Trees as Savings and Security for the Rural Poor

Abstract

"For savings and security, trees are comparable with jewellery, large stock, small stock, land and bank deposits. The disadvantages of trees may include insecure or unclear rights, restrictions on cutting and selling when needed, and problems with marketing; but common advantages include cheap and easy establishment, rapid appreciation in value, divisibility to meet needs closely, and regeneration after cutting. More empirical studies are needed on the use and potential of trees as poor people's savings banks. The policy implications of present evidence and analysis include tree reform, improved marketing and prices and, above all, vesting poor people with secure and full ownership of trees, with rights to harvest, cut and sell that are similar to the withdrawal rights of depositors in savings banks."