Loma Alta community forest, western Equador

This paper provides an explanation for the lack of institutions regulating the Loma Alta Forest. The community has not yet created any rules regarding forest use. The members of the community with the biggest economic stake in the forest have no reason to limit their exploitative practices, and thus little demand exists for forest regulation at the local level. The Loma Alta Forest is in danger of being more severely degraded in the near future because of the lack of forestry institutions.

According to the paper, there exist property-rights institutions in Loma Alta. Some parts of forests have been allocated to individuals, and the other parts have been dominated by open-access system. But this case demonstrates that strong individual property rights alone do not guarantee a forest’s health.