Assessing the Impact of Leasehold Forestry in Nepal: Enhancing Livelihoods and Preventing Degradation

Global forests, valued at over USD 150 trillion and supporting the livelihoods of 25% of the world’s population, are threatened by degradation and deforestation, particularly in developing nations. Several forest management systems are in practice, but leasehold forestry (LF) is considered the best for achieving the dual goals of preventing degradation and alleviating poverty. Nepal is a pioneer in LF, prioritizing it since 1978. It is now practiced in 39 districts, covering 43,994 hectares of forests. Using DFID’s sustainable livelihood assessment guidelines (a framework never before applied to LF) and incorporating seven additional indicators identified through extensive literature review and expert consultation, as well as semi-structured interviews with key informants (n = 14) and LF users (n = 228), this study quantifies the contribution of LF in Nepal to 5 core assets and 21 livelihood indicators across three categories: “successful”, “moderately successful”, and “not successful”. The results reveal that LF significantly contributes to natural and financial capital, with a lesser impact on social and physical capital. Among the key indicators, LF has the greatest influence on savings and investment, but the least on infrastructure. This study offers targeted lessons and recommendations for less successful LF initiatives, which can help improve their outcomes. These insights are also valuable for policymakers and stakeholders to refine policies and programs and to optimize livelihood and restoration benefits from LF. Additionally, the baseline data provided will serve as a reference for monitoring and evaluating LF initiatives.