Livelihood Concept & Approach

Containt

1 Livelihood concept &definition

2 Livelihood component & framework

3 Planning & Evaluation

Definition of livelihoods

A livelihood is sustainable when it can: cope with, and recover from stress and shocks (drought, flood, war, etc.), maintain or enhance its capabilities and assets, while not undermining the

natural resource base”.

“Livelihood comprises the capabilities, assets (including both material and social) and activities required for a means of living. (Chambers and Conway, 1992).

Definition

Livelihoods are ‘means of making a living’, the various activities and resources that allow people to live.

Livelihood and Income generation

Livelihood

"A livelihood, on the other hand, is engagement in a number of activities which, at times, neither require a formal agreement nor are limited to a particular trade. Livelihoods may or may not involve money. Jobs invariably do. Livelihoods are self-directing. .... . Livelihoods are based on income derived from "jobs", but also on incomes derived from assets and entitlements. "

Income generation

"A income generation connotes one particular activity or trade that is performed in exchange for payment. It is also a formal agreement, as manifested by a contract, between an employer and employee...... . A income generation can, however, comprise part of an overall livelihood, but does so only to complement other aspects of a livelihood portfolio.

Principal of livelihood

• People-centred: beginning by understanding peoples’ priorities and livelihood strategies.

• Responsive and participatory: responding to the expressed priorities of poor people.

• Multi-level: ensuring micro-level realities inform macro-level institutions and processes.

• Conducted in partnership: working with public, private and civil society actors.

• Sustainable: environmentally, economically, institutionally, and socially.• Dynamic: ensuring support is flexible and process-oriented, responding to

changing livelihoods.• Holistic: reflecting the integrated nature of people’s lives and diverse

strategies.• Building on strengths: while addressing vulnerabilities.

Components of the livelihoods

Human assets

Social assets

Physical assets

Financial assets

Natural assets

These five asset categories are interlinked. No single category on its own is sufficient to yield all the many and varied

livelihood outcomes that people seek.

People require a range of assets to achieve positive livelihood outcomes:

Livelihood assets

Financial CapitalSavings, Credit/debt , formal, informal, NGOsRemittances -Pensions -Wages

Natural Capital-Land and produce-Water & aquatic resources-Trees and forest productsWildlife-Wild foods & fibres -Biodiversity-Environmental services

Social Capital- Networks and connections-Relations of trust and mutual support-Formal and informal roups-Common rules and sanctions-Collective representation-Mechanisms for participation in decision-making-Leadership

Physical CapitalInfrastructure - transport - roads, vehicles, etc. secure shelter & buildings water supply & sanitation-Energy communicationsTools and techology - tools and equipment for production seed, fertiliser, pesticides traditional technology

Human CapitalHealth, Nutrition, Education, Knowledge and skills Capacity to work & Capacity to adapt

The Poor

Livelihoods framework cont…..KeyH = Human Capital N = Natural Capital

F = Financial Capital S = Social Capital P = Physical Capital

Livelihood strategies produce livelihood outcomes

The vulnerability context impacts on the livelihood assets

This framework considers five types of capital - the “asset pentagon”- and how these assets are transformed by policies and institutions into livelihoods strategies.

Expanding the asset base

Human Capital

Natural Capital

Social Capital

Financial Capital

Physical Capital

Expa

nd

Shrink

Sources of livelihood

Migration

Trade

Employment

Small businessAgriculture

Combination of activity

Livelihoods

Asset composition of groups in non-irrigated and irrigated areas

Small &Marginal Farmers Non Irrigated Area Irrigated Area

Rural Wage Laborers Non Irrigated Area Irrigated Area

Petty TradersNon Irrigated Area Irrigated Area

Large Businessmen Non Irrigated Area Irrigated Area

Sustainable Livelihoods Approach

• People centred

• Holistic – multiple strategies across sectors

• Builds on strengths and opportunities

• Dynamic

• Evidence base for policy

• Emphasises sustainability

Approach in livelihood development

Understanding local economy and incentive

Testing in the field

Training and building support services

Promotion and scaling up

Monitoring and evaluation

Evaluating livelihood option

• How will the programme effect different groups (including women)?

• Is there a market for a new crop/ product?• What are the risks? • Will it create perverse incentives?• Is the programme socially, culturally,

politically appropriate and sustainable?• What support services need to be sustained?• What is the impact on access to land and

water?

Sustainable Livelihood framework can support project/program planningLivelihood strategies

Helps to identify groups of poor people according to their main livelihood sources. Recognizes that households may pursue a range of different livelihood strategies.

Livelihood assets Helps identify the principal assets needed to support

different livelihoods. Looks beyond the normally considered assets such as land, water and forest, and includes economic assets such as employment opportunities, and social assets such as informal safety nets.

Vulnerability context Helps identify the main sources of vulnerability associated

with certain livelihood strategies, which are not normally considered systematically in planning processes

Policies, institutions and processes

Helps to identify institutional and policy influences on poor people’s livelihoods. Draws attention to the issue of poor people’s access to the structures and processes that can help to transform their livelihoods.

Livelihood outcomes

Helps to ensure that linkages are made between the above elements and the achievement of positive livelihood outcomes.

Thank you!