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and local economies—contribute to the finding that countries that are emerging from
violent conflict often relapse into conflict during the first five years of peace. 2
The number of disasters in the developing world, and the number of people affected by
these disasters, is rising steadily. Disasters affected three times more people in the 1990s
than in the 1970s, and economic losses were five times higher during this period. The
situation is expected to worsen as global warming increases the frequency and intensity
of severe weather events worldwide. The main determinants of disaster risk include
poverty, vulnerable livelihood systems and strategies, poor urban and local governance,
and deteriorating ecosystems, all of which tend to affect more women than men in developing
countries. Livelihoods that depend on agriculture and other natural resources
are especially vulnerable to unusual or extreme weather patterns. Many urban and local
governments lack the capacity to plan and regulate local development, to enable equitable
access to safe and arable land, and to provide hazard-mitigating infrastructure
and protection. Weak markets, lack of access to markets, trade barriers, and unequal land
access to land and uncertainty around land ownership (particularly for women) all serve
to compound these risk factors.
When a crisis occurs, national and international actors are called upon to respond quickly
to alleviate suffering and to provide a foundation for the swift and sustainable recovery
of livelihoods. The challenge is to maximize the positive impact of recovery efforts while
avoiding unintended consequences that can worsen the situation. Such a challenge requires
an understanding of the crisis context, careful planning, and knowledge that has
been garnered from experiences in other crisis or post-crisis situations.
1.2.2 Key concepts
Rebuilding sustainable livelihood systems and strategies is essential for crisis recovery,
for the prevention of further conflict, and for reduction of the risks associated with subsequent
conflicts and disasters. For the purposes of this Guide, livelihoods are defined
to include the capabilities, assets (both material and social), and activities required for
a means of living. 3 In addition to income and employment, the concept of livelihoods
encompasses any reliable ways that people access food, shelter, health care, education,
safe water and sanitation, security, and protection.
Economic recovery is defined to include market development, strengthening of new
and existing enterprises, and job creation in both the public and private sectors. This
process often involves an umbrella of economic, institutional, legal, and policy reforms
and the reconstruction of infrastructure that facilitates trade and commerce.
Programming for sustainable livelihoods and economic recovery provides an opportunity
to “build back better,” stimulating more rapid and more equitable growth. Inclusive
economic growth occurs when rising economic output in a local or national economy
is associated with expanded livelihood opportunities for all segments of the population
and with safety nets that reduce the economic and social insecurity of vulnerable groups.
2 According to Goovaerts et al. (2005), countries
emerging from violent conflict face a 44-percent
chance of relapsing into conflict in the first five
years of peace.
3 DFID. “The Sustainable Livelihoods Distance
Learning Guide,” in DFID Sustainable Livelihoods
Guidance Sheets. 1999.
The building blocks of livelihoods are referred to as capital assets. They include human
capital (skills, knowledge, experience, and capacities), natural capital (natural resources such
as water, land, forests, and minerals), physical capital (infrastructure, water and sanitation
facilities, information and communication technology, housing, schools, health facilities,
and other community and government structures), financial capital (such as savings, credit,
Livelihoods & Economic Recovery in Crisis Situations