The influence and impact of livelihood capitals on livelihood diversification strategies in developing countries: a systematic literature review

Abstract

Livelihood diversification is an essential strategy for managing economic and environmental shocks and reducing rural poverty in developing countries. This article presents a comprehensive two-part literature review on livelihood capital and livelihood diversification strategies. Firstly, it identifies the role of livelihood capital in determining livelihood diversification strategies, and secondly, it assesses the role of livelihood diversification strategies in reducing rural poverty in developing countries. Evidence suggests that human, natural, and financial capitals are the primary determining assets of livelihood diversification strategies. However, the role of social and physical capital with livelihood diversification has not widely been studied. Education, farming experience, family size, land holding size, access to formal credit, access to market, and membership in village organizations were the major influencing factors in the adoption process of livelihood diversification strategies. The contribution of livelihood diversification in poverty reduction (SDG-1) was realized through improved food security and nutrition, increased income level, sustainability of crop production, and mitigating climatic vulnerabilities. This study suggests enhanced livelihood diversification through improved access to and availability of livelihood assets is vital in reducing rural poverty in developing countries.

Personal Earnings in Pakistan: Role of Information Communication Technology (ICT) and Livelihood Diversification

“…Supplementing the agricultural sector, the non-farm sector greatly contributes to the households' welfare, especially in rural areas of developing economies including Pakistan (Habib et al, 2023b;Malik, 2008;Mellor and Malik, 2017). Livelihood diversification leads to the societies' well-being in terms of enhancement in income levels, reduction in poverty, improvement in food security, development of stronger social networks, and mitigation of risks, etc., (Habib et al, 2023a;Kassegn and Endris, 2021;Mulia et al, 2021;Salam et al, 2019). The study shall be a valuable contribution to the existing literature on evaluating the nexus of ICT development and livelihood diversification to personal earnings in Pakistan.…”

“…Furthermore, a greater proportion of rural people have diversified their livelihoods into farm and non-farm activities as compared to urban people. Livelihood diversification enables the rural community to expand their income sources beyond farm activities to fortify economic resilience, increase household income, reduce poverty, foster skills development, and improve food security (Habib et al, 2023a;Kassegn and Endris, 2021). It also strengthens social cohesion, mitigates risks, improves market access, and leverages local resources with more inclusive and sustainable development outcomes (Mulia et al, 2021;Salam et al, 2019).…”

The Impact of Livelihood Security to Achieve Food Security Among Paddy Farmers in Non Granary Areas, In Malaysia

“…Livelihood security, in the context of rural development, encompasses the availability and accessibility of resources (Figure 1) and opportunities that ensure sustainable livelihoods for individuals and communities (Habib et al, 2023). This includes access to food, income-generating activities, basic services, and social protection.…”

Improving the Livelihood Resilience of Poverty-Stricken Population under Rural Revitalization: A Case Study of Chongqing M Reservoir Area

“…The term "livelihood" has multiple meanings; it can refer to both a process and its result. Habib et al [7] viewed livelihood as a series of living methods adopted by individuals or families in order to survive, including activities, assets, and skills. On this basis, Habib et al [7] proposed that livelihood diversification is crucial for lifting poor households out of poverty.…”

“…Habib et al [7] viewed livelihood as a series of living methods adopted by individuals or families in order to survive, including activities, assets, and skills. On this basis, Habib et al [7] proposed that livelihood diversification is crucial for lifting poor households out of poverty. The concept of resilience has its roots in the study of mechanical mechanics and engineering [8], and it has since been used in studies on ecology [9], socialecological systems [10], natural disasters [11], and other areas.…”