3.1 Concept of rural livelihood
3.1.2 Understanding sustainability through the livelihood framework
The sustainable livelihood framework (Figure 3.1) presented by DFID is a useful approach for understanding livelihoods of the rural population because it places them at the centre of development. Livelihood outcomes reflect the ability of the rural poor people to use their knowledge, skills and adaptive strategies to achieve their goals. These strategies range from permanent to seasonal employment such as depending on natural resources, garden and crop production, livestock production and labour exchange. The sustainable livelihood framework shown in Figure 3.1 addresses multiple dimensions of rural poverty and the complexity of rural livelihoods (Carpenter & McGillivray, 2012), as it links the issues of poverty reduction sustainability and empowerment processes (DFID, 2001).
The framework is a useful tool in addressing different situations of insecurity of poor rural people and have the capacity to be used in participatory discussion for communication of ideas and strategies between different stakeholders advocating good governance (Hussein, 2002). In SLF, poor people are perceived to be operating in an environment characterized by shocks and stresses and limits in access or resources known as vulnerability context. This is because people exist in a dynamic balance between their assets base, transforming institutions and outcomes of their livelihood decisions (Carpenter & McGillivray, 2012). What this balance means to the individual depends on the social, institutional and organisational environment and determines how he or she will utilise the assets that are available when pursuing livelihood outcomes for achieving personal livelihood goals (DFID, 2001). The framework identifies a chain of interaction taking place in the
rural economy such as livelihoods assets, the environment upon which rural people pursue their livelihoods (Hussein, 2002).
Figure 3.1 Sustainable rural livelihood framework (Adapted from DFID, 2001)
It is important to understand that the framework does not have a linear relationship starting with vulnerability and ending in suitable livelihood outcomes. There are multiple of multiple interactions and feedbacks between different forces and factors that are relating with each other (Hussein, 2002). The framework provides a structure or an avenue where various stakeholders or participants can engage in productive discussion on the factors influencing livelihood even though each one of them may have different views or outlooks.
The livelihood activities of the rural people depends largely on the assets and resources available.
The assets and the choice of strategies are central to overcoming vulnerability. Assets that are commonly used by the rural poor for livelihood are sale of their produce, sale of their labour especially during the off-farm season, trading of goods within the community for cash, sales of households’ goods like poultry, vegetables and fruits, environmental resources, network of support and exchange existing within and between households and their communities (Muhammad et al.,
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2016). These assets are the resources households command for production and exchange within a community. In the rural area, use of resources at community level depend on available infrastructures, environmental conditions and economic well-being of individuals in the community. Therefore, access to assets is fundamental for the household or community to generate livelihood (Miekle et al., 2001).
Households and communities need to be resilient and explore opportunities that would guard against and resist negative outcomes. Therefore, access to assets provide opportunity for resilience between negative effects and livelihood security. Poor people living in rural areas are prone to external shocks and stresses mainly caused by seasonality and trends. For example, effect of malnutrition especially on children due to lack of balance diet, effect of pests and diseases on crops and livestock and poor harvest due to inadequate rainfall. Other vulnerabilities that may affect rural people are poor access to education and health facilities, clean water, powerlessness, and exposure to diseases like HIV/AIDS (IFAD, 2009).
People’s choice of livelihood strategies as well as influences on policy, institutions and processes depend on the nature and types of capital at their disposal. These capitals include human, natural, financial, physical and social capitals which poor used for livelihoods.
Human capital – this include skills, knowledge rural people acquire to pursue different livelihood options (Sen, 1997; Carney, 1998; Scoones, 1998). At the household level human capital depend on the amount and quality of labour available which is also been influenced by the educational level and health statues of the households (IFAD, 2009). For example, educated people are likely to have good income compared to less educated individuals (Becker, 2008).
Natural Capital – refers to all the resources (both natural and ecological) and services which are accessible to the people that can influenced various livelihood opportunities (Carney, 1998; DFID, 1999 & 2007). Rural poor people make used of land and trees for income and improve well-being.
They also rely on trees as a protection against erosion and storms.
Social Capital – refers to the networks of social resources or relationship (both formal and informal) from which various opportunities and benefits can be derive by the poor people in achieving their livelihood (Carney, 1998; DFID, 1999 & 2007). In a rural setting interaction
between individuals or groups enables shared interests that may increase their ability to work together to pursue a different livelihood. The co-operation relationships ca, reduce production costs and help in the development of informal safety-net among the poor (Carpenter and McGillivray, 2012). Social capital also promotes social learning, encouraging innovation, exchange of ideas and developing partnership within and outside the community (Pretty, 2002).
Financial Capital – These are resources used by people for investment and to pursue various livelihood goals (Carney, 1998 & DFID, 2007). For example, savings, grants, payment and transfer. Financial resources mostly available to the poor people are livestock, poultry, grains, pension, money lenders and transfer from relatives (Dowling & Chin-Fang, 2009). Financial resource scan also be obtained through credit-providing institution such as micro-finance bank in which case the rural people must provide collateral.
Physical Capital – these are physical infrastructures that are required to meet the livelihoods outcomes of the poor (DFID, 2001). Physical infrastructures consist of changes to environment that support the poor to achieve their basic needs and enhance productivity (Carney, 1998; DFID, 2007). Lack of access to infrastructures (water, transport, shelter) may have a significant impact on the poor people. For instance, a poor transportation system may jeopardise their access to education and health services and reduce opportunities for income. Also, poor access to water and energy may cause a severe impact on human health of the people (Carpenter et al., 2002).
Examples of other productive physical capital that provide opportunity for income of the poor include sewing machines, ploughs, motorcycles and vehicles with the infrastructure and knowledge of how to use them productively..