Pro-Poor Programs Financed Through Nepal's Community Forestry Funds: Does Income Matter?

Community forest user groups (CFUGs) in Nepal generate income over US$ 10 million annually through community forestry. The income generated is invested in different development activities, including pro-poor programs (PPP). This paper seeks to understand to what extent CFUG funds are being invested in PPP, what factors determine whether investment in PPP is made, and whether the amount of CFUG income matters for making an investment in PPP. The paper relies on primary data from 100 CFUGs distributed in 3 different midhill districts of Nepal. A set of questionnaires was developed and administered to a small group of 100 CFUGs. The study findings show that PPP is the second major expenditure of the CFUG funds examined. It suggests that investment in PPP tends to depend on the amount of CFUG income. In addition to CFUG income, the chairperson's age, the secretary's exposure, and the number of dalit households are likely to influence whether investment of CFUG funds in PPP is made: an older chairpers...