Livelihood strategies

Livelihood strategies are the diverse range of activities and choices that individuals, households, and communities undertake to secure their means of living and achieve their well-being. This concept falls under the broader interdisciplinary field of Development Economics. Livelihood strategies encompass economic activities, social networks, and access to resources, all aimed at generating income, producing goods, and ensuring sustenance. The term "livelihood strategies" emphasizes the dynamic and adaptable nature of how people sustain themselves, particularly in the face of various challenges and opportunities. These strategies can range from formal employment and entrepreneurial ventures to subsistence farming, remittances, and reliance on social safety nets.

History and Origin

The concept of livelihood strategies gained prominence within development studies, particularly through the Sustainable Livelihoods Approach (SLA). The idea of "sustainable livelihoods" was first introduced by the Brundtland Commission on Environment and Development. It was further expanded upon at the 1992 United Nations Conference on Environment and Development, which advocated for achieving sustainable livelihoods as a broad goal for poverty eradication.¹⁸,

In 1992, Robert Chambers and Gordon Conway proposed a widely adopted definition of a sustainable rural livelihood, stating that it "comprises the capabilities, assets (stores, resources, claims and access) and activities required for a means of living." They emphasized that a livelihood is sustainable if it can cope with and recover from stresses and shocks, maintain or enhance its capabilities and assets, and provide sustainable opportunities for future generations without undermining the natural resource base.¹⁷, The British Department for International Development (DFID) notably integrated the Sustainable Livelihoods Approach into its development cooperation programs starting in 1997, aiming to eliminate poverty.¹⁶,¹⁵

Key Takeaways

• Livelihood strategies are the varied activities and choices people make to secure their living.
• They are dynamic and adapt to changing circumstances and available Capital Assets.
• The concept is central to understanding Poverty Reduction and sustainable development.
• Strategies include both formal and informal economic activities, as well as reliance on social support.
• The effectiveness of livelihood strategies is often influenced by factors such as vulnerability, access to resources, and institutional support.

Interpreting the Livelihood Strategies

Interpreting livelihood strategies involves understanding the multifaceted ways individuals and households combine various resources and activities to meet their needs. This goes beyond simply analyzing Income Streams or employment types. It requires a holistic view that considers a household's available assets, its vulnerability to external shocks, the policies and institutions that influence its choices, and the outcomes it seeks to achieve.

For example, a household might diversify its livelihood strategies to include a mix of subsistence farming, casual labor, and small-scale trading to mitigate risks associated with Agricultural Production or market fluctuations. The interpretation also takes into account the different types of capital that underpin these strategies, such as human capital (skills, knowledge), natural capital (land, water), financial capital (savings, credit), physical capital (tools, infrastructure), and social capital (networks, relationships).¹⁴,¹³

Hypothetical Example

Consider a hypothetical household in a rural area facing the impacts of climate change, such as unpredictable rainfall. Traditionally, their primary livelihood strategy has been rain-fed maize cultivation. However, due to increased drought frequency, this strategy has become unreliable, leading to food insecurity and reduced income.

To adapt, the household develops diversified livelihood strategies:

1. Drought-Resistant Crops: They allocate a portion of their land to cultivating drought-resistant crops like cassava and sweet potatoes, reducing their dependence on maize.
2. Small Livestock Rearing: They start raising a few goats and chickens. These animals provide an alternative source of food and can be sold for income during lean periods.
3. Off-Farm Employment: One adult family member seeks seasonal wage labor in a nearby town, sending remittances back to the household.
4. Community Savings Group: They join a local savings and Credit Cooperative, which provides a safety net for emergencies and small loans for investments in their new ventures.
5. Skill Development: Another family member attends a workshop on handicrafts, learning a new skill to produce items for sale in local markets, further diversifying their Economic Activity.

These combined efforts represent a set of livelihood strategies aimed at building resilience and improving overall household well-being in the face of environmental challenges.

Practical Applications

Livelihood strategies are a critical analytical lens in several practical domains:

• Development Aid and Policy: International organizations and governments use livelihood strategies to design targeted interventions for poverty reduction and sustainable development. For instance, the International Monetary Fund (IMF) has highlighted the need to protect lives and livelihoods in low-income developing countries, particularly in the wake of global crises.¹²,¹¹
• Disaster Risk Reduction: Understanding existing livelihood strategies helps in preparing communities for and responding to natural disasters, by identifying vulnerable groups and supporting resilient approaches. Climate change, for example, significantly impacts livelihood staples and necessitates adaptation strategies, as observed in regions like Uganda where communities are working to strengthen their resilience against environmental threats.¹⁰,⁹
• Humanitarian Response: During crises, assessing disrupted livelihood strategies is crucial for providing effective humanitarian assistance and supporting early recovery efforts. Environmental disasters, such as oil spills, can severely impact the livelihoods of fishing communities, requiring immediate and long-term support.⁸
• Rural Development: In rural areas, the analysis of livelihood strategies informs programs related to agricultural diversification, natural resource management, and the creation of non-farm Employment Opportunities.
• Urban Planning: In urban contexts, livelihood strategies often involve informal sector activities, multiple jobs, and complex household economies. Understanding these strategies helps in designing policies that support urban poor and promote Inclusive Growth.

Limitations and Criticisms

While the concept of livelihood strategies offers a comprehensive framework for understanding how people sustain themselves, it faces certain limitations and criticisms:

One common critique is that livelihood frameworks can sometimes oversimplify the complex realities of people's lives, potentially overlooking power dynamics, social inequalities, and political influences that heavily shape livelihood choices and outcomes.⁷,⁶ Some critics argue that while the approach emphasizes dynamism, it may not adequately capture the speed and unpredictability of change that many vulnerable populations experience.⁵,⁴

Furthermore, the measurement and comparison of the diverse "capital assets" that comprise a livelihood (e.g., human, social, natural, physical, financial capital) can be challenging, leading to difficulties in quantitative analysis and impact assessment.³ There is also a debate about whether sustainable livelihoods approaches offer truly new methodologies or primarily reframe existing development practices.² Despite these critiques, the focus on holistic, people-centered approaches within the livelihood strategies framework remains valuable for development practitioners.

Livelihood Strategies vs. Economic Activities

While closely related, "livelihood strategies" and "Economic Activities" are distinct concepts. Economic activities refer specifically to the production, distribution, and consumption of goods and services. Examples include farming, manufacturing, providing services, or engaging in trade. They are a component of livelihood strategies.

Livelihood strategies, on the other hand, encompass a broader set of choices and actions an individual or household undertakes to secure their living, which includes their economic activities but also extends to how they manage their assets, cope with shocks, utilize social networks, and adapt to their environment. For instance, relying on remittances from family members (a financial capital transfer) is a livelihood strategy, but it is not an economic activity performed by the recipient household. Similarly, participating in a community support group (social capital) is a livelihood strategy that may not involve direct economic exchange but contributes to overall well-being and resilience.

FAQs

What are the main components of livelihood strategies?

The main components of livelihood strategies typically include the various Capital Assets (human, natural, financial, physical, social) that individuals and households have access to, the activities they undertake to use these assets, and the outcomes they achieve in terms of their well-being and sustainability. It also considers the external context, such as vulnerability to shocks and the influence of policies and institutions.

How do livelihood strategies contribute to resilience?

Livelihood strategies contribute to resilience by enabling individuals and households to cope with and recover from shocks and stresses. By diversifying income sources, managing assets effectively, building strong social networks, and adapting to changing conditions, people can reduce their vulnerability and maintain their means of living even in challenging environments.¹

Who typically analyzes livelihood strategies?

Livelihood strategies are primarily analyzed by development practitioners, researchers, non-governmental organizations (NGOs), and government agencies involved in International Development, poverty reduction, disaster management, and humanitarian aid. The analysis helps in designing and implementing effective interventions tailored to specific contexts.

Can livelihood strategies change over time?

Yes, livelihood strategies are dynamic and can change significantly over time in response to various factors. These factors include economic shifts, environmental changes (like Climate Change), policy reforms, personal circumstances, and access to new opportunities or technologies. Individuals and households often adapt their strategies to maximize their well-being and reduce vulnerability.

What is the difference between formal and informal livelihood strategies?

Formal livelihood strategies typically involve activities that are officially recognized, regulated, and often taxed, such as wage employment in registered businesses or farming within established agricultural frameworks. Informal livelihood strategies, conversely, are unregistered and unregulated, often involving casual labor, street vending, or small-scale, unregistered enterprises. Both can be crucial for survival, especially in developing economies.