Forest Policy (Working Paper) June 2003

Abstract

ADB invested around $1 billion in the forest sector during 1977-2002. ADB believes a change in its forest policy is desirable and necessary to improve the implementation and impact of its forest sector investments; to contribute more directly to achieving the overarching goal of poverty reduction; and to respond to the region’s emerging forest resource conservation and development challenges. Population and income growth and migration to urban areas will put increasing demands on the region’s forests for forest products and forestland use, and for services, especially sustainable water supply. Over the next two decades, it is expected that the manufacturing and service sectors, with increasing links to regional and global markets, will replace agriculture and primary sectors as the dominant sectors for economic growth and development in the region. Globalization and regional agreements such as the Asia-Pacific Economic Cooperation, Association of Southeast Asian Nations, and the South Asian Association for Regional Cooperation are expected to boost growth, promote more liberal trade policies, and increase economic integration. Globalization and increased trade will bring many benefits. However, without improved public and private sector governance, the potential risk of unsustainable forest use and illegal logging will increase.