The major role tropical forests play inbiodiversity and climate change has led the world to searchfor effective ways to slow down deforestation. Communityforest management (CFM) is an example of the broader conceptof community-based natural resources management (CBNRM). Aspart of the decentralization policy in many countries,mainly in Africa and Asia, CFM was expected to promote: (i)a more effective stewardship of the resources by involvingthe local communities in the management of the resources,and (ii) a more locally-driven development with them tappingmost of the derived benefits. The precursors of CBNRM andCFM in Madagascar are the centrally-led compensation-basedmechanisms to conservation. Madagascar is one of the firstcountries in the southern hemisphere to have put in place alegal framework for CBNRM and CFM. The CBNRM implementationprocess starts with the creation of a local naturalresources management group. The government has identifiedthe protection of natural capital and the harnessing of itsvalue as a key pillar in its national development plan for2015-2019. The plan identifies poor governance as a majorconstraint to achieving the country’s developmentobjectives. It puts strong emphasis on the roles of bothnatural capital and the necessity for a more inclusiveeconomy to achieve sustainable development. This report willhelp the Bank take stock of the nearly two-decades ofimplementation of the national environmental action plan andprovide nation-wide facts that will inform future investmentin renewable natural resources management, biodiversityconservation and poverty reduction, and local development inthe future. The present work is targeted to decision makersand stakeholders involved in CFM policy with the objectiveof taking stock of almost 20 years of implementation andadvise on future directions in policy formulation. Thereport is organized as follows: section one presentscommunity forest management (CFM) in Madagascar. Section twoprovides the result of an impact evaluation analysisconducted on the application of CFM policy. Section threeprovides an analysis of the legal and institutional aspectsof the application of CFM policy in Madagascar. Section fourpresents recommendations for the short, medium, and longerterm. Section five concludes.