Current commercial uses of tropical forests development alternatives and natural forest management are the options discussed for economic use of rain forests. The destruction of forests in Latin America are attributed to public policies which promote expansion of commercial agriculture and ranching. Timber harvesting and rural poverty are leading causes to some extent in Africa and South Asia. Conservation and development goals require different strategies adapted to local conditions. Principal components are decentralization and wide distribution of benefits diversity of production and small-scale production of low impact actions which are acceptable to many. The strategies for poverty reduction and conservation must take into consideration that 500-700000 rural households are dependent on small- scale and short-cycle crops that most of the population growth is in urban areas and that secondary forest growth is ongoing. Small-scale farming should expand the industry of natural forest product extraction the planting of trees by farmers for ground crops the diversification of farm production and continuous cropping and the use of natural fertilizers. Obstacles are unreliable land tenure lack of knowledge of agroforestry limited agricultural extension services with trained personnel inadequate technical and cultural knowledge by forestry researchers tax incentives which encourage single crops and ranching or encourage environmentally destructive practices. Plantation forestry can contribute to providing electricity in small urban areas urban household and industrial firewood production and industrial lumber production. Natural forest is beneficial in expanding the diversity of forest use. Research is needed to determine the market potential technical production aspects marketing requirements potential uses management procedures and finances. Diversifying production takes advantage of forest biodiversity; subsidies for diversity should be established instead of single commodity subsidies.