Evolution of Portuguese community forests and their governance based on new institutional economics

Forest governance is under reorganisation in many European countries, because of the changes in property and forest tenure rights. Portuguese community-based forestry is an interesting research subject from a New Institutional Economics perspective. Community forests (an important part of community lands known as baldios) cover half a million hectares in the north and the centre of the country and are owned by local communities. Their average size of over 400 hectares and diversity of resources underscore their value, and their management contributes to rural development. Recent laws intend for the complete transfer of their tenure rights to communities and local authorities. In this study, we analysed the transformational processes of Portuguese community-based forestry. To structure this analysis and shed light on forest management-related problems, we followed the 'four-level institutional analysis' developed by Williamson. Particular attention was paid to the first three levels. The first concerned social practice and informal rules. We are describing the history of baldios, their use by rural populations, and the subsequent occupation by the State for afforestation. The second level addressed the institutional environment and formal rules. Here, we focused on the recognition of baldio community properties and their legal framework development. The third level addressed management and the interaction of actors in transaction cost savings. Here, we examined the current community-based management models and future trends. In our analysis, we identified the causes underlying baldio management problems at different levels, which highlight the importance of new governance models and economic activities. The analysis showed that overall, the Portuguese community forest governance is a flexible structure capable of adapting to political and demographic changes and offering valuable support for the development of rural areas in the north and centre of the country. Additional empirical research is needed to improve knowledge on the impact of institutions on the management of community forests, both nationally and internationally.