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The private sector is an increasingly dominant player in the production of wood, and the market is the main way in which wood products are distributed. Yet, for other forest goods and services such as non-timber forest products, biodiversity, and carbon storage, markets are often not effective. Worse, government and policy failures mean that the private sector's wood production activities often degrade the production base for these non-wood benefits.
This paper reviews varied experiences of privatisation processes, and recent lessons of regulatory, civil society and market-based instruments that affect the private sector from both supply-side and demand-side angles. It provides an overview of the main mechanisms and instruments for improving the sustainability of private sector forest management, and sets out an agenda for research and discussion.