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Livelihood strategy approach to community-based planning andassessment:

A case study of Molas, Indonesia

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Impact Assessment and Project Appraisal , volume 19, number 4, December 2001, pages 297–309, Beech Tree Publishing, 10 Watford Close, Guildford, Surrey GU1 2EP, UK
Livelihood strategy
Livelihood strategy approach to community-
based planning and assessment: a case study of
Molas, Indonesia
Jennifer Walker, Bruce Mitchell and Susan Wismer
A livelihood strategy is an organized set of life-
style choices, goals and values, and activities
influenced by biophysical, political/legal, econo-
mic, social, cultural, and psychological compo-
nents. The evolution of livelihood strategies was
examined in Molas, a coastal village in North
Sulawesi province, Indonesia, near the famous
coral reefs of Bunaken National Park. Molas
was selected to assess how these strategies, espe-
cially those of farmers and fishers, are affected
in the anticipation stage of tourism development.
Study results indicate that documenting the
historical evolution, and present and emerging
patterns, of livelihood strategies is an essential
foundation for successful development and im-
plementation of community-based strategies for
environmental planning and management.
Keywords: livelihood strategies; Indonesia; tourism development
Jennifer Walker is with the Delphi Group, 428 Gilmour Street,
Ottawa, Ontario K2P 0R8, Canada. Bruce Mitchell is in the
Department of Geography, and Susan Wismer (to whom corre-
spondence should be directed) is in the Department of Environ-
ment and Resource Studies, University of Waterloo, Waterloo,
Ontario N2L 3G1, Canada; E-mail: skwismer@fes.uwaterloo.ca.
The authors are grateful for the financial support of the Asia
Pacific Foundation of Canada and the University Consortium on
the Environment (UCE).1 The authors would also like to ac-
knowledge the contribution of two anonymous referees, whose
comments were most helpful in improving the paper.
Impact Assessment and Project Appraisal December 2001
I
N RURAL AREAS in many countries, local peo-
ple combine subsistence and income-generating
activities in varied and, typically, shifting patterns
to meet basic needs (Kutsch, 1981; Wismer, 1996;
Leach et al, 1997; Margolius and Salafsky, 1998).
Livelihood decisions are strategic and dynamic,
based on changing relationships among people, their
opportunities for access to, and control over, use of
local resources, and their capacity to make use of
those opportunities for subsistence and/or income-
generating purposes. This study involves a case
study, which uses livelihood strategy analysis as a
means of developing recommendations for improved
decision making with respect to planned tourism
development in one small community in Sulawesi,
Indonesia (Figures 1 and 2).
Our interest in livelihood strategies has emerged
in response to the shortcomings we have identified
in social impact processes regarding proposed tour-
ism development in Molas, Indonesia as a result of
lack of attention to: examination of impacts and their
effects during project anticipation, that is, during the
planning/policy development stage; and basic liveli-
hood characteristics, processes and strategies during
the formal process of social impact assessment in
Indonesia (Walker et al, 2000).
Our concept of a livelihood strategy approach has
been developed with reference to the growing litera-
ture on ‘sustainable livelihoods’ in which attention is
being directed toward the ways in which local peo-
ple can seek to meet basic and ongoing needs for
food and shelter, as well as for security and dignity,
through meaningful work, while simultaneously
1461-5517/01/040297-13 US$08.00  IAIA 2001 297
Livelihood strategy in community-based planning
Figure 1. Map of Indonesia
striving to minimize environmental degradation, ac-
complish rehabilitation, and address concerns about
social justice. Strategies for sustainable livelihoods
normally strive to achieve diversity of opportunities,
efficiency, and sufficiency related to food security
and shelter, and also to realize social equity and
sensitivity to environmental integrity (Li, 1991;
Scoones, 1998; Li, 1999; Carney et al, 2000).
The livelihood strategy approach used here is
based on the idea that changes in livelihood strategy
are normally adaptive responses to changes in six
key interacting components:
Figure 2. Map of land-use in Molas villages
298
• biophysical (loss of access to resources, environ-
mental change and constraints);
• political/legal (impacts of new laws, promotion of
governmental ideals);
• economic (increased perceived needs, changes in
opportunities);
• social (changes in interaction patterns, values or
well being);
• cultural (changes in traditional practices and be-
liefs); and
• psychological (stress, future outlook).
The main focus in this study was to examine the ex-
tent to which development or environmental pla n-
ning and management initiatives are experienced as
positive (opportunities), negative (threats) or neutral
with respect to any (or all) of the six components
identified above, depending primarily on how com-
munities perceive those initiatives. Past experiences,
the current climate in the community, and future
goals are fundamental elements influencing capacity
to identify, define and respond to opportunities and
threats from development or resource management
initiatives (Couch and Kroll-Smith, 1994; Westley,
1995; Burdge and Vanclay, 1996). Livelihood, then,
is a dynamic concept, which encompasses not only
current activities but also historical experience and
future aspirations.
We define livelihood strategy as:
an organized set of lifestyle choices, goals and
values, and activities influenced by biophysical,
political/legal, economic, social, cultural and
psychological components and designed to se-
cure an optimum quality of life for individuals
and their families or social groups.
The livelihood strategy approach provides one lens
through which we can understand and examine so-
cial systems and how they operate at the community
Impact Assessment and Project Appraisal December 2001

level. A major criticism of development pla nning,
and its associated processes such as impact assess-
ment, and of many resource management initiatives
has been that public involvement that gives affected
groups power and a voice in decisions and recog-
nizes the diversity within and among social groups
at the local level, is typically very weak (Morse and
Berger, 1992; Biswas and Agarwala, 1992; Artini,
1994; Smith and van der Wansem, 1995; Mitchell,
1997; Grenier, 1998).
Examining livelihood strategies places a focus on
the values and goals, choices, and activities which
matter to local people, and provides one means for
ensuring that local concerns are central to informa-
tion gathering and analysis, thus contributing to bet-
ter planning and decision making (Finsterbusch,
1995; Burdge and Vanclay, 1996). .
Documenting the historical evolution and present
and emerging patterns of livelihood strategies can
help to:
• identify important historical changes or events,
which have affected communities and various so-
cial groups within them;
• reveal how a social group has responded or
adapted to these changes or events;
• reveal the values and future orientation of
individuals and social groups, important for un-
derstanding how they will perceive and respond to
development or resource management initiatives;
• provide an indication of existing capacity to re-
spond adaptively to policies, plans, projects, or
new legislative provisions that will affect access
to and/or control over the use of local natural
resources;
• provide an essential foundation for successful
development and implementation of community-
based resource management strategies.
The livelihood strategy approach allows us to take a
focused look at how people interact with resources
and institutions to construct a way of life; in partic u-
lar, we consider patterns of change. A community
quality of life perspective would have allowed us to
do something similar (Wismer, 1999). In Indonesia,
however, concepts of quality of life are affected by
national guidelines specifying that the result of dev-
elopment should be improvements in quality of life.
These have resulted in a relatively narrow (and con-
tested) view of what constitutes quality of life (Soer-
jani, 1999; Manning and van Diermen, 2000).
For our purposes, the livelihood strategy approach
allowed us to: embrace key concerns consistent with
a quality of life perspective; focus our analysis on
patterns of change in the varied activities related to
income generation, subsistence production and
community resource management, which constitute
livelihood; and, within the local context, step outside
of a debate that was not directly germane to our
research.
Given the characteristics of a sustainable
Impact Assessment and Project Appraisal December 2001
Livelihood strategy in community-based planning
livelihood approach, in this paper our intent is first
to elaborate on the basic components of the ap-
proach, and then explain how field work was con-
ducted in the village of Molas in North Sulawesi, to
outline the historical context for development and
planning decisions with significant implications for
the livelihood of the villagers, especially farmers
and fishers, identify and assess the evolution of live-
lihood strategies in the context of development in i-
tiatives, and finally to consider the overall va lue of
the livelihood strategy approach in environmental
planning and management. We believe that the
lessons from the case study village have general
implications, and thus deserve attention from those
involved in understanding planning and develop-
ment processes.
Components of livelihood strategy approach
Figure 3 illustrates that historical change and the
evolution of values, aspirations and livelihood
strategies in communities affect how people per-
ceive and respond to current and anticipated changes
in the opportunities and circumstances embedded in
the mix of components from which they create their
livelihood strategies. A thorough understanding of
the impacts and effects of historical events provides
a strong foundation for anticipating how people are
likely to respond to future development and for cre-
ating plans which effectively anticipate and account
for a variety of frequently occurring dynamics, such
as: inequality in the distribution of benefits and costs
of development; impacts on community cohesion;
changes to local and regional power structures with
consequent changes in patterns of access to and use
of local resources; disruption of family and individ-
ual ways of life; differential responses of diverse
cultural, religious or ethnic groups; and specific
gender-related impacts and effects.
The literature review for this study identified the
following key livelihood concerns associated with
each major component of our approach. Table 1
summarizes key attributes of the six components
recognized in the literature as being significant
Historical change and the evolution of
values, aspirations and livelihood
strategies in communities affect how
people perceive changes in
opportunities and circumstances
embedded in the mix of components
from which they create their livelihood
strategies
299
Livelihood strategy in community-based planning

Livelihood strategy

Biophysical Political/legal Economic Social Cultural Psychological

- stability - Rules/regulations - opportunities - demographics - strength and - modernization

- productivity - decision -making - skills - social values & importance ideology
- orientation power - productivity norms - beliefs - aspirations
- stability of legal - competition - social
rights responsibilities
- education &
knowledge

Dynamic nature

Past Present Future

- historical - conditions - aspirations (for family, for
events - values children)
- obstacles - opportunities - goals (for family, for children)
- opportunities - obstacles
- barriers

Figure 3. Schematic representation of livelihood strategy approach

Source: J Walker, based on a review of the literature

regarding livelihood strategies during the project
anticipation stage of development planning.
Biophysical component
The manner in which a community values the bio-
physical environment is influenced by local and
national attitudes to, and relationships with, the bio-
physical environment and natural resources, and
their ability to satisfy local needs and wants (Li,
1991; Bourke, 1994; Freudenburg and Frickel, 1994;
Forsyth, 1994; Freudenburg, 1997; Olive, 1997).
Historical events, activities and influences can alter
the biophysical resource base and orientation and
indigenous patterns of resource consumption, use
and management, as well as influence current and
future values, aspirations and livelihood strategies
(Smith, 1995; Crawford et al, 1997).
Development often changes and challenges local
control over and access to use of resources (Olive,
1997), and can undermine existing resource needs
and uses (Li, 1991). The manner in which proposed
development consumes and changes natural re-
sources will affect how locals appraise proposed
development and its influence on biophysical health
and safety (Malchis and Force, 1988; Krannich and
Albrecht, 1995; Freudenburg, 1997). Competing
resource use needs in the host community will also

Table 1. Attributes of key components of livelihood approach during project anticipation

Component affected Aspects of component that can be changed during project anticipation

Biophysical Anticipated construction; anticipated lack of maintenance and decay of existing structures and facilities;
anticipated degradation or improvement of human and/or biophysical health; unknowns regarding size and extent
of development growth
Political/legal Potential changes in local or other political structures; litigation to stop, regulate or win compensation from
project; heightened political claims -making; political activities in favor of/opposed to planned development
Economic Anticipated alteration of economic system; anticipated distribution of benefits and burdens from development;
decline or increase in property values; speculation and investment; ‘goodness of fit’ between development and
community
Social Potential increase or decrease in social opportunities; anticipated maintenance or decay of social cohesion and
patterns of interaction; differential construction of opportunities and threats; investment of time, money or energy
for support or resistance of project; organizational changes; changes in social stability
Cultural Perceived potential of development to destroy or preserve culture; anticipated new values needed for altered
livelihood; perceived impacts of initial and long-term contact with new development
Psychological Changes in mental health; increases/decreases to stress, anxiety, anger (through ability to benefit/lose);
increases/decreases in perceived efficacy; speed of change and ability to cope; degree of
participation/uncertainty regarding development; pressure to conform to dominant attitude regarding the
development

Source: After Gramling and Freudenburg (1992, page 218)

300 Impact Assessment and Project Appraisal December 2001


help to form opinions regarding opportunities and
threats from a proposed development (Freudenburg
and Frickel, 1994).
Political/legal component
The political ideology of a country with respect to
resource use, resource orientation and national de-
velopment priorities contributes to how a host com-
munity evaluates the opportunities and threats
associated with a development (Freudenburg and
Frickel, 1994). National priorities can be encouraged
through directed funding or enforced through trans-
fer of power from the local to the national level.
Both of these can decrease the stability or certainty
of local legal rights to land or resources (Li, 1991;
Peluso, 1995; Rocheleau and Ross, 1995; Olive,
1997). Legal security and trust in the deci-
sion-making powers responsible for the proposed
development project can shape how opportunities
and threats are perceived (Li, 1991; Krannich and
Albrecht, 1995; Rickson et al, 1995).
Economic component
In locations in which residents perceive the local
economy to be poor and in need of improvement,
and particularly where alternative economic options
are few, local people are more likely to be favorable
about development and to identify positive eco-
nomic opportunities in proposed development pro-
jects (Freudenburg, 1992; Bourke, 1994;
Freudenburg and Frickel, 1994; Krannich and
Albrecht, 1995; Forsyth, 1994). However, this link is
not a simple one (Freudenburg and Gramling, 1993).
The historical evolution of the socio-economic sig-
nificance of natural resources, peoples’ perception of
their capacity to take advantage of changed circum-
stances, and the economic circumstances that influ-
ence changes in resource use and valuation
determine how community members evaluate oppor-
tunities and threats associated with a development
proposal. In some circumstances, this results in a
situation in which, despite apparent economic need,
communities strongly resist planned development or
resource management initiatives (Freudenburg and
Frickel, 1994; Rickson et al, 1995).
Social component
The social valuation of the environment and of de-
velopment or resource management proposals is im-
portant in influencing how a community identifies
opportunities and threats from anticipated develop-
ment (Freudenburg and Frickel, 1994; Freudenburg,
1997). Social values can depend on the historical
development of the area, ideology, education, and
the productivity and security of natural resources
(Li, 1991; Freudenburg, 1997; Olive, 1997).
The strength of a social group to manage social
changes inherent in development, the perceived
Impact Assessment and Project Appraisal December 2001
Livelihood strategy in community-based planning
power of the anticipated development to change so-
cial well being, and the rate and scale of those
changes are important factors affecting social stabil-
ity and the way in which a community will respond
to development (Malchis and Force, 1988; Rickson
et al, 1995).
Cultural component
Where culture is strong and important to the local
community, project proposals not culturally appro-
priate or suitable will be viewed negatively. Culture
is also important to how a society views and man-
ages natural resources. A strong culture will be less
open to new or drastically different land and re-
source uses, and may be quite strongly tied to locally
available resources (Morse and Berger, 1992). A
community in which historical events and activities
have undermined culture and local patterns of re-
source consumption, use, need and management
may be more open to new land uses (Smith, 1995).
Psychological component
Commonly identified psychological components of
livelihood strategy change include uncertainty re-
garding development plans and activities, and fear,
anger or stress associated with decisions and activ i-
ties occurring during project anticipation. Psycho-
logical reactions to development can be the most
significant factor in determining how a community
will adapt to development over the long term (Gram-
ling and Freudenburg, 1992; Bourke, 1994; Couch
and Kroll-Smith, 1994; Freudenburg and Frickel,
1994; Krannich and Albrecht, 1995; Rickson, et al,
1995; Burdge and Vanclay, 1996).
Case study
Research approach
Research applying the livelihood strategy approach
to a case study community was conducted from late
September to early December 1997 in Molas, a
coastal village in the North Sulawesi province of
Indonesia, close to the famous coral reefs of Bu-
naken National Park (Figures 1 and 2). Fieldwork in
Molas was carried out in co-operation with Envi-
ronmental Studies Center (ESC) staff at Sam Ratu-
langi University (UNSRAT) in Manado, the capital
of North Sulawesi. ESCs provide consulting services
for Indonesia’s AMDAL (environmental impact as-
sessment) process for proposed projects in their
province. Results from the field research were meant
to contribute to capacity building and enhancement
in environmental planning and assessment for the
ESC.
Extensive plans for resort-based tourism devel-
opment in Molas and surrounding villages have been
created by the provincial and national governments,
301
Livelihood strategy in community-based planning
covering about 70% (638 ha) of the village area
and including a golf course, one five-star and one
three-star hotel, a diving center and a housing devel-
opment. In 1997, when our first field visits took
place, visible tourism development was limited to
two dive centers, which had been in existence for
some time. Less visibly, speculative land sales were
proceeding, in anticipation of future developments.
Return visits in 1998 and March 1999 indicated that
the anticipated development had not begun. The vil-
lage, thus, was a suitable site for investigating the
evolution of livelihood strategies and the nature of
changes to them during the project anticipation
phase of development planning.
The research addressed a variety of issues con-
cerning how and why village residents were making
livelihood strategy decisions, and how these were
affected by their anticipation of significant tourism
development in their area. Data gathering methods
drew on participatory rural appraisal (PRA) and
rapid rural appraisal (RRA) methods, as they facili-
tate cost-effective and timely data acquisition in a
flexible and participatory manner (Scoones and
McCracken, 1989; Chambers, 1994a; Chambers,
1994b; Mitlin and Thompson, 1994; Beebe, 1995;
Grenier, 1998).
The PRA/RRA techniques used in this research
allowed for the rapid development of research ques-
tions regarding the six components related to sus-
tainable livelihood strategies, including how the
social system was being changed and affected during
tourism anticipation, and how development-related
opportunities and threats were being identified and
defined by the host community. They also provided
enough flexibility to be used in both an opportunistic
and a purposive manner, permitted follow-up on is-
sues which emerged, and facilitated a relaxed, in-
formal and non-intrusive way to discuss topics
which could be quite sensitive and highly political
(McCracken et al, 1988; Neuman, 1997).
PRA and RRA methods do have limitations for
this type of research. They are best at producing pre-
liminary data, which should then, ideally, be accom-
panied or followed by more detailed surveys and
lengthier periods of observation (McKracken et al,
1988; Chambers, 1994b). PRA/RRA techniques tend
to be most effective with the more vocal and self-
confident members of communities and can leave
out community residents who are unaccustomed to
outsiders, or who are unused to voicing their opin-
ions. As a result, women, children and people be-
longing to marginalized ethnic or cultural groups can
be left out or under-represented.
A mix of methods was used, including formal and
informal interviews with village residents, key in-
formant interviews with identified experts inside and
outside the community, systematic observation, and
mapping of historical and current land use and land
ownership. Additional information obtained through
compilation of an historical time line, short
economic survey of shops in the village, preparation
302
A mix of methods was used: formal
and informal interviews with village
residents; key informant interviews
with experts inside and outside the
community; systematic observation,
and mapping historical and current
land use and ownership
of a seasonal calendar of subsistence activities, and
other observations helped to document major events,
and the attitudes and actions of respondents.
To put the results in context, it is worth noting
that Molas may be a best-case scenario for social
change and adaptation in the region, because of its
proximity to Manado city (the provincial capital),
Bunaken National Park and the economic and social
opportunities there. Using Molas as a case study
demonstrates how one village in North Sulawesi is
coping with the social impacts introduced by tourism
anticipation. It may identify some of the issues that
could occur in other villages, but may not represent
the forms of coping and adaptation adopted by more
isolated villages.
Historical context
Minahasan people trace their roots back to Lumi-
muut and Toar, the two children of a woman who
rose out of the coral and became impregnated by the
wind. These two married and the fifth generation of
their offspring produced nine children, seven of
whom became the seven sub-tribes of Minahasa. As
the sub-tribes grew in size, the elders met and di-
vided the land, which they occupied, assigning each
sub-tribe to an area of North Sulawesi. The Bantik
sub-tribe was given the coastal area from Tujung
Mandolong to Tujung Pulison to settle but were
scattered through a series of intertribal wars into
nine different villages, one of which was Molas.
Today’s Molas village infrastructure includes
government offices, churches and a mosque, one
elementary and one junior school, several cemete r-
ies, a recreation field, electrical power, a fairly well
paved main road and a second newly constructed
road linking the village to Sam Ratulangi airport,
which serves the provincial capital of Manado and
the surrounding region. In 1997, the total population
of Molas was 1,879, with an employed population of
698. There were three dusun (administrative units in
Indonesian villages).
Although considerable mixing has occurred,
dusun 1, the original one of the village, is largely
populated with people of Bantik ethnicity. Dusun 2
includes a mix of Bantik and Sangihe peoples, but
has also received a large number of immigrants from
Impact Assessment and Project Appraisal December 2001

Siau Island after the eruption of Karangetan volcano
in 1974. Most of dusun 3 residents are of Sangihe
ethnicity and arrived in the 1960s. As dusun 3 is
fairly close to Manado City, many city workers have
settled there more recently and commute to work.
Five ethnic groups are present in Molas, each speak-
ing a different tribal language and having specific
customs and traditions.
Several community welfare programs exist. Fish-
ers’ and farmers’ co-operatives assist with finances,
equipment and training. Andel, a small-scale,
government-sponsored loan program for farmers
needing financial support to address a sickness or
death in the family, to replant crops destroyed by
some natural phenomena, or to live off until the next
harvest season, started in 1947. PKK (Family Wel-
fare Movement) is a national program, which deals
primarily with family health and welfare and pro-
vides family planning and parenting education and
support.
Livelihood context
The research in Molas mainly focused on the evolu-
tion of livelihood strategy by farmers and fishers.
Farming and fishing are the two original occupations
in the village. Decisions with regard to land and re-
sources by farmers and fishers have shaped many of
the changes in the village. Almost all residents have
been involved in farming or fishing at some time,
either for personal consumption or for profit. Local
natural resources associated with the land or the sea
are still central to the livelihood of about 60% of the
population. Farmers and fishers are also being the
most dramatically affected of all villagers by exist-
ing and proposed tourism development.
Although farming and fishing continue to be of
great importance to the village, the number of people
who report this as their primary activity is decreas-
ing. Thirty-five per cent (n=247) of employed vil-
lagers are officially identified as farmers. An
additional 22% of the employed population (n=154)
is classed as working on someone else’s land, either
employed by, or borrowing land from, other farmers.
Only 15 families (2%) engage in fishing as their
primary source of income. By comparison, 20%
(n=142) are identified as public servants or private
company employees and 15% are classified as con-
struction workers. These figures do not take into
account non-income-generating subsistence activi-
ties, which remain important, especially for women
(Profil Desa/Kelurahan Molas, 1996).
In terms of secondary work, construction was
most commonly reported, either in the city, for vil-
lage infrastructure, or around the homes of other
villagers. Some reported working on others’ fields
during coconut harvests. Other part-time or seasonal
productive activities included raising chickens or
pigs for personal consumption or sale, renting out
cows and carts during harvest seasons, opening
small stores attached to the home, collecting
Impact Assessment and Project Appraisal December 2001
Livelihood strategy in community-based planning
shellfish and firewood for personal consumption,
odd jobs assisting neighbors or the village, and mak-
ing and selling tolu (traditional hats made by
women).
Families are changing their livelihood strategies
to multiple job holdings, in part because of land
fragmentation. As increases in population put more
and more pressure on remaining land in Molas,
ownership of land has changed from the traditional
clan- and community-based structure (called hukum
adat) to individual ownership. Under the system of
private ownership, a family’s plot of land is equally
divided among all children, which in more recent
years often does not leave anyone with a suitably
sized plot of land. Many are like the villager who
reported owning land in five different locations: two
plots on mainland Sulawesi and three on different
outlying islands.
Population growth has meant that the majority of
landholders in Molas only own 1 to 2 hectares of
land. Residents do not consider this to be enough to
support a family, nor is it enough to pass on to chil-
dren as an inheritance. A representative from the
Department of Agriculture agreed that at least 2 hec-
tares are needed to support a family through agricul-
ture without engaging in additional work. In
addition, the majority of children in Molas are not
interested in traditional agriculture. As a result, par-
ents have considered selling their land and investing
in their children’s education, Placing a high priority
on investment in education is a common trend
throughout other parts of Indonesia as well, but par-
ticularly prominent in the Minahasa region (Clauss,
1982; McKean, 1982; Volkman, 1983; Bucholt and
Mai, 1994; Sondakh, 1994).
In many ways, the pull of modernization is usher-
ing in a transitional generation, which is moving
away from land-based occupations and towards
wage-based ones. For the majority of villages such
as Molas, land-owning parents feel that their chil-
dren are uninterested in adopting the backbreaking,
‘dirty’ occupation of a traditional farmer. The Cen-
tral Government has also placed a strong emphasis
on education and has designed a financial support
program (GNOTA) to assist families that normally
could not finance their children’s primary school
education.
Access to education became easier for village
residents in 1993 when a junior high school was
built in the neighboring village of Tuminting and
transportation improvements opened up the opportu-
nity for access to higher-level education in Manado.
Before, children had to walk into Manado (a dis-
tance of 10 km) for education beyond the elementary
level. Investing in children’s education was consid-
ered a priority by all parents interviewed, and well-
off and poor families alike worried about financing
their children’s education to an acceptable level. For
many, selling their land provided an opportunity to
acquire the finances to do so.
This emphasis on schooling is creating a more
303
Livelihood strategy in community-based planning
highly educated generation, which is not tied to
farming traditions. One parent jokingly said of her
children’s disinterest in working the land: “I do not
have traditional children”. Weber (1994) also indi-
cated that generational and family divisions can be
created through education, as older and younger
generations become spatially and cognitively
segregated.
Tribal elders in Molas feel the competition be-
tween modern and traditional ways. They want to
teach the younger generation about their culture,
traditions, how their ancestors lived, and particularly
about ethnic unity and ‘brotherhood’. They also
want to teach traditional farming methods and the
uses of traditional plants for medicinal purposes.
However, increasingly le ss land and fewer re-
sources are available for them to teach with. In the
schools, modern subjects and practices, including
those for agriculture, are replacing traditional ones
(such as how to make traditional farming equip-
ment), and children want to learn modern ways. Par-
ents who still work the land also feel that they are
losing ground, as it is increasingly difficult to get
children to help them on their land.
In the past, children and young people (under the
age of 16) played important economic roles in the
family. They sold hats (tolu) made by their mothers
to other villagers, climbed coconut trees to collect
the fruit and made coconut oil for cooking, worked
alongside parents in the fields, or did other small
jobs for the family. Respondents, who noted the de-
cline in young people’s participation in the eco-
nomic activities of their parents, have labeled this
new generation as lazy, saying that today’s children
did not want to work hard. Indeed, very few young
children were observed to be engaged in economi-
cally productive activities.
Most people commented that one of the major
problems in the village was the difficulty young
people were having in finding employment. Unem-
ployment for young people is also a problem in In-
donesia as a whole (Editorial Staff for Travel and
Tourism Intelligence, 1996). Village leaders stated
that it was a lack of initiative and ability to look for
jobs, but others suggested that too many people
were seeking a limited number of employment
opportunities, and that this would continue to cause
unemployment to be a problem for at least another
decade (Sondakh, 1994).
With the increased emphasis on education as a
means of avoiding a life of manual labor, the
younger generation’s general disdain towards farm
work, and the decreasing amount of available farm-
ing work, unemployed young people, mainly young
men, have begun to ‘hang out’ together in the vil-
lage, and to smoke and drink.
Diverse forces influence livelihood decisions in
Molas village. Some are external to the village, and
even external to Sulawesi, such as decisions by the
Central Government based in Jakarta. Others, such
as ‘modernization’, are, at least in part, in the hands
304
of individuals in the village, leaving each person
with the opportunity to decide how to respond. Other
studies have found that, even without the anticipa-
tion of tourism development, ‘modernization’ forces
are leading many people in rural villages of Indone-
sia to move toward income-based rather than subsis-
tence-oriented activities, when they can find such
work (see for example, Robinson, 1998).
The presence of multiple interacting forces pre-
sents a dilemma, since it is not possible to isolate
clearly the effect of any one factor (in this case, an-
ticipated tourism development) relative to the other
drivers (education, modernization), which are also
influencing livelihood decisions. Therefore, in the
following sections, the emphasis is on identifying
patterns of attitudes, decisions and behavior in order
to infer the relative importance of anticipated tour-
ism development for decisions about livelihood.
Changing livelihood strategies in Molas
Table 2 provides some of the key elements of the
changing livelihood strategies documented during
the fieldwork. The main changes to components and
impacts relevant to live lihood strategies of proposed
tourism development in Molas are summarized in
Table 3.
Village leaders in Molas are aware that the human
environment has already undergone significant
change since the village was targeted for tourism.
They saw benefit in this study, and also in docu-
menting the changes that were taking place in the
village, in order to alert other villages about the op-
portunities and consequences involved in this type of
development.
Leaders in the neighboring village of Meras, who
also were interviewed during this study, had just
started discussing the impacts from anticipated tour-
ism development and how they should address them.
As Meras is also part of the Kotamadya Manado, the
provincial government has placed it on the same
Table 2. Key elements of new livelihood strategies of Molas
villagers
Actors Activities or actions
National and - Designation and promotion of location as
provincial a tourist destination
governments - Incorporation of Kecamatan Molas into
Kotamadya Manado, infrastructure
development
- Preparation of Bunaken National Park
management plan
- Designation of protected forest and
regulations for its use
Local government - Assisted land speculators and developers
to find residents willing to sell their land
Land speculators - Actively purchasing land
and developers - Coercing land-holders to sell their land
Land brokers - Pairing land-holders with speculators
- Coercing land-holders to sell their land
Impact Assessment and Project Appraisal December 2001

Table 3. Summary of impacts by component during tourism anticipation in Molas
Component Main aspects changed
affected
Biophysical - Altered access to resources
- Anticipated change to land cover
Political/legal - Transfer of decision-making power
- Promotion of a favorable attitude
toward tourism
Economic - Land speculation
- Altered economic orientation of the
village
Social - Incorporation into the Kotamadya
Manado
- Alterations to social cohesion,
patterns of interaction, and stability
- Anticipated social decline with
tourism
Cultural - Incorporation into the Kotamadya
Manado
- Altered cultural environment
Psychological - Pressures to conform to the
dominant attitude towards tourism
- Fear, anxiety and uncertainty
type of development path as Molas. Meras leaders
reported that they want to take measures to slow or
halt the changes that have begun to take place. They
are hoping to use the community- and clan-based
land-use traditions of hukum adat, which are still
relatively strong in their community, to forestall or
reverse economic changes in Meras, which are simi-
lar to those taking place in Molas, to avoid negative
changes in all the other components.
For many parents and young people, moderniza-
tion ideals changed their relationship and aspirations
towards the traditional economic orientation and
biophysical land uses of the village, causing them to
view favorably speculation activities, and the
changes that they would bring. New values, or a per-
ceived need for change, coupled with the limitations
imposed by political regulations and plans, appear to
have prepared some villagers, especially younger
men, to view tourism favorably. Psychological im-
pacts, most notably the fear that many villagers will
be unable to benefit economically in the long term
For many parents and young people,
modernization ideals changed their
relationship and aspirations towards
the traditional economic orientation
and biophysical land uses, causing
them to view speculation activities
favorably
Impact Assessment and Project Appraisal December 2001
Livelihood strategy in community-based planning
Impact to human environment
Difficulty accessing resources dependent on, altered livelihood patterns
and roles, some fear of environmental decline or loss of livelihood through
tourism
Enforced new land uses and economic activities, no decision-making
power, decreased legal rights to the land, pushed to view tourism
positively
Provided cash to finance needs/wants, new livelihoods, education, ability
to borrow land temporarily, occupational change, potential threat to other
occupations (fishing), new jobs on speculators/developers’ land, happy for
new economic orientation but anticipate limited and unequal distribution of
economic benefits, particularly to unskilled or older residents
Urban mindset, altered social values, norms, aspirations, livelihood
strategies, socio-economic differences, social unrest, theft, changed family
dynamics, anticipate increased social decline through contact with tourists
Modern values replacing traditional ones, adat less important, loss of
traditional knowledge and skills in young, anticipate increased cultural
decline through tourism development
Convinced to view tourism positively, or at least not to oppose it,
uncertainty and fear concerning ability to benefit economically from tourism
jobs has discounted tourism from livelihood strategies
from tourism, seem to be the most signif icant factors
causing other residents to discount tourism as a fea-
sible long-term economic opportunity.
The evolution of livelihood strategies in Molas is
occurring in response to changes in valued compo-
nents such as: altered orientation toward, and stabil-
ity and productivity of, the biophysical environment;
decreased economic security and increased multiple
job holdings; transfers of political power and promo-
tion of ideology; decline of cultural strength and
significance; increased emphasis on education and
social change in the younger generation; and, the
adoption of values, goals and aspirations based on
modernization.
For farmers, these changes have generated new
livelihood strategies based mainly on off-farm work,
which are aimed at establishing more economic sta-
bility, decreasing manual- or agriculture-based labor,
permitting parents to invest in children’s education,
and providing opportunities for women to become
secondary wage earners. Livelihood strategies for
fishers were also focusing on achieving more eco-
nomic opportunity and stability, but fishers are
seeking to do this through adoption of modern
methods of fishing, rather than adding new types of
livelihood activities as farmers have done. Neverthe-
less, they too are seeking to invest in their children’s
education to enable them to have more livelihood
options in the future.
The form of tourism development being intro-
duced to Molas requires large amounts of land to be
purchased and converted from agricultural use. Land
and natural resources remain central to the liveli-
hood for 60% of the population whose main occupa-
tion depends on them. Much of the remaining 40%
305
Livelihood strategy in community-based planning
of the village population depends substantially on
local natural resources for subsistence activities,
gathering wood for cooking, local plants for food
and medicine, and drawing on the resources of the
land and sea for a variety of other non-income-
generating economic activities. As such, people in
Molas recognize that impacts on individual and
collective economic well being are inevitable.
The tight linkages among land and natural re-
sources, livelihood, culture and social roles and pat-
terns of interaction have caused the recent land sales
to have far-reaching effects on villagers. Resource
management policies associated with the protection
and conservation of natural resources in the area
around Bunaken Park have begun to be implemented
and enforced in anticipation of tourism develop-
ment; this too is having an impact on key livelihood
activities including fishing, wood gathering, and
coral and sand mining.
Altered access to resources and anticipated
change to land cover have changed the biophysical
component. Transfer of decision-making power and
promotion of a favorable attitude towards tourism
have altered the political/legal component. Land
speculation and the altered economic orientation of
the village have changed the economic component.
Incorporation into the Kotamadya Manado, altera-
tions to social cohesion, patterns of interaction and
stability, and the anticipated social decline and al-
tered cultural environment associated with tourism
development are altering the social and cultural
components. Finally, pressures to conform to the
dominant attitude towards tourism, and fear, anxiety
and uncertainty, have altered the psychological
component as villagers seek to cope and adjust.
Orientation toward, and valuation of, the bio-
physical environment, the local economy and culture
are significant in shaping how villagers identify
short- and long-term opportunities from the antic i-
pated tourism development. The villagers identified
short-term personal economic opportunities through
selling their land to speculators and developers, but
identified few potential long-term personal eco-
nomic benefits from tourism development.
Psychologically, villagers felt fear and uncertainty
regarding the ability of the village to benefit eco-
nomically, culturally and socially from tourism in
the longer term. This fear, doubt and uncertainty are
encouraging residents (particularly farmers) to con-
struct future livelihood strategies that exclude occu-
pations in tourism. Younger people, however, are
considered to be more able to access jobs resulting
from the tourism developments, creating an age
differentiation between those who do and do not
believe they will benefit from development.
The different orientations of fishers and farmers
caused them to identify different positive and nega-
tive impacts from tourism. Farmers saw shorter-term
advantages associated with the sale of their land. For
fishers, increased tourism meant increased competi-
tion for fish, as more people engaged in fishing for
306
The most significant impacts on
livelihood strategies have come from
villagers’ responses to land
speculation, which has had
implications for various aspects of
biophysical, economic, social, cultural
and psychological components
side or main income, and increased limits placed on
their access to fishing grounds in and around the
growing tourism and conservation areas of Bunaken
Park.
On the other hand, fishers are more likely than
farmers to be able to extract some income from the
tourist trade in the longer term through sales of their
catch. At the time of this study, however, many fish-
ers felt that the changes taking place as a result of
tourism planning, such as a coastal reclamation pro-
ject, signaled the end of their livelihood in the area.
This research found the most significant impacts
on livelihood strategies to have come from villagers’
responses to land speculation, which has had impli-
cations for various aspects of biophysical, economic,
social, cultural and psychological components. It
was evident from the research that many people
were making livelihood strategy and long-term ad-
aptation decisions regarding tourism development
during the project anticipation stage, long before any
AMDAL (EIA) assessment had taken place.
Tool in environmental planning/management
Our study demonstrates how the livelihood strategy
approach can lend insight and direction to environ-
mental planning and management. Its specific rele-
vance to social impact assessment has been
addressed elsewhere (Walker et al, 2000). In this
article, we place emphasis on the role of livelihood
strategies in effectively defining and ‘weighing’ the
positive, negative and neutral importance of those
impacts, relative to how they are perceived by local
communities.
For example, this case study demonstrates that the
relative negative ‘weight’ of changes to the bio-
physical and economic components through loss of
land (by tourism development) and, therefore, the
loss of traditional economic activities associated
with the land, is not as strongly negative as might be
perceived initially. Our research indicates that the
current generation of farmers is increasingly unable
to meet its needs through a livelihood strategy fo-
cused only on agriculture. Agricultural land is in-
creasingly fragmented and the agricultural livelihood
increasingly insecure.
Impact Assessment and Project Appraisal December 2001

In addition, the younger generation is increasingly
unfavorable toward pursuing agriculture as a liveli-
hood, causing the older generation to discount
further its role in livelihood strategies for the future.
This perspective, however should be tempered by
the observation that those who stand to lose the most
in terms of livelihood security through the sale of
land also have the least chance of securing employ-
ment through the new economic orientation of the
village.
In general, it is important not to assume homoge-
neity of response or of benefits and costs for all local
people with respect to planned tourism development,
even within one small village. Different groups
within Molas village (based on livelihood orienta-
tion, age bracket, social status, degree of access to
various resources, degree of innovation and entre-
preneurship and so on) are responding to new envi-
ronmental planning and management initiatives in
different ways.
Their varied responses provide guidance regard-
ing types of intervention measures which could
minimize negative social and environmental impacts
and enhance adaptation to the proposed changes for
different groups within the village. In particular, in
our research, a split in impact between the older and
younger generations is strongly evident. Changes to
the social and cultural components were viewed as
negative by the older generation, but positive by the
younger generation which is less interested in tradi-
tional values and less inclined toward traditional
livelihood strategies.
Our research suggests that, despite a recent (1999)
Indonesia n national commitment to decentralization
of decision-making, village residents may become
increasingly disempowered in decisions regarding
land use and economic activities in the village. This
potential disempowerment, coupled with changes in:
access to land and resources; the relative security of
‘ownership’ of land and influence over decisions
regarding its use; the economic orientation of house-
holds and the village; and the associated effects on
social and cultural norms, cohesion, interaction and
stability will all affect capacity to adapt at the indi-
vidual level.
Data generated through the interviews suggest
that, in the past, evolution of livelihood strategies
Host communities should be involved
in planning and decision making, to
enhance opportunity for success and
allow local people to anticipate, adapt
and realize whatever potential there
might be to develop altered or new
livelihood strategies
Impact Assessment and Project Appraisal December 2001
Livelihood strategy in community-based planning
was gradual, allowing for experimentation and trial-
and-error learning as people adapted to changing
conditions. If the proposed changes come as quickly
as planners suggest, the requirements in terms of
new learning and creative response will be more
challenging, not only because of a lack of connec-
tion to historically traditional pursuits, but also be-
cause of accelerated time frames.
The research strongly supports the idea that host
communities should be involved in planning and
decision making for projects, both to enhance the
potential for success of the projects and to provide
maximum opportunity for local people to anticipate,
adapt and realize whatever potential there might be
to develop altered or new livelihood strategies
and/or to find ways to maintain existing strategies.
However, environmental assessment and public con-
sultation processes associated with land-use devel-
opment in developing countries typically do not
begin until plans have been confirmed and construc-
tion is imminent.
Livelihood strategy analysis offers one tool for
tracking local responses to planned development
during the earliest stages, for involving local people
in discussion about the development, and for provid-
ing useful input into the planning process. In this
study, the livelihood strategy approach enabled the
identification of how the biophysical, political/legal,
economic, social, cultural and psychological compo-
nents of livelihood are changing during project an-
ticipation and how these changes are affecting the
perceived quality of life of local residents.
Further research and application of the livelihood
strategy approach at other stages in the development
process, and in other locations, is needed to test the
wider usefulness of the approach. In this study, a
longer research period would have allowed more
emphasis on factors that may contribute more indi-
rectly, rather than directly, to livelihood strategies,
such as the role of voluntary organizations, which
are widely understood to be central to the strength of
community life, but which did not figure strongly in
this study’s data sets for Molas.
Our experience with this case study and with con-
tinued research making use of the livelihood strategy
approach suggests that the importance of livelihood
should not be underestimated. Tools for analyzing
the historical, current and potential livelihood strat-
egies of local people are essential for achieving an
understanding of how to carry out effective devel-
opment planning and environmental management.
Note
1. UCE is a collaborative project involving the Faculties of Envi-
ronmental Studies at the University of Waterloo and York
University in Canada, and seven Environmental Study Centers
in Sulawesi and Java, Indonesia with the aim to enhance envi-
ronmental management in general, and environmental impact
assessment (AMDAL in Indonesian), ecosystem management,
307
Livelihood strategy in community-based planning
and gender and development. UCE is the education and train-
ing component of the Collaborative Environmental Project in
Indonesia (CEPI), funded by the Canadian International
Development Agency.
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