by providing a stimulating and supportive enabling environment for investment
and growth in the forest sector.

Take advantage of the high demand for forest product-based commodities to follow a more
strongly commercial direction for the forest sector but at the same time recognize that there
are many poor dependent on subsistence forest products for their livelihoods. Maintain a
balance between local needs, commercial interest and economic growth.

Deregulate harvesting and transport of forest products and enterprise establishment rules to
create a more supportive environment to enable private tree and forest owners, community
based forest management groups and others to use their available sustainable forest
production for ‘green jobs’ and forest enterprise and cash incomes.

Promote Nepal’s forest products internationally and remove barriers to the export of niche
products and high value (but low volume) to international markets.

Promote the commercial cultivation of medicinal and aromatic plants on private lands through
extension and demonstration. This will reduce pressure on wild resources.

Develop and manage information and monitoring systems for Nepal’s forest-based industry
sector.

Forest products coming from private land or cultivated NTFPs/MAPs products need to be
dealt like agricultural products with no VAT.

Permit regime for private forest and trees need to be simplified to stimulate greater levels of
planting and management of forest and trees in private land.
5.5 Forestry sector contribution to social inclusion and poverty reduction
Suggested future directions include:
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MPFS Synthesis Report

Continue to support local forest groups in governance and targeted actions to address the
needs of their poor and socially disadvantaged members. Enable the local forest groups to
develop opportunities for jobs and cash incomes in rural areas.

Strengthen any necessary legal provisions by revising the Forest Act to ensure that the legal
autonomy of local forest groups is strengthened and ensured.

Ensure intellectual property rights/ patent rights/ genetic resources and knowledge about
community and other community-based forestry approaches that Nepal has generated be used
to benefit poor people.
5.6 Forest biodiversity and environmental conservation
Suggested future directions include:

Develop a scientific basis with participatory and open process for the establishment of new
PAs and botanical gardens. Creating new protected areas need to take into account local needs
as well as national and international needs of biodiversity conservation.

Explore opportunity for biodiversity conservation outside formally protected areas through
land-use management incentives and regulation.

Develop a fairer and more transparent compensation system for the effects of human wildlife
conflict.

Work closely with the private sector to continue to promote Nepal’s PAs as tourist
destinations whilst at the same time spreading the pressure of visitors and infrastructure more
widely and away from critical habitat areas. Also rejuvenate the critical habitats to reduce the
pressure.

Develop a workable mechanism for investing a part of hydro-power royalty for the
conservation of concerned watersheds.
5.7 Forestry sector response to climate change
Suggested future directions include:

Harmonize Nepal’s REDD+ strategy fully into the framework of the new FSS. Ensure that
REDD+ does not become separate from other forest sector strategies focusing on poverty
alleviation, economic growth or biodiversity conservation.

Promote the use of local forest groups as implementers of LAPA. Build climate resilient
actions into management plans for forests under all management modalities.

Integrate adaptation actions defined in NAPA into forest sector planning and administration.

Explore the future options for the compliance market for carbon in Nepal’s forest sector – for
example focusing more on other climate-related services such as water or biodiversity.

Continue to pilot PES activities with a view to expanding this approach to financing for forest
management and conservation in future (including carbon finance and other environmental
services)
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MPFS Synthesis Report
6
CONCLUSION
Review of the MPFS has provided an enormous opportunity to learn from the rich and varied
experiences of its implementation over the past 25 years. This learning will considerably enrich the
forthcoming Forestry Sector Strategy.
Only one of the six primary programs of MPFS (Community & Private Forestry) can be said to have
been an overwhelming success (in that it exceeded most of its stated goals) whilst two others (Soil
Conservation & Watershed Management and Conservation of Ecosystems and Genetic Resources)
have also shown significant achievements over the past 25 years. Nonetheless, the achievements of
private forestry program have been very limited. Similarly, the remaining three primary development
programs (National & Leasehold Forestry, Wood-based Industries and Medicinal & Aromatic Plants
and Other Minor Forest Products) have achieved very little. The six supportive development programs
of MPFS, despite their importance, have been somewhat neglected have thus had little impact –
possibly because responsibility for their implementation was less clearly defined. Nowadays, their
importance is, if anything, greater than it was in 1988. Policy & Legal Reform, Institutional Reform
and Human Resources Development are especially important to ensure the effective implementation
of most other aspects of forest policy. It is also apparent that aspects of climate change & forestry and
gender, social inclusion and poverty alleviation were rather overlooked in the MPFS. Despite this
there have been some important achievements in these areas and this needs to continue into the future
by ensuring their explicit incorporation into the new Forestry Sector Strategy.
In addition to describing, reviewing and analyzing the main achievements and the main failings of the
MPFS, this synthesis document has enabled some important guiding principles to be identified.
Guiding principles can be defined as critical approaches or philosophies that can be applied to a range
of different implementation situations. Past experience has shown that unless this happens, the actions
themselves or the directions taken will prove to be less effective. In the context of the forthcoming
Forestry Sector Strategy it is concluded from this analysis that these important guiding principles
should underpin or be applied to all aspects of the strategy including policy directions, strategic
priorities and implementation modalities. The FSS therefore needs to be designed and implemented
with these principles firmly in mind. Considering their critical importance for the FSS they are briefly
described here:
6.1 Sustainable management of forest resources
This guiding principle is nothing new and in fact was pivotal to the MPFS. However, after 25 years
much of Nepal’s forest resource remains unmanaged and without a clear management modality.
Unmanaged forests are subject to unsystematic exploitation and unsustainable use and as a result are
rapidly becoming degraded. They contribute very little to national or local economic development or
to the sustainable livelihoods of adjacent populations and their environmental services are unlikely to
be sustained into the future. By contrast, sustainably managed forests (under a range of proven
management modalities) are able to contribute significantly to Nepal’s national and sectoral
development goals. This leads to the conclusion that for Nepal, the default scenario for many forests
i.e. a continuation of their unmanaged status is not a sustainable or desirable option. In future,
significant effort is needed to bring all forests under an identifiable and sustainable management
regime – reflecting a range of location-specific management objectives including local and national
economic growth, biodiversity conservation, supply of forest products and sustainable provision of
environmental services.
6.2 Resource tenure and people's rights
The fundamental importance of upholding and enhancing people’s rights is unchallenged in the
country’s ongoing and lively constitutional debate. However, in the forestry sector it is in the
interpretation and in the application of these principles that there is still considerable diversity and
deficiency. The principle of upholding people’s rights can be applied very widely to cover many
aspects in the forestry sector including: rights to a share of productive resources, to environmental
services, to economic benefits and jobs and to establish, manage and benefit from environmentally
sustainable enterprises. Furthermore, experience of the MPFS implementation has shown that right of
people to have voice and influence over all aspects of resource tenure, use and decision-making
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MPFS Synthesis Report
affecting their own livelihoods is a critical factor for effective development – especially for those
groups in society that have and continue to be disadvantaged or marginalized. The forthcoming FSS
needs to encapsulate the principle of people’s rights and ensure a common understanding of them
across all implementation activities to shift entrenched and outdated attitudes and to ensure that
strategic sectoral goals are met.
6.3 Employment and economic growth
Whilst employment and economic growth was always an underlying aim of the MPFS – it tended to
suffer from being segregated into only certain specific parts of the overall strategy (i.e. into certain
programs). Experience of the MPFS has shown that (a) all programs have a potential contribution to
make towards national and local employment and economic growth and (b) that this broad area needs
to be more pro-actively pursued in future. The forestry sector’s real contribution to employment and
economic growth is still not fully recognized although it is clear that the actual contribution at present
is considerably less than the potential. Forests represent a natural resources that can be sustainably
managed to produce a range of outcomes all of which can directly or indirectly affect economic
growth. This need not be limited to ‘commercial’ forest management – but can be applied to all parts
of the sector in terms of environmental and climate services, biodiversity and habitat conservation,
local forest management to meet local people’s needs and forest-based enterprises.
6.4 Partnership and collaboration among state, civil society and the private sector
Possibly the most important lesson that has emerged from this review concerns the importance of the
relationships between different actors in the forestry sector and their contribution to effective
achievement of goals. There has in the past tended to be an element of polarization of the roles of
different actors e.g. community forests as the sole responsibility of local people, protected areas as
solely under DNPWC, the private sector being required only for commercial logging and forest
product utilization. However, over the past 25 years the capacities and roles of all forestry sector
actors have become greater and broader. Mechanisms are now needed to capture this change and to
apply it the conservation, management and utilization of forest resources and decision-making
processes in the forestry sector in a way that has not previously happened. The analysis has shown
that where effective partnerships and collaborative mechanisms can be established – these are far
more effective than single institutions or individual organizations acting independently. The scope of
partnerships between the three principal groups of actors (state, civil society and the private sector) is
very broad and a variety of different collaborative arrangements have been tested and applied in the
past. Partnerships and collaboration therefore represents an important guiding principle for the
approaches and modalities of the forthcoming Forestry Sector Strategy.
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MPFS Synthesis Report
ANNEX 1 – MASTER PLAN FOR THE FORESTRY SECTOR (OUTLINE)
MPFS: Project Reports
1. Executive summary
2. Main Report
Sub-plans
3. Forest development plan for the supply of main forest products
4. Forest-based industries development plan
5. Wood-based industries
a. Medicinal and aromatic plants and other minor forest products
b. Soil conservation and watershed management plan
6. Plan for the conservation of ecosystems and genetic resources
7. Forest resources information status and development plan
8. Forestry research development plan
9. Human resources development plan
10. Forestry sector policy
11. Institutional development plan
12. Impacts and monitoring plan
a. Environmental impact assessment
b. Financial and economic analyses
Supporting Report
13. Country background
MPFS: Programs and Components
For development program (including the supportive development programs) separate components
were identified in MPFS. Physical and financial targets for the period 1998-2010 were included for
the programs and their components. These are not reproduced here but are readily available in the
original MPFS documents.
Primary Development Programs
1. Community & Private Forestry
Main components:
 Management of natural forests and enrichment planting of degraded forests, both as
community forests
 Establishment and management of community forests in open and degraded areas
 Distribution of seedlings, initially at a subsidize rate, but later through private
commercial nurseries to encourage the establishment of private tree farms
 Encouraging the use of fuel-efficient stoves of fuel-wood substitutes like biogas by
supporting their development production and distribution.
2. National & Leasehold Forestry
Main components:
 Forest land classification study
 Establishment and management of national production forests in suitable places to supply
wood to urban and wood-deficit areas
 Leasing of forest land that is available and suitable for industrial plantations
 Trial planting and, where trials are successful, larger-scale plantations on degraded lands
 Silviculture and yield regulation in natural forests
3. Wood-based Industries
Main components:
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MPFS Synthesis Report

Securing and increasing the supply of wood through: (i) rationalizing the system for
allocating wood (ii) reducing wastage and better utilization of residues (iii) improving
management of national forests (iv) establishing industrial plantations
 Improving and expanding existing industries through: (i) more supportive industrial
policies (ii) more detailed studies and planning (of market potential and products) (iii)
increased financing and (iv) expertise and training
 Promoting foreign trade and developing marketing capability through: (i) improving
marketing skills, marketing intelligence services, trade policies etc. (ii) encouraging
export of high value products and (iii) relaxing import of raw materials and wood
products in short supply
 Developing the Forest Products Development Board from merely being a timber
harvesting agency to being one that can effectively backstop wood-based industrial
development
4. Medicinal & Aromatic plans & Other Minor Forest Products
Main components:
 Establishment of regional herbal centers
 Systemizing the collection of minor forest products such as lokta, pine resin, and sal
seed
 Establishment of plantations based on minor forest products to provide secure raw
materials
 Follow-up measures to address problems relating to collection, marketing etc.
 Cultivation of medicinal and aromatic plants and selected minor forest products
 Development of industries based on medicinal and aromatic plants and other minor forest
product
5. Soil Conservation & Watershed management
Main components:
 Land treatments in areas of critical importance through preventive measures
 Land treatments in areas of critical importance through rehabilitative measures
 Conservation education and extension
6. Conservation of Ecosystems & Genetic Resources
Main components:
 Protected area management through: (i) developing infrastructure (ii) building
relationships with adjacent people by conservation education and developing alternative
energy sources (iii) habitat management (iv) paying better attention to population
dynamics (v) visitor management and tourism and (vi) protection of natural and cultural
values
 Genetic resources conservation
 Visitor use and tourism in protected areas
 Preservation of natural and cultural values
 Institutional strengthening for effective program implementation
Supportive Development Programs
7. Policy & Legal Reform
Main components/commitments:
 Legislation to facilitate the introduction of socially and economically sustainable forestry
to accommodate the needs of primary users such as women and ‘woodcutters’ in
accordance with government policies on basic needs and decentralization
 Application of law enforcement to forest protection will be clearly defined and limited to
areas of priority national interest
 Involving industries in decision-making, investment and management
 Parastatals will be provided with appropriate roles that will enhance their social and
economic contributions
 DFOs will take over implementation of development programs in the field
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MPFS Synthesis Report

8.
9.
10.
11.
12.
The responsibilities of the forestry sector in regard to pasture development will be
defined
 Forestry legislation will be publicized
Institutional Reform
Main components/commitments (selected items only):
 Reorganization proposal for the Ministry of Forests accepted by government in 1988.
This restructured the Ministry of Forests and Soil Conservation broadly in line with the
component programs of MPFS
 Continuing reforms will be undertaken to: (i) strengthen the ministry as the primary
implementing agency within the forestry sector (ii) find an appropriate place for law
enforcement as a complementary strategy (iii) define the role of forest sector parastatals
with special attention to their socio-economic obligations and their positive and negative
effects on national development (iv) integrate projects within permanent implementing
organizations without establishing separate project entities (v) review coordination
arrangements between ministry and other government agencies and (v) consider the need
for a new environmental authority in response to national and international concerns
 Move towards the long-term organizational model described in the MPFS (various points
are described) and whilst observing a number of key principles (also defined)
Human Resources
Main components:
 Assessment of manpower and training needs
 Improvement of forestry and forestry-related education and training
 Development of vocational forestry training
 Establishment of a network of national and regional training centers
 Training programs for extension workers and community leaders
 Provision of career opportunities for staff
Research & Extension
Main components:
 Research in support of forest management
 Research in support of utilization
 Research in support of protection and conservation
 Research in support of policy research
 Related extension, information, publication components
Resource Information & Planning Assistance
Main components:
 Establishment and support for the National Land Resources Centre through acquisition of
remote sensing data, digital image processing, development of GIS network in forestry
and other ministries and acting as a central exchange for resource information
 Establishment and support for the Forest Survey and Statistics Division through
computerization, image processing and remote sensing facilities, map production and
other resource information
Monitoring & Evaluation
Main components:
 Design of M & E system
 Measuring indicators, cross checking and external evaluation
 Data processing, analysis and recording of information
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Annexes
ANNEX 2 – MPFS IMPLEMENTATION AND ACHIEVEMENTS MATRIX
MPFS Program
1.
Community &
Private Forestry
Policy, legal and regulatory
framework achievements
Forest Act (1993) provided
considerable autonomy to
CFUGs
CF Guidelines and Bylaws
(various editions) have
strengthened the implementation
modalities, sharing arrangements
and equitable targeting of CF
under this Act.
Synthesis of MPFS program
implementation
Priority program with a planned
46.6% share of allocated
financial resources
MPFS estimated that 1.8 m ha
(mainly in the Middle Hills)
would be brought under local
management.
Actual area of CF increased from
57,000 ha (1988) to 1.7 m ha
(2013)
65.7% of forests in Middle Hills
have been handed over as CF and
membership of CFUGs has
reached 2.24 m households or
64.7% of households in the
Middle Hills (2013)
700,000 improved stoves
installed
228,000 biogas plants installed.
Increased numbers of trees on
private land (but quantitative
data not available).
Synthesis of Achievements &
Impacts
About 59% of the real program
costs were borne by communities
and private forest owners.
CFs now have an estimated mean
volume increment of 2 m3/ha/yr.
i.e. CFs have increasing their
growing stock substantially.
2.2 million m3 of fuel-wood and
timber sustainably supplied from
CFs and private forests per year
(2011).
Percentage of household fuelwood collectors using CFs
increased from 12% (1995) to
44% (2011) and using private
forest from 19% (1995) to 24%
(2011).
Percentage of fodder collectors
using CFs (as opposed to
government forests) increased
from 10% (2004) to 17% (2011).
About 164,000 m3 of round
wood supplied from CFUGs
(2010). This is 58% of the total
timber supply. 27% came from
private forests and 12% from
government forest.
Various environmental impacts
reported e.g. increased water
discharge from sources,
increased dry season water
discharge, increased biodiversity,
reduced but rarely quantified.
Reduced incidences of forest
Synthesis of Gaps & Failures
Employment generation by CFs
is low – estimated at 2 person
years per CFUG.
MFPS did not foresee sales of
forest products outside CFUGs.
The importance of this has
increased as Nepal moves
towards a cash economy and as
dependency on subsistence forest
products declines e.g. agriculture
contribution towards GDP
reduced from 60% (1988) to 335
(2013).
Lower rate of handover of CF in
high mountains and Tarai/Inner
Tarai.
Dilution of rights of CFUGs as
provided for under the Forest Act
(1993) especially relating to use,
management and sale of forest
products from CFs by a sequence
of circulars, administrative
orders and other decisions. These
have increased transaction costs
and hampered the growth of
small-scale forest based
industries.
Permit regime for utilization of
trees on private land acts as a
disincentive for further planting
and nurturing of such trees for
commercial and employment
objectives. This is compounded
by charging VAT on private
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Annexes
MPFS Program
2.
National &
Leasehold Forestry
Policy, legal and regulatory
framework achievements
Forest Act (1993) made
provision for lease of degraded
forest (less than 20% canopy
density) for commercial and
scientific purposes.
Rules (under Forest Act) only
permit corporate sector
involvement in new plantations
(not existing forests).
Procedures were developed
(2011) for pro-poor leasehold
forestry under the provisions of
this Act.
Land Use Policy has recently
(2012) been prepared by the
Ministry of Land Reform and
Synthesis of MPFS program
implementation
About 14% of the total forest
land available as leasehold forest
has been allocated for tree-based
forestry purposes.
To date 82% of leased forest land
is for non-forestry purposes e.g.
army, police, hydro-power
development.
Operational forest management
plans (OFMPs) have been
prepared for 19 Tarai districts
(but have not been
implemented).
Synthesis of Achievements &
Impacts
forests, grazing and
encroachment of CF – but rarely
quantified.
Enhanced social capital through
(i) effective and increasingly
equitable community based
institutions (CFUGs) (ii) local
and national networking of
CFUGs and (iii) proliferation of
grassroots NGOs providing
supporting services to CFUGs.
Enhanced physical capital
(community infrastructure)
financed through CFUGs.
District Forestry Coordination
Committees (DFCCs) have been
established to ensure multistakeholder engagement in forest
planning and conflict resolution
at local levels.
District-wise forest development
funds have been established –
but operational modality for
these is not yet agreed.
Under the pro-poor leasehold
forestry program (not originally
envisaged in MPFS) about
41,300 ha of degraded forest land
have been leased to poor families
for their use. Almost 7,000
Synthesis of Gaps & Failures
forest products which adds to the
transaction costs.
Various cases of illegal
harvesting in CFs have
compelled action to be taken
against forest officials and
executive members of CFUGs.
Many CFs have underutilized
potential for sustainable
harvesting of timber and other
products (sometimes several
times greater than current levels).
The overall increased level of
tree cover on private land is more
likely to be due to rural-urban
migration and conversion of
marginal agricultural land to
forest rather than sponsored tree
planting initiatives and extension
services.
Land-use classification system
for forests (or zonation) has not
yet been operationalized.
Very little progress has been
made with management of
National Forest (Governmentmanaged) for commercial
production.
No national forest has been
leased to private parties for
sustainable utilization.
Tarai forests continue to degrade
and are largely unmanaged.
High altitude forests are still
largely unmanaged.
Conflicts over use-rights
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Annexes
MPFS Program
3.
Wood-based
Industries
Policy, legal and regulatory
framework achievements
Management but it is rather
general when applied to forests
and lacks an implementation
mechanism.
Synthesis of MPFS program
implementation
Provisions were initially
developed to require parastatals
e.g. TCN to compete on equal
terms with private enterprise.
However these provisions were
soon relaxed and TCN retains its
effectively subsidized status.
The MPFS envisaged that
revenue would be generated to
support forest development and
management from the payment
of economic prices for forest
products from national forest.
Royalty has recently been
increased but it is not linked with
the costs of production and
management and sufficient
investment support for national
forest management is still
lacking.
About 20 billion NRs is invested
by the private sector in about
5,000 industries/establishments
in timber and non-timber based
forest industries.
Synthesis of Achievements &
Impacts
leasehold forestry groups have
been formed.
A model of collaborative forest
management (not envisaged in
MPFS) was developed for
involving local government/DFO
and distant/local users in forest
management.
Community and private forests
have become significant sources
of timber and wood products.
A number of forest-based
enterprises based around
community forest user groups
have arisen.
There has been a significant
increase in imports of timber
(from Myanmar, Malaysia,
Vietnam, Nigeria) to meet
national demand, and
substitution of timber products
by steel, aluminum, PVC etc.
Small-scale wood processing e.g.
for plywood veneer has
expanded as the road network
has developed (based mainly on
trees on private land).
About 200,000 persons are
directly or indirectly employed in
the sector.
Synthesis of Gaps & Failures
especially between distant and
adjacent users continue
(especially in the Tarai)
The MPFS proposed a strategy to
free internal trade and transport
of timber and fuel-wood from all
restrictions. However there are
still various restrictions in place
that restrict this free trade.
Low cost financing is not
available for forest-based
industries (for renovation,
improvement of productivity,
expansion, and pollution control
facilities) despite the provision
made in the MPFS.
Import of raw materials for
forest-based industries was not
liberalized (as proposed in the
MPFS)
There is still a strong
requirement for support for
technical and vocational training
in forestry.
National forest resources are still
not fulfilling their productive
potential (especially in the
Tarai).
Supportive policies and
regulations are required to
stimulate the growth and survival
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Annexes
MPFS Program
Policy, legal and regulatory
framework achievements
Synthesis of MPFS program
implementation
Synthesis of Achievements &
Impacts
4.
Medicinal &
Aromatic plans &
Other Minor
Forest Products
NTFP Policy developed (2004).
This also identified and
prioritized MAPs for trade.
10 new herbal centers and 4 new
herb processing centers were
established. Data is somewhat
limited on other aspects of this
program under MPFS.
The MPFS placed production
targets on some key NTFPs such
as lokta, pine resin, sal seed and
herbs. Actual production has
fallen far short of these targets
(and sal seed production has
ceased altogether).
There are increased numbers of
enterprises based on NTFP/MAP
processing although monitoring
data and systems are still
insufficient.
Increasing numbers of
community groups and
households are engaged in
aspects of the trade in
NTFPs/MAPs and some products
are having a significant impact
on rural incomes e.g. yarsha
gumba, lokta, chiraita. Govt
revenues from some high value
products e.g. yarsha gumba have
also increased, and about 8% of
the total export value accrues
from this sub-sector.
5.
Soil Conservation
& Watershed
Management
Soil and Watershed Conservation
Act (1982) predated the MFPS
(and protection and regulatory
measures have not been
implemented).
Relevant policies include Water
Strategy (2000), Water Plan
(2005) and Land Use Policy
(2012)
413 watershed management
plans, 304 sub-watershed
management plans and 1,167
community development plans
prepared by 2010.
Conservation activities have
included 5,746 ha (on-farm
conservation); over 10,000 ha of
degraded land restored; 1,600
Awareness of watershed
protection needs and of
techniques has been enhanced.
However, the lack of regular
watershed monitoring has not
allowed program impacts over
time to be properly assessed.
DSCWM staff have worked
closely with communities and
Synthesis of Gaps & Failures
of forest based industries.
Although there have been some
achievements in development of
the sub-sector, this program has
failed to achieve its envisaged
potential.
There are still numerous
regulatory challenges to the
registration of NTFP enterprises
and sourcing, harvesting and
transporting various products
(including many arbitrary fees
being imposed). Beneficiaries
tend to be agents and middlemen rather than poor rural
households.
Arbitrary royalties and VAT
applied to various products
(including those sourced on
private or community land) act
as a disincentive to enterprise
development and job creation.
Trade barriers, lack of phytosanitary standards and capacity
to process products to export
quality are major limitations that
have yet to be addressed.
The scale of actions being
implemented is small compared
with actual requirements.
Interventions tend to be limited
to relatively small areas.
Climate changes (especially the
more frequent occurrence of
extreme weather events) has
exacerbated problems relating to
Page 34
Annexes
MPFS Program
6.
Conservation of
Ecosystems &
Genetic Resources:
Policy, legal and regulatory
framework achievements
A Soil Conservation and
Watershed Management Plan has
been developed focusing on
interventions at sub-watershed
level. Recently, programs have
started to link watershed
management with river basin
systems.
There has been a fundamental
shift in conservation policies
away from 'people exclusionary'
and 'species focused' to 'peoplecantered and community based'
approaches.
An ecosystem/landscape
approach is now largely
followed.
A new Wetlands Policy has
recently been approved (2013).
Synthesis of MPFS program
implementation
gullies and over 1,000 landslides
stabilized; 1,489 water sources
protected and 847 conservation
and run-off harvesting ponds
constructed.
More than 412,000 copies of
various extension materials have
been distributed and 150 adult
education packages have been
implemented.
Increase in PAs from 10,798 km2
in 1988 to 34,185.52 km2 in 2011
representing 23% of the land
area of the country.
Increase in the population of
several protected animals (tiger
from 98-198; rhino from 358534; wild buffalo from 63
to259).
Other species have fared less
well e.g. number of threatened
bird species has increased from
133-149 between 2004-10.
Wetlands are particularly
threatened.
Increase in the number of
botanical gardens and zoos (from
5-11)
The national herbarium has been
developed and expanded.
Successful breeding programs
for key species such as vulture,
elephant and gharial are
underway
Successful translocation
programs (rhino, blackbuck)
Synthesis of Achievements &
Impacts
civil society organizations for
implementation of conservation
actions.
There is an increasing awareness
amongst government agencies
and other participating
organizations of the need to
mainstream disadvantaged
groups in soil and watershed
conservation program activities.
Buffer zone management and the
establishment of Buffer Zone
Users Groups have enabled local
people’s livelihoods to benefit
from PAs as well as conserving
biodiversity.
Communities, local authorities
and civil society organizations
are involved in supporting PA
management and associated
livelihoods programs.
Wildlife poaching control
measures continue. 2011 was
celebrated as a zero poaching
year for rhino.
Synthesis of Gaps & Failures
soil and watershed conservation.
New approaches – such as
Payment for Ecological Services,
have been piloted in a few
locations although they are still
poorly understood and their
wider-scale potential has still to
be fully explored.
Despite policy shifts, the legal
framework around PAs is still
contested including PA
declaration, PA governance,
power sharing between
government authorities and local
citizens and equity aspects of
benefit-sharing.
Wildlife poaching and trade
remains a serious challenge
despite establishment of wildlife
crime control committees.
Human-wildlife conflict is
increasing around many PAs.
High concentrations of visitors
have threatened habitats in some
well-visited areas.
Expansion of alien invasive
species has taken place in some
PAs and other areas.
Working style of concerned
government agencies have not
evolved sufficiently in
accordance with now policy
directions (people focused and
gender sensitive)
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Annexes
MPFS Program
Policy, legal and regulatory
framework achievements
Synthesis of Achievements &
Impacts
Synthesis of Gaps & Failures
Forest Policy (1989) and revised
Forest Policy (2000).
Forest Act (1993) has been
instrumental for achieving the
goals and objectives of MPFS. A
series of regulations, guidelines
and directives were subsequently
developed as legal instruments
for effective implementation of
the Act.
Additionally, the 8th-10th Five
Year Plans and the subsequent 3year interim plans have made
provision for actions in the forest
sector that contribute to Nepal’s
wider development goals.
MFSC has prepared a gender and
social inclusion strategy (GESI)
many aspects of which are being
implemented through regular
planning processes (especially at
grass roots level)
Synthesis of MPFS program
implementation
have taken place.
Visitor numbers and revenues
have increased in the more
popular national parks.
Whilst there have been important
forest policy and legal reforms
these have not been implemented
evenly across all the program
components of MPFS. Where
such reforms have taken place,
they have been fundamental for
the successes of the concerned
programs e.g. with Community
and Private Forestry; Soil
Conservation and watershed
Management and Conservation
of Ecosystems and Genetic
Resources. The reforms that
were required to enable similar
success with National and
Leasehold Forestry (with the
exception of pro-poor Leasehold
Forestry) and Wood-based
industries have not taken place
and these programs have suffered
in consequence.
7.
Policy & Legal
Reform
The Forest Policy (1989) and
Forest Act (1993) have been
instrumental for achieving the
goal and objective of MPFS. The
Forest Regulation (1995) and
subsequent guidelines and
directives have significantly
determined the direction and
impact of various programs,
most notably the Community and
Private Forestry Program. The
impact of this has been to
contribute to bringing 1.7 m ha
of forest under sustainable
community management and
enhancement of the livelihoods
of about 2.24 million households
in rural areas.
Major MFSC institutional
reforms at Department level took
place in 1989. However, further
downsizing (across all
government) led to drastic
reduction of staff and divisions
within MFSC.
A Forest Research and Survey
Centre (FORESC) was created to
Broad restructuring in 1989
followed by further reforms in
1993 and 2000 (driven by GoN
Administration Improvement
Commission).
The 1989 reforms focused on
renaming or creating of
departments, divisions and
sections and changes in staff
As a result of 1989 reforms
MFSC departments and divisions
better placed to implement
MPFS programs.
MFSC’s GESI strategy has been
a significant new factor in
institutional reform – especially
by highlighting social and equity
issues within MFSC institutions
Despite the policy and legal
reforms that have taken place,
after 25 years there have been
numerous social, political and
economic changes in Nepal
necessitating further reforms in
the policy and legal framework
to ensure consistency with these
whilst some of the original
requirements are still unmet.
Critical new policy areas that
need to be addressed include the
forest sector’s response to
climate change; greater emphasis
on jobs, enterprise, private
investment and product
commercialization as Nepal
develops economically and
greater consistency and
complementarity between forest
sector policies and those of other
sectors and national development
policies.
Reforms failed to capture the
spirit of MPFS and could not
address the more fundamental
issues of sector governance, the
forestry sector's social image,
working environment, attitudes
and culture of forestry
organizations.
Institutional reforms have taken
8.
Institutional
Reform
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Annexes
MPFS Program
9.
Human Resources
Policy, legal and regulatory
framework achievements
promote and target forestry
research within MFSC, but it was
later reconverted to a
Department.
Synthesis of MPFS program
implementation
positions and posts. 1993 and
2000 reforms were more focused
on staffing. 5 Regional Forest
Directorates were taken out from
DoF and kept directly under the
MFSC to supervise all sectoral
activities
Efforts were made to restructure,
dismantle or privatize the
parastatals.
Synthesis of Achievements &
Impacts
Reducing the number of
parastatals reduced the overall
size of MFSC. Although TCN
still remains as a key player.
Some new opportunities have
been created for stakeholder
participation on sector
governance.
Civil Service Act (1993) with
various subsequent amendments
Comprehensive MFSC HRD
strategy prepared (2004) – but
Overall skills levels and
capacities of MFSC staff and of
Synthesis of Gaps & Failures
place – but government
continues to predominate in the
forest sector and the sector is
over-administered whilst nongovernment institutions could be
given a more significant role.
Government forestry sector
institutions are viewed as oldfashioned and ineffective and are
characterized by overadministration.
Sector governance issues are still
widespread – compounded by
disorganized functioning and
mismanagement.
Inadequate efforts were made to
strengthen governance, foster a
more conducive working
environment, change established
mind-sets and commitment and
enhance staff motivation.
Implementation of GESI has
been weak.
Genuine and effective
participation of sector
stakeholders in decision-making
and holding government to
account do not exist except
perhaps at the lowest (grassroots) level.
TCN continue to be provided
with subsidized access to forest
products that undermined private
sector involvement.
Many aspects of HR systems and
procedures within MFSC still
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Annexes
MPFS Program
10. Research &
Extension
Policy, legal and regulatory
framework achievements
(not part of MPFS)
Synthesis of MPFS program
implementation
never approved or implemented.
5 Regional training centers
established and implementing a
comprehensive series of training
courses.
Several institutions (in Nepal)
now offering a range of forestryrelated qualifications from
certificate level to PhD.
Synthesis of Achievements &
Impacts
staff and individuals within civil
society organizations enhanced
significantly.
Enhanced capacities at
community level.
Increasing numbers of forestry
professionals pursuing their
careers outside of government
institutions.
No official research policy for
forestry. Research strategy has
been prepared but is awaiting
approval.
Overall progress with both
research and extension has been
limited by resources and lack of
a clear direction.
Extension program has
contributed to awareness and
support for community forestry.
Research has shifted towards the
demands of community forestry.
A wide range of research and
associated publications focusing
on socio-economic aspects is
now available (largely produced
outside government research
institutions).
Synthesis of Gaps & Failures
inadequate. Non-implementation
of the HRD strategy has been
partly the cause. Issues include:
include: weaknesses in
recruitment, appointment, terms
and conditions, performance
appraisal, career path
development, transfer,
promotion, codes of conduct,
counseling, training, promotion
and grievance handling; lack of a
comprehensive readily available
HR database; lack of individually
assessed training needs and weak
link between training and job
performance.
Poor representation of women
and other disadvantaged groups
at all levels (despite GESI
strategy)
Loss of quality staff to
international organizations and
projects
Research and extension
inadequately resourced and with
unstable institutional bases
(frequent changes)
Extension outreach is duplicated
across different departments of
MFSC and nowadays is limited
to the publication of annual
reports and some radio programs
There is limited outreach of
some parts of MFSC e.g. TCN,
HPPCL etc.
Lack of an extension
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Annexes
MPFS Program
Policy, legal and regulatory
framework achievements
11. Resource
Information &
Planning
Assistance
Institutionalization of a
participatory and bottom-up
planning process within MFSC.
Policy provisions for gender and
social inclusion being
implemented at grass roots levels
in community organizations.
13. Monitoring &
Evaluation
All the line agencies and MFSC
carry out input output monitoring
Synthesis of MPFS program
implementation
Plans of various types have been
produced including District
Forest Sector Plans; Park
Management Plans, Watershed
Management plans and
Community Forest Operational
Plans – mostly with involvement
of local communities and local
administration.
The proportion of Nepal’s forest
covered by management plans
has undoubtedly increased
although data on this is not
properly monitored.
Currently a National Forest
Inventory is underway.
Otherwise, earlier national level
inventory data is patchy and
outdated.
MFSC MIS system and CFUG
database system have been
established and are updated.
MFSC planning processes are
streamlined and inclusive.
MIS systems have been
established by different
Synthesis of Achievements &
Impacts
GIS capacity exists at different
levels – including at many
district offices and is used for
local planning.
District Forest Sector Plans
(DFSPs) have been prepared for
many district in collaboration
with local authorities and
different line departments.
Bottom-up and participatory
planning process (for annual
planning) is institutionalized and
being implemented within
MFSC.
CFUG database is maintained by
MFSC and is comprehensive
Synthesis of Gaps & Failures
coordination mechanism with
local government.
Limited numbers of specialized
forestry researchers are
employed by government
institutions.
Research is still largely viewed
as ‘scientific knowledge’ rather
than information sharing to
address key issues.
There is a great need for a
comprehensive national forest
resource assessment and the
disaggregated datasets for
planning at different levels and
for national REDD+ processes.
Project is underway to deliver
this.
Although management plans of
many kinds have been prepared
they frequently become outdated
and are often not implemented.
Shortages of qualified staff to
analyze a range of data types and
to conduct specific studies (in
practice many such studies are
outsourced)
Although participatory processes
are in place there is some
imbalance between different
stakeholders and also a tendency
to loose transparency and for
govt. to take unilateral decisions.
No mid-term or interim
monitoring of MPFS took place
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Annexes
MPFS Program
Policy, legal and regulatory
framework achievements
as specified by the National
Planning Commission. But this is
not linked with outputs nor
specifically with MPFS.
Synthesis of MPFS program
implementation
departments in MFSC.
MPFS suggested periodic review
of the Plan but this was not
carried out except during the
preparation of some periodic
plans.
Synthesis of Achievements &
Impacts
whilst other departments
maintain separate databases – but
these are not specifically linked
with MPFS.
Synthesis of Gaps & Failures
over 25 years.
There are insufficient monitoring
systems within MFSC focusing
on economic aspects of the forest
sector.
Departments and some divisions
of MFSC such as Community
Forest Divisions have databases
but these are not integrated at the
sectoral level
Forest sector monitoring is
driven by National Planning
Commission requirements rather
than those of MPFS
GESI-focused monitoring is not
actually implemented
systematically.
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Annexes
ANNEX 3 – NEPAL’S INTERNATIONAL COMMITMENTS
This Annex lists the international treaties and conventions relevant to the forest sector to which Nepal
is a signatory.
1. International Plant Protection Convention (IPPC) 1952
2. Plant Protection Agreement of the Asia and Pacific Region, 1956
3. Convention on Wetlands of International Importance Especially as Waterfowl Habitat
(Ramsar Convention), 1971
4. Convention on for the Protection of the World Cultural and Natural Heritage, 1972
5. Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES),
1973
6. A series of agreements on various dates 1986–1994 under the auspices of what was then the
WTO GATT (the General Agreement on Tariffs and Trade) including:
a. Trade Related Intellectual Property Rights (TRIPs)
b. Agreement on Agriculture (AoA)
c. Agreement on application of sanitary and phyto-sanitary measures
7. ILO convention No. 169, (Indigenous and Tribal Peoples Convention) 1989
8. Rio Declaration on Environment and Development 1992 (Rio Principles)
9. United Nation Convention on Biological Diversity, 1992
10. United Nation Framework Convention on Climate Change, 1992
11. International Tropical Timber Agreement (ITTA), 1994
12. Convention to Combat Desertification in those countries experiencing drought and or
desertification, particularly in Africa 1994
13. Kyoto Protocol to the UNFCCC, 1997
14. UN Millennium Development Goals (MDGs), 2000
15. Cartagena Bio-safety Protocol to the CBD, 2002
16. UN Non-legally binding instrument on all types of forests, 2006
17. 16th Summit (2010) Thimphu Silver Jubilee Declaration “Towards a Green and Happy South
Asia”
18. Rio+ 20 declaration 2012 (Future we want)
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Annexes
ANNEX 4 – A FRAMEWORK FOR FORESTRY SECTOR GOVERNANCE1
Governance
components
Transparency,
accountability and
public participation
Stability of forest
institutions
Quality of forest
administration
1
Sub-components
Quantifiable Indicator
 Transparency in the
forest sector



Public availability of forest data, plans, laws, budgets and other information relevant to forest use and management
Public notice of an pending forest agency actions
Transparent allocation of timber and NTFP concessions and forest services
 Decentralization,
devolution and
public participation
in forest management





Forest communities have institutional roles in creating public forest management rules and plans
Accessibility to forest resources by local communities
Supporting framework for participatory forest management
Forest agencies are responsive to public input
Participatory processes structured to promote consensus
 Accountability of
forest officials to
stakeholders



Feedback to stakeholders about forest resources and their management
Presence of autonomous organization for monitoring activities
Influence and interest of civil society organizations on forest issues
 Accountability
within forest
agencies




Management in the forest agencies/departments is oriented towards accountability
Clear statement of forest management strategy or goals
Goals and objectives of forest management disseminated to rank and file officials
Forest officials evaluated and held accountable for failures to meet stated goals
 General stability of
forest institutions



Risk posed to forest management from changing forest agency budgets, leadership or organization
Risk posed to forest management from changing or inconsistent laws and policies and their implementation
Risk posed to forest management due to unreliability of tenure insecurity
 Management of
conflict over forest
resources



Perceived fairness of distribution of rights
Level of conflicting claims over public forests
Prevalence of violence or use of arms by forest users
 Willingness to
address forest sector
issues




Commitment to legality, certification, and sustainable management of forests
Support for adoption of forest practices code
Support for private certification
Support for codes of professional conduct among foresters and civil servants
World Bank (2009) Roots for Good Forest Outcomes: An analytical framework for governance reforms
Page 42
Annexes






Institutional separation of key functions – legislative, administrative and control
Signatory to and quality of implementation of international commitments related to forestry
Maintenance of workable forest policies
Collaboration with regional partners to harmonize forest policies and legal frameworks
Cross-sectoral policy coordination
Ability to revise and respond to change
 Capacity and
effectiveness of
forest agencies

















Public confidence in forest agencies
Capacity of forest agencies
Human resources, skills, and knowledge
Equipment and tools
Stability of budgets and quality of budget process
Quality of forest resource management
Quality of information about the forests
Quality of planning and impact assessment (including cross-sectoral coordination)
Activities in the forest are in accord with plans
Commitment to sustainability
Effectiveness of enforcement institutions
Fairness and responsiveness of forest officers (and police, if involved in forest enforcement)
Effectiveness of prosecutors and courts in forest matters
Forest extension and environmental education efforts
Independence of civil service from political pressures
Taxes on forest products and services uniformly applied and collected
Availability of incentives to practitioners of responsible forest use and management
 Corruption control
within the forest
sector







Revenues from forests accounted for
Budget transparency
Audits of forestry projects
Existence of government anticorruption institutions and measures, including channels for reporting corruption and
whistle-blower protection
Effectiveness of anticorruption institutions and measures
Clear code of business conduct for forest industries
Presence of strong nongovernmental watchdogs




Continuous forest inventory of plots established and measured regularly
Documentation and record of forest management and forest activities to facilitate monitoring
Results of M&E are incorporated into new forest management plans
Result of monitoring are readily available to the public
 Forest monitoring
and evaluation
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Annexes
Coherence of forest
legislation and rule
of law
Economic efficiency,
equity and incentives

Local people are involved in monitoring of forest resources
 Quality of domestic
forest legislation









Forest legislation effectively and efficiently implemented by forest agencies
Avoids legislative overreaching
Avoids unnecessary and cumbersome requirements
Enhances transparency and accountability
Informal rules, where present, are consistent with formal rules
Forest legislation is consistent with participatory governance
Gives local actors a stake in good management
Developed with public involvement
Clearly states how local people can play a meaningful part in planning, management, and allocation of forest resources
 Quality of civil law
implementation


Forest laws are actually applied
Labor, safety, environmental, human rights, and other laws are applied in forest settings
 Quality of criminal
law implementation





Suppression: Credible and graduated sanctions, consistently applied
Detection: Capacity to detect illegal activity
Prevention: Number of forest-related crimes
Organized crime
General crime
 Quality of forest
adjudication




Access to courts or arbitrators
Fair, honest, and independent
Affordable, rapid
Enforceable outcomes
 Property rights
recognized/honored/e
nforced






Formal and informal rights to forest resources in harmony
Security of property rights to forest resources, including carbon
Quality of forest surveys, records, and cadastral maps
Contracts and agreements honored/enforced
Legality of land-lease contracts with international investors
Support for community/small/medium enterprises
 Maintenance of
ecosystem integrity:
sustainable forest use



Knowledge of supply and demand for forest products and their alignment sustainable forest use
Minimum safeguards for sustainability included in forest management plans
Forest stakeholders have reasonable share in the economic benefits from forest use
 Incentives for
sustainable use and
penalties for
violations



Payments for protecting environmental services from forests
Forest law enforcement should target illegitimate operations
Expected returns from illegal use lower than the expected penalties imposed for illegal use
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Annexes
 Forest products
pricing




International market prices used as reference prices for traded products
Internalization of effects of social and environmental externalities arising from forest resources use
Removal of distortionary subsidies within the forest sector
Forest resource allocation based on market prices
 Commercial timber
trade and forest
business




International market prices used as reference prices for traded products
Internalization of effects of social and environmental externalities arising from forest resources use
Removal of distortionary subsidies within the forest sector
Forest resource allocation based on market prices
 Equitable allocation
of forest benefits



Equitable pattern of land and forest resource tenure
Adequate access and use rights where ownership is with the state (or contested)
Equitable share of timber and NTFPs
 Market institutions


Competitive forest sector
Use of appropriate incentives in forest management
 Forest revenues and
expenditures




Efficient system of revenue collection for timber and NTFPs
Taxes, levies, and charges based on ensuring normal profits
Efficient system of public expenditures for forestry
Public expenditure tracking system operational in the sector
Page 45