As large-scale forest plantations expand in developing countries, concerns are rising about their relation to and integration with adjacent local communities. In developing countries with weak enforcement of property rights, private plantations are more likely than state-owned plantations to involve villagers in plantation’s activities in order to secure and guarantee their access to land and labor resources. Certification standards of the Forest Stewardship Council (FSC) and adherence to responsible investment guidelines further strengthen this likelihood by requiring plantations to consult and engage local communities. Using household data from Tanzania, we assess households’ experiences with their participation in plantation activities by comparing the experiences of households in villages adjacent to private, FSC-certified plantations with those of households in villages adjacent to a non-certified, state-owned plantation. Our quantitative analyses show that households in the villages adjacent to the private, certified plantations are more likely to report to participate in plantation activities. Our results show that the certified plantations are more likely to respond to community complaints and grievances. We further find that male-headed households and households of plantation employees are more likely than female-headed households and households without plantation employees to participate in plantations’ activities. Our results imply that forest management certification can complement state policy approaches of sustainable forest management to enhance community participation in forest management.

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Modern agricultural technologies hold huge potential for increasing productivity and reducing poverty in developing countries. However, adoption levels of these technologies have remained disappointingly low in Africa. This paper analyzes the effect of access to credit on the likelihood of adoption and use intensity of chemical fertilizers using data from large rural surveys in Ethiopia. Using a heteroscedasticity-based identification strategy to address the endogenous nature of access to credit, we find that access to credit has significant positive effects on adoption and intensity of use of chemical fertilizers. However, important heterogeneities are observed. Credit obtained from formal sources is more important for the intensity of use than for the decision to adopt chemical fertilizers. Credit taken with the primary purpose of financing agricultural inputs is more likely to promote adoption of chemical fertilizers than credit taken per se. Furthermore, reported credit effects are larger when estimated against the sample of credit-constrained non-users as compared with the pool of the whole sample of credit non-users. The results remain robust to several sensitivity analyses. Our results yield useful implications for the design, promotion, and targeting of credit services to leverage their effect on adoption of agricultural technologies.

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