Future Challenge: A Paradigm Shift in the Forestry Sector - Smallholder Tree Growing for Rural Development and Environmental Services - page 432

21.1 Introduction
The premise of this volume is that smallholder tree-based systems are efficient
agricultural and natural resource production systems. Various papers included in
this volume have amply demonstrated the common occurrence and sheer socioeco-
nomic importance of smallholder systems. A prominent component of ' trees out-
side the forest ', smallholder tree-based systems are primarily 'planted' systems that
rehabilitate or reforest marginal farmlands where agricultural crop production is no
longer biophysically or economically viable. Smallholder tree-based systems also
include forest-like systems where select priority species are integrated in natural
forests. In either case, farmers cultivate trees to diversify production, produce prod-
ucts for home consumption, enhance income through market sales, and reduce risk.
Smallholder systems tend to contain multiple species, produce multiple products,
and are found in both rural and peri-urban areas. In some locations these systems
are a major economic source of forest- and tree-products. In Kerala, India small-
holder systems provide 83 percent of the state's wood production and up to 90 per-
cent of its fuelwood production (FSO 1998 in FAO 1998). Sri Lankan smallholder
systems produce 73 percent of the nation's timber and 80 percent of its fuelwood
(Gunatilake 1994 in Gunasena 1999). Products produced in smallholder systems of
Indonesia include rattan, forest honey, sandalwood, gaharu, damar, benzoin, rub-
ber, cinnamon, cloves, nutmeg, coffee and candlenut (see Sunderlin et al. 2000;
Rohadi et al. 2003; Dove 2004; Garcia Fernandez 2004). The importance of small-
holder systems will only increase as the global forest resource continues to shrink
and human populations expand. Yet, as discussed in the previous chapter, small-
holder systems are excluded in formal definitions; lost in statistics; and overlooked
in the legal and institutional framework of agriculture and natural resources.
Additionally, smallholder systems could be more productive and profitable if the
common barriers that limited their development were addressed in a systematic way.
In this final chapter we re-visit the facts and figures of previous chapters, with a
focus on the importance, present contribution and future potential of smallholder tree
growing in South and Southeast Asia. The main message is twofold: (1) a paradigm
shift in the forest sector is required to recognize the contribution and importance of
smallholder systems to achieve sustainable forest management objectives; and
(2) there is a need to adopt more holistic and sustainable strategies to support and
strengthen the development of smallholder systems and link them with the market. To
set the context in terms of importance of smallholder tree growing, we first review
trends in regional deforestation, human population growth, and demands for forest
(tree) products. Following that review we describe current common tree-based lan-
duse and management systems and their potential to contribute to the regional forest
base and as sources of forest products and services. Emphasis is placed on the contri-
bution of smallholder tree based systems to sustainable forest management and their
contribution to expanding regional forest resources, producing forest products and
services, as well as, forming a major contribution to local livelihoods for rural com-
munities. Enabling conditions, institutional support and policy support that facilitation