Forest concessions have been an important element of forestry and forest management in many countries, including developing countries. However, if sustainable management of tropical forests is to be achieved and deforestation brought under control, the allocation, management, and supervision of forest concessions will need to be strengthened. This study examines the failures of forest concessions over the last 20 years, and highlights the potential gains resulting from concentrating on improving procedures, introducing performance incentives, and monitoring key performance elements.