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The Palas forests are currently managed under the Revised Working
Plan for Palas Forests (RWP). Commercial timber harvesting is prescribed
under the Forest Department's Working Plan for Palas Forests. Under
the First Working Plan, harvesting was much lower than prescribed,
apparently due to local disputes over forest ownership. And while
substantial harvesting has taken place under the Revised Working
Plan since 1988, most Palas forests remain as yet intact. However,
in some areas, over-cutting has caused substantial degradation of
the remaining resource, and high rates of deforestation elsewhere
in Hazara give cause for concern in Palas.
The sale of timber rights is a simple way for forest owners to
raise quick cash, analogous to the cashing in of shares. Private
enterprises are only too ready to oblige with cash down-payments.
Unsustainable commercial timber harvesting is driven by external
demand for timber, the rent-seeking activity of both state and private
enterprise, and by socio-economic change. In regard to the latter,
the resolution of long-standing tribal disputes over forest ownership,
retention of forest shares by an increasing number of non-resident
Palasis, increasing importance of income from wage labour relative
to cash and subsistence income from NTFPs, increasing uncertainty
of agricultural production (with declining maize seed quality, increasing
pests and diseases and declining soil fertility due to the maize
mono-culture) and the need for cash income (due to increasing bride-prices,
the increasing sophistication and cost of weaponry, increases in
the cost of living index and widespread poverty and debt) are some
of the important factors which tend to increase the demand for income
from commercial timber harvesting, while undermining any interest
in sustainable use of the forest resource.
While non-owning forest users stand to lose most, the owning Shin
also realise a small fraction of the value of their timber. The
current harvesting system is very wasteful and out-turn is only
40-45%; and though 80% of this out-turn legally belongs to the forest
owners in Palas, the advance sale of felling rights results in their
receiving only c. 20% of the market price; consequently, they realise
as little as (40 x 0.8 x 0.2 =) 5% of the value of their timber.
The owners additionally miss out on income from the management and
execution of timber harvesting, which is mostly done by outsiders,
and miss out on the opportunity to develop their own forest processing
industries. More seriously, the forests are often left in such poor
condition that the potential for regeneration and sustained timber
harvesting is greatly reduced.
The un-sustainability of commercial timber harvesting is further
exacerbated by: the conflict between statutory and customary forest
management regimes, reflected in the exclusion of local participation
from forest planning and management, and the cursory attention given
to domestic demands on forest resources given in the Working Plan;
the inadequacy of existing forest planning and control measures;
the failings of customary common property regimes and institutions
in the face of socio-economic change; and conflict over forest ownership,
which undermines cooperative action. 
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