This paper demonstrates that active management of community forests enhances the economic development of forest user groups. The present situation of passive management is associated with several underlying technical and social issues including underutilization of forest, protection oriented forest management, overstocked forest (dense) with little regeneration, shortage of forest products, poorly designed silvicultural practices due to conservative provisions in forest management guidelines, and limited practical knowledge of forest management. A process of active forest management is possible by adopting joint learning among local forest user groups, forest officials and local non-government service providers.

Drawing on evidence from the Livelihoods and Forestry Programme (LFP) the transition from passive to active management is demonstrated through an assessment of Forest Operational and their implementation by Community Forest User Group (CFUGs) with the support of forest technicians. The key interventions required are site specific forest management treatments for both timber and non-timber forest product production and support for CFUG governance that promotes income generation and mobilization of funds for wider community development and poverty reduction. The requirement is planned forest operation with respect to forest age for sustained supply of desirable products is also explored. This paper also explains that how such active forest management interventions can affect the positive economic development of CFUGs and can be a means for poverty alleviation.