Balancing Development and Conservation: The Role of Oil Palm in Achieving Prosperity and Sustainable Rural Livelihoods
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This study investigates the dual role of oil palm cultivation in promoting economic development and supporting environmental conservation, with a particular focus on sustainable rural livelihoods in tropical regions. Employing a Qualitative Literature Review (QLR) methodology, it systematically analyzed peer-reviewed articles, policy documents, and industry reports to synthesize current knowledge on the sector’s impacts. The review identifies that oil palm is a significant contributor to rural incomes and national economies, particularly in Indonesia and Malaysia, by generating employment and supporting export revenues. However, expansion of oil palm plantations is also sometimes associated with substantial environmental challenges, including deforestation, greenhouse gas emissions, and biodiversity loss, as well as social issues such as land tenure conflicts and unequal benefit distribution. Sustainability certification schemes—such as the Roundtable on Sustainable Palm Oil (RSPO) and Indonesian Sustainable Palm Oil (ISPO)—have demonstrated potential in mitigating negative impacts, but their effectiveness is limited by inconsistent enforcement and accessibility for smallholders. The findings underscore the necessity for stronger governance, more inclusive policies, and integrated landscape-level planning to reconcile development and conservation objectives. This review highlights the need for continued research on the long-term effectiveness of sustainability initiatives and collaborative governance models to ensure equitable and environmentally responsible outcomes in the oil palm sector.
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