Executive Summary: Economic Contributions of ForestsFor millennia before the industrial revolution, forests, woodlands, and trees were the source of land for settlement and cultivation, products and materials for construction, woody biomass for fuel and energy, and indeed, directly for food and nutrition as well. The spread of agricultural revolution depended on the conversion of forests into cultivable land. The continuing contributions of forests to global biodiversity, to the fertility of agricultural lands, and to the welfare of those who depend on them mean that forests are immensely valuable for sustainability. The massive economic contributions forests continue to make to human livelihoods, economic development, and national incomes are the main focus of our report.Changes in forest cover and the economic contributions of forests to development have created many different patterns across the globe. But the basic pattern of deforestation accompanying the initial period of economic growth, followed by a phase during which forest area and cover stabilize and then slowly begin to recover seems to be remarkably consistent -with obvious differences in timing. The specific reasons for this pattern differ -in some cases these reasons are primarily owed to changes in the distribution of economic activities from agriculture to industry to service sectors, in other cases to active government policies aiming to improve forest cover or penalize illegal extraction, and in yet other cases as a result to the role of international capital and trade. But under all these patterns of loss, stabilization, and recovery, the constant is the contributions forests make to international trade, national economies, employment, and household incomes.Even if only the formally recognized, officially reported monetary contributions of forests to the economies of the developing world are taken into account, they exceed US$ 250B -easily more than double the flow of total development assistance and more than the annual global output of gold and silver combined. These direct, cash exchangebased contributions of forests represent approximately 1% of the global output.Data gaps and absence of reliable information are major problem in estimating the economic contributions of forests beyond what is available in official reports. Country-and region-specific efforts indicate that where such data are reliably available, the non-cash economic contributions of forests to household and national economies range between 3 and 5 times the formally recognized, cash contributions. 4 In addition to their direct, cash and non-cash economic contributions, forests also provide substantial levels of employment. More than 13 million people are employed in forest sector activities in the formal sector. In the informal sector of small and medium forest enterprises, another 40-60 million people may be employed. Once again, however, the lack of systematic data makes it near impossible to estimate closely how many people are employed in the forest sector. Estimat...