The rising of FJSPs is under the situations of the reform of rural economy and in transition from the traditional planned economy to the market-oriented economy. In accordance with the current productivity levels and the realization of the economy of scale and strengthening forestry administrative management, farmers in China have chosen FJSPs to promote rural forestry development. Within the framework of common property right arrangements, FJSP institutional arrangement is a new kind of rural forestry economic organization in which forestry lands, forest resources, labors, techniques, capitals and other forestry production factors are shared into stocks with forest management based on the equity, voluntary and democracy.
The rising and development of FJSPs reflect not only rural productivity level in China, but also the transition from the traditional planned economy to market-oriented economy. Remarkable achievements have been made by FJSP institutional arrangements in carrying out an in-depth reform on ownership, benefit distribution and forestry management systems as well as optimizing forestry production factor allocations. To some extend, FJSP institutional arrangements has promoted rural forestry development in China, and has been enhanced by the institutional arrangements designed by the State. Clear requirements for FJSP development are put forward, which are beneficial to rural FJSP development in China. At present, because the reform of forestry lagged behind the reform of economy, some institutions under the traditional planned economy have not been readjusted, the institutions for new issues are not designed, FJSP institutional arrangements are still having many weaknesses, such as inappropriate forestry land tenure and ownership, irrational benefit distributions, lacking of funds, monopoly purchasing of timber, heavy taxation and fee burdens etc. in forestry sector. All of these factors have restricted FJSP’s development.
The institutional arrangements should be adjusted in the following aspects. The long-term and stable forestry land institutional arrangements and soundly adjusted forest property right arrangement should be practiced. Timber production and circulation management institutional arrangement in the south collective forestry regions should be improved. Forest taxation and fees should be adjusted to reduce farmers’ burden. The institutional arrangement for compensation of environmental services for individual and collective forests should be established. Internal administrative structures of FJSPs should be improved and rural social services should be strengthened.
