5 natural forests have declined in terms of both quantity and quality, but increase was observed with
species growing in abandoned shifting cultivation areas Sophathilath, et al, 2005. There are many factors, both external and internal, that cause decline and deterioration of forest
resources. External factors include increasing market demands on timber and NTFP in the region, partially resulting from logging bans in some neighboring countries which caused increased
pressure on the Lao forests. Internal factors, on the other hand, comprised of shifting cultivation practices, unsustainable logging due to the lack of sustainable forest management and weakness in
law enforcement. The underlying factors behind these causes are poverty, population increase, increasing economic incentives for over harvesting, and ineffectiveness in governance DOF,
2003.
2.3 Status of population and poverty
The total population of Lao PDR is 5.2 million. The country is sparsely populated with a density of 24 persons per km
2
which is significantly lower than its neighboring countries; 70 in Cambodia, 120 in Thailand, and close to 250 in Vietnam. More than 85 per cent of the total population lives in
rural areas with rural poverty incidence at 38 percent in 2003, in contrast to 20 percent in urban areas NSC, 2004.
According to official statistics, there are 47 ethnic groups in Laos MAF 2006, which is divided into four main ethno-linguistic groups. There are more than 230 spoken languages, which make
Lao PDR highly diverse in terms of culture.
The economy of Lao PDR is primarily based on natural resources. More than 45 percent of GDP is based on the primary sector including agriculture, forestry, livestock and fisheries. Rural
households are also dependent on natural resources. NTFPs are an important source of food supply and household income in rural areas, providing a safety net during critical period.
In spite of the growth of the Lao economy during the last decade, with an average of six per cent growth rate per year, Lao PDR is still one of the poorest countries in Asia, with a GDP per capita
of 490 in 2005 World Bank, 2005
2
. There is an increasing gap between urban and rural households’ economic situation, as well as large
geographic variations in terms of the state of poverty and development. The Government of Lao PDR defines poverty as the lack of basic necessities such as food and
clothing, as well as permanent housing. Other indicators include lack of transportation access, as well as public services such as clean water, health and education. For poor families in the rural
areas, poverty also means rice insufficiency, lack of large livestock, and susceptibility to illness. Poverty in Lao PDR is not a short-term problem, but a chronic livelihood problem NGPES, 2003.
In order to combat poverty, the Government has adopted a poverty eradication strategy known as “The National Growth and Poverty Eradication Strategy NGPES”. Under the strategy, the
Government aims to reduce the number of households below the poverty line by half from its current level of 33 per cent, and lead the country out of its Low Development Country LDC
status by 2020. It also aims to increase GDP up to 7 per cent per annum.
Utilization and management of forest resources are considered important in fulfilling the policy target. In the NGPES, sustainable forest utilization, forest protection and reforestation, with strong
involvement of local people, is seen as one of the most crucial strategies for poverty eradication.
2
However, poverty incidence declined from 46 percent in 1993 to 33 percent in 2003 World Bank 2005.
6 This has been further emphasized in the Forest Strategy 2020 policy document which was adopted
in 2005.
3. Types of Community Based Forest Management
