The present paper examines the efficiency of the current established criteria and indicators for sustainable development of the forest sector. The current system of criteria and indicators concentrates on the management aspects instead of objective setting. The current system is too complicated to be implemented and neglects the fact that sustainability cannot be achieved by a top-down approach but only by the people working on the ground at the local level. This paper presents a number of guidelines on the necessary steps to be taken in order to move towards what we call "a forest sector for sustainable development." Key words: sustainable forest management, criteria and indicators, institutional/legislative framework, planning, data availability