Exploring External Environment¶ a tool to facilitate Identification of Livelihood Opportunities

Process of Identification
‡ Observe Local Economy ± Understand Community / People ± Understand Factor Conditions ± Understand Demand Conditions ‡ Shortlist Intervention Opportunities / Activities Triangulation ‡ Identify Sector / Activity and Point of Intervention ± Exploring External Environment

What we need to do now?
‡ Find out the point where intervention is required Postulate: (Intervention is required only at certain specific elements. Hence we have to find them) ‡ Find out if we can do them Postulate: (We have competence in some aspects and not all, Hence we must see if we take up that / have some other strategies to do that)

Process
1. Identify at least three key informants representing different interest groups 2. Develop questions assessing the presence of different factors in the area 3. Ask Key Informant independently to assess and give a score to each of these questions using a scale of 1-5 4. Work out average µkey informant¶ score for each of the factors. 5. Do this process for every activity / sector shortlisted by you

Key Informants
‡ At least three ‡ Should be stakeholders in the same subsector ‡ Imperative to cover different interest groups, to help us build different perspectives on the chosen activity

Assessing Potential
‡ Compare the average scores of various sub-sectors: Examine the column totals. Conditions are most favorable for the one that has the highest total score ‡ Now examine the row scores. The rows that get lowest score needs to be paid attention / intervened in ‡ Assess whether intervention is feasible in that area (the lowest score rows), keeping in view the socio economic realities of the area and the organisational capacities

Questions
‡ 5 Simple questions ‡ On each condition of the external environment ‡ Respondents should answer the same question ‡ Response can be scored on a scale of 1-5 Example on NTFP based LP«««

Assessing Various Factors Supporting Livelihoods
Factor KI 1 KI 2 KI 3 Total score Aver Age 2.33 3 3.67 1 2 3 How do you rate the loss of trees due to attack of pests and diseases? How is the rate of regeneration of the NTFP tree in the forest? What is the level of knowledge among the local population on preservation of the trees? What is the level of knowledge among people on storage of the NTFP produce? How would you rate the favourability of the climatic condition for growth of the NTFP trees? 3 3 4 2 3 4 2 3 3 7 9 11

4

4

4

3

11

3.67

5

5

4

4

13

4.33

Assessing Various Factors Supporting Livelihoods
Demand 1 How would you rate the increase in the demand of the product in the local market? According to you how has been the increase of price of the product in recent years? How would you rate the number of buyers in the market of this product? During the procurement months how would you rate the existence of external buyers in the market? How would you rate the fairness of the trade (dealings) done in the local market? KI 1 KI 2 KI 3 5 5 5 Total score 15 Aver Age 5

2

4

4

4

12

4

3

5

3

4

12

4

4

3

4

4

11

3.67

5

2

2

4

8

2.67

Assessing Various Factors Supporting Livelihoods
Institutional 1 How would you rate the legal systems as promoting the trade of this forest produce? How would you rate the support received from peoples institutions and forest cooperatives in trading this commodity? How is the support extended by the Forest department in collecting this produce from forests? How is the existence of formal institutions dealing with procurement in the local context? How are the terms of trade supportive to this forest produce? KI 1 KI 2 KI 3 2 4 1 Total score 7 Aver Age 2.33

2

1

2

2

5

1.67

3

1

1

1

3

1

4

1

1

1

3

1

5

1

3

2

6

2

Assessing Various Factors Supporting Livelihoods
Industrial 1 According to you what score would you like to give for existence of processing units in the nearby area? How much would you rate the growth of processing industries in the local area? How much score would you like to give for the transport industries in the local context? Are the industries dealing with the bye product enough in numbers? What would be your rating for storage facilities of the commodity in the local area? KI 1 KI 2 KI 3 3 3 2 Total score 8 Aver Age 2.67

2

3

3

3

9

3

3

4

4

3

11

3.67

4 5

2 2

4 2

5 3

11 7

3.67 2.33

Scoring by key informants
‡ Each key informant to score independently ‡ If necessary PRA techniques can be used to help to KI in scoring ‡ We should not evaluate/score

Now what?
o What the scores will speak
‡ Highest score on all factors would mean the livelihood option having the most favourable condition - meaning capability to generate higher livelihoods and vice versa. ‡ This is the option that must be now focused.

o What then one must do.
‡ Look again into the row score of the identified activity.

o What will the score speak
‡ The row having the lowest score is the problem one and this is the target one for intervention

Cont .
o What do you do then? ± Try to see which of the identified bottlenecks is within your capability. I.e. ± Do you have organizational capacity ± Can you muster such capacity in case you do not have ± Can you have others who can support you. o List down all of these may be doing a SWOT analysis. ± This can be checked across say ± Your Human resources ± Financial resources ± Infrastructure etc.

Cont .
o Map the organizational competency on a scale ± Select the one which tells that you have competency and do not require any investment in ± Obtaining additional resource ± Can get without time lag ± It fits with the overall vision of the organization ± Will be in focus for a longer time

Points to remember
‡ Decide on the sub sectors on the basis of TRIANGULATION ‡ Identify Key Informants, minimum 3 ‡ Frame 20 Questions, 5 from each Conditions ‡ Pose the SAME set of questions to all KIs and get the scores ‡ Highest Column Total tells the SECTOR ‡ Lowest row total indicates POINT of Intervention