"The aim of this paper is to provide a conflict-sensitivity analysis of forest governance in Myanmar to inform all stakeholders involved in the negotiations of the Forest Law Enforcement, Governance and Trade Voluntary Partnership Agreement (FLEGT VPA) in Myanmar. Drawing on several case studies from across the country, this report seeks to provide an overview of how different types of conflict are related to forest governance, and how the positive and negative impacts of forest governance reforms in Myanmar might be considered to help inform a “conflict-sensitive” approach to the FLEGT VPA process in Myanmar. Myanmar is in the middle of a complex, precarious, and lengthy process of trying to negotiate peace after six decades of internal armed conflict. At the same time, it is in transition from military rule to a more democratic form of governance. A key issue in the democratic transition and peace process are questions about the future governance of Myanmar’s valuable natural resources, including teak, rosewood, and other valuable timber species that are predominately found in conflict-affected areas of the country. Within this context, any discussions about governance arrangements for natural resources, such as a VPA, risk unintentionally exacerbating deep-rooted grievances. Additionally, the tensions and conflict dynamics in the country will, by nature, influence the process of negotiating the VPA. Recognising this two-way interaction between conflict and the VPA process is at the crux of a conflict-sensitive approach. This paper proposes the development of a simple tool, referred to here as a “conflict risk analysis”, to help the stakeholders involved in the VPA process identify, monitor, and mitigate potential risks and opportunities of the process on key conflict and peace issues related to the VPA. As a starting point for discussion, we propose the following four key issues to be monitored: • Participation – to what extent do all groups have an opportunity to participate in the VPA process? Are any stakeholders excluded? • Communication – Is the process accountable, transparent, and clearly communicated, and is the process building greater trust between stakeholders? • Gender – to what extent are women participating meaningfully in the VPA consultation, negotiation and decision-making processes? Are their needs taken into account? • Community empowerment – to what extent do the process and outcomes of the VPA empower communities and civil society, especially marginalised communities including conflict-affected communities, for more inclusive, representative, and participatory forest governance? Why is this important? Participation, communication, gender and community empowerment are all factors that, if not managed well, could lead to increased tension. Lack of transparency around the process and the decisions being made could lead to lack of trust in the process and other governance processes. However, if managed well, these factors could contribute significantly to building more positive relationships between the different ethnic communities, local and national government, the private sector and armed actors. By regularly monitoring these risk factors, the Interim Task Force (ITF) or Multi-Stakeholder Group (MSG)1 can avoid exacerbating conflict tensions, mitigate risks and support moving towards peace and reconciliation. Inclusive participation of civil society and ethnic communities, based on transparent two-way communication flows, will be key to achieving this. To put the FLEGT VPA process in context in Myanmar, this paper also takes a wider look at forest governance and illegal logging in Myanmar. It identifies several key issues – such as the political economy of timber, illegal logging, community land and forest rights – that need to be addressed to ensure that the governance of forest resources helps contribute to peace. The paper suggests that all stakeholders should take care to ensure that the VPA process does not get too far ahead of the peace process and political dialogue currently under way in Myanmar, in order to avoid adverse impacts. A peacebuilding approach could look to achieve incremental governance improvements that can enhance the lives of forest-dependent communities through inclusive multi-stakeholder dialogues (such as through the platforms envisaged for a VPA process) and by increasing community participation, in addition to the formal structures of the political dialogue. The meaningful participation of women, youth, and rural stakeholders from all ethnicities will be key to this. Looking beyond the peace process, the paper identifies several key areas or governance reforms in Myanmar’s forestry sector. The paper draws on five short case studies to highlight specific challenges – including insecure land tenure, illegal logging, and challenges in operating community forestry in conflict-affected areas – faced by communities affected by forest governance weaknesses, as well as community-level approaches to address them. The paper stops short of issuing firm recommendations as, ultimately, it will be for the stakeholders involved in the VPA process to determine the scope and ambition of the VPA in Myanmar – including the extent to which they wish to use the VPA to introduce governance reforms that can contribute to peace. However, by highlighting certain issues that are important to peacebuilding efforts in Myanmar, it is our intention to support those stakeholders in setting that ambition, and showing concrete ways in which such ambitions could be approached..."