The potential of using sustainable livelihoods approaches in poverty reduction strategy papers

This paper looks at the question of whether sustainable livelihood approaches have value at the level of overall policy on poverty reduction, and specifically addresses to what extent the approach might be used in support of poverty reduction strategy papers.

In looking at the scope for applying the SL approach, the paper emphasises the need to work with existing processes, tools and institutions, with the accent on underlying principles rather than methodology. The asset/vulnerability framework is nevertheless identified as having considerable potential to improve the Poverty Reduction Strategy Papers (PRSP) process – in terms of the diagnosis, the design of the strategy, and the monitoring framework. A more participatory and people centred approach is a key aspect of the SL approach. Paper sets out how the participatory approach may contribute to the PRSP process. It contains some tentative thoughts on specific features of the assets/vulnerability framework which may add value to the process and content of the PRSP.

The paper also considers which specific policy issues addressed by a typical PRSP process might especially benefit from a SL framework. It identifies opportunities to extend analysis in this direction at every level from macro policy through taxation, expenditure, and regulatory changes. However, to be most useful, the tools need to be further developed to take the SL analysis beyond description towards a richer capacity to look at the implications and behavioral responses to alternative policy prescriptions. This will require some further methodological development beyond the material which we have become aware of in this short piece of work. A fruitful area for furtherdevelopment might be modifications to traditional economic appraisal methodologies to incorporate more realistic behavioral assumptions, especially as regards risk and vulnerability.