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In the many parts of the world there is growing popularity of community based forest management. Forest user groups (FUGs) have emerged as new institutions in the community to carry out activities for the protection and sustainable management of forest resources. FUG members participate in decision-making processes and have been implementing forest operational plan to fulfill their forest products needs, improvement of forest condition, participate in poverty reduction and local employment. This book examines the effectiveness of FUG institutions in implementing their constitutions and operational plans. The participation of users in managing CF is crucial for sustainability. In this regard, the institutional arrangements of the FUGs and the incentives for participation in forestry activities are assessed because these affect the whole CF management process. Forest user's participation in forest resources management with appropriate technical know-how is driving factor to sustained supply of forest products and generates income and employment. The author critically examine the institutional capacity of FUG and its impact on forest management and community development.