The following featured projects are organized thematically according to the following topics: community based forest resource management, Institutional Reform of Forest Sector in Transitional Economies, Protected Areas and Payment for Environmental Services, and Development Policy Lending (DPL).  Community Based (Decentralized) Forest Resources Management  Since forest resources play a significant role in supporting rural livelihoods in these regions, the projects encourage sustainable management of production forests to alleviate rural poverty. These projects use a community based (decentralized) approach to forestry management, through which rural communities take responsibility for the development and sustainable use of forest areas.   Institutional Reform of Forest Sector in Transitional Economies  In the past, States had both public (administration / inspection) functions and private (management, sales, etc) functions in Eastern European countries. Recently, however, the movement towards privatization and a market-based economy has led to the separation of these functions to a large extent. Faced with this changing role of the forestry sector, common challenges are:  ·        Insufficient public revenue to ensure sustainable forestry management and to monitor and deter illegal logging ·        Unsustainable forest management by the private sector, which tends to have an interest in short-term profits  Therefore, these projects aim to ensure sufficient revenue for public function and sustainable management of the forestry sector through assistance to institutional reform, effective management, monitoring and regulation, and development and of forest management information systems.   Protected Areas and Payment for Environmental Services The common issues are - deforestation and loss of biodiversity driven by accelerated economic development, agricultural expansion, ranching and logging
- Lack of financial and technical capacity to manage areas of environmental significance
 These projects aim to conserve locally and globally important biodiversity and ecosystem by creating protected areas or building the mechanisms for payment for ecosystem services. Brazil's Amazon Region Protected Area Project (ARPA) intents to create 18 million new protected areas.     Development Policy Lending (DPL)  Faced with the rapid degradation of natural resources, these projects aim to improve key policy measures in support of improvement of forestry management as a part of environmental and natural resources management. |