The World Bank's revised forestpolicy came into being in 2002 and covers all types offorests. It has the following key objectives: (i) harnessingthe potential of forests to reduce poverty in a sustainablemanner; (ii) integrating forests effectively intosustainable development; and (iii) protecting vital localand global environmental services and values. The policyenables the bank to fully engage in forestry throughout thedeveloping world, while ensuring that it complies with suchsafe guard policies such as OP 4.01 (EnvironmentalAssessment), OP 4.04 (Natural Habitats) and OD 4.20(Indigenous Peoples). On the other hand, the policy providesonly a general framework for its lending operations inforestry and cannot take account of the individualsocio-economic and environmental needs of regions and subregions. To carry out the work, experienced localconsultants were recruited to prepare country level reportsfollowing guidelines provided by the FAO Investment Centre,the aim being to gain a strong local perspective on the mainissues and potential for sustainable and equitable growth inthe sector. These reports were complimented by reference toan extensive literature base to produce individual countryreports and the summary which follows. Given the complexityof forestry in the region, the need to involve large numbersof stakeholders, and the need to accommodate change, thefindings of this report should not be regarded asdefinitive, but rather as a first step to shaping theBank's interventions in the sector in individualcountries over the medium term. It should also be noted thatdata have been obtained from a variety of sources, and thatinconsistencies and gaps were common; they shouldconsequently be regarded as orders of magnitude.