Economies of private trees: impact on income distribution at Badikhel, (Lalitpur, Nepal)

Land ownership in South Asia is inequitable. This paper attempts to explore the types of landholding by wealth class, and quantifies the impact of income from private trees. It also assesses the possession of private trees by wealth class to determine the contribution to household income and subsequent impact on income distribution. The research uses comprehensive tools, both conventional surveys and participatory rural appraisals, particularly wealth ranking to delineate rich and poor household and is conducted on 42 households of Badikhel Village Development Committee, Lalitpur District in Nepal. Results showed that the income from private trees, including subsistence use, contributes 3.8-5.8% of the household income. Pakhabari (less productive, non-irrigated and often terraced upland) is an important land resource that is also in possession of poor households. The intensity of land use by wealth class is not valid while introduction of trees in land may have other dimensions (religion, culture, etc). There was no negative impact of trees growing on the income of poor group. The rich household owns more private trees than the poor household, both on absolute term and on average, however the difference was not significant in the Chi square test. There was no preferential difference in trees among the rich and poor groups. The average monthly income from private trees for poor and rich group was NRs 117 and 296, respectively (US$1=NRs75). An important observation in the study was that the income from private trees has a dis-equalizing effect on the income distribution which subsequently increases the poor-rich gap. These findings have a sobering effect on equity-related issues regarding community forestry in Nepal. The paper strongly recommends further research on private resource endowment before harshly criticizing certain practices prevailing in community forestry in the name of equity in Nepal.