Livelihood strategies

Definition

Livelihood strategies refer to the various ways individuals and households secure their means of living, balancing income-generating activities with their resources and social networks. These strategies often include a mix of formal employment, informal work, subsistence agriculture, and various forms of trade or services. In contexts where economic opportunities are limited, especially in informal settlements, people often adapt their livelihood strategies based on the available resources and challenges they face.

5 Must Know Facts For Your Next Test

1. Livelihood strategies in informal settlements often involve multiple income sources to diversify risk and improve resilience against economic shocks.
2. Many residents in informal settlements rely heavily on informal economies for their livelihood, which may include street vending, home-based production, or casual labor.
3. Access to social capital is crucial for successful livelihood strategies in informal settlements, as it can help individuals find job opportunities or share resources.
4. Residents may adapt their livelihood strategies based on seasonal changes, urban migration patterns, or local economic conditions.
5. Government policies and interventions can significantly impact the livelihood strategies available to those living in informal settlements, influencing access to services and markets.

Review Questions

• How do livelihood strategies vary among residents of informal settlements based on available resources?
  • Livelihood strategies in informal settlements vary widely depending on the resources available to individuals and households. Those with limited skills may rely on casual labor or informal trades, while others may engage in entrepreneurial activities such as street vending. Access to social networks also plays a critical role, as connections can lead to job opportunities and resource sharing. This diversity in strategies reflects the need for adaptability in response to local economic conditions and individual circumstances.
• What role does social capital play in shaping the livelihood strategies of individuals living in informal settlements?
  • Social capital is essential for shaping livelihood strategies in informal settlements because it provides individuals with access to information, resources, and support networks. Residents who are well-connected can tap into job opportunities through community ties or collaborate on income-generating projects. Additionally, strong social networks can foster resilience during economic downturns by facilitating resource sharing and mutual aid among community members. Therefore, the presence of social capital significantly influences the effectiveness of different livelihood strategies.
• Evaluate the impact of government policies on the livelihood strategies adopted by residents in informal settlements.
  • Government policies can have a profound impact on the livelihood strategies of residents in informal settlements by determining the level of support and resources available. For instance, policies that promote formalization of informal economies can provide better access to credit and legal protections for workers, allowing them to enhance their livelihood strategies. Conversely, restrictive regulations may push residents further into precarious employment situations. Evaluating these policies reveals how they can either empower communities by facilitating access to services or hinder their potential through bureaucratic barriers.

Related terms

Informal Economy: Economic activities that occur outside formal regulations, often characterized by low wages, lack of job security, and no formal contracts.

Social Capital: The networks of relationships among people that enable society to function effectively, which can provide support and access to resources.

Vulnerability: The degree to which a household or individual is susceptible to harm or economic instability due to external factors like poverty, disasters, or economic changes.