Between Cash and Usufruct Rights: In Search of an Appropriate Policy Instrument for Sustained Local People's Participation

Abstract

"The Philippines has been embarking on a massive reforestation program since 1988. As a strategy to attract active participation, including civic organizations and local communities, Contract Reforestation is being introduced as alternative to traditional government-administered approach. Incentives are offered. Contract bidding occurs among various local parties assured of fiancial support. Although cash incentives are involved, these can ruin an actor's initiative for consistent environmentally sound behavior. This results in deliberate burning, haphazard compliance of contract activities, and premature abandonment of the project are the negative results of cash incentive systems.

"This paper attempts to provide an empirical evidence that security of land right supersedes the effect of cash incentives of participants' motivations for sustained involvement in contract reforestation projects. Two contrasting case studies which try to exemplify the effect of security of land claim as a crucial institutional arrangement for project success will be analyzed.

"The conclusions presented in the paper are tentative. However, initial findings convey the strong correlation between project participants; desire for legal claim of usufruct right over the reforestation are and their sustained quality performance in the project."