dfid framework

7/27/2019 DFID Framework

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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!!

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