This article examines the relationship between local level heterogeneity and the likelihood of successful collective action in community-based forest management in Nepal. Economic and social heterogeneity are discussed and their effects on local level collective action considered. The study develops simple measures of inequality for key variables, and shows that there is no clear-cut impact of group heterogeneity on collective action. Forest user groups can create institutions for resource management according to their local context in order to avoid management problems created by inequalities among resource users. Perhaps the most important result is that the effects of heterogeneity can be highly variable, and the recommendation is that systems of governance need to be flexible to allow adaptation of management regimes to local conditions.
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