The Sustainable Livelihoods Framework

• It’s ONE WAY of “organising” the complex

issues surrounding POVERTY
• It’s NOT the ONLY WAY
• It needs to be:
o Modified
o Adapted
o Made appropriate to local circumstances
o Made appropriate to local priorities

Compiled by S.Rengasamy Madurai Institute of Social Sciences 1

 Livelihood - Definitions
The definition used by Department of Foreign and International Development (DFID)
incorporates these sentiments
 'A livelihood comprises the capabilities, assets (including both material
and social resources) and activities required for a means of living. A
livelihood is sustainable when it can cope with and recover from
stresses and shocks and maintain or enhance its capabilities and assets
both now and in the future, while not undermining the natural resource
base' (Chambers, R. and G. Conway, 1992).
The United Nations Development Program (UNDP) differentiates between a job
and a livelihood, which are often used interchangeably.
 Jobs
"A job 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 job can, however,
comprise part of an overall livelihood, but does so only to complement
other aspects of a livelihood portfolio.
 Livelihoods
"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. "
 "a means of living or of supporting
Compiled life and
by S.Rengasamy meeting
Madurai individual
Institute of and 2
Social Sciences
 Livelihood
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. "
Compiled by S.Rengasamy Madurai Institute of Social Sciences
& Job
Job
"A job 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 job can,
however, comprise part of
an overall livelihood, but
does so only to
complement other aspects
of a livelihood portfolio.
3
 Principles
 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 ofpeople’s lives and
diverse strategies.
 Building on strengths: while addressing vulnerabilities.

Compiled by S.Rengasamy Madurai Institute of Social Sciences 4

 Livelihoods Assets
Human Capital
Health, Nutrition, Education, Knowledge and skills
Capacity to work & Capacity to adapt

Social Capital
Networks and connections Natural Capital
Patronage Land and produce
Neighbourhoods Water & aquatic resources
kinship Trees and forest products
Relations of trust and mutual
support
The Poor Wildlife
Wild foods & fibres
Formal and informal roups Biodiversity
Common rules and sanctions Environmental services
Collective representation
Mechanisms for
participation in decision-
making
Leadership
Physical Capital
Infrastructure - transport - roads, vehicles, etc. Financial Capital
secure shelter & buildings water supply & sanitation Savings Credit/debt
Energy communications formal, informal, NGOs
Tools and techology - tools and equipment for production Remittances -Pensions -Wages
seed, fertiliser, pesticides traditional technology
Compiled by S.Rengasamy Madurai Institute of Social Sciences 5
 Livelihood
Assets
Natural
Sh Capital
rin
k
and
p
Ex

Social Human
Capital Capital

Physical Financial
Capital Capital
Compiled by S.Rengasamy Madurai Institute of Social Sciences 6
 Asset composition of groups in non-irrigated and
irrigated areas
Small &Marginal Farmers Rural Wage Laborers
Non Irrigated Area Irrigated Area Non Irrigated Area Irrigated Area

Petty Traders Large Businessmen

Non Irrigated Area Irrigated Area Non Irrigated Area Irrigated Area

Compiled by S.Rengasamy Madurai Institute of Social Sciences 7

 The Asset Mix

Different households with different

access to livelihood “assets/capital”
• Livelihoods affected by:

o diversity of assets
o amount of assets
o balance between assets

Compiled by S.Rengasamy Madurai Institute of Social Sciences 8

 Human capital
• labour capacity
The asset mix of a • no education
• limited skills
Landless female Natural capital
agricultural labourer • landless
• access to common property resources
Financial capital
Human
Capital • low wages
• no access to credit
Physical capital
Social Natural • poor water supply
Capital Capital • poor housing
• poor communications
Social capital
Physical Financial • low social status
Capital Capital • descrimination against women
• strong links with family & friends
• traditions of reciprocal exchange
= an extremely reduced “livelihood
pentagon”
Compiled by S.Rengasamy Madurai Institute of Social Sciences 9
 “Vulnerability” Context
H

Vulnerabilit
S N
y
Context The Poor
Shocks
Seasonality
Trends
Changes P F

SHOCKS - Illness, disaster, economic, conflict, crop / livestock pests

&diseases,Floods,droughts,cyclones,Deaths in the Family,Violence or civil unrest
SEASONALITY- Rainfall,climate, prices, production, health, employment
TRENDS AND CHANGES- Long term trends that undermine livelihood potential:
population,
declining natural resource base, climate change, inflation, currency devaluation,
structural Compiled by S.Rengasamy Madurai Institute of Social Sciences 10
unemployment, poor governance, Environmental change,Technology, Markets and
 “Vulnerability” Context

Vulnerability
S N
Context
Shocks The Poor
Seasonality
Trends
Changes

P F

Compiled by S.Rengasamy Madurai Institute of Social Sciences 11

 Understanding vulnerability
 Moser characterizes vulnerability as insecurity
in the well being of individuals, households or
communities in the face of a changing
environment
 Because people move in and out of poverty the
concept of vulnerability better captures processes
of change that poverty line measures
 Understanding vulnerability
 Chambers observes that vulnerability has two
sides
 An external side of risks, shocks and stress
 An internal side of defenselessness due to lack of
means to copeCompiled
withbydamaging loss
S.Rengasamy Madurai Institute of Social Sciences 12
 Policies, Institutions & Processes
• of government
• Policies • of different LEVELS of government
• of NGOs
• of interational bodies

• political, legislative & representative bodies

• Institutions • executive agencies
• judicial bodies
• civil society & membership organisations
• NGOs
• law, money
• political parties
• commercial enterprises & corporations

• the “rules of the game”

• Processes • decision-making processes
• social norms & customs
• gender, caste, class
• language
Compiled by S.Rengasamy Madurai Institute of Social Sciences 13
 Policies, Institutions & Processes

Policies
of government
of different levels of government
H of NGOs
of interational bodies
Vulnerability
Institutions
Context N
S political, legislative &
Shocks The Poor epresentative bodies -executive
influence
Seasonality agencies -judicial bodies -civil
society & membership
Trends
organisations -NGOs -law,
Changes P F moneypolitical parties –
commercial enterprises &
corporations
Processes
the “rules of the game”
decision-making processes
social
Compiled by S.Rengasamy Madurai Institute norms
of Social & customs 14
Sciences
gender, caste, class,language
 Livelihood Strategies
What do people do?
 Combining:

• the assets they can access

Taking account of:

• the vulnerability context

Supported or obstructed by:

• policies, institutions and processes.

• ………..………..leading to

Natural-resource based. Non-NR / off-farm activities. Migration /

remittances. Pensions and grants. Intensification vs.
diversification. Short-
term vs. long-term.
Compiled by S.Rengasamy Madurai Institute of Social Sciences 15
 Livelihood Outcomes
What are people seeking to achieve?
Poverty - a “poor” livelihood outcome:
 based on a fragile or unbalanced set of livelihood assets

 unable to sustain to shocks, changes or trends

 not supported, or actively obstructed by policies, institutions and

processes that do not allow assets to be used as they might

 livehood options combined in a “bad” or unsustainable strategy

Livelihood Outcomes.What are people seeking to achieve?

 More sustainable use of the NR base
 More income
 Increased well-being
 Protect rights
 Recover dignity
 Reduced vulnerability
 Improved food security

Compiled by S.Rengasamy Madurai Institute of Social Sciences 16

 The Sustainable Livelihoods Framework

Policies LIVELIHOOD
of government OUTCOMES
H of different levels of
government
LIVELIHOO
D
Poverty - a poor”
Vulnerability of NGOs
STRATEGIE
livelihood outcome:
of interational based on a fragile or
Context bodies S unbalanced set of
Shocks S N Institutions Combining: livelihood assets
influence political, legislative the assets they
Seasonality The Poor & representative can access
unable to sustain to
bodies -executive shocks, changes or
Trends agencies -judicial
Taking account trends not supported, or
of:the
Changes bodies -civil society
vulnerability
actively obstructed by
P F & membership
organisations – context
policies, nstitutions and
processes that do not
NGOs -law, money Supported or
political parties – allow assets to be used
obstructed by: as they might
commercial
enterprises & policies, livehood options
corporations institutions and combined in a “bad” or
Processes processes. unsustainable strategy
the “rules of the leading to.....
game”decision-
making processes
social norms &
customs
gender, caste,
class,language

Compiled by S.Rengasamy Madurai Institute of Social Sciences 17

 Livelihood Framework

VULNERABILITY Influence
CONTEXT Processe
ritical Trends Natural s LIVELIHOOD
xternal Shocks Institutions LIVELIHOOD OUTCOMES
easonality STRATEGIES -More income
and ownership Social Human - GO / NGOs -Increased well being
age labor dependency
bodies -Reduced vulnerability
- On-farm work
rought / water scarcity - Private Sector -Improved food security
- Off-farm work
and degradation -Use of NR base
Physical Financial -Policies - Wage labour
ff-farm jobs -Skill development
- Migration
ow technology -Planning
ndebtedness approach
ocial insecurity Influence
roduct prices fluctuation facilitating
entitlement
changers

Compiled by S.Rengasamy Madurai Institute of Social Sciences 18

 Expanding the asset base
Human
Capital

Social Natural
Capital Capital

Physical Financial
Capital
Capital
Compiled by S.Rengasamy Madurai Institute of Social Sciences 19
Scoones
Compiled by S.Rengasamy Madurai Institute of Social Sciences 20
 Implications of Livelihoods approach
 Livelihoods approach encourages thinking out of the
‘box’ imposed by conventional development
frameworks – which often identify a problem and
attempt to find a solution

 Forced to look at context & relationships

 Vulnerability (inc. environment)

 Policies & Institutions

 Development initiatives become more complex as a

result and more process focused

 Mosse notes that this identifies an important shift

away from the focus on project inputs and outputs and
the assumed mechanical link between them
Compiled by S.Rengasamy Madurai Institute of Social Sciences 21
 Implications for policy and practice

 Scoones, Mearns and Bebbington identify

 The need for multiple entry points – to move beyond
a homogenous ‘community’ view and a narrow
sectoral perspective
 The importance of understanding institutions -
mapping the institutional matrix, linking the micro to
the macro, the formal to informal
 The requirement for a new style of policy appraisal –
moving beyond universalizing prescriptions to a
more context-specific approach that allows
alternative, local perspectives to be included in the
policy process. Compiled by S.Rengasamy Madurai Institute of Social Sciences 22
Murray’s assessment of livelihoods approach
Strengths
It seeks to understand changing
combinations of modes of livelihood in a
dynamic and historical context
It explicitly advocates a creative tension
between different levels of analysis and
emphasises the importance of micro
macro linkages
It acknowledges the need to move
beyond discrete and narrow sectoral
perspectives – urban and rural,
industrial and agricultural, formal and
informal and rather emphasises seeing
the linkages between different sectors
It requires investigation of the
relationships between different activities
that constitute household livelihoods
and in the process focuses attention on
social relations within and between
households
Compiled by S.Rengasamy Madurai Institute of Social Sciences
Weaknesses
Elements of the vulnerability context
such as macro economic trends,
inflation, civil conflict and mass
redundancy are underplayed
There is an implicit assumption that
people’s assets can be expanded in a
generalised and incremental fashion
Inequalities of power and conflicts of
interest are not sufficiently
acknowledged
The notion of participation may disguise
the fact that the enhancement of the
livelihoods of one group may undermine
those of another
The continuing vagueness of the
concept of livelihood sustainability and
the criteria and means to measure this
over time
23
 Social capital - issues
 Much debate centers on the concept of social capital – one of the key
terms in the development lexicon and the missing link in development
‘the glue that holds society together’
 Concept attributed to Putnam who identified three elements of social
relations
 Interpersonal trust, networks and shared norms
 Where these elements function well they enable people to act together
more effectively, make decisions, formulate policy and gain access to
power and resources
 Proposed that the major obstacle of economic and social development in
the ‘third world’ is ineffective institutions
 For a discussion of social capital and associational life in S.Africa (See
Tapscott: 2001)
 Key critiques of Putnam’s approach are that it
 Devalues political civil society – concentrates on ‘apolitical’ institutions
 Romanticizes associational life
 Deterministic – “path dependent development” – you either have
social capital or you don’t.
 A repackaging of what social scientists have studied for years with new
terms
 For Harriss and Fine, social capital equals “Bankspeak”, a term designed
to neutralize and obscure problems and relations of power
Counterpoints Compiled by S.Rengasamy Madurai Institute of Social Sciences 24
Compiled by S.Rengasamy Madurai Institute of Social Sciences 25
Compiled by S.Rengasamy Madurai Institute of Social Sciences 26
 Applying an Assets / Vulnerability Framework
in urban setting
Governance Actions Governance Actions Which May
Which May Enhance Increase Vulnerability of the Poor
Assets of the Poor Zoning regulations and development
Ensuring access to land standards which prevent access by the
which is affordable by the poor.
poor and with sufficiently Minimum plot size regulations and
secure tenure, both for construction standards which are
residential use and for unattainable by the poor. Forced
Natural

economic activities. relocation and clearance of informal

Effective environmental housing areas.
controls on water and air Upgrading projects which raise service
pollution and waste levels and security to the point where it
disposal. becomes attractive to higher income
groups.
Failing to control pollution and waste
disposal “upstream” of where the poor
live.
“Rent-seeking” by enforcement agencies
onS.Rengasamy
Compiled by activitiesMadurai
in poor areas
Institute such
of Social as waste
Sciences 27
 Applying an Assets / Vulnerability Framework
in urban setting
Universal, quality (primary) Imposing fees (official and
education. Ensuring equal unofficial) for primary
provision
education.
for girls. Involving parents in the
Imposing fees (official and
Human

management of schools. Skills

training related to real skills needs unofficial) for primary health
of care.
the poor. Accessible health care
Food/nutrition support
programmes. Public works
programmes that absorb surplus
labour (& increase skills)

Compiled by S.Rengasamy Madurai Institute of Social Sciences 28

 Applying an Assets / Vulnerability Framework
in urban setting
Providing access to suitable Refusing to recognise
housing finance (e.g. informal
community housing areas or resolving
mortgage) tenure
Providing access to micro insecurities.
credit Regulatory controls on
informal
Financial

for informal businesses.

Provision of market facilities in sector trading.
suitable locations, with Costly and cumbersome
provision licensing
for small, informal sector requirements for traders.
businesses. Harassment of informal
sector
traders.
Local taxes which impinge
onMadurai
Compiled by S.Rengasamy the Institute of Social Sciences 29
 Applying an Assets / Vulnerability Framework
in urban setting
Providing access to safe, Unsafe water which requires boiling, and
reliable unreliable
water supplies, including supplies which require storage, queuing,
community collection at
provision (e.g. communal taps). night. Enforcement action against illegal
Providing access to safe connections.
sanitation Inadequate sanitation which creates
(including community environmental
provision). hazards and increases vulnerability of women.
Physical

Providing proper systems of Inadequate waste disposal which creates

waste environmental hazards. Privatisation which
disposal (including community results
provision). in poor areas being excluded.
Providing all-weather Regulation of waste collection/sorting/recycling
pedestrian which reduces income earning opportunities for
access. the poor and results in “rent-seeking” by
Providing vehicle access to enforcers.
within Provision of too high levels of vehicle access
reach of area where the poor which make areas attract to higher income
live.
groups. Displacement of poor households as a
Providing drainage systems to
result of upgrading.
prevent flooding.
Compiled by“Rent-seeking” by traffic
S.Rengasamy Madurai police
Institute which
of Social increase 30
Sciences
Provision of public space for
 Applying an Assets / Vulnerability Framework
in urban setting
Helping to build community Creating dependence on external
organisations among the agents.
Social

poor. Forced relocation (or relocation

Ensuring safety / security /
freedom from fear of crime in
poor areas.
Accessible, ward-based
councillors
who have influence.
Mechanisms to make decision-
making and resource allocation subject
more accountable and
Political
caused
by pressure from higher income
groups) which destroys informal
networks.
Dependant relations with local
politicians.
Service / resource providers not
to democratic accountability.

transparent. Exclusion of certain groups.

Mechanisms for participation. Co-option of leadership of
Responsive systems. community
Supporting collectiveCompiled
actionbyby organizations
S.Rengasamy Madurai Institute of Social Sciences 31
 How the SL framework can support project/program planning
Livelihood Helps to identify groups of poor people according to their main
livelihood sources. Recognizes that households may pursue a range
strategies of
different livelihood strategies.
Livelihood Helps identify the principal assets needed to support
different
assets
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
Vulnerability Helps
informal identify
safetythe main sources of vulnerability associated
with certain livelihood strategies, which are not normally
context
considered
nets. systematically in planning processes
Policies, Helps to identify institutional and policy influences on poor
institutions people’s livelihoods. Draws attention to the issue of poor
and people’s
processes access to the structures and processes that can help to
transform
Livelihood Helps to ensure that linkages are made between the above
outcomes their livelihoods.
elements and the achievement of positive livelihood
outcomes.
Compiled by S.Rengasamy Madurai Institute of Social Sciences 32