Household strategies and rural livelihood diversification

TLDR

Livelihood diversification enables rural households to build diverse activity portfolios and social support to survive and improve living standards. The article reviews literature on diversification as a rural livelihood strategy in developing countries, examining determinants and effects on poverty, income distribution, farm output, and gender, and summarises policy implications. The review analyzes recent studies on diversification in sub‑Saharan Africa, focusing on determinants and impacts across socioeconomic domains. The authors conclude that removing constraints and expanding opportunities for diversification should be policy priorities to enhance livelihood security and raise living standards.

Abstract

This article reviews the recent literature on diversification as a livelihood strategy of rural households in developing countries, with particular reference to sub‐Saharan Africa. Livelihood diversification is defined as the process by which rural families construct a diverse portfolio of activities and social support capabilities in order to survive and to improve their standards of living. The determinants and effects of diversification in the areas of poverty, income distribution, farm output and gender are examined. Some policy inferences are summarised. The conclusion is reached 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.