Presentation on theme: "1 Joseph Assan, PhD School of Natural Sciences Trinity College Dublin Dublin, Ireland."— Presentation transcript:
1 Joseph Assan, PhD School of Natural Sciences Trinity College Dublin Dublin, Ireland
In 1987 Brundtland report Our Common Future defined sustainable development as development that meets the needs of the present generation without compromising the ability of future generations to meet their needs (WCED 1987).
Political economy originally was the term for studying the economics of: production, buying, and selling… …and their relations with law, custom and government … …as well as with the distribution of national income and wealth through the budget process of the state or international institutions. (Gregg et al. 2007)
…examines how political forces affect the choice of policies, distributional conflicts and political institutions… The political-economy literature argues that economics alone cannot fully explain the enormous variance across countries in growth and more generally, in economic outcomes and policy choices… Political-economy concepts assert that economic policy is the result of political struggle within an institutional structure with state and none state actors.. Source: Alisina, A. and Perotti, R. (1994) 4
Economics, Mgt, Business etc Anthropology & Sociology Agricultural and rural studies etc. Multi-disciplinary & Trans-disciplinary Technology, info studied Sustainable International Development Politics and Law Environment, Theology etc Geography, policy Studies Development Studies
8 There is mounting evidence that Livelihood Diversification (embracing both farm and non- farm employment) activities have become an important resource for households (Reardon 1995; Reardon et al. 1998). A livelihood is sustainable when it can cope with and recover from stress and shocks and maintain or enhance its capabilities and assets both now and in the future, while not undermining the natural resource base (Carney 1998).
Financial Capital Natural Capital Social Capital Physical Capital Human Capital The Poor
Policies Institutions Processes N S F P H The Poor Vulnerability Context Shocks Seasonality Trends Changes influence Livelihood Strategies Livelihood Outcomes
Micro-foundations of Development Understand the behaviour of state and non-state actors (decentralised government institutions, civil society groups and households) Identifying the constraints and barriers to sustainable livelihoods diversification, growth within micro economies Develop policies that will help inform policy makers as to how to reduce inequality
Diversification is a strategy for survival. A source of insurance against indebtedness and borrowing The amounts saved are observed to be small Capital for non-farm activities/consumption Still do not enjoy income security Diversification meets basic consumption needs Majority borrow regularly or occasionally
Policy Implications: Vulnerability to shocks is a dominant feature of household livelihoods Negative effect on welfare (income, wealth, health, etc.) Vulnerability to poverty Key challenge is maintaining satisfactory confidence on young people in the development dream
Diversification is not able to provide risk-free and assured incomes The production of new products and/or more output of already existing studied Most households and end up in financial crisis Raise some of their credit from friends and family and network groups such as susu groups
Patterns of risk aversion introduction of new risks failure to remove existing risks products encounter the challenge of marketing prevalence of income borrow in order to finance their diversified enterprises
Policy implications: Mechanisms to reduce the uncertainty associated with income generating activities will have welfare enhancing effects Could be achieved through extending existing formal insurance contracts and avenues cover weather related risks
…are we on Course? ?
Conclusion: Livelihood Diversification Survival rather than accumulation Risk prone Opens new Economic Pathways Creates gender differentiation Income and Market differentiation Within the community/District Non-uniformity of outcomes of diversification Wealth disparity Wage labour production Marginal and compulsive alternatives Thrives on social capital Poverty Reduction Requires empowerment of state actors Requires formal institutional support Demands budgetary frameworks Livelihood Sustainability