In the developing economies, optimal forest regimes should incorporate the
socio-economic characteristics of the user groups. And, since socio-economi
c factors will change with time, optimal forest regimes will also follow a
dynamic path. The two most important socio-economic factors are the heterog
eneity of the user group with respect to forest management and the direct d
ependence of the user group on forest. Normally, the heterogeneity will inc
rease and dependence will decrease with economic growth of user group. An o
ptimal control model is used to integrate the dynamics of natural system su
ch as joint product of forests and its growth function, and the dynamics of
the two socio-economic factors - heterogeneity and dependence. The model d
emonstrates that the dynamics of optimal forest regimes will depend upon th
e change in natural factors, socio-economic factors, and on the interaction
s between natural and socio-economic factors. Hence, optimal forest managem
ent strategies would require a continuous refinement in forest management r
egimes, instead of static state regimes, as local communities in developing
economies pass through different phases of economic growth. (C) 2000 Elsev
ier Science B.V. All rights reserved.