Numerous studies have shown that social forestry (hutsos) practices have significant potential to prevent environmental damage and protect forests, as well as improve community well-being. However, social forestry management also carries the risk of failure. One factor that often leads to the lack of adequate funding is the lack of success.
Practices in various countries show that social forestry financing generally tends toward an ad-hoc approach, including the use of a limited number of mechanisms, such as grants or subsidies, that only cover a small portion of social forestry activities. Furthermore, they generally remain heavily dependent on government funding and foreign aid. To address these challenges, understanding how to expand and diversify the funding mechanisms available for social forestry is crucial.