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Economy, local livelihood and social change

Economy, local livelihood and social change. Gyan Laxmi Shrestha Anil Kumar Gupta Shiva Hari Adhikari.

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Economy, local livelihood and social change

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  1. Economy, local livelihood and social change GyanLaxmi Shrestha Anil Kumar Gupta Shiva HariAdhikari

  2. A poor Dalit family with nine members was surviving with very minimum of resources. For a long time, the main source of income for the family was producing artisanal works fetching local demand. One unlucky day, a daughter fell ill. They did not know the reason for the illness and waited for a couple of days hoping that the fever would cure itself. When the situation became dire, they contracted a local priest. The local priest assured them that the child would be all right within a couple of days. This, too, did not work at all. Then their access to the local doctor was denied. The father of the child went to the temple to pray for his child. He was not allowed to enter into the temple premises. Unfortunately the situation of the child worsened, and ultimately the child died.

  3. Contents • Livelihood • Economic development and indigenous livelihood opportunities • Economic dynamics and changing livelihood strategies of indigenous people • Foreign employment, remittance and social change

  4. Livelihood

  5. Past Experiences • Indigenous way of governing society • Sustainable utilization of resources • Social responsibility • Harmonious relationship thorough cooperation • Sharing and kinship among communities • Collectivity in agricultural works • Gender relations and divisions of work

  6. Livelihood Strategies of People • Primary/Farm (agriculture, livestock and crop production) • Secondary/Off farm (wage employment in other farms) • Tertiary/Non farm ( non agriculture income sources such as wage employment, self employment, property income and remittance)

  7. Data on Livelihood Strategies Source: Economic Survey FY 2070/71 Tertiary Sector Overall Growth Secondary Sector Primary Sector

  8. Video Case • Video case: Home Gardening for Improved Livelihoods • Please watch the case carefully and then discuss in group: • Why improving livelihood programmes are very suitable and relevant in Nepal? • What are impacts of such programmes? • Can it be linked with MDGs and SDGs? How? • Where you (being a public service provider) see your role and how can you change livelihood strategies of people?

  9. Video Case • Like home gardening, what are the alternative and suitable areas of livelihood to rural women and marginalized people in order to improve their standard of living by achieving high economic growth? • What interventions are there that could be followed to alleviate rural poverty?

  10. Livelihood (LH) Framework (Adapted from Ellis (2000) Assets (LH platform) Access (modified by) Context (changing) Activities (composed of) Outcomes (leading to) Social relations Gender, Class, Age, Ethnicity Trends Qualitative Quantitative NR based Collection Cultivation LH security Income level Income stability Degrees of risk Institutions Rules and customs Markets in practice LH Strategies Human capital Physical Natural Financial Social E. Sustainability Soils and land quality Irrigation Non-NR based Trade Other services Manufacture Remittances Organizations Associations CBOs/NGOs Local Admin State agencies Shocks Drought, Floods Pests, Diseases Seeds

  11. Nepal’s Economy • Remittances hold to as much as 22-25% of GDP • Agriculture is the mainstay of the economy, providing a livelihood for more than 70% of the population 33.7 %of GDP • Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco and grain sharing14.5% of GDP

  12. Nepal’s Economy • Nepal centers around an agrarian economy • One-quarter of the population falls below the poverty line • Biggest export and import partners • Unemployment rate • Disasters

  13. GDP Annual Growth Rate

  14. Economic Dynamics and Social Change • Economic Dynamics • Changes in an economic system over time, particularly those reflected in the behavior of markets, businesses, and the general economy. • Social Change • Any significant alteration over time in behavior patterns and cultural values and norms

  15. Socio-Economic Changes Source: HDR, 2013

  16. Role of Economic Dynamics in Social Change • Extensive mobility • Extensive family disorganization • Individualism • Economic transformation of family • Diversified society • Diversity in workforce • Speed of social problem • High division of labour • Differences in terms of socio-economic aspects

  17. Effects of Economic Transformation in Livelihood

  18. Improvement of livelihood through • Access to basic rights established through international conventions and access to high-quality education, information, technologies and training, and better nutrition and health • A supportive and cohesive social environment • Secure access to, and better management of, natural resources • Better access to basic and facilitating infrastructure, and financial resources • A policy and institutional environment that supports multiple livelihood strategies and promotes equitable access to competitive markets for all

  19. Contd… • Export diversification • Expansion in private capital formulation • Expansion in public sector investment • Expansion in employment intensity of investments • Increase in infrastructure development

  20. Foreign Employment, Remittance and Social Change

  21. Labour Permits Issued 521,878 219,965 Source: Department of Foreign Employment, 2014

  22. Percentage Contribution Of Remittances To GDP *Based on data for the first eight months of the FY2013/14. Source: Economic Survey 2014

  23. Remittances Inflows to Nepal

  24. Foreign Employment, Remittance and Social Change • Remittance has approximately 25 percent share in GDP • According to the latest Migration and Development Brief, official remittance inflows to Nepal reached 24.7% of GDP in 2012 • Migrants remitted an estimated US$5.2 billion to Nepal in 2013 (equivalent to about 25% of GDP) • According to government estimates, the incidence of poverty would jump from 19.3% to 35.3 % if remittances stopped

  25. Impacts of Remittance

  26. Remittance Inflows

  27. Possible Areas: Indigenous Livelihood Agriculture Remittance Hydropower Tourism Herbs Service/Trade Small Scale Industries

  28. Sustainability • Sustainable use of resources • Practice of sustainable resource management • Use of local materials for crafts and tools • Discourage wasteful use of resources • Practice of zoning for different land uses • Awareness • Communication • Practice

  29. Thank you

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