The millennium ecosystem assessment report on global assessment of desertification has highlighted its worldwide impacts on the environment-increasing dust storms, floods and global warming-as well as on societies and economies. It links sustainable management of resources, and inter alia well-being of dryland populations, to reducing societal pressures on dryland ecosystems through adoption of alternative livelihoods. This paper, in combination with a companion paper by Safriel and Adeel, presents the conceptual underpinnings of this approach as well as examples of how innovative approaches for creating livelihoods can help reduce the pressure on marginal drylands.