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Journal ArticleDOI

The Determinants of Rural Livelihood Diversification in Developing Countries

Frank Ellis
- 05 Nov 2008 - 
- Vol. 51, Iss: 2, pp 289-302
Abstract
The diversity of rural livelihoods in low income developing countries is receiving increased attention in discussions about rural poverty reduction. This paper explores just one facet of livelihood diversity, namely the reasons for households to adopt multiple livelihood strategies. The distinction is made between diversification of necessity and diversification by choice. Six determinants of diversification are considered in the light of that distinction, and these are seasonality, risk, labour markets, credit markets, asset strategies, and coping strategies. The paper concludes that under the precarious conditions that characterise rural survival in many low income countries, diversification has positive attributes for livelihood security that outweigh negative connotations it may possess. Policy should facilitate rather than inhibit diversity. Diverse rural livelihoods are less vulnerable than undiversified ones.

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References
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Journal ArticleDOI

Household strategies and rural livelihood diversification

TL;DR: In this paper, the authors reviewed the recent literature on diversification as a livelihood strategy of rural households in developing countries, with particular reference to sub-Saharan Africa, and concluded that removal of constraints to, and expansion of opportunities for, diversification are desirable policy objectives because they give individuals and households more capabilities to improve livelihood security and to raise living standards.
Journal ArticleDOI

The asset vulnerability framework: Reassessing urban poverty reduction strategies

TL;DR: In this paper, the authors defined the assets of the urban poor in terms of an "asset vulnerability framework" and showed that the poor are managers of complex asset portfolios, and illustrate how asset management affects household poverty and vulnerability.
Journal ArticleDOI

Income Smoothing and Consumption Smoothing

TL;DR: The authors studied the relationship between risk-averse households and credit and insurance in low-income economies and found that risk-avoiding households tend to limit exposure only to shocks that can be handled with available credit The authors.
Journal ArticleDOI

Editorial Introduction: Vulnerability, Coping and Policy

Robert Chambers
- 01 Apr 1989 - 
TL;DR: In this article, the authors show that vulnerability, more than poverty, is linked with net assets, and that the tradeoffs between poverty and vulnerability are not, one for one, the same as programmes and policies to reduce poverty to raise incomes.
Journal ArticleDOI

Using Evidence of Household Income Diversification to Inform Study of the Rural Nonfarm Labor Market in Africa

TL;DR: In this paper, a review of evidence provides some surprising departures from traditional images of non-farm activities of rural households, and the most worrying finding was the poor distribution of nonfarm earnings in rural areas, despite the importance of these earnings to food security and farm investments.
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