Status of LiveIihood

A secure, stable and sustainable livelihood that provides employment and helps
people grow and live with dignity is imperative for human development.

Only secure livelihoods can give people the means to ensure access to facilities such
as education, health care and safe habitats. Livelihoods impact the quality of life, afford
a certain standard of living, and help people overcome the daily battle for survival.
Secure livelihoods reduce dependence on natural resources, Government or
middlemen. Secure livelihoods bring about economic independence and lead to
increased self-reliance, help to build productive assets and skills, and give to people the
ability to intervene in the environment (natural, cultural, social, economic and
institutional). Recognizing the multidimensional impact of livelihood on living and
lifestyle, people perceive livelihood not merely as a job that provides an income, but
assign a larger and more significant role to livelihood, since it helps to expand their
choices.

Income

A livelihood is more than just income [Lipton and Maxwell, 1992]. ncome refers
to the cash earnings of the household plus payments in kind that can be valued at
market prices. The cash earnings component of income includes items like crop or
livestock sales, wages, rents, and remittances. The in-kind component of income refers
to consumption of own farm produce, payments in kind (for example, in food), and
transfers or exchanges of consumption items that occur between households in rural
communities.

A livelihood encompasses income, both cash and in kind, as well as the social
institutions (kin, family, compound, village and so on), gender relations, and property
rights required to support and to sustain a given standard of living. Social and kinship
networks are important for facilitating and sustaining diverse income portfolios [Berry,
1989; 1993: Ch. 7; Hart, 1995; Bryceson, 1996]. Social institutions are also critical for
interpreting the constraints and options of individuals and families distinguished by
gender, income, wealth, access and assets. For example, differential access rights to
land are often the key determinant of distinct livelihood strategies pursued by poor
compared to better-off rural households. Likewise, social proscriptions on permissible
courses of action of women can make big differences to the livelihood options available
for women compared to men [Dwyer and Bruce, 1988; Davies and Hossain, 1997].

A livelihood also includes access to, and benefits derived from, social and public
services provided by the state such as education, health services, roads, water supplies
and so on [Lipton and van der Gaag, 1993; Blackwood and Lynch, 1994]. An oft-stated
finding of poverty research is the tendency for public service provision to be biased
towards the better off and more accessible locations, communities, and social groups,
thus exacerbating the material deprivation already experienced by the poor as a result
of inadequate levels of assets and income [World Bank, 1990; Lipton, 1996].

Ellis, F.. (1998). Household strategies and rural livelihood diversification. Retrieved on
September 30, 2011 from http://www.highbeam.com/doc/1G1-53450078.html

Financial Capital: refers to the financial resources that people use to achieve their
livelihood objectives and includes flows and stocks that can contribute to production and
consumption.
O Cash or equivalent that enables people to adopt different livelihood strategies:
cash income through wage labour, self-employment and/or salaried
employment
O ntegrated Food Security
O Phase Classification
flows or stocks of capital, e.g. cereal stocks, livestock holdings
access to loans or credit
O ndicators: Examples
% population with access to loans/credit
livestock holding levels
cereal stock levels and/or cereal production (MT)
wage rates, employment opportunities

!hysicaI Attributes
Physical Capital: basic infrastructure and producer goods needed to support
livelihoods.
O 'Basic nfrastructure' refers to physical environment that helps people meet their
basic needs and to be more productive in livelihoods.
O 'Producer Goods' refers to productive capital that enhances
ntegrated Food Security
Phase Classification
O 'Producer Goods' refers to productive capital that enhances income and
personal consumption
O ndicators: Examples
Availability, Condition, & Access to' public physical capital', e.g.
transportation networks, including roads & public transport systems; water
and sanitation supply, shelter, communications systems, etc.
Availability and access of household to own 'physical capital', e.g.
bicycles, agricultural implements, radio's, etc

SchooI

Social Capital: refers to the social resources upon which people draw upon in pursuit of
their livelihoods.
O Developed through
Social networks or connectedness
Membership or more formalized groups
Relationships of trust, reciprocity and exchange
'Political' Capital as form of social organizational capital
O ntegrated Food Security
O Phase Classification
'Political' Capital as form of social organizational capital
O ndicators: Examples
Extent and availability of extended family or connections to social support
base, e.g. remittances, degree of social marginalization,
Membership to cooperatives, church groups, political parties in power, etc.
Peace, civil security, democracy, rule of law, criminality
Human rights violations, discrimination
Natural Capital: refers to the natural resource stock from which resource flows and
services important to livelihoods are derived.
O Physical natural capital e.g. land, trees, pasture, water, etc.
O Public, communal or privately owned
O ntangible natural resource public goods, e.g. Atmosphere, biodiversity
O ntegrated Food Security
O Phase Classification
O ndicators: Examples
NDV % of normal (satellite derived measure of vegetative 'greeness')
Rainfall estimations as % normal, e.g. RFE, rain gauge, etc.
Degree of environmental degradation, e.g. charcoal exports
(mt), extent of soil erosion, rangeland conditions
Abnormal livestock migration (patterns, direction )
Price of water and fodder as % of normal

ohannesburg, SA. (2009). Livelihood Assets. Retrieved on September 30, 2011 from
bttp//wwwsoJclot/foot/olms/tvoo/uocomeots/kvAA201wC/1wC20cbtoolc20voloetoblllty20
20lovetty/lAO20Aoolysls20of20llvellbooJ20Assets20Motcb202010pJf





LiveIihood Assets
The main forms of capital/assets which are being examined under the programme in
relation to the assessment of socio-economic benefits are:
O Natural (ownership or access to natural resources, including land, water, and
ecosystem services)
O Human (related to individual capabilities, skills, talents, health, education)
O Physical (standard of housing, access to transportation, infrastructure, amenities,
equipment)
O Political (power, access to and influence over decision-making processes,
presence of a democratic system, polarisation in politics which may have
financial impacts)
O Financial (income, savings, investment, access to credit, inheritance, material)
O Social (family, community and relationships built through social networks)
n general, the greater amount and diversity of assets, the greater the level of well-being
and resilience to change and shocks.
The framework however does not take account of "intangibles that can also determine
the level of vulnerability and resilience of the poor. These include the amount of respect
they are given; the level of trust they can expect in their dealings with others, including
government; and the qualities of attitude and personality that also determine their
adaptability, initiative, and ability to deal with disasters and shocks. When employing the
livelihoods framework to assess livelihood impacts, these intangibles should also be
taken into account.
Livelihoods are sustained when they generate sufficient resources to support livelihoods
indefinitely, i.e. they are resilient to stress and shocks, do not compromise the
productivity of the resource base and do not undermine the livelihoods of others. A
balanced mix of the 6 livelihood assets contributes to sustainability by increasing
resilience to shocks and stress. The unresolved area of debate was whether
sustainable livelihoods must also eliminate dependence on external support.
Tradeoffs for resource use and livelihoods include: livelihood security versus natural
resource sustainability; maximising present income versus reducing vulnerability to
future

Caribbean Natural Resources Institute (CANARI). (2008). Working Document for
Forests and Livelihoods Action Learning Group (ALG). Retrieved on September 30,
2011 from www.canari.org/.../ForestsandLivelihoodskeyc.


TYPES OF LVELHOOD

The Periodic Review process assesses the relative importance of the different types of
livelihood in the areas affected by Cyclone Nargis by looking at the variation in main
income sources, boat ownership and monsoon paddy cultivation to account for both
income and subsistence activities.
The majority of households in the Nargis-affected areas engage in agriculture-based
pursuits, such as farming, fishing, forestry or the raising of livestock and poultry. These
activities include all aspects of the agricultural economy, from direct production through
the provision of post-harvest, processing and delivery services. Landless workers are
highly dependent on the agricultural economy as sources of labour, and the prospects
of local traders rise and fall on the ability of others to buy commodities and supplies.
Households need to diversify their income sources in order to strengthen their
resilience, particularly during adverse seasonal or economic conditions. To whatever
extent possible, they engage in different livelihood activities at the same time.
Figure 3.3: Principal household livelihood (top choice)


Figure 3.4: Top ten sources of income
Rank First choice Second choice Third choice
1st
Seasonal work in non-
agriculture/
non-fisheries/non-livestock/
non-aquaculture
Seasonal work in non-
agriculture/
non-fisheries/non livestock/
non-aquaculture
Borrowing
(not microfinance)
2nd Full time in crop production
Trader/shopkeeper/village
broker
Seasonal work in non
agriculture/
non-fisheries/
non-livestock/non-
aquaculture
3rd Full time in fishing
Seasonal work in
agriculture
Trader/shopkeeper/village
broker
4th
Seasonal work in
agriculture
Seasonal work in fisheries
Self-employed/craftsman/
artisan
5th
Trader/shopkeeper/village
broker
Self-employed/craftsman/
artisan
Private sector employee
6th
Self-
employed/craftsman/artisan
Private sector employee
Full time in livestock
production
7th Seasonal work in fisheries
Borrowing
(not micro-finance)
Full time in crop
production
8th Private sector employee
Full time in crops
production
Seasonal work in
livestock
9th Government employee Seasonal work in livestock Full time in fishing
10th
Seasonal work in
aquaculture
Government employee
Seasonal work in
agriculture

The overall picture from the PR is similar to that in the PR . Some 71 per cent of
household members rely on 'casual' or 'seasonal' work. The general categories of
primary income sources in the PR show modest changes compared with findings in
the PR , such as an increase of private sector employment from 2 per cent to 3
percent (figure 3.3) and a drop in 'group labour', from 10 per cent to 7 per cent among
men (figure 3.5), possibly reflecting agricultural seasonality.
Figure 3.5: Current income-generating activities of household members

Among women, however, a modest increase appears in those reporting household work
or care for household members as the principal activity, from 37 per cent (PR ) to 41
per cent (PR ), possibly suggesting a deterioration in employment opportunities for
females.
Figure 3.6: Current primary income-generating activities of men and women