This paper aims to develop an integrated framework that incorporates causal relationships in conservation and development and explore theoretical implications conducive to achieving these dual objectives. Two case studies from the Philippines and Indonesia are used in the analysis.

The proposed framework identifies three types of subjects (among the local actors) who behave in particular ways regarding conservation and development: rational, normalized, and self-aware. Rational subjects behave according to a cost-benefit analysis, normalized subjects follow stipulated rules due to the visibility of regulatory actors, and self-aware subjects take actions based on their own values and interests. It is assumed that rationality is intrinsic to being human, and both normalized and self-aware subjects are developed through the formation process of local organizations and the implementation of devolved forest management.

The paper argues that, under devolved forest management, conservation is materialized thanks to the behaviors of normalized and self-aware subjects, and livelihoods are supported by two different mechanisms: (1) direct and restricted resource use by normalized subjects, and (2) employment opportunities pursued by rational subjects. The latter is provided by local organizations through non-resource based business development. It should be noted that self-aware subjects who recognize devolved management as their own value and interest function provide visibility to normalized subjects. Unlike conventional theory, which assumes the relationship of conservation and development as a trade-off, the paper concludes that the dual objectives of conservation and development can be simultaneously achieved through the application of restricted resource use rules and non-resource based business development. The key to success is the function of local organizations which create normalized and self-aware subjects as well as business opportunities for local actors.