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Forests are the most extensive terrestrial ecosystem, and nearly 500 million people depend on forests for their livelihood. Since the World Bank issued its forestry sector policy paper in 1978, there has been growing concern about the accelerated rate of destruction of the remaining primary forests in various parts of the world. The policy paper identifies two key challenges: to slow the alarmingly rapid rates of deforestation, especially (although not exclusively) in the tropical moist forests, and to ensure adequate planting of new trees to meet the rapidly growing demand for fuelwood in developing countries. The Bank intends to move vigorously to promote the conservation of natural forests and the sustainable development of managed forestry resources.