CHAPTER 1 INTRODUCTION For many, community forestry appears to be a promising way to meet poverty alleviation for rural communities and conservation of forests for a wider range of stakeholders. However, the lack of market access, a healthy forest, business skills or an appropriate policy environment may lead community forestry initiatives to fail economically. In addition, successful community forestry initiatives must also take into account the socio-cultural complexities of the communities -an aspect of community forestry that has too often been overlooked and can lead to substantial negative effects on the local population and the forest (Schmink, in press). Community forestry initiatives, such as the communal carpentries described and analyzed in this study, may become drivers for many social, economic and environmental changes. These changes are often more severe when community forestry initiatives integrate relatively isolated communities to the market economy (Godoy 2001). This research explores the socioeconomic effects of three communal, small-scale carpentries in Ashaninka indigenous communities in the Upper Amazon in Peru. In the next chapter the livelihood systems, in which the communal carpentries became an additional activity, are examined focusing on the productive activities, especially those that are market oriented. In the third chapter, the socioeconomic effects of the carpentry operation on the people are explored at both the household and village levels. This thesis has been organized such that the second and third chapters are two individual and fully