Summary

Forest and associated ecosystem services form the key capital assets and directly serve livelihoods of millions of indigenous people and local communities, especially in tropical developing countries. They benefit from farm inputs, timber, non-timber, watershed conservation and climate regulation, among others. However, forest policies, governance and institutions determine the access and benefits of communities, households and individuals on these benefits. Poor, women and marginalised people often tend to benefit less. Recognition and a better appreciation of ecosystem services may help communities, including the marginalised ones in managing and benefiting from forests. Decentralised and pro-poor policies, improved governance and suitable institutional arrangements are key to ensure forests are managed sustainably and most needy and vulnerable communities benefit from forest.