| Abstract | The sustainable management of forests and forest resources are recognized as essential at global, regional, national, and local levels for environmental, social, and economic services. Forest resources and their management systems are extensively studied for the reason of finding suitable strategies to manage them in a sustainable, efficient and equitable manner. Govenunents in the past have adopted and evolved various forest management systems of which transfer of ownership from local users to the state was common. While there is no consensus about the exact causes of deforestation, there is much agreement that state control of forest resources generates incentive structures for deforestation. It is argued that governments limit ownership and use rights of local communities over forest resources. On the other hand, communities are believed to have successfully managed forests for decades. This study is an attempt to derive the horizontal, vertical, and temporal interactions and linkages in resource institutions, with special reference to forest management in Bhutan. In providing the context of forests in Bhutan, the study starts out with defining forests in relation to human settlements. Using the International Forestry Resources and Institutions (IFRI) research strategy and Institutional Analysis and Development Framework, the study was conducted mainly in six IFRI sites namely J agarlingchu, Kamdar, Rangzhikhar, Taksha, Tshogoenpa, and Wambur. Other areas of Tshokana, Mendrelgang, Tshanglajong, Trong, Langthel and Samdrupchoeling were briefly studied and the villages of Chang Namkar and Khankhu were incorporated for supplementary information. Institutional evolution, status, and future implications of forest management in Bhutan were the three main areas of inquiries. From the historical perspective, the study identifies three eras during which institutions in resource management evolved. The first era was the period prior to 1907 during which the political economy revolved around the emergence and rule of religio-politico leaders who were in constant internal struggle and strife. The second era beginning 1907 through early 1950s was an era of transition marked by increasing political stability. Although the local level people-resource relationship continued unchanged under persisting burden of taxes and government obligations, two-way public-government-public initiatives and political foundations for formal resource management systems were undertaken. Signs of improvement began to show as peasants gained sympathy of their Majesties the second and third Kings. Early 1950s onwards constitutes the third era in which major changes that occur!'ed to the political economy also resulted in state interventions in forest management and alteration of access, withdrawal, management, and alienation rights. Based on the analysis of current forest management and institutional arrangements, the study demonstrates, through a framework of incentives and disincentives in forest management, the important role played by sokshings (leaf litter forests) in the overall management of forests in Bhutan. The incentive and disincentive structures depict how sokshing institutions are effective in transfonning disincentives of state ownership of forests into incentives and also demonstrate how governments can formally recognize local arrangements. The effectiveness of local institutions is further supported by biological data that shows significant difference between sokshing and non-sokshing natural forests in terms of their structure and composition. A combination of selected forest mensuration parameters was used to obtain the condition of sokshing and non-sokshing natural forests. Analysis of plot data revealed the differences in sokshing and non-sokshing forest condition parameters are not explain~d by the differences in their environmental factors. Instead, the presence of human management in sokshings revealed sokshing conditions that are contrary to what is predicted under natural conditions. With detailed forest conditions explored, the study ventures into assessing the relationship between institutional robustness and forest conditions. Two aspects of the study of commons related to forest accessibility and property rights, and Ostrom's design principles for long enduring CPR institutions· were employed in assessing the changes in sokshing rights over time and in obtaining institutional robustness. Application of Schlager and Ostrom's 'bundles of rights' revealed a shift of status of individuals and communities from 'owners' to 'proprietors' of sokshings with the introduction of nationalized forest management system in 1969. While differences in institutional levels pertaining to sokshing and non sokshing natural forests was clearly seen in their differences in biological composition and structure, the influence of institutions became clearer with the finding that stronger sokshing institutions were correspondingly related to resource conditions when the right measures of resource condition was used. Robust sokshings institutions were correspondingly related to stem density and basal area rankings revealing that sokshings arc the cornerstone of agricultural livelihoods in Bhutan. The study concludes that institutional arrangements influence resource conditions; that resource conditions can be tailored through the design of institutions and that institutional robustness reflects the condition of the resource it governs only when the right measures of the resource are used. In Bhutan, most villages have indigenous arrangements that deal with a wide range of day-to-day activities. The opportunities for enhancing on the existing local institutions are great and the risk of continued centralized control of forest under limited resources and manpower is potentially high. As local institutions begin to lose significance under external influence, the economic rationality of individuals in not following government rules may become predominant on the grounds that chances of being caught are rare. In guiding the future management of forests in Bhutan, the study points out the implications of current situations, proposes policy recommendations and highlights outstanding issues. |