Conceptualising Livelihoods of the Extreme Poor

63 Pages·2013·0.87 MB·English

by  Sultana, N.

FINAL

Working paper 1

Conceptualising Livelihoods of the Extreme Poor
January 2002

Nasrin Sultana
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ACKNOWLEDGEMENTS

I am immensely thankful to PROSHIKA and DFID Bangladesh for undertaking such a project,
which has the aim of poverty eradication in Bangladesh.

I would like to express my earnest gratitude to Ms. Clare Hamilton Shakya, Regional Co-
ordinator- DFID and research guide of this study who was the constant guide of the study and
provided administrative support for the work. She also provided insightful comments on this Ist
phase of the study.

I am deeply indebted to Dr. Janet Seeley, Academic adviser of this study. She made valuable
contribution to this paper. She provided valuable insights and academic support to me. I am
grateful for her stimulating guidance and encouragement.

My heartfelt gratefulness to Dr. Iqbal Alam Khan, Deputy Director-IMEC, PROSHIKA and
research guide of this study for his critical review of earlier versions of this paper. This study
was under his direct supervision from the stage of planning at the conceptual level to
development of this paper.

I want to express my gratitude to Mr. Gautam Shuvra Biswas, Co-ordinator of the study who is
in UK now. We started the work together and I missed him every moment while I was writing
the paper.

I am thankful to Mr. Abu Naser, Co-ordinator IMEC-PROSHIKA for providing all necessary
administrative support to do the work smoothly.

I would like to express my thanks to my team members Zubair Ali Khan, Munshi Israil Hussein,
Salim Ahmed Purvez, Kamruzzaman Tapan, Sinora Chakma, Mayee, Ahmed Borhan for their
continue support in all aspects, and for inspiration and enthusiasm for this paper. We shared the
field experience, which provided the insights for the thematic ideas of this paper. I have found
the team spirit to be the main strength of this study.

Special thanks also goes to my ex- colleagues Krazai Chowdhury and Nazneen Akhter Banu
(who are not with us now) for their active support in this study.

I also want to convey my regards to my colleague Fatima Jahan Seema for her valuable
comments and suggestions on this paper.

I am thankful to all of my colleagues in IMEC, especially Koly, Shapna, Dalia, Samsul Haq
Mandal, Selim, Moudud who always encouraged me and provided all support.

I would like to acknowledge my gratitude to the villagers who shared with us their livelihoods,
which helped us to gain insight into rural life.

I am immensely indebted to Mr. Faruq Ahmed who has taken the responsibility for the final
editing of this report.

Finally, I am indebted to my family for their encouragement of my work.

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Acronyms

ADC-Area Development Centre
BBS- Bangladesh Bureau of Statistics
BRAC-Bangladesh Rural Advancement Committee
CHT-Chittagong Hill Tracts
DFID-Department for International Development
EIG-Employment and Income Generating
EP-Extreme Poor
FHH-Female Headed Household
GIS- Group Information System
GO-Government
HDI- Human Development Index
HPI-Human Poverty Index
ILO-International Labour Organisation
IMEC-Impact Monitoring and Evaluation Cell
LLP-Low lift pumps
MLLP-Mini low lift pumps
MSTW-Mini Shallow Tube-wells
MTR-Mid Term Review
NFPE-Non-formal Primary Education
NGO-Non-Government Organisation
SEED Small Economic Enterprise Development Program
SL-sustainable Livelihood
STW-Shallow tube-wells
ULS -Urban Livelihood Study
UPDP-Urban Poor Development Program

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Glossary
Bengali- Ethnic community
Chakma- Ethnic community
Christian- Religious community
Garo- Ethnic community
Hazong- Ethnic community
Hindu- Religious community
Muslim-Religious community
Sawtal- Ethnic community
Shanty bahini-Militia group in CHT
Zakat- Religious charity
Purdah- veil
Begar- no wage, only food
Puja- religious festival for Hindu community

Administrative Unit
Region
CHT-Region

District
Brammahnbaria
Comilla
Dhaka- District
Magura
Manikgonj- District
Mymenshing-District
Nawgaon- District
Rajshahi- District

Thana
Aditmari-
Durgapur- Thana
Imatpur-Thana
Mirzapur
Saturia
Savar

Village
Bathuli- village
Hazrapur
Kaitta-village
Kalabagan
Kutubdia

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Contents

1. The Extreme Poor: a contested concept
1.1 Multidimensionality of Poverty
1.1.1 General Perception
1.1.2 Recent Understanding: other concepts
 Entitlement
 Social exclusion
 Vulnerability
 Rights based approach

Livelihoods approach
2.Definitions of the Extreme Poor
3. The Extreme Poor in Development Practice in Bangladesh
3.1 Dimensions and causes of poverty in Bangladesh
3.2 Identification of the extreme poor from a practitioner's view

4. The Extreme Poor as an Issue for Development Intervention: A
Case of PROSHIKA

4.1 Creation of a Provision for Inclusion

4.2 A Challenge for keeping the extreme poor included

5. Extreme Poor's Livelihoods: lessons from Initial field exploration

5.1 Issues Related with Extreme Poor
5.2 Other Relevant Issues

6. Conclusion
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1. The Extreme Poor: a contested concept
Introduction
The concept of the 'extreme poor' has been widely discussed in development discourse in recent
years. There is no universal definition of the extreme poor. The concept of the extreme poor is
not simple and it is not a single notion. It can be seen from different angles and it has links with
other concepts. The concept has been discussed in different ways and has been changed and
modified over time. In this section an effort has been made to understand the concept in its

different aspects.

1.1 Multidimensionality of poverty
To understand the multidimensionality of poverty the concept of the extreme poor has been
discussed here in the light of the general perception of the concept and also the recent
understanding about it.

1.1.1 General perception
The concept of the 'extreme poor' has been widely discussed in development discourse for a long
time. The general perception of the concept is basically based on economic factors. At the early
stages the economic factors were considered in measuring poverty while some researchers and
development organisations have included non-economic factors in recent years. It would be
helpful to explain briefly the economic and non-economic approaches in understanding and
defining poverty.

The economic approach typically defines poverty in terms of income and consumption. The term
'income' is sometimes used loosely to refer only to the main component of monetary income for
most households. Generally, consumption, particularly calorie intake, depends upon income but
sometimes it varies due to the influence of other socio-economic factors. However, it is difficult
to define it because it differs among societies, communities, and even households. For example,
in Bangladesh, the standard calorie intake is 2100-2200, but it is 2300-2400 for the other South
Asian countries such as Sri Lanka and India. Moreover, if the expenditure increases then calorie
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intake decreases. Obviously an economic approach to the definition of poverty gives rise to some
criticism:
 Firstly it does not cover all factors associated with poverty.
For example, social, climatic or infra-structural factors can influence or interrupt individuals or
households income. All these are related with the deprivation trap (Chambers 1983), which
makes people vulnerable and pushes them below the poverty line.

 Secondly, it cannot be standardised. Considering the indicators that are used with the
economic approach like income or consumption vary within countries, communities,
societies and between individuals.
A unique income level cannot be set for the all countries. Consumption depends on family sise,
income, physical efficiency, nature of work etc. People’s consumption rate is reduced at time of
crisis.
 Thirdly, it cannot be estimated accurately.
In general, people are reluctant to disclose their income to others. It is often more difficult in the
rural areas, particularly with people who are self-employed. They are not familiar with the
estimation process and are not used to keeping records. In rural areas, people have a number of
income sources like gardening in the homestead land, poultry and livestock, collecting
vegetables as well as fuel, and casual fishing. They may also produce something like crafts. A
portion of their production is consumed, so that they never consider it as their income. Due to
these limitations, it is tried to estimate income using expenditure and consumption. But still it is
not an accurate technique to estimate income.
 Fourthly, it is difficult to standardise the income level.
It is critical to compare the income level in different countries. In contrast, begging is a request
for alms or charity for oneself. The act of begging is understood differently in different cultures,
but it is strongly associated with both poverty and dependency and widely stigmatised. But if we
consider income to measure or understand poverty, it does not give us a clear picture. For
example a beggar may earn more than the poverty level income, but he/she will be treated as
poor.
 Finally, indicators set by the outsiders and general people’s role is passive
Most of the indicators considered under the economic approach are measurement indicators and
these types of indicators set by the researchers, economists and the planners. The ordinary people
or the respondents play a passive role in this process. So that recipient’s judgement does not get
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reflected through this type of measurement. For example, some one earns more than the
minimum set amount of poverty measurement. But due to a chronic illness, s/he has to spend one
portion of his/her income regularly, which seriously affects his/her living or might make him/her
vulnerable. Another example can be cited here. If a person has a number of daughters, and for
each one he/she has to give a dowry at marriage, it will affect their level of income. These are
not considered in measuring poverty.

To overcome these difficulties, some new indicators are introduced under the non-economic
approach to understanding poverty.

Non- Economic Approach

The non-economic approach involves a broader conception of poverty and deprivation than does
the definition typically adopted under the economic approach.

A number of concepts of poverty can be considered under the non-economic approach like living
standard, basic needs, inequality, relative poverty, subsistence, subjective, human development
index (HDI), human poverty index (HPI) and so on. Under the non-economic approach,
emphasis has been given on some non-income indicators like housing quality, nutritional status,
access to services, assets holding etc. However, in recent years, analysing poverty has begun to
include a wide range of factors such as vulnerability, isolation, social exclusion, powerlessness,
personal dignity, security, self-respect, ownership of assets etc.

Actually, all the factors associated with both economic and non-economic approaches considered
in the poverty concept are equally important and have an active role in understanding the concept
of extreme poverty. In fact, all the economic and non-economic factors are relative and
conditional, which, create ill being. Ill-being is multidimensional and refers to different sorts of
bad experience. Lack and want are material; hunger, pain, discomfort, and exhaustion are
physical; bad personal relations, exclusion, rejection, abuse, isolation and loneliness are social;
vulnerability and fear relate to insecurity; and helplessness, frustration and anger reflect
powerlessness (Narayan et al 2000).

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The above discussion can be summarised by starting that to understand the poverty concept only
economic factors are not enough to get a holistic picture. It is equally important to consider the
non-economic factors, which have a very crucial role in poor people’s livelihoods. Over time the
thinking process has changed to take different non-economic factors into consideration. An
attempt has been made to explain the limitations of economic approach and the importance of
non-economic factors in this section.

1.1.2 Recent Understanding: other concepts

To explain the multidimensionality of extreme poverty it is necessary to look at the other related
concepts. From the previous discussion it has been seen that some other non-economic factors
get attention in measuring poverty, which are included in some related concepts. In recent years
some related concepts are considered for getting a holistic picture about the concept of extreme
poverty. The major related concepts are: entitlement, social exclusion, vulnerability, rights based
approach and livelihoods approach. Brief descriptions of these concepts are given below to
explain the co-relation between these concepts and the concept of the extreme poor.

 Entitlement
According to Sen, an individual or household owns a set of resources and it is exchanged to
acquire control over commodities. Sen’s concept of ‘entitlement’ refers to the complex ways in
which an individual or a household command resources (Sen, 1988).

Entitlement has two dimensions: endowment and exchange. An individual or a household is
endowed with a set of resources, which creates the availability of the economic options for the
individual or the household. The resources are as follows:

 Material resources: the sets and stores of value, which include money as well;
 Human resources: the skill and capabilities of people within a household, including the
age, gender, education and skill status, and health and nutritional condition of household
members;
 Social resources: the set of relationships, which an individual or household has with other
individuals, households and organisations, which may be used to maintain or improve
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their situation. These are regarded as “claims” for assistance with food, credit, labour or
productive resources or services from kin, neighbors, labour groups, patrons, landlords
and employers, from government or from NGOs and the international community;
 Common property resources: natural resources, which may be shared by different kinds
of households either with clearly defined property rights, or adjudged as national
common property.
Figure 01:

Entitlement
(set of resources & set of relationships)

Endowment or Ownership Exchange (set of
(set of resources) relationship)

The figure shows the process of entitlement. Actually endowment and exchange are the most
important factors relevant to people's livelihoods. Sen pointed out that it is the right to use
resources, rather than the existence of the resources themselves, that is characteristic of extreme
poverty. There is a mechanism, which influences (social network and /or social relationship)
exchange or enables people to use what they are endowed with. For example, if an individual
wants to sell labour, then s/he has to get someone who is willing to buy it. Nevertheless, there are
some people within the community who are unable to participate in the institutions patronised by
the majority and in a position to opt out of the mainstream institutions. They are socially
excluded within the society and their mobility as well as access is very limited. Due to this social
position, they are unable to exchange their resources or limited exchange. Beside these, the
factors like stress (a small, regular, predictable disturbance with immediate impact), trends and
seasonality affect the people’s livelihoods and make them vulnerable.

Through the above discussion, it is clear that individuals can improve the position within the
community, if he/she gets the opportunities to exchange the set of resources s/he has. On the
other hand due to the disruption in terms of food, and entitlement irregularity poor people face
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