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This manual provides practical methodological guidance for the economic analysis of stakeholder incentives in participatory forest management (PFM) situations. It stems from the concern that poor understanding has contributed to the often weak local participation in PFM, and therefore the limited success of many PFM experiences. The manual will help governments, NGOs and donors identify appropriate interventions to encourage participation. While the manual is primarily oriented to economists working in a range of organizations, it also aims to make economics more accessible to a wider audience promoting PFM.