1. Sustainable Livelihoods and Poverty Reduction
Joseph Assan, PhD
School of Natural Sciences
Trinity College Dublin
Dublin, Ireland

2. Definition of Sustainable Development
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).

3. What is Political Economy
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)

4. Contemporary Political Economy
…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)

5. The UN High Panel (2012) calls for a New International Political Economy of Sustainable Development

6. Multi-disciplinarity & Trans-disciplinarity of Political Economy of International Sustainable Development
Multi-disciplinary
&
Trans-disciplinary
Economics, Mgt, Business etc
Anthropology & Sociology
Environment, Theology etc
Technology, info studied
Sustainable International Development
Politics and Law
Agricultural and rural studies etc.
Development Studies
Geography, policy Studies

7. Political Economy of International Sustainable Development:

8. Whose impact?
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).

9. Livelihoods Assets Human Capital Social Capital Natural Capital
The Poor
Physical
Capital
Financial
Capital

10. The Sustainable Livelihoods FrameworkP H
The Poor
Vulnerability
Context
Shocks
Seasonality
Trends
Changes
influence
Policies
Institutions
Processes
Livelihood
Strategies
Livelihood
Outcomes

11. 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 11

12. Do rural households diversify for survival or wealth accumulation?
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

13. Income shocks and household risk coping mechanisms
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

14. Does livelihood diversification reduce economic risk effectively?
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

15. Does livelihood diversification reduce economic risk effectively?
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

16. Income shocks and household risk coping mechanisms
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

17. Livelihood Diversification and Poverty Reduction:…
…are we on Course??

18. Conclusion: Livelihood Diversification
Opens new Economic Pathways
Survival rather than accumulation
Risk prone
Within the community/District
Creates gender differentiation
Income and Market differentiation
Poverty Reduction
Non-uniformity of outcomes of diversification
Wealth disparity
Wage labour production
Marginal and compulsive alternatives
Thrives on social capital
Livelihood Sustainability
Requires empowerment of state actors
Requires formal institutional support
Demands budgetary frameworks 18

19. Study Synthesis framework19

20. Thank you.