The current world economic situation is not in favorable condition to spend. The savings will be the only hope to become self-sustainable. The sustainable livelihood is the universal concept that is followed all over the world. The process of rising from the decreasing economy is given by this concept. The sustainable livelihood framework consists of skills and assets and approaches used by both individuals and people to access the assets. The skills and assets are improved without exploitation of natural resources. The sustainable livelihood framework is the analytical framework which lists out external factors that affect livelihood and interaction between these factors. There is different type of capital in this framework.
The human capital consists of skills, abilities, experience, and good health. Each individual has to do different livelihood activities to achieve their objective. Human capital determines the quality and quantity of the workforce. The livelihood activities include various business processes to run the life. The workforce determines the family in the framework. The quality of the workforce determines their health and skills. Human capital can be increased by increasing healthcare, infrastructure. The skills can be improved by various educational organizations. The human capital can be indirectly developed by reforming policies of health care and skills improvement. The positive changes should be reinforced in local institutions. The factors like health and education will determine the progress of the human capital. The individual ability analysis also to be included in this analysis. The human capital is the important capital in the sustainable livelihood for achieving objectives.
In the concept of sustainable livelihood social capital refers to the social resources. This social capital supports the individual or group of humans to achieve their objective. The social resources must include network and connection between the human. There should be rules and regulation to access the social resources. The social consists of structures, processes and transformations. There is a bidirectional relationship between processes and structure. The structure, process and transformation will create impact in each household. These structure processes and transformations can be accessed and to get gains. These elements are accessed based on some rules and regulations. The social capital can be improved by strengthening the local institution with an open democratic approach. Supporting and enhancing the leadership through external local contact groups.
The natural capital refers to the natural resources and derived resources which support livelihood. The natural capital is very important to achieve the objective. The natural capital is very important for rural development. The structure and process determines the access of natural resources. For example the market is the structure based on the market the product is accessed based upon buying patterns. The natural capital is the most inevitable resource in the sustainable livelihood framework to achieve livelihood objectives.
The concept of sustainable livelihood defines the method to access the resources. This concept enables the human to lead a life in all situations. This concept has a efficient classification of each element in the society.