Abstract

This case study was done with the objective of generating information regarding the role of selected rural institutions in undertaking and promoting forestry activities. Although a minor forest product, bamboo reeds (Ochlandra spp.) form an importantraw material for both traditional and modern industries in Kerala. Mat-weaving and basket-making are the major traditional uses of reeds. For a large number of households reed based industries form an important source of livelihood. Institutions such as co-operative societies and the state-owned Bamboo corporation were set up with the social objective of enhancing the income accruing to traditional workers by eliminating intermediaries. Production of baskets and mats requires little capital input and isappropriate to the resource endowments of household producers. Financial and economic viability and social desirability of the activities and institutions have been examined. Internal organisation of the institutions involved in the collection, processing and marketing of reeds have been studied focusing attention on workers involvement in decision-making. Social, economic and cultural characteristics of reed workers have been briefly discussed. An analysis of the interaction between society, institutions and technology indicates that reliance on market signals for decision-making would, in due course, compel institutions to deviate from their initial objectives and a tendency towards adoption of inappropriate technologies develops. This study indicates the conditions that favour the development of appropriate institutions and suggests measures for enhancing their effectiveness under the social environment that prevail in the state