Institutional economics and forest management: A case study of the deforestation problems in the Darjeeling Hills of India

One of the most serious environmental problems facing the world today is the rapid rate of deforestation. This situation is especially acute in the Third world and the developing countries where poverty, rising population, underdevelopment and other socio-economic factors are intricately linked. This paper analyzes the problem of deforestation in the Darjeeling Hills situated in the Eastern Himalayas. The goal is to apply the situation-structure-performance paradigm to the problem of deforestation and suggest institutional alternatives to alleviate the deteriorating situation.