This policy note was prepared inresponse to a request from the Government of Southern Sudan(GoSS) for World Bank assistance in developing legislativeand institutional policies and strategies that will takeadvantage of the potential of the region's forestresources to contribute to poverty alleviation, foodsecurity, sustainable agriculture, economic growth, and toprotection of forest-related environmental services such asclimate, biodiversity, water, and wildlife resources. Thenote is intended to: (a) take stock of the current situationon the ground, including identifying the legislative,institutional, governance, and policy reforms needed tocreate an enabling environment for both public andprivate-sector investment. This should help in contributingto improved understanding of the currently underutilizedpotential of Southern Sudan's forest resources; (b)analyze what has worked and what has not worked prior to andsince the signing of the Comprehensive Peace Agreement(CPA); and (c) suggest priority solutions and actionstowards revitalizing the forestry sector. Key policy issuesaddressed in this note include: 1) strengthening forestresource information and knowledge base; 2) developing acoherent legislative and policy framework, organizationalstructure, and capacity for the sector; 3) promotingparticipatory forest and woodland management; 4) enablingforest-based industries to thrive; 5) creating an enablingenvironment for attracting private-sector investment; 6)protecting and enhancing forest-related environmentalservices; 7) using technical approaches to conservation andsustainable management of forest resources; and 8)introducing predictable and sustainable long-term financing mechanisms.