A pattern of forest area loss followedby a period of reforestation is representative of the foresttransition process. Forest transition has been observed inmany countries and is a feature of the development process.China reached its inflection point earlier and faster thanmost other countries that have gone through the transition.The report describes the success of reforms to forestresource tenure in collective forest areas. These reforms,which collectively amount to the largest transfer of forestassets in history, have effectively extended forestownership to a million, mostly poor, rural households. Thesereforms have increased forest-based incomes, have increasedtimber harvests, and have done so sustainably by virtue ofincreasing planting and forest management and resourceprotection effort. The World Bank work in China'sforestry sector has been successful. However, thedevelopments discussed in this report raise newopportunities and challenges. It is no longer clear, forexample, that World Bank loans are especially important inrelation to the financing of commercial plantations. Whilethe Bank has begun to move its plantation financing topublic goods, or ecological plantings, these are otheropportunities. This report brings together findings fromBank-supported studies with experience gleaned from Banksupport of over $1 billion in forestry projects. Chapter oneintroduces the contents and approach of the report. Chaptertwo summarizes key data and information of China'sforest sector and resources. Chapter three presents findingson collective forest tenure reform and chapter four,potential forest supply. Chapter five concludes withfindings to clarify choices and options available to theWorld Bank and China for moving ahead in forestry.
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