The sustainable livelihoods framework organizes complex issues related to poverty by defining a livelihood as a combination of capabilities, assets, and activities that ensure a means of living, emphasizing the need for adaptability to local circumstances. It distinguishes between jobs, which involve formal agreements for payment, and broader livelihoods that encompass various self-directed activities, complemented by financial, social, natural, physical, and human capital. This framework highlights the importance of understanding vulnerability contexts and the influence of policies and institutions on the effectiveness and sustainability of different livelihood strategies.

1. 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 : Modified Adapted Made appropriate to local circumstances Made appropriate to local priorities

2. 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 life and meeting individual and community needs"

3. 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. " 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. Livelihood & Job

4. 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 .

5. Livelihoods Assets Financial Capital S avings Credit/debt formal, informal, NGOs Remittances -Pensions - Wages Natural Capital Land and produce Water & aquatic resources Trees and forest products Wildlife Wild foods & fibres Biodiversity Env ironmental services Social Capital Networks and connections Patronage Neighbourhoods kinship Relations of trust and mutual support Formal and informal roups Common rules and sanctions Collective representation Mechanisms for participation in decision-making Leadership Physical Capital Infrastructure - transport - roads, vehicles, etc. secure shelter & buildings water supply & sanitation Energy communications Tools and techology - tools and equipment for production s eed , fertiliser, pesticides traditional technology Human Capital Health, Nutrition, Education, Knowledge and skills Capacity to work & Capacity to adapt The Poor

6. Financial Capital Human Capital Social Capital Physical Capital Livelihood Assets Natural Capital Shrink Expand

7. 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 Traders Non Irrigated Area Irrigated Area Large Businessmen Non Irrigated Area Irrigated Area

8. The Asset Mix D ifferent households with different access to livelihood “assets/capital” Livelihoods affected by: diversity of assets amount of assets balance between assets

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

10. “ Vulnerability” Context 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- L ong term trends that undermine livelihood potential: population, declining natural resource base , climate change, inflation , currency devaluation, structural unemployment, poor governance, Environmental change,Technology, Markets and trade, Globalisation Vulnerability Context Shocks Seasonality Trends Changes F P H N S The Poor

11. Vulnerability Context Shocks Seasonality Trends Changes “ Vulnerability” Context F P H N S The Poor F P H N S The Poor Vulnerability Context Shocks Seasonality Trends Changes

12. 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 cope with damaging loss

13. Policies, Institutions & Processes Policies of government of different LEVELS of government of NGOs of interational bodies Institutions Processes political, legislative & representative bodies executive agencies judicial bodies civil society & membership organisations NGOs law, money political parties commercial enterprises & corporations the “rules of the game” decision-making processes social norms & customs gender, caste, class language

14. Policies of government of different levels of government of NGOs of interational bodies Institutions political, legislative & epresentative bodies -executive agencies -judicial bodies -civil society & membership organisations -NGOs -law, moneypolitical parties – commercial enterprises & corporations Processes the “rules of the game” decision-making processes social norms & customs gender, caste, class,language influence Policies, Institutions & Processes F P H N S The Poor Vulnerability Context Shocks Seasonality Trends Changes

15. Livelihood Strategies W hat 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.

16. Livelihood Outcomes W hat 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. W hat 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

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

18. LIVELIHOOD OUTCOMES - More income -Increased well being -Reduced vulnerability -Improved food security -Use of NR base -Skill development LIVELIHOOD STRATEGIES - On-farm work - Off-farm work - Wage labour - Migration Influence VULNERABILITY CONTEXT Institutions - GO / NGOs bodies - Private Sector - Policies -Planning approach facilitating entitlement changers Human Physical Financial Natural Social Processes Livelihood Framework Critical Trends External Shocks Seasonality - land ownership -wage labor dependency -drought / water scarcity -land degradation -off-farm jobs -low technology -indebtedness -social insecurity -product prices fluctuation Influence

19. Expanding the asset base Physical Capital Human Capital Natural Capital Social Capital Financial Capital

20. Scoones

21. 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

22. 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.

23. Murray’s assessment of livelihoods approach Inequalities of power and conflicts of interest are not sufficiently acknowledged 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 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 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 There is an implicit assumption that people’s assets can be expanded in a generalised and incremental fashion It explicitly advocates a creative tension between different levels of analysis and emphasises the importance of micro macro linkages Weaknesses Strengths Elements of the vulnerability context such as macro economic trends, inflation, civil conflict and mass redundancy are underplayed It seeks to understand changing combinations of modes of livelihood in a dynamic and historical context

24. 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 Hilary argues that the concept of social capital exposes the limitations of conventional economic approaches for understanding economic and social processes

27. Applying an Assets / Vulnerability Framework in urban setting Natural Governance Actions Which May Increase Vulnerability of the Poor Zoning regulations and development standards which prevent access by the poor. Minimum plot size regulations and construction standards which are unattainable by the poor. Forced relocation and clearance of informal housing areas. Upgrading projects which raise service levels and security to the point where it becomes attractive to higher income groups. Failing to control pollution and waste disposal “upstream” of where the poor live. “ Rent-seeking” by enforcement agencies on activities in poor areas such as waste sorting, pollution from economic and domestic activities. Restrictions on urban agriculture . Governance Actions Which May Enhance Assets of the Poor Ensuring access to land which is affordable by the poor and with sufficiently secure tenure, both for residential use and for economic activities. Effective environmental controls on water and air pollution and waste disposal.

28. Applying an Assets / Vulnerability Framework in urban setting Human Imposing fees (official and unofficial) for primary education. Imposing fees (official and unofficial) for primary health care. Universal, quality (primary) education. Ensuring equal provision for girls. Involving parents in the management of schools. Skills training related to real skills needs of the poor. Accessible health care Food/nutrition support programmes. Public works programmes that absorb surplus labour (& increase skills)

29. Applying an Assets / Vulnerability Framework in urban setting Financial Refusing to recognise informal housing areas or resolving tenure insecurities. Regulatory controls on informal sector trading. Costly and cumbersome licensing requirements for traders. Harassment of informal sector traders. Local taxes which impinge on the poor. Charges for services which are not related to ability to pay. Unofficial charges and demands for bribes Providing access to suitable housing finance (e.g. community mortgage) Providing access to micro credit for informal businesses. Provision of market facilities in suitable locations, with provision for small, informal sector businesses.

30. Applying an Assets / Vulnerability Framework in urban setting Physical Unsafe water which requires boiling, and unreliable supplies which require storage, queuing, collection at night. Enforcement action against illegal connections. Inadequate sanitation which creates environmental hazards and increases vulnerability of women. Inadequate waste disposal which creates environmental hazards. Privatisation which results in poor areas being excluded. Regulation of waste collection/sorting/recycling which reduces income earning opportunities for the poor and results in “rent-seeking” by enforcers. Provision of too high levels of vehicle access which make areas attract to higher income groups. Displacement of poor households as a result of upgrading. “ Rent-seeking” by traffic police which increase costs of public transport without improving safety. Enforcement action against illegal connections Providing access to safe, reliable water supplies, including community provision (e.g. communal taps). Providing access to safe sanitation (including community provision). Providing proper systems of waste disposal (including community provision). Providing all-weather pedestrian access. Providing vehicle access to within reach of area where the poor live. Providing drainage systems to prevent flooding. Provision of public space for economic and social activities in informal housing areas. Ensuring safe and reliable public transport. Ensuring availability of electricity supplies

31. Applying an Assets / Vulnerability Framework in urban setting Social Political Creating dependence on external agents. Forced relocation (or relocation caused by pressure from higher income groups) which destroys informal networks. Dependant relations with local politicians. Service / resource providers not subject to democratic accountability. Exclusion of certain groups. Co-option of leadership of community organizations Helping to build community organisations among the poor. 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 more accountable and transparent. Mechanisms for participation. Responsive systems. Supporting collective action by the poor and enabling them to make demands

32. How the SL framework can support project/program planning Helps to ensure that linkages are made between the above elements and the achievement of positive livelihood outcomes. Livelihood outcomes 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. Policies, institutions and processes Helps identify the main sources of vulnerability associated with certain livelihood strategies, which are not normally considered systematically in planning processes Vulnerability context 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. Livelihood assets 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 strategies