The report identifies the challenges,and opportunities the forestry sector faces in Turkey, wheretwenty five percent of the country's land area iscovered by forests, with significant economic,environmental, and cultural functions. The challengesidentified in the review include poverty, land tenure, theneed to establish multi-purpose, participatory forestmanagement planning, and, to control soil erosion indegraded areas, including the need to restore thesector's financial viability. Following an introductoryreview on economic growth, urbanization, and new demands onforest resources, the study analyzes the liberalization ofthe policy framework, the reform of state-owned enterprises,and the public expenditure restraints. The sustainedrealization of forestry development goals in the context ofstrengthened economic discipline, should lead to theplanning, and management of forest resources at both thenational, and local levels; to a decrease in forest areasmanaged primarily for wood production; to an expansion ofprotected areas, and national parks, covering a wide rangeof Turkey's natural ecosystems; and, to reforestationlevels rising significantly the degraded forest lands,supported by active communal participation. This will beachieved based on suggestions on policies, and institutionalarrangements, and on consensus development on sectoralpriorities. Recommendations suggest pilot approaches tobiodiversity conservation; reconsideration of public sectoragencies' organizational structures; integrated ruraldevelopment initiatives to support poverty alleviation,including institutional target programs for the poorestforest-dependent people; and, development of community basedresource management approaches, mainstreamed throughsupportive regulations, guidelines, and budgetary processes.