Applied Studies in Agribusiness and Commerce – AP ST RACT Agroinform Publishing House, Budapest SCIENTIFIC PAPERS MORAL HAZARD PROBLEM FOR POOR UNDER JOINT FOREST MANAGEMENT PROGRAMME EVIDENCE FROM WEST BENGAL IN INDIAN CONTEXT Debnarayan Sarker Professor and Secretary, Centre for Economic Studies, Department of Economics Presidency College, 86/1 College Street, Kolkata – 73, Email:
[email protected] Abstract: This study explores policy framework on current JFM programme, which secures traditional right of local need subject to the carrying capacity of forest, but face moral hazard problem in which Government cannot legally monitor actions against JFM households- which live below poverty line and that extract TFPs for their livelihood, and thereby threatening to sustainability of forest, whereas the incentive work opportunities that Government provides them is insufficient for their subsistence. A good incentive fee dependent on their work plus a lump sum fee (subsidy) are required for their livelihood sustenance and sustainability of forest resources. JEL. Classification: Q23, Q56, Q01, Q58 . Key words: Non-Timber Forest Products, Timber Forest Products, Forest wage work, Poor JFM households Abbreviations used policy changes, attempting to create a new relationship between ‘state’ and ‘community’. The old custodian forest JFMP Joint forest management programme management systems were rendered ineffective due to JFM Joint forest management various reasons, mainly traditional emphasis on production TFPs Timber forest products of