Understanding Livelihoods in Rural India: Diversity, Change and Exclusion

Overview

These guidance sheets aim to help policy-makers and practitioners increase their understanding of  complex rural livelihoods in India. Policy choices in a range of areas such as employment, enterprise development, social protection, rural infrastructure and agriculture have major impacts on rural livelihoods. In turn, the outcomes of such policies are affected by the choices, preferences and constraints of the poor. Thus effective policy-making requires an understanding of rural livelihoods.

We focus on three livelihood issues in particular: the dynamics of livelihood change; diversification of livelihoods; and issues of exclusion and access to livelihood options and resources. The sheets are grouped in four sections.

• Section 1 summarizes the issues.

• Section 2 covers the key concepts of household economics, livelihood change, diversity, and exclusion.

• Section 3 reviews useful methods. 

• Section 4 reviews the key linkages between livelihoods and policy change.

These sheets draw on the experience of ODI’s ‘Livelihood Options’ project in Madhya Pradesh (MP) and Andhra Pradesh (AP) though also aim to give insights into livelihood analysis and policy issues elsewhere in India. Livelihood Options is a 1999–2002 research project in India, Bangladesh and Nepal that aims to identify how policies can support positive exits from poverty via diversification

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• Preface

• 1.1  Why Invest in Understanding Livelihoods

• 1.2  Understanding Livelihoods: What to Assess

• 1.3  Methods for Livelihoods Assessment

• 2.1  The Household as an Economic Unit

• 2.2  Dynamics of Livelihood Change

• 2.3  Livelihood Diversity and Diversification

• 2.4  Exclusion, Access and Unequal Market Returns

• 3.1  Planning Livelihoods Analysis

• 3.2 Overview of Methods for Livelihoods Analysis

• 3.3  Assessing Diverse Portfolios and Assets

• 3.4  Methods for Exploring Change

• 3.5  Assessing Exclusion, Markets and Power

• 4     From Policy to Livelihoods and Back

These sheets are written by Caroline Ashley, Daniel Start, Rachel Slater, and Priya Deshingkar drawing on the work of many project team members of Livelihood Options. Data from Madhya Pradesh, Andhra Pradesh and other project findings are taken from several project reports which are on, or will be added to, the project website. The opinions expressed in these sheets are those of the authors and are not necessarily those of DFID.

Please send comments to r.slater@odi.org.uk and c.ashley@odi.org.uk