Rural Livelihoods Department of the UK Department for International Development (DFID) is funding four parallel studies between 2000 and 2003 to identify how the livelihoods of the rural poor can be enhanced. These are located in southern and eastern Africa, and in South Asia. The studies aim to identify innovative ways of enhancing livelihoods, and to promote exchange of experience among donors and governments across the regions. One of the four studies, conducted by the London-based Overseas Development Institute is this study which is concerned with livelihood options

In most countries in South Asia, the majority of rural poor are still primarily engaged in agriculture. But there has been a trend in all countries for people to move from rural to urban areas and, within rural areas, to move out of agriculturally-based occupations, often due to growing pressure on natural resources, declining terms of agricultural trade and other broad ranging trends in society.

These transitions are neither simple nor painless: some people are able to accumulate wealth and climb out of poverty by diversifying out of agriculture, taking on new more lucrative activities that enable them to invest in, and reduce the risks of, agrarian livelihoods. Sometimes this involves subsequent specialisation into secure, full-time occupations. Other people, however, may diversify into coping activities, often part-time and casualised with low returns and low security. While these are essential to ensure survival, they are often associated with increasing poverty and vulnerability. Both routes of diversification, either positive or negative, may involve taking up some activities and dropping others as circumstances allow; a process of 'portfolio management', though often with very restricted options or choice. At the heart of theses choices and constraints is the ability to gain access to new resources and opportunities, and climb out of deepening poverty traps. Yet the economies, societies and institutions that determine who wins and loses are also undergoing change.

1. How have rural livelihoods changed and diversified, particularly in the context of liberalisation?
2. Under what conditions have poor people been able to obtain access to new and more productive livelihood opportunities?
3. How has this process affected their well-being?
4. What has been role of the state?

These will thus be the four questions that will underlie the research .