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For millennia before the industrial revolution, forests, woodlands, and trees were the source of land for settlement and cultivation, products and materials for construction, woody biomass for fuel and energy, and indeed, directly for food and nutrition as well. The spread of agricultural revolution depended on the conversion of forests into cultivable land. The continuing contributions of forests to global biodiversity, to the fertility of agricultural lands, and to the welfare of those who depend on them mean that forests are immensely valuable for sustainability. The massive economic contributions forests continue to make to human livelihoods, economic development, and national incomes are the main focus of this report. Changes in forest cover and the economic contributions of forests to development have created many different patterns across the globe. But the basic pattern of deforestation accompanying the initial period of economic growth, followed by a phase during which forest area and cover stabilize and then slowly begin to recover seems to be remarkably consistent ‐ with obvious differences in timing. The specific reasons for this pattern differ – in some cases these reasons are primarily owed to changes in the distribution of economic activities from agriculture to industry to service sectors, in other cases to active government policies aiming to improve forest cover or penalize illegal extraction, and in yet other cases as a result to the role of international capital and trade. But under all these patterns of loss, stabilization, and recovery, the constant is the contributions forests make to international trade, national economies, employment, and household incomes.

Regional Patterns of Forest Transition, Forest Economy and Its Challenge