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The forest-land ownership system of Mexico distinguished by communal forests is very unique in the world. About 80 percent of the total forests in Mexico are possessed and managed by ejidos or comunidades agrarias. Considering the size of forested areas, their economic benefits cannot be satisfactorily achieved until now. The forests have been continuously destroyed rapidly. Main reasons for deforestration are unstable and inefficient Mexican forestry policy, rural poverty, and socioeconomic inequality. So far, the Mexican forestry policy aims at reducing rural poverty and offering opportunities for employment by permitting lumber production in the communities rather than preserving forest resources and environment. Therefore, the Mexican government has continuously announced various policies whenever necessary in political terms. In many cases, the enactment of laws has been made by political decisions with little concerns for the preservation and utilization of forest resources. Frequently, new policy is only a revision of old policy, which is not good to generate a significant effect. The Mexican forestry regime clearly shows that the system of communal forests and proper policies can compete in the market and bears socioeconomic and ecological benefits despite various difficulties. The Mexican forestry policy can partially help create jobs and increase income in the mountainous rural and indigenous communities suffering from chronic extreme poverty and high employment rate. Some communities have secured the ownership of forests and earned income from forest resources. Recently the emergence of community forest enterprises can provide new economic and ecological opportunities to maintain alternative form of sustainable development. However, the Mexican government has failed to include rural dwellers in their forestry policy because of its efforts to protect the interests of lumber companies. Forests, namely common lands, have been substantially controlled by the government. Therefore, both the government and local communities are excessively preoccupied with economic benefits. The government permitted or condoned deforestation to provide jobs to peasants or indigenous people living in relatively isolated mountainous areas and villagers frequently fell trees following their economic and political interests. Nevertheless we can be sure that communal management of forests can be very efficient in protecting forests, maintaining biological diversity and reducing poverty in the community.