This paper examines the various dimensions of livelihood risk as
informed by a in-depth case study of an agrarian village namely,
Cherumad in Kerala. The livelihood risk in Cherumad since the last
quarter of the 1990’s has been unique and unprecedented in their nature
and intensity. The effect of price risk and productivity risk of crops
became an income risk to the farming community. For agricultural labour
too it was an income risk with double effects of wage risk and employment
risk. These risk have resulted in a general fall in the living standards of
people.
The livelihood dynamics in Cherumad shows that improvement
in livelihood assets improves livelihood outcomes and vice versa.
Institutions (both formal and informal) affect access to assets and
livelihood outcomes. Across socio-economic groups, livelihood outcome
are determined by the portfolio of livelihood assets, especially land. The
households have developed a number of coping strategies in response to
distress. These strategies are meant to smooth consumption and income
and rebuilding household livelihood. In this context, the overall emphasis
of state intervention should be in strengthening their livelihood assets.
Key words: Livelihood risk, Coping Strategies, Livelihood, Livelihood
Assets, Institutions, Kerala
JEL Classification: Q, Q 00
