Forest-dependent households: compensating what was gathered, not owned
Fuel, poles, medicine, wild foods and the months they cover. Losing forest access is an income loss with no title behind it.
Forest access rarely appears in an entitlement matrix because it has no title, no boundary and no market price. It appears in household income as fuel that did not have to be bought, poles that built the house, medicine, thatching grass, honey, wild foods, and the months of the year those things covered.
The counter-cyclical asset
What makes forest loss more damaging than its average income share suggests is when the income arrives. Gathering intensifies precisely when cultivation fails — the hungry months before harvest, a drought year, after a death in the household.
A resource supplying a tenth of income in a normal year may supply the margin of subsistence in a bad one, and losing it removes the household's principal shock absorber.[1] That is invisible in a survey that asks about income last month.
Ask what people do when the harvest fails. In most forest-edge economies the answer is the thing the project is about to take.
Who depends most
Dependence on forest resources runs inversely to landholding. Households with the least land gather the most, and they are also the least likely to hold any registrable interest in anything.
So a compensation process organised around titled interests transfers value with striking regressivity: the largest payments go to the largest holders, and the households whose entire fallback has been removed receive nothing, because nothing they lost was theirs in a sense the process recognises.[2] Within those households, collection is usually women's and children's work, which shapes who bears the loss and who should be consulted about the remedy.
Measuring an unpriced flow
The practical method is direct use valuation. Quantify physical offtake — headloads of firewood per week, poles per year, kilograms of wild foods, litres of honey — and price it at the cost of the nearest substitute the household would actually have to buy.
Two disciplines make it defensible. Collect seasonally, because a single-visit survey in the wrong month understates the flow severely. And record who collects, not only which household, since that determines whether a compensation payment reaches the person who bore the loss.[3]
Remedies
Because the loss is collective and recurrent, an individual one-off payment fits it poorly. Options with a better record:
- Physical replacement of the service — managed woodlots for fuel and poles, sited where the households that lost access can actually reach them, with tenure arrangements settled before planting.
- Negotiated access elsewhere, agreed with the communities that hold the alternative resource rather than announced to them.
- Substitution support — efficient stoves, alternative building materials, or subsidised fuel during a transition — which addresses the immediate cash consequence.
- Enterprise support around the remaining resource, where a managed harvest can continue.[4]
The conservation offset problem
Projects that clear forest sometimes offset it by strengthening protection elsewhere. Where that protected area is used by other people, the offset displaces them: access ends, enforcement increases, and a second population loses a livelihood in order to compensate for the first.
An offset that restricts existing use is itself a source of economic displacement, and it needs the same enumeration, entitlement and assistance analysis as the original clearance. Very few offset designs include it.
Getting it into the instrument
The determining decision is made early: a seasonal resource use survey has to be commissioned before the entitlement matrix is drafted. A matrix finalised first will never acquire rows for access losses, and every later attempt to address them runs into the absence of any baseline showing what was being used.
Sources
- [1]Performance Standard 5: Land Acquisition and Involuntary Resettlement — International Finance Corporation, 2012.
- [2]Guidance Note 5: Land Acquisition and Involuntary Resettlement — International Finance Corporation, 2012.
- [3]Good Practice Handbook: Land Acquisition and Involuntary Resettlement — International Finance Corporation, 2023.
- [4]Handbook Module 5: Livelihood Restoration and Improvement — International Finance Corporation, 2023.
Olule Solomon
Lead Consultant, ValueSpace
Olule Solomon is Lead Consultant at ValueSpace, where he works on land acquisition and resettlement systems for donor-financed infrastructure in East Africa. He writes about the practical gap between what the safeguard standards require and what a project can actually evidence at completion audit.
Related reading
- Enumerating customary and communal land in a RAPLand held by a family, a clan or a community has holders, not an owner. How to record the claim so compensation can actually be paid.
- Pastoralists: displacement of people who were never in one placeA census fixes people to parcels. Mobile pastoral systems have neither, and lose corridors and water points that no matrix records.
- Identifying vulnerable households — and what to do after you haveMost RAPs define vulnerability and then never use the flag again. Making it operational from census through to closure.
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