Sustainable livelihoods guidance sheets: section 2

This document, the second of a seven part series of Guidance Sheets, starts off by introducing the livelihoods framework. The framework is a tool to improve the understanding of livelihoods, particularly the livelihoods of the poor. A diagram shows how the various parts of this framework tie into one another. This includes the vulnerability context; livelihoods assets; transforming structures and processes; livelihoods strategies; and livelihoods outcomes.

Section 2.2 describes the vulnerability context as the external environment in which people exist; this is broken down further into shocks, trends and seasonal shifts that affect people’s livelihoods in either a negative or positive way. How well people deal with these changes to their vulnerabilities depends on their strengths.  Accordingly, section 2.3 identifies five core asset categories or types of capital upon which livelihoods depend, and these are: human, natural, financial, physical and social capital. The section discusses each of these in turn, outlining the importance of the asset and the practical means in which they can be developed among the poor.

The Transforming Structures and Processes, described in section 2.4, include the institutions, organisations, policies and legislation that shape livelihoods. They operate at all levels, from the household to the international arena, and in all spheres, from the most private to the most public. They effectively determine:

• access (to various types of capital, to livelihood strategies and to decision-making bodies and sources of influence)
• the terms of exchange between different types of capital; and
• returns (economic and otherwise) to any given livelihood strategy.

Section 2.5 looks at livelihood strategies, this is the overarching term used to denote the range and combination of activities and choices that people make in order to achieve their livelihood goals. This section argues that the more choice and flexibility people have in their livelihood strategies, the greater their ability to withstand - or adapt to - the shocks and stresses of the Vulnerability Context.

And lastly, Livelihood Outcomes (section 2.6) include the achievements or outputs of Livelihood Strategies. Once again, the important idea associated with this component of the framework is that outsiders investigate, observe and listen, rather than jumping to quick conclusions or making hasty judgements about the exact nature of the outcomes that people pursue. In particular, this section argues against assuming that people are entirely dedicated to maximising their income. Rather, it recommends that we recognise and seek to understand the richness of potential livelihood goals. This, in turn, will help understand people’s priorities, why they do what they do, and where the major constraints lie.