| Forests cover approximately 37% of the land area in Latin America and the Caribbean (LAC). Forests in LCR account for more than a third of the global forest resources and represent important stores of biodiversity. Forest cover is, however, decreasing in almost all LAC countries. Forest resources in the LAC region have great potential to improve rural livelihood given the high dependence of poor communities on forest resources. Approximately 40 million indigenous people (many of them poor) live in forested areas in the LAC Region. Recent projects in LAC therefore show a substantial focus on community involvement in conservation and management of forest and non-forest resources (e.g. Mexico and Honduras). In addition, in order to conserve environmental commons, the Bank has engaged in a number of GEF projects and other grant-based support to Protected Areas (e.g. Brazil and Peru) and building markets for ecosystem services (e.g. Costa Rica and Mexico). Table 4. Examples of projects with major forest components in LCR Country | Project Title | Fiscal Year Approved | Status |  Brazil |  GEF Amazon Region Protected Areas Project |  2002 |  Active |  Costa Rica |  Ecomarkets Project |  2000 |  Active |  Honduras |  Forests and Rural Productivity |  2004 |  Active |  Mexico |  Programmatic Environment Structural Adjustment Loan |  2003 |  Closed |  Mexico |  Community Forestry II (PROCYMAF II) |  2004 |  Active |  Peru |  GEF Participatory Management of Protected Areas Project |  2003 |  Active |
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