The rationale for providing financial and other incentives for the establishment of timber plantations is discussed in general terms. Three case studies - Chile, India, and Indonesia - are provided to illustrate both effective and flawed approaches to implementing plantation establishment incentives. Incentive programs are successful if there are appropriate tenure and other macroeconomic conditions in place; the Chilean plantation incentive program was applied on private land in the context of a series of substantial market-based reforms. In contrast, low timber prices, insufficient tenure, and competing incentive programs for oil palm establishment have compromised Indonesia’s approach while the Indian effort has been ineffective due to low domestic timber prices, insufficient program funding and support, and fragmented land ownership.
