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The fingpo ethnic minority is located almost entirely in Dehong Prefecture in the west of Yunnan. This prefecture borders Myanmar, shares a number of natural characteristics with it, and is dissected by rivers which form the upper reaches of the Irrawaddy River. Its climate is influenced by monsoons originating in the Indian Ocean. The total population of this minority is about 118,000 and they are mainly located in hilly areas This paper examines the rural economy of thefingpo people, traditional factors influencing their management of local forest resources such as their religious beliefs, and local means of governance. Thefingpo people possess valuable indigenous knowledge about their local forest resources which should be taken into account in the quest for the sustainable economic development of this community. Today, slash-and-burn. agriculture is causing economic sustainability problems for the fingpo. In addition, land ownership problems and conflicts about property rights threaten their conservation of forests and entail economic sustainability problems as Explained in this paper. Whether or not improved access to markets and the use of more productive techniques will relieve the situation and reduce poverty among thefingpo remains to be seen. Currently, the incidence of poverty among the Jingpo is high, they obtain little education and pursue mainly a subsistence lifestyle. This situation is not dissimilar from that for many hill tribes in parts of India and in Southeast Asia. © MCB University Press, 0306-8293.