The FAO has reported that “Small and medium forest enterprises (SMFEs) as well as micro-enterprises have been instrumental in providing rural Nepalese with a livelihood" (FAO,2009). However, the local products lack the ability to compete in the global market. In order to be a successful product, a strong, stable company must produce the Healing Pine product. A cooperative has the ability to provide the needed support for success of this product.
Cooperatives, according to the International Labour Organization (2002), can create gender empowerment as well socially distribute the wealth to all those who contribute to the success of the operation. This could be very beneficial to the workers employed through the Chir Pine Cooperative. Production facilities could be jointly owned with other forest-based enterprises or through the ownership structure of the enterprise.
The Resin productive industry is considered to be highly labour intensive and labour intensive industries are not efficient when labour costs are high because the firm must pay their workers a high wage to account for the level of work required (Chandra, 2013). A firm may be unable to pay the workers the high wage and fewer workers would be willing to undertake a labour-intensive job if firm is unable to pay a high enough wage (Chandra, 2013). The Chir Pine Cooperative would need to find solutions to be able to provide a living wage while operating efficiently. A possible solution could be the formation of a multi-stakeholder cooperative, where workers as well as management owns the firm (Kent State University). This solution would require further analysis.
Cooperatives, according to the International Labour Organization (2002), can create gender empowerment as well socially distribute the wealth to all those who contribute to the success of the operation. This could be very beneficial to the workers employed through the Chir Pine Cooperative. Production facilities could be jointly owned with other forest-based enterprises or through the ownership structure of the enterprise.
The Resin productive industry is considered to be highly labour intensive and labour intensive industries are not efficient when labour costs are high because the firm must pay their workers a high wage to account for the level of work required (Chandra, 2013). A firm may be unable to pay the workers the high wage and fewer workers would be willing to undertake a labour-intensive job if firm is unable to pay a high enough wage (Chandra, 2013). The Chir Pine Cooperative would need to find solutions to be able to provide a living wage while operating efficiently. A possible solution could be the formation of a multi-stakeholder cooperative, where workers as well as management owns the firm (Kent State University). This solution would require further analysis.