Decentralized forestry governance exacerbates rural inequalities

Using nationwide census data from 522,440 households, Cook et al. compared poverty rates between those belonging to the dominant ethnic groups and those belonging to the minority groups in regions where decentralized governance had been implemented. A clear trend emerged: despite the aims of this governance decentralization, the programme had in fact served to exacerbate existing inequalities. Although the establishment of CFUGs delivers poverty-alleviating benefits to the dominant ethnic groups of the region, minority groups do not gain in the same way.

There are a myriad of potential reasons underlying the exacerbation of this inequality. Members of the dominant social groups are better positioned to take advantage of the process of forestry-resource decentralization with higher rates of literacy, access to capital and better political connections enabling easier navigation of bureaucratic procedures. While not the focus of this study, other inequalities such as gender disparity may also come into play. Although this study reveals that the Nepalese programme is associated with exacerbating inequalities between ethnic groups, poverty outcomes for marginalized groups were not worsened. Reforms that make it easier for marginalized groups to access the benefits of this programme could turn forestry-sector decentralization into a win–win for poverty alleviation.