Como lograr mayor prosperidad en tierras forestales fragmentadas

the prosperity of forestland owners and the quality of the environment associated with its production depend on the success of the forest businesses that they can undertake in those lands. forest businesses in fragmented properties are less competitive, which often leads to the conversion of such lands into unsustainable uses. one of the ways to face the problems of fragmented forestlands is to integrate them in larger production units or in units that use technologies better suited for larger properties. with integration, landowners can adopt more productive technologies, take advantage of better input and product prices, be more competitive, improve their income, and generate positive externalities for society. hence, they can be more prosperous. on the other hand, a competitive forest industry depends on the availability of timely wood raw materials in quantity, quality, and at competitive prices. traditionally, the industry often uses its scarce capital to buy land to produce the wood it needs or rely on uncertain providers. either way, its capacity to grow and compete is compromised. this paper discuses the case of vertical integration between small forest landowners and industry for mutual benefit. it identifies and discusses the principal legal, institutional and financial instruments needed for the promotion of the vertical integration. it also presents four types of support that governments can provide to: 1) create basic conditions for integration, 2) clarify the rules of the game, 3) support the integration directly, and 4) reduce transaction costs.