. Commercialization of non-timber forest products. Factors influencing success. Lessons learned from Mexico and Bolivia and policy implications for decision- makers. UNEP-WCMC Biodiversity Series Policy options. The long walk to market. Apolo, Bolivia. CEPFOR CD-ROM and are downloadable from the project website GOVERNMENT INTERVENTIONS Figure presents a conceptual model of how government interventions can affect the transaction costs or linkages between people in a value chain that moves products from the informal to the formal sector The lower half o
. Commercialization of non-timber forest products. Factors influencing success. Lessons learned from Mexico and Bolivia and policy implications for decision- makers. UNEP-WCMC Biodiversity Series Policy options. The long walk to market. Apolo, Bolivia. CEPFOR CD-ROM and are downloadable from the project website GOVERNMENT INTERVENTIONS Figure presents a conceptual model of how government interventions can affect the transaction costs or linkages between people in a value chain that moves products from the informal to the formal sector The lower half of the diagram shows the typical transaction costs faced in the informal and formal NTFP commercialization sectors and in the transition between them. As outlined in Chapter 9, these transaction costs are associated with ensuring the interchange of a product for money or goods. Policies that reduce transaction costs will make a value chain more cost-effective and more attractive to new participants. Broadly speaking, governments may make public investments which will tend to provide general support to the informal sector, or make policy inter- ventions targeted more at the formal sector. Public investments Many of the fundamental prerequisites for enterprise growth in the NTFP sector, like those in the rural non-farm economy, are public goods, such as roads, electricity, telecommunications and other infrastructure (Haggblade et al. 20021. Public investments have an impact on people's capabilities to carry out an activity or business, whatever the sector For example, investment in rural education, health and skills development will have an important impact on individual capabilities, and the capabilities of actors within the value chain will in turn affect transaction costs, because the individuals will be better equipped to search out and understand information and perform transactions in a me- thodical way Therefore, risks in a transaction are reduced and few opportunities rema
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