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If sustainable management of tropical forests is to be accomplished and deforestation brought under control, the on-the-ground performance of existing forest concessions, along with the allocation of new concessions, will have to be strengthened. This study examines the failures of forest concessions and the loss of tropical forests due to mismanagement during the last two decades. It also emphasises the potential gains resulting from strengthening the allocation, management, and supervision of concessions by concentrating on improving procedures, introducing performance incentives, and monitoring key performance elements.