A sustainable livelihood is a means of living that can cope with and recover from stress and shocks, maintain or enhance its capabilities and assets, and provide sustainable opportunities for the next generation without undermining the natural resource base.
According to the UK’s Department for International Development (DFID), achieving a sustainable livelihood depends on access to a combination of five types of capital assets:
- Human Capital: Skills, knowledge, health, and ability to work. Example: Training rural farmers in organic agriculture boosts productivity and sustainability.
- Natural Capital: Natural resources such as land, water, forests, and biodiversity. For example, access to clean water and fertile land supports farming livelihoods.
- Financial Capital: Access to financial resources like savings, credit, pensions, or remittances that help invest in livelihood strategies.
- Physical Capital: Infrastructure such as transport, shelter, water supply, and technology. Irrigation systems, for instance, can improve farming efficiency.
- Social Capital: Social networks, relationships, and institutions that facilitate cooperation and access to resources. For example, cooperatives help small-scale producers access markets.
Integrating these assets into development strategies ensures resilience, adaptability, and long-term economic and environmental sustainability for individuals and communities.