CHAPTER - IV 4.1 LIVELIHOOD STRATEGY FRAME WORK

Transcription

1 CHAPTER - IV 4.1 LIVELIHOOD STRATEGY FRAME WORK Theoretical Frame Work analysis Po Knowledge & Participation in the Election Process and Rights and village meeting N Natural resource (Land private, common, Irrigation) and Livestock H Education and Health LIVELIHOOD STRATEGY Ph Creation and Increase of Productive Individual, Communities and Irrigation Assets F Increased saving& credit, Adequate employment opportunities and micro enterprises S Male / Female Participation and Network N Natural Capital S Social Capital H Human Capital F Finance Capital Ph Physical Capital Po Political Capital 80

2 The survey used the Sustainable Livelihoods approach as its framework methodology. This approach is useful because it provides a balanced understanding of the different aspects of a family s activities and situation. With help of the six livelihood capital assets such as Natural capital, Social capital, Human capital, Financial capital, Physical capital and Political capital one can build up a composite picture of the family, community or institution being described. The description of Natural Capital describes ownership or access to land of different types, water and livestock. It also assesses the climatic situation; Human Capital includes an assessment of the education and health status; Social Capital describes the linkages that exist within and between families, clans and community groupings. It also includes the strength of networking beyond the village, other villages and markets. Financial Capital looks at financial wealth, which might be in cash or kind and assesses the debt situation. While Physical Capital describes the existence and state of infrastructure such as roads, houses, dams; Political Capital are comprised of the awareness of elections, the rights, participate in elections, and attend all meetings in village, became a member and involvements in the political party the structure of relationships that govern the access present in the community by the households. 81

3 4.2 Framework Analysis Livelihood analysis has an expansive notion of poverty compared to the conventional framework of analysis of poverty. Poverty measurements using income and expenditure norms are rather restrictive. The capabilities of the people need to be considered in any understanding about their lives. A livelihood comprises of the capabilities, assets (both material and social resources) and activities required for a means of living. It is sustainable when it can cope with and recover from stresses and shocks and maintain or enhance capabilities and assets both now and in the future, without undermining the natural resource base. The Livelihood strategy framework concept is more important for claim for special attention to individuals and community. The livelihood strategy theory places more emphasis on ownership of and access to resources that can be considered building blocks for poor, in which they can escape poverty. The use of each asset depends on the nature of the asset, the social context, and the urgency of the need (Narayan, 2000) 3. The capital base is further disaggregated into Natural Capital, Human Capital, Social Capital, Financial Capital, Physical Capital and Political Capital. When the livelihoods is constructed and operationalised from these `capital bases the strategies are strained by risks and render the humans vulnerable. 82

4 This section attempts to profile the status of livelihoods of the studied population by understanding the Natural Capital, Human capital, Social Capital, Financial Capital, Physical Capital and Political Capital. 4.3 Natural Capital This asset holds that land, water, livestock and environmental resources (sometimes refer to as environmental asset) is an essential asset to poor households who depend on them for survival (Ellis, 2000) 2. The natural asset is flexible; it extends beyond its limits to include other activities such as agriculture, uses of irrigation and rearing animals stressing on the necessity. As such, ownership or access to whatever is valued as a natural asset that defines people s status; the nonexistence of it undermines the ability of the poor to provide for them. This natural asset framework helps in analyzing patterns of agriculture livelihood. For instance, some aspects of natural resources such as agriculture livelihood conditions, where some people live in land utilization landscapes, arid and semi-arid areas, allow for diversification of human livelihoods. It s worth noting that, natural capital resources are distinguishably renewable and non-renewable. The renewable natural capital includes all assets that can replenish themselves over time, while non-renewable resources are the ones that can be exhausted when over used (Ellis, 2000) 2. We also consider ownership of livestock as a component of private capital. 83

5 4.4 Human capital Human capital highlights the importance of labor, health, education, and skills as assets to achieving livelihood (Ellis, 2000) 2. Labor is a vital asset for households, but labor alone can not sustain livelihoods, but when enhanced through education, training, and other skills, it becomes extremely an affective tool for poor households to gain livelihoods. There are some forces that play down the importance of labor. Households maximize the use of their labor to compensate wages below subsistence. In fact, labor, as an asset, depends on good health: Since labor depends on health, illness can remove individuals from the labor pool and can push them into poverty (Narayan , Grinspun, , Ellis, ). Gasper (2004) 5 shows the connection between low paid labor and health. According to him, market externalities, coupled with low wages and diseases, create poverty. It becomes clear that where formal agencies (institutions) provide inadequate support, the illness of one person within the family can affect the economic ability of the whole family. Illness, thus, creates a devastating and lasting drain on the household. Ellis (2000) 2 identifies public education and health service as a means through which labor can be maximized for the benefit of the households. He also ties The Structural Adjustment Program (SAP) to the under utilization of education and health for the improvement of labor because such program resulted into cutback on governments budgets and rolled back their involvement. 84

6 4.5 Social Capital Social capital is a mutual relationship within, and among households and communities. This relationship is based on trust and reciprocity. More precisely, social capital pays more attention to family networks, kinship, and close friends that the household will depend on in time of crisis. By and large, this relationship can be seen as an investment in future livelihoods (Ellis, (2000) 2 Krishna; (2003) 7. The idea of social capital was popularized by the work of Robert Putnam. He illustrates the importance of social organizations, networks, norms, and trust that determines failure or success of any community. According to him, the greater the number of community organizations, the more likely the social and political networks will be organized horizontally versus hierarchically. The vertical social capital reflects a relationship of patronage among politicians, and local chiefs, while the horizontal social capital refers to clubs, associations, and voluntary agencies. A relationship between assets and the vertical and horizontal social capitals determines average per capita income at the community level (Ellis, 2000) 2. To see how social capital works in a community, Fukuyama (2001) 6 introduces the idea of radius of trust. According to him, each social capital has what he called a broader radius of trust and narrow radius of trust. The broader radius of trust enables any group to co-operate among themselves as well as with outsiders, while the narrow radius of trust restrains cooperation and reduces the ability of a group to co-operate with each other and with outsiders. Weak ties that exist in the narrow radius of trust reinforce corruption. 85

7 Looking critically at social capital, one would say that historical evidence supporting social capital was drawn from the Western culture, and it was heavily emphasized formal institutions as the core of the social capital. However, in rural areas in developing countries, informal institutions, rather than the formal, are the measurement of social capital (Krishna, 2003) Financial Capital In a crude way, financial capital refers to bundles of money and financial assets such as loan, deposits, shares etc., and household possessions, which can be converted into other assets (Ellis, 2000) 2. Assets alone can not reveal the whole picture of the rural poverty. The economic relationship between livelihood and assets produces different results, in terms of improving or worsening the welfare of individuals. The financial asset is not useful for the households unless it has been converted into other assets or into consumption. However, the saving of this asset depends on the existing financial market. For instance, in rural Sub-Saharan Africa, the keeping of livestock often plays a critical role as store of wealth and buffer against bad time (Ellis, 2001) 2. In rural Africa, poor households prefer to keep cattle, goats, and personal belongings then latter converting them into cash and depositing to rural financial institutions to save them for time of crisis (Ellis, 2000) 2. In such a way, rural poor use livestock as a means of saving money for times of crisis. The livestock generate income, particularly in dry and semi-dry areas. It also provides food and natural 86

8 fertilizers (manure). For instance, cattle are sold during drought season to buy grains or livestock can be used as a cheaper means of transporting goods to markets. Indigenous knowledge and skills have their own bearing on rural poor. 4.7 Physical Capital Goods, roads, and pipe lines are the most important physical capital (Ellis, 2000) 2. Produce goods are made to generate income. For example, sewing machines are used to produce cloth to sell, and refrigerators can be used for commercial purposes. Indeed, this asset can be converted into other assets and safeguard poor households livelihoods. Among physical assets, roads, electricity, and water supply are the most important. Roads shorten distances and enable market access to poor households. Electricity also plays an important part in rural areas, for its presence determines locations of manufacturing industries that may provide labor and income to the poor. Furthermore, avoidance of illness and disease in rural areas can be achieved through provision of clean drinking water (Ellis, 2000) 2. The five levels of assets constitute what Ellis (2000) 2 called the assets pentagon, a descriptive method of comparing assets status. Transmission of these assets into livelihoods takes place under certain social, economic, and policy considerations. At the level of transmission, assets interact with conditioning factors such as policies, laws, incentives prices, and social relations. It does not happen abruptly, the interaction between assets and mediation processes takes a long period of time resulting into 87

9 either shock or stress. Shock is one of the dangerous trends that threaten assets because it destroys assets directly. In Sustainable Livelihoods Approach, shock can take the form of seasonal rains, drought, earthquakes, floods, diseases, or civil wars. When the end result of the interaction is shock, rural poor use strategies to absorb the shock. They normally construct activities that generate survival for households (Ellis, 2000) Political Capital Political capitals is comprised of the awareness of elections, the rights, people s participation in elections, and participation in all meetings in village, membership and involvements in the political party, the structure of relationships that govern the access present in the community by the households. Generally the level of awareness males came to know about elections, participate in elections and know about the rights improved among the respondents. Access to became a member and involvements in the political party and attend all meetings in village of the respondents were found to be poor among the respondents. Equal access to political participation is considered to be essential to democracy and by extension to political and social stability and economic development. In reality, political participation and access to decision making are 88

10 strongly influenced by local perceptions of gender, race and religion. In Panchayats are to function on a participatory basis. Periodic grama Saba meetings are to be held to discuss various problems and issues. However, we found that in most of the village s grama Saba meetings elicited poor response. This is evident from the survey data as well. Exclusion of various groups could be one reason but this alone does not explain the level of poor response for participation among people. Consequently, selection of schemes, identification of location for schemes, identification of beneficiaries etc are not decided by the people of the village. Rather it is the panchayet president and his understanding of village polity goes to decide the crucial issues. Such poor levels of participation inevitably lead to nepotism and leakages in the functioning of the panchayet. 89

11 4.9 Natural Capital The Natural capital comprises all the assets naturally occurring in the surroundings. These include the forests, wild animals, natural water bodies, the lands, air flow, the local flora and fauna, etc. Table Distribution of the Respondents by Natural Capital Sl. No Category Rank Total Good Moderate Poor 1 Awareness to protect 128 Common Property Resources (53.3%) 2 Conserve water bodies (33.8%) (12.9%) 56 (22.1%) (54.6%) (23.3%) 3 Conservation of Land (56.2%) (27.9%) (15.8%) 4 Livestock management (22.5%) (25.0%) (52.5%) The table shows the ranking of important natural capitals as consequences of in rural livelihood pattern followed by the respondents. With regards to natural capital, improvement in the awareness to protect common property resources and conservation of Land was analyzed and it was found that 53.3 and

12 percent of respondents was increased to a great extent owing to the livelihood strategies they adopted. For a sizeable proportion (33.8 and 27.9 percent) the extent of increase in the awareness to protect common property resources and conservation of land was moderate and for rest of them it was poor. Generally the level of awareness to protect common property resources and conservation of land improved among the respondents. Important in the conservation water bodies was also analysed and it was found that for 54.6 percent of them it was moderate i.e. Access to Livestock management was found to be poor for 52.5 percent of the respondents. Briefly, the analysis of natural capital showed that the extent of improvement in terms of awareness to protect common property resources and conservation of Land, in terms of conservation of water bodies was moderate; in the term of livestock management was low Human Capital The human capital is all the strength, skills, knowledge, experience, attitude and aptitude of the human beings present in the household and in the community, from where it can draw upon the required services. The sense of adherence to the time, the tolerance to ambiguity, and other traits are also part of the human capital. 91

13 Table Distribution of the Respondents by Human Capital Sl. No Category 1 Increased literacy level 153 Rank Good Moderate (63.8%) 2 Increased skilled worker 44 3 Improved access to health care delivery centers (18.3%) 53 (22.1%) 58 (24.2%) 52 (21.7%) 131 (54.6%) Poor 29 (12.0%) 144 (60.0%) 56 (23.3%) Total The table shows the ranking of the most important human capitals as consequences of rural livelihood pattern followed by the respondents. With regards to human capital, the improvement in literacy level was analysed and it was found that 63.8 percent of respondents literacy level was increased to a great extent owing to the livelihood strategies they adopted. For a sizeable proportion (24.2%) the extent of increase in the literacy level was moderate and for rest of them it was poor. Generally the level of literacy improved among the respondents. Important in the skills was also analysed and it was found that for 60 percent of them it was poor. i.e., most of the respondents did not get any important with regard to their skills. Access to health delivery center was found to be moderate for most of the respondents (54.6%). Briefly, the analysis of human capital showed that the extent of improvement in terms of literacy was high; in terms of skill development was low and in terms of access to health care system was moderate. 92

14 4.11 Social Capital Social capital is support that a family gets from others in the society. This could in the form of encouragement and caution that the household gets from the society, the feeling of binding that exists in the community/network to which the household belongs to, and the enforcement of social norms like repayment of debt and completing the agreed work by the community. Such support, if proper, equitable and democratic in nature, contributes to household achieving the development aims in a just manner. Table Sl. No Distribution of the Respondents by Social capital Category 1 Males participating in community network 2 Females participating in community network Rank Good Moderate (75.4%) 120 (50.0%) 3 Males participating in SHG 0 (0%) 4 Females participating in SHG 63 (26.2%) 5 Accommodation 120 (50.0%) (17.9%) 61 (25.4%) 11 (4.6%) 10 (4.2%) 37 (15.4%) Poor 16 (6.7%) 59 (24.6%) 229 (95.4%) 167 (69.6%) 83 (34.6%) Total

15 The table shows the ranking of the most important social capital as consequences of in rural livelihood pattern followed by the respondents. With regards to social capital, improvement in males participating in community network, females participating in community network and Accommodation was analysed and it was found that 75.4 percent and 50 percent of respondents and same was increased to a great extent owing to the livelihood strategies they adopted and for rest of them it was poor like 95.4 percent of the respondents were male participation in SHGs and 69.6 percent of the respondents were female participation in SHGs. Generally the level of Awareness males participating in community network, females participating in community network and accommodation improved among the respondents. Access to male participation in SHGs and 69.6 percent of the respondents were female participation in SHGs was found to be poor of the respondents Financial Capital Financial capital is comprised of the savings held as cash, bank deposits, amount lent to others that can be called up on any time and liquid assets like livestock. In addition, the credit standing of the household and the community to which the household belongs to, the credit that can be accessed by the household and the source of savings/credit existing in the community, the mechanisms providing insurance support, the regular cash flows that are not a result of present work (like pensions, monthly/quarterly interest received from long term savings. 94

16 Table Distribution of the Respondents by Financial Capital Sl. No Category Rank Total 1 Increased saving 57 Good Moderate (23.8%) 2 Increased access to credit 59 3 More employment opportunity 4 Started new micro enterprise (24.6%) 41 (17.1%) 87 (36.2%) 56 (23.3%) 64 (26.7%) 90 (37.5%) 63 (26.2%) Poor 127 (52.9%) 117 (48.8%) 109 (45.4%) 90 (37.5%) The table shows the ranking of the most important physical capitals as consequences of in rural livelihood pattern followed by the respondents.. With regards to financial capital, increased saving, increased access to credit, more employment opportunity and started new micro enterprise it was found that 52.9 percent, 48.8 percent, 45.4 percent and 37.5 percent of them it was rated as poor. Generally the level of Awareness to all categories was given poor rank. Briefly, the analysis of financial capital, increased saving, increased access to credit, more employment opportunity and started new micro enterprise was low. 95

17 4.13 Physical capital The physical capital is all that is man-made. The house, the roads, electricity connections, water supply and sewerage, irrigation systems, schools, libraries, etc., fall under this category. Table Distribution of the Respondents by Physical capital Sl. No Category Rank Total Good Moderate Poor 1 Creation of productive individual assets ( House, house electricity) 49 (20.4%) 2 Creation of productive 53 community assets ( Road, schools, Libraries) (22.1%) 3 Creation of Irrigation assets (19.6%) 56 (23.3%) (60.0%) 131 (54.6%) 128 (12.9%) (33.8%) (53.3%) 4 Increased individual assets (32.9%) (23.3%) (43.8%) The table shows the ranking of the most important physical capitals as consequences of in rural livelihood pattern followed by the respondents. With regards to physical capitals, creation of productive individual assets (House, house electricity), the creation of productive community assets (Road, schools, Libraries), creation of irrigation assets and increased individual assets it was found that 60 96

18 percent, 54.6 percent, 53.3 percent and 43.8 percent of them it was poor. Generally the level of all categories was given poor rank. The analysis of physical capital showed that the extent in terms of creation of productive individual assets (House, house electricity), Creation of productive community assets (Road, schools, Libraries), creation of irrigation assets and increased individual assets was low. Then there is sufficient scope to improvise the physical capital of rural population that is all necessary assets our life. 97

19 4.14 Political Capital Political capital are comprised of the awareness of elections, respondents the rights, participate in elections, and attend all meetings in village, became a member and involvements in the political party the structure of relationships that govern the access present in the community by the households. Table Distribution of the Respondents by Political Capital Sl. No Category Rank Total Good Moderate Poor 1 Came to know about elections 233 (97.1%) 7 (2.9%) 0 (0%) 2 know about the rights (86.2%) (8.8%) (5.0%) 3 participate in elections (95.0%) (2.5%) (2.5) 4 Attend all meetings in village 80 (33.3%) 63 (26.2%) 97 (40.4%) 5 Membership in political party 39 (16.2%) 77 (32.1%) 124 (51.7%) The table shows the ranking of the most important political capital as consequences of rural livelihood pattern followed by the respondents. With regards to political capital, came to know about elections, participate in elections and know about the rights improvement was analyzed and it was found that 97.1 percent, 95 98

20 percent and 86.2 percent of the respondents was increased to a great extent owing to the livelihood strategies they adopted and for rest of them it was poor like 51.7 percent of the respondents were became a member and involvements in the political party and 40.4 percent of the respondents were attend all meetings in village. Generally with regards the level of Political Awareness males came to know about elections, participate in elections and knowledge about the rights improved among the respondents. Access to became a member and involvements in the political party and attend all meetings in village of the respondents were found to be poor among the respondents. So the study reveals that there is a need to improve the Political capital among rural people. 99

21 Reference 1. Ellis, F. (1998), Survey Article: Household Strategies and Rural Livelihood Diversification, Journal of Development Studies 35(1): Ellis, F. (2000), Rural Livelihoods and Diversity in Developing Countries, Oxford: Oxford University Press. 3. Narayan, D et al, 2000, Voices of the Poor. Can Anyone Hear Us? World Bank, Washington. 4. Grinspun, A. (2001), Choices for the Poor: Lessons from National Poverty Strategies,UNDP. 5. Gasper (2004), Livelihoods assets of rural kenyas, Institute of Development Studies, at the University of Sussex, Brighton, 6. Fukuyama, (2001), Nasfam, social capital? A case study of smallholder farmer s Department of Economics and Resource Management, Agriculture university of Mariann, Totlund, 7. Krishna, (2003), Understanding, measuring and utilizing social capital: clarifying concepts and presenting a field application from India Sanford Institute of Public Policy, Duke University, Durham. 100