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The conflict between poverty and the resulting over-exploitation of natural resources on the one hand, and ecological restoration and sustainable development on the other hand, in the southwest China karst region was studied. In this region, the karst forest (a mixed evergreen and deciduous broad-leaved forest) is rapidly degrading due to over-exploitation (sloping farming). We suggest that an Ecological Compensation (EC) model should be established with: financial institutions, local people,doi:10.4236/ojf.2014.43028 fatcat:g5qe75aycvd4xls2xx7npbd2tq