Rural livelihood diversification in west bengal: Determinants and constraints§

The study conducted in the state of West Bengal has identified the determinants and constraints to livelihood diversification among different livelihood groups. The study has shown that household-head experience (age), educational level, social status, training, asset position, access to credit, rural infrastructure, agroclimatic condition and the overall level of economic development of a region are the main driving force towards livelihood diversification in the state. The study has also shown that several constraints act as obstacles to livelihood diversification but the nature of these constraints differ across regions and livelihood groups. The resource-poor are particularly vulnerable and unable to diversify because of the entry barriers imposed by their weak asset base. The main constraints faced by the households in diversified area are: poor asset base, lack of credit facilities, lack of awareness and training facilities, fear of taking risk, lack of rural infrastructure, and lack of opportunities in non-farm sector, while the main constraints in lessdiversified area are: poor transport facilities, poor asset base, unfavourable agro-climate, lack of credit facilities, lack of awareness and training, and lack of basic infrastructure. The study has suggested the need to develop a number of strategies especially for the poor people to facilitate successful livelihood diversification. This includes the development of rural infrastructure in terms of road, market, electrification, telecommunication, storage facilities, etc. and also institutional innovations to reduce entry costs and barriers to poor livelihood groups. A comprehensive development plan, including increasing the scope for non-farm activities, for the backward regions is most urgent.