SUSTAINABLE LIVELIHOODS PROMOTION : CONCEPT & FRAMEWORK

R.Adhinarayanan Faculty

THE FLOW
CONCEPT OF LIVELIHOOD CONCEPT OF SUSTAINABILITY THE SUSTAINABLE LIVELIHOODS FRAMEWORK NEED FOR LIVELIHOODS FOCUS LIVELIHOODS PROMOTION CONCEPT VALUE CHAINS CONCEPTS

WHAT IS LIVELIHOODS
A set of activities a household engages in on a regular basis in order to generate adequate cash and non-cash income to maintain a minimum desired standard of living, both on a day-to-day basis and over a longer period of time

LIVELIHOODS
A Livelihood comprises the capabilities, assets (including both material and social resources) and activities required for a means of living

WHATS ADEQUATE
A livelihood is adequate when the income and quality of life it can support meets widely accepted standards such as the $1.5-a-day international poverty line

STANDARD OF LIVING
A livelihood can sometimes generate adequate income, but may not be desirable or dignified May generate adequate income and may even be reasonably dignified, but may not offer adequate opportunities to participate in the wider social, cultural or political space May be adequate, dignified and offer opportunities to participate in social, cultural or political life, but may not be sustainable

SUSTAINABILITY
LIVELIHOODS ARE SUSTAINABLE WHICH Are resilient in the face of external shocks and stresses Are not dependent upon external support Maintain the long-term productivity of natural resources Does not undermine the livelihoods of, or compromise the livelihood options open to, others

SUSTAINABILITY
Environmental Sustainability Economic sustainability Social sustainability Institutional sustainability

LETS DEVELOP THE FRAMEWORK

WHAT THE EXTERNAL FACTORS THAT COULD AFFECT THE POOR

Shocks!
Human Health Natural Economic Conflict Crop/Livestock Health

Trends!
Population National/International economic Governance Technological

Seasonality!
Prices Employment Opportunities Food Availability Health

VULNERABILITY CONTEXT
TRENDS Population Resource Economic Governance Technology SHOCKS Human Health Natural Economic Conflict Crop/Livestock SEASONALITY Price Production Health Employment

WHAT THE INTERNAL FACTORS THAT COULD AFFECT THE POOR

LIVELIHOOD ASSETS
Human Capital

Social Capital

Natural Capital

Physical Capital

Financial Capital

HUMAN CAPITAL
Skills, Knowledge, Ability to Labour and Good Health As well as being of intrinsic value, human capital is required in order to make use of any of the four other types of assets It is therefore necessary, though not on its own sufficient, for the achievement of positive livelihood outcomes

SOCIAL CAPITAL
Social resources upon which people draw in pursuit of their livelihood objectives -Networks and Connectedness
-Membership of formalised group -Relationship of trust, reciprocity and exchanges

Impact
-Improves the efficiency of economic relations -Management of common property resources -Innovation, development and sharing of knowledge

NATURAL CAPITAL
Natural resource stocks from which resource flows and services (e.g. nutrient cycling, erosion protection) useful for livelihoods are derived
Land, forests, water
marine/wild resources, air quality, erosion protection,

waste assimilation, storm protection biodiversity degree and rate of change.

PHYSICAL CAPITAL
Physical capital -Infrastructure -Producer goods

Components -Affordable transport; -Secure shelter and buildings; -Adequate water supply and sanitation; -Clean, affordable energy -Access to information (communications).

FINANCIAL CAPITAL
Financial resources that people use to achieve their livelihood objectives. Sources -Available Stocks -Regular Inflow of Money

VULNERABILITY IMPACTS ASSETS

H

VULNERABILITY CONTEXT Shocks Trends Seasonality

ASSETS
P F

TRANSFORMING STRUCTURES & PROCESSES

The institutions, organisations, policies and legislation that shape livelihoods They determine
-access -terms of exchange between different types of capital -returns to any given livelihood strategy

STRUCTURES
Structures the organisations, both private and public that set and implement policy and legislation, deliver services, purchase, trade and perform all manner of other functions that affect livelihoods PUBLIC PRIVATE -Political bodies -Commercial Enter. -Executive Agencies -Civil Society -Judicial Bodies -NGOs -Parastatals/Quasi Govt Agn. They make process function

PROCESS
Process is the software which determines the way in which structures and individuals operate and interact
Policies Macro Sectoral Legislation Institutions Culture Power Reln. Intl Agmts. Markets Societal Age Domestic Access regulating norms Gender

Important because
-Provide Incentives -Access -Enable transformation b/n assets -Interpersonal relationship

TRANSFORMING STRUCTURES & PROCESSES

TRANSFORMING STRUCTURES & PROCESSESS
STRUCTURE
Levels of Govt Private Sector Law Policy Culture Institution

PROCESS

LIVELIHOOD STRATEGIES
The range and combination of activities and choices that people make/undertake in order to achieve their livelihood goals (including productive activities, investment strategies, reproductive choices, etc.). DIVERSITY; STRADDLING; LINKAGES

LIVELIHOOD STRATEGIES-HOW MAY IT BE INFLUENCED

ACCESS TO ASSETS
-Skills -Start-up capital -Physical infrastructure -Access to networks

STRUCTURE & PROCESSES

-Facilitates mobility in labour markets, reduces risk and transaction cost with new ventures -Should help in widening choice, reducing costs and extending access

LIVELIHOOD OUTCOMES
More income Increased well-being Reduced vulnerability Improved food security More sustained use of natural resource base

RELATIONSHIP WITHIN FRAMEWORK

VULNERABILITY CONTEXT
-Affects Trends : Direct (Fiscal policy/economic) Indirect (health policy/Population) -Helps cushion impact of external shocks -Influences consequence of seasonality e.g markets

ASSETS: Influences and Accesses various capital LIVELIHOOD STRATEGIES

-Influence decision making

LIVELIHOOD OUTCOMES
-Sense of well being -Promote Awarness and sense of self-control -reduce vulnerability thro provisions of safety net

SUSTAINABLE LIVELIHOODS FRAMEWORK

Livelihood Assets H Vulnerability Context Shocks Trends Seasonality S N Transforming Structure & Processes Structure
Levels of Govt Private Sector Law Policy Culture Institution

Livelihood Strategies

Process

Livelihood Outcomes More income Increased well-being Reduced vulnerability Improved food security More sustainable use of NR base

INDIA GROWTH STORY

Agriculture, Forestry & Fishing Mining & Quarring Manufacturing Electricity, Gas & Water Supply
1980s 1990s 2000s 2010s

Construction
Trade, Hotels & Restaurants Transport, Storage& Communication Financing, Insurance, Real Estate & Business Services Community, Social & Personal Services
5.17

GDP at Factor Cost

0 2 4 6 8

9.62 10 12 14 16 18

SHINING INDIA
India is the 2nd fastest growing economy and the 4th largest economy in PPP terms in the world Unprecedented growth of over 8.8% since 2003-04 Ballooning middle class: by 2025- 583 Mn (41% of population and 58% in total income) Shift to consumerism due to high disposable incomes-MNCs, Malls, Communication, Transport, Education and Healthcare

NOT-SO SHINING INDIA

Category/-----year (%) Cumm 1993-94 1999-2000 2004-5 Popn Popn %) (%) (%) Cumm% (Mn) (Mn)

Extremely Poor (up to 0.75 PL)

Poor (0.75 PL to PL)

11.5 19.2

8.7 17.3

6.4 15.4

6 22

70 167

70 237

Marginally Poor (PL to 1.25 PL)

Vulnerable (1.25 PL to 2 PL)

18.8 32.4

19.9 34.8

19 36

41 77

207 392

444 836

Middle Income (2 PL to 4 PL)

Higher Income (>4PL)

15.5
2.7

16.7
2.6

19.2
4

96
100

210
44

1046
1090

PL DEFINED AS Rs 11.6 PER DAY PER CAPITA CONSUMPTION EXPENDITURE

NOT-SO SHINING INDIA

% All OBCs except All Muslims SC/ST Muslim except s s SC/ST 11 32 5 20 8 27 Others 2 9 % of Unorg. 6 21 Illiterates 8 22

Extremely Poor (upto .75 PL)

Poor (.75 PL to PL) Marginallly Poor (PL to 1.25 PL) Vulnerable (1.25 PL to 2 PL) Middle Income (2 PL to 4 PL) Higher Income (>4PL)

55
88 99 100

41
80 98 100

50
85 98 100

20
55 89 100

40
79 98 100

41
81 99 100

INDIA HAS MORE POOR THAN 26 POOREST AFRICAN NATIONS

LOW ON HDI
OVERALL RANKED 119 AMONGST 169 COUNTRIES RANKED 122 ON GENDER IN-EQUITY MPI AT 0.296 POORER THAN NEIGBOURING COUNTRIES 69% OF POPULATION DONT HAVE ACCESS TO IMPROVED SANITATION 15% SHORTFALL IN MINIMUM DIETARY ENERGY REQUIRMENTS OVERALL LIFE SATISFACTION OF 5.5 ON A SCALE OF 0-10 AMONGST THE HIGHEST IN NO. OF MALES FOR 100 FEMALES-108.5

INEQUITY
ARE RICH GETTING RICHER AND POOR POORER?
HOW DO WE PROACTIVELY ENSURE THAT THE DIVIDE IS NARROWED?

DHANS PHILOSOPHY ON POVERTY ALLEVIATION

SOCIAL INTERMEDIATION
Process of building human and social capital of the poor by which the poor are to able to organise themselves for the purpose of accessing increased mainstream resources and networks

FINANCIAL INTERMEDIATION
Provision of financial products and services such as savings, credit, insurance, and payment systems, to meet capital (both working capital and fixed capital) requirements of poor and to reduce the vulnerability of their livelihood.

BUSINESS INTERMEDIATION
Non -financial services that assist the poor families in promotion of new livelihoods/enhancing the benefits realized from their existing livelihoods by either increasing its productivity, scale of production, reducing its cost of production or increasing the price realized

CIVIC INTERMEDIATION
Non -financial services that focus in improving the well-being of poor They include health, nutrition, education, sanitation, water facilities, communication and literacy training.

DHANS APPROACH TO LIVELIHOOD PROMOTION

SOCIAL AND FINANCIAL INTERMEDIATION NECESSARY CONDITIONS BUT MAY NOT BE SUFFICIENT CRITERIA FOR INCOME POVERTY ALLEVIATION BENEFITS OF GROWING ECONOMY WOULD ACCRUE IF MAINSTREAMED BY OFFERING PRODUCTS & SERVICES CRITICAL TO PROMOTE LIVELIHOODS

LIVELIHOOD PROMOTION PRINCIPLES

Livelihood is a basic right Multiple Livelihoods Existing Livelihoods first Skills first Livelihood Financing Collective action Market first & Macro Economic view Value Addition Economic+Social Impact

LIVELIHOOD ANALYSIS & TOOLS

Micro Level
Secondary data analysis Timeline of village/city Social map Wealth Ranking Mapping vulnerable Institutional map - Venn diagram Resource map Seasonality calendar Common Property Resource analysis Traded-in and out Technology map Local opportunities and economy Analysis of existing and possible alternative livelihoods Prioritisation of livelihoods at the household level Income and Expenditure patterns

Macro Level
-Sub sectoral studies -Sub-sector is the network of firms that supply raw materials, transform them, and distribute finished goods to a particular
consumer market Preparing a preliminary sub-sector map Refining the understanding of the sub-sector Value chain analysis Analysing sub-sector dynamics and leverage points Choosing the intervention points

Market opportunities
-Market Profile, Buyers Profile, Sellers Profile

LIVELIHOOD INTERVENTION PLAN

Livelihood Intervention
Output Task Requirements

Needs

Competencies

Target Group
Demand Expression

Organization
Decision Process

LIVELIHOOD INTERVENTION PLAN

Idea Expected Outcome Institutional Framework Rapid Assessment-productivity, equity, sustainability, feasibility and Viability Define objectives along-with community Defining activities/Sub-activities Time frame and Responsibility Assessment of support and garnering it

BUSINESS PROMOTION PLAN

Share Capital Capex P&L projections Cash Flow Working Capital Break-even and Cost Benefit Analysis Marketing: 4 Ps

IMPLEMENTATION ARRANGEMENTS
Institutional Mechanism Mobilising of resources: Human and Financial Capacity Building of staff and Target group Establishing forward and backward linkages Convergence with government dept. Establishing monitoring & learning systems Monitoring and corrective actions based on feedback Withdrawal

INSTITUTION MECHANISM
MEMBER STAKE

GOVERNANCE

OPERATING SYSTEM

VALUE CHAINS
Set of Value adding activities through which a product passes from the initial production or design stage to final delivery to the consumer VCA analyses the significance of how the revenues generated by gross consumer spending is translated into net revenues to all actors of the chain

VALUE CHAIN EMPOWERMENT-TOOL FOR LIVELIHOOD PROMOTION

Hugo Verkuijl)

(Lucian Peppelenbos and

C h a i n
A c t i v i t i e s

Activity Integrator

Chain Co-owner

Chain Actor

Chain Partner

Chain Governance

DAIRY VALUE CHAIN

THANK YOU
ANY QUESTIONS PLS!!