The livelihoods of the people living in rural Ethiopia are closely linked to the utilization of natural resources, particularly forests. Forest resources contribute directly to poor people’s livelihoods by providing subsistence goods (fuel, timber, food, medicine and fodder), goods for sale to generate additional income, and other indirect social and ecological benefits. The contribution of forests to the livelihoods can only be maintained if they are managed sustainably (Angelsen and Wunder, 2003; Warner, 2000).