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SUSTAINABLE LIVELIHOODSPROMOTION :CONCEPT & FRAMEWORK
R.Adhinarayanan
Faculty
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THE FLOW
CONCEPT OF LIVELIHOODCONCEPT OF SUSTAINABILITY
THE SUSTAINABLE LIVELIHOODS
FRAMEWORK
NEED FOR LIVELIHOODS FOCUS
LIVELIHOODS PROMOTION CONCEPT
VALUE CHAINS CONCEPTS
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WHAT IS LIVELIHOODS
A set of activities a household engages in ona regular basis in order to generateadequate cash and non-cash income to
maintain a minimum desired standard ofliving, both on a day-to-day basis and over alonger period of time
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LIVELIHOODS
A Livelihood comprises the capabilities,assets (including both material and socialresources) and activities required for a
means of living
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WHATS ADEQUATE
A livelihood is adequate when the
income and quality of life it can supportmeets widely accepted standards such
as the $1.5-a-day international poverty line
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STANDARD OF LIVING
A livelihood can sometimes generateadequate income, but may not be desirableor dignified
May generate adequate income and mayeven be reasonably dignified, but may notoffer adequate opportunities to participate inthe wider social, cultural or political space
May be adequate, dignified and offeropportunities to participate in social, culturalor political life, but may not be sustainable
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SUSTAINABILITY
LIVELIHOODS ARE SUSTAINABLE WHICH
Are resilient in the face of external shocksand stresses
Are not dependent upon external support
Maintain the long-term productivity ofnatural resources
Does not undermine the livelihoods of, orcompromise the livelihood options open to,others
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SUSTAINABILITY
Environmental Sustainability
Economic sustainability
Social sustainabilityInstitutional sustainability
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LETS DEVELOP THE FRAMEWORK
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WHAT THE EXTERNAL FACTORS
THAT COULD AFFECT THE POOR
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Shocks!
Human Health
Natural
EconomicConflict
Crop/Livestock Health
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Trends!
Population
National/International economic
GovernanceTechnological
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Seasonality!
Prices
Employment Opportunities
Food AvailabilityHealth
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VULNERABILITY CONTEXT
TRENDS SHOCKS SEASONALITY
Population Human Health Price
Resource Natural ProductionEconomic Economic Health
Governance Conflict Employment
Technology Crop/Livestock
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WHAT THE INTERNALFACTORS THAT COULD
AFFECT THE POOR
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LIVELIHOOD ASSETS
Human Capital
Social Capital Natural Capital
Physical Capital Financial Capital
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HUMAN CAPITAL
Skills, Knowledge, Ability to Labour andGood Health
As well as being of intrinsic value, humancapital is required in order to make use ofany of the four other types of assets
It is therefore necessary, though not on itsown sufficient, for the achievement ofpositive livelihood outcomes
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SOCIAL CAPITAL
Social resources upon which people drawin 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
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NATURAL CAPITAL
Natural resource stocks from whichresource flows and services (e.g. nutrientcycling, 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.
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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).
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FINANCIAL CAPITAL
Financial resources that people use toachieve their livelihood objectives.
Sources
-Available Stocks
-Regular Inflow of Money
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VULNERABILITY IMPACTSASSETS
VULNERABILITY
CONTEXTShocksTrendsSeasonality
ASSETS
H
P F
NS
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TRANSFORMING STRUCTURES& PROCESSES
The institutions, organisations, policiesand legislation that shape livelihoods
They determine-access
-terms of exchange between different types of capital
-returns to any given livelihood strategy
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STRUCTURES
Structures the organisations, both private and publicthat set and implement policy and legislation, deliverservices, purchase, trade and perform all manner ofother 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
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PROCESS
Process is the software which determines theway in which structures and individualsoperate and interact
Policies Legislation Institutions Culture Power Reln.
Macro Intl Agmts. Markets Societal Age
Sectoral Domestic Access regulating norms Gender
Important because
-Provide Incentives-Access
-Enable transformation b/n assets
-Interpersonal relationship
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TRANSFORMINGSTRUCTURES & PROCESSES
TRANSFORMINGSTRUCTURES &PROCESSESS
STRUCTURE
Levels of GovtPrivate Sector
LawPolicyCulture
Institution
PROCESS
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LIVELIHOOD STRATEGIES
The range and combination of activitiesand choices that people make/undertakein order to achieve their livelihood goals
(including productive activities, investmentstrategies, reproductive choices, etc.).
DIVERSITY; STRADDLING; LINKAGES
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LIVELIHOOD STRATEGIES-HOWMAY IT BE INFLUENCED
ACCESS TO ASSETS-Skills
-Start-up capital
-Physical infrastructure-Access to networks
STRUCTURE & PROCESSES
-Facilitates mobility in labour markets, reduces risk andtransaction cost with new ventures
-Should help in widening choice, reducing costs andextending access
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LIVELIHOOD OUTCOMES
More income
Increased well-being
Reduced vulnerabilityImproved food security
More sustained use of natural resource base
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RELATIONSHIP WITHINFRAMEWORK
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 capitalLIVELIHOOD STRATEGIES
-Influence decision making
LIVELIHOOD OUTCOMES-Sense of well being-Promote Awarness and sense of self-control-reduce vulnerability thro provisions of safety net
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SUSTAINABLE LIVELIHOODSFRAMEWORK
VulnerabilityContext
ShocksTrendsSeasonality
H
P F
NS
Livelihood Assets
TransformingStructure &Processes
StructureLevels of GovtPrivate Sector Law
Policy
CultureInstitutionProcess
LivelihoodStrategies
Livelihood
OutcomesMore income Increasedwell-being Reducedvulnerability Improved food
security Moresustainableuse of NR base
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INDIA GROWTH STORY
9.62
5.17
0 2 4 6 8 10 12 14 16 18
GDP at Factor Cost
Community, Social & Personal Services
Financing, Insurance, Real Estate & BusinessServices
Transport, Storage& Communication
Trade, Hotels & Restaurants
Construction
Electricity, Gas & Water Supply
Manufacturing
Mining & Quarring
Agriculture, Forestry & Fishing1980s
1990s
2000s
2010s
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SHINING INDIA
India is the 2nd fastest growing economy andthe 4th largest economy in PPP terms in theworld
Unprecedented growth of over 8.8% since2003-04
Ballooning middle class: by 2025- 583 Mn(41% of population and 58% in total income)
Shift to consumerism due to high disposableincomes-MNCs, Malls, Communication,Transport, Education and Healthcare
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NOT-SO SHINING INDIA
Category/-----year (%) 1993-94%) 1999-2000(%) 2004-5(%) Cumm% Popn(Mn)CummPopn(Mn)
Extremely Poor (up to 0.75PL) 11.5 8.7 6.4 6 70 70Poor (0.75 PL to PL) 19.2 17.3 15.4 22 167 237Marginally Poor (PL to 1.25PL) 18.8 19.9 19 41 207 444Vulnerable (1.25 PL to 2 PL) 32.4 34.8 36 77 392 836Middle Income (2 PL to 4 PL) 15.5 16.7 19.2 96 210 1046Higher Income (>4PL) 2.7 2.6 4 100 44 1090
PL DEFINED AS Rs 11.6 PER DAY PER CAPITA CONSUMPTIONEXPENDITURE
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NOT-SO SHINING INDIA
% SC/STs
All
OBCsexceptMuslim
sAll Muslims
exceptSC/ST Others % ofUnorg. Illiterates
Extremely Poor (upto.75 PL) 11 5 8 2 6 8Poor (.75 PL to PL) 32 20 27 9 21 22Marginallly Poor (PLto 1.25 PL) 55 41 50 20 40 41Vulnerable (1.25 PL
to 2 PL)
88
80
85
55
79
81
Middle Income (2 PLto 4 PL) 99 98 98 89 98 99Higher Income(>4PL) 100 100 100 100 100 100
INDIA HAS MORE POOR THAN 26 POOREST AFRICAN NATIONS
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LOW ON HDI
OVERALL RANKED 119 AMONGST 169COUNTRIESRANKED 122 ON GENDER IN-EQUITYMPI AT 0.296 POORER THAN NEIGBOURING
COUNTRIES69% OF POPULATION DONT HAVE ACCESS TOIMPROVED SANITATION15% SHORTFALL IN MINIMUM DIETARY ENERGYREQUIRMENTS
OVERALL LIFE SATISFACTION OF 5.5 ON A SCALEOF 0-10
AMONGST THE HIGHEST IN NO. OF MALES FOR100 FEMALES-108.5
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INEQUITY
ARE RICH GETTING RICHERAND POOR POORER?
HOW DO WE PROACTIVELY
ENSURE THAT THE DIVIDE ISNARROWED?
DHANS PHILOSOPHY ON
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DHANS PHILOSOPHY ON
POVERTY ALLEVIATION
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SOCIAL INTERMEDIATION
Process of building human and socialcapital of the poor by which the poor are toable to organise themselves for the
purpose of accessing increasedmainstream resources and networks
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FINANCIAL INTERMEDIATION
Provision of financial products and servicessuch as savings, credit, insurance, andpayment systems, to meet capital (bothworking capital and fixed capital) requirementsof poor and to reduce the vulnerability of theirlivelihood.
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BUSINESS INTERMEDIATION
Non -financial services that assist the poorfamilies in promotion of newlivelihoods/enhancing the benefits realized
from their existing livelihoods by eitherincreasing its productivity, scale ofproduction, reducing its cost of production
or increasing the price realized
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CIVIC INTERMEDIATION
Non -financial services that focus inimproving the well-being of poor
They include health, nutrition, education,sanitation, water facilities, communicationand literacy training.
DHANS APPROACH TO
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DHANS APPROACH TOLIVELIHOOD PROMOTION
SOCIAL AND FINANCIALINTERMEDIATION NECESSARYCONDITIONS BUT MAY NOT BE
SUFFICIENT CRITERIA FOR INCOMEPOVERTY ALLEVIATION
BENEFITS OF GROWING ECONOMY
WOULD ACCRUE IF MAINSTREAMEDBY OFFERING PRODUCTS & SERVICES
CRITICAL TO PROMOTE LIVELIHOODS
LIVELIHOOD PROMOTION
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LIVELIHOOD PROMOTIONPRINCIPLES
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
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LIVELIHOOD ANALYSIS & TOOLS
Micro LevelSecondary data analysisTimeline of village/citySocial mapWealth RankingMapping vulnerableInstitutional map - Venn diagramResource mapSeasonality calendarCommon Property Resource analysisTraded-in and out
Technology mapLocal opportunities and economy
Analysis of existing and possible alternative livelihoodsPrioritisation of livelihoods at the household levelIncome 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 marketPreparing a preliminary sub-sector mapRefining the understanding of the sub-sectorValue chain analysisAnalysing sub-sector dynamics and leverage pointsChoosing the intervention points
Market opportunities-Market Profile, Buyers Profile, Sellers Profile
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LIVELIHOOD INTERVENTION PLAN
LivelihoodIntervention
Target Group Organization
Output
Needs
Task Requirements
Competencies
Decision ProcessDemand Expression
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LIVELIHOOD INTERVENTION PLAN
IdeaExpected 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
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BUSINESS PROMOTION PLAN
Share Capital
Capex
P&L projections
Cash Flow
Working Capital
Break-even and Cost Benefit AnalysisMarketing: 4 Ps
IMPLEMENTATION
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IMPLEMENTATIONARRANGEMENTS
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 onfeedback
Withdrawal
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INSTITUTION MECHANISM
MEMBERSTAKE
OPERATINGSYSTEM
GOVERNANCE
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VALUE CHAINS
Set of Value adding activities throughwhich a product passes from the initialproduction or design stage to final delivery
to the consumerVCA analyses the significance of how therevenues generated by gross consumer
spending is translated into net revenues toall actors of the chain
VALUE CHAIN EMPOWERMENT TOOL
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VALUE CHAIN EMPOWERMENT-TOOLFOR LIVELIHOOD PROMOTION (Lucian Peppelenbos and
Hugo Verkuijl)
Chain
Acti
vities
Chain Governance
Chain Actor Chain Partner
ActivityIntegrator Chain Co-owner
DAIRY VALUE CHAIN
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DAIRY VALUE CHAIN
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THANK YOU
ANY QUESTIONS PLS!!