Increased trade in forest products and investment in forest-based industries can stimulate economic growth. Developing countries export yearly wood products worth more than US $23 billion, yet in many places just a small fraction of the profits benefit small-scale producers and forest dwellers. Unfair trade practices, distorted markets, corruption and weak governance all undermine the contribution forests could make to improving local livelihoods.

During the coming years, a number of global trends will have a significant effect on forests and the people who depend on them. These include China’s demand for wood products, the geographic shift in industrial timber production away from Asia, greater investment in industrial tree planting and the increasing demand for biofuels. To better manage the impact of globalised trade and investment on forests, governments and other stakeholders need research to construct scenarios that illuminate the implications of current and projected trends for forests and forest-based livelihoods.

Our goal is to catalyse significant shifts in global investment standards in areas including risk assessment, monitoring and information disclosure. Within five years, CIFOR research will influence decision-making of at least three countries on how they can more effectively manage the impact of trade and investment on forests and forest-dependent communities.

Research themes

• Understanding trade and investment trends
• Assessing tools for managing the national and local impacts of trade and investment trends

Domain leader

Pablo Pacheco
Email: p.pacheco@cgiar.org