Working with local institutions to support sustainable livelihoods

This paper summarizes the research findings and policy implications of a research project undertaken by FAO to gain a greater understanding of the linkages between household livelihood strategies, incomes, and the local institutional environments, and how these linkages may change over time. Building on three country studies in India, Mozambique and Mexico, the research focused on informal economic institutions associated with household access to land, labor, markets and capital, as well as those providing a social safety net. The paper argues that local institutions, however imperfect, provide essential goods and services to rural poor and vulnerable groups, particularly in the absence of well-functioning markets, local governments, and safety nets. These institutions and networks should not be destroyed in the name of "development."