Human Capital impact on livelihoods of Hunza

8/10/2019 Human Capital impact on livelihoods of Hunza

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Group Members

Noman Karim

Hassan Sabah

Sajjad Ali

HUMAN CAPITALImpact on Livelihoods of Hunza

In this Paper we will focus upon the significance of

human capital upon the livelihoods of Hunza.

2013

12-May-13


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Contents

ABSTRACT _________________________________________________ 4

BACKGROUND _____________________________________________ 5

INTRODUCTION _____________________________________________ 8

PROBLEM STATEMENT ______________Error! Bookmark not defined.

LITERATURE REVIEW ________________________________________ 9

ANALYTICAL FRAMEWORK ___________Error! Bookmark not defined.

SLF: Scoones _____________________________________________ 32

CONTEXTS, CONDITIONS AND TRENDSError! Bookmark not

defined.

Context ____________________________________________ 33

History _____________________________________________ 34

Politics _____________________________________________ 34

Trends _____________________________________________ 35Seasonality _________________________________________ 36

LIVELIHOOD ASSETS/RESOURCES _______________________ 39

Approaching livelihoods with a threefold focus 40Human Capital ________________________________________

Natural Capital____________________________________ 40Physical capital ______________________________________ 40

Financial Capital _____________________________________ 40

Social Capital _______________________________________ 40

Political Capital ______________________________________ 41LIVELIHOOD STRATEGIES ______________________________ 49

Agriculture Intensification and Extensification ________________ 49

Livelihood diversification ________________________________ 50

Migration ____________________________________________ 51

CONCLUSION _____________________________________________ 53

REFERENCES _____________________________________________ 55


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H U M A N C A P I T A L : I M P A C T O F H U M A N C A P I T A L O NL I V E L I H O O D S O F H U N Z A -

People of Hunza Valley have faced enormous problems in pursuing their

livelihoods. From a macro-Livelihood point of view Human capital is one of

the major factors in asset building and helps to diversify the Livelihoods. In

many Developing countries, human capital improved Livelihood and it

contributed to overall development of people at large.

However, to grasp the multidimensional constituencies and impact of

Human capital on Livelihood outcomes, a deeper and more integrated

vision is required.

A community-based ontology is rooted in the broad tradition of alternative

development and can be fruitfully integrate the Human capital of Hunza

region. This study focuses on some important initiatives taken to build

human capital adopted by the people of the area which resulted in

development of the area.In Hunza valley, Human capital is one of the significant and important

elements of Livelihood diversification. Hunza is highly diverse in terms of

physical, socioeconomic and political environments. It is a Mountainous

area and environment is highly fragile and their inhabitants are exposed to

both environmental and non-environmental stressors, which are interlinked

and have serious implications for mountain livelihoods. The combination of

multiple agricultural and non-agricultural income sources is a characteristic

of mountain peoples livelihood systems. Migration is not a recent

phenomenon, but has been a traditional source of non-farm income to

varying degrees. This review finds that migration behaviour is influenced by

ABSTRACT


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a combination of environmental (floods, flash floods, landslides, droughts

and land degradation) and non-environmental (economic, demographic,

social and political) drivers. As the decision to migrate or not is ultimately

an individual one, it is methodologically challenging to single out any single

driver as significant a fact well reflected in the available literature. The

inter-relationship between the dynamics of the factors triggering migration

and migration dynamics has been rarely explored. In particular, studies

concentrating on migration in the mountainous regions of the developing

world are few.

Hence, the main aim of this paper is to investigate the problems faced by

people of Hunza in building human capital and diversifying livelihoods.

Moreover, this paper discuses the set of assets, organizations and

institutions available to the village, so that they can achieve certain

livelihood strategies...

Hunza is a mountainous valley in the GilgitBaltistan region of Pakistan.

The Hunza is situated north/west of the Hunza River, at an elevation of

around 2,500 metres. The territory of Hunza is about 7,900 square

kilometer. Hunza is a fairy tale land and a lot of myth and reality has been

associated to it. In ancient times the people of the Hunza were subsistence

farmers. Cattle breeding and farming were popular professions in Hunza.

Sheep, goats, yak and horses are domestic animals. The people of Hunza

use sheep wool and goat hair to spin a rough cloth.

Background


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In the high-mountain periphery of Hunza, formal education has increasingly

gained importance for the peoples livelihood systems and is seen as an

indispensable key for regional development. The local livelihood systems in

both these mountain areas underwent a fundamental reorientation, from

combined mountain agriculture and animal husbandry on a subsistence

basis, to increased market-orientation, cash-crop production, and growing

importance of off-farm income and employment. Formal education, and

increasingly higher levels of education, is central keys for getting access to

much-demanded posts in regular employment in the government, NGO,and private sectors. In most parts of these two sparsely populated regions,

the acquisition of higher education is only possible through migration in

order to enrol in educational institutions in central places of knowledge

For centuries, the Hunza Valley in the Karakoram Range was one of the

most isolated territories of the world. Hunza valley was ruled by Kings

(Thum) for centuries. The people of Hunza were dependent on agriculture

for their livelihood and whatever they cultivated a large portion of the yield

was taken by the King or Ruler of Hunza as Tax (Maliya). There were no

other sources of livelihood other than agriculture.. Hunza state surviveduntil 1974, when it was finally dissolved by Zulfikar Ali Bhutto. Even the

people were not allowed to build both Human capital and physical capital.

In 1978, however, Chinese and Pakistani workers completed construction

of the Karakoram Highway, which cut directly through the Hunza Valley,

linking up the region to commercial trade routes between Pakistan and the


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People`s Republic of China. Very few people used various livelihood

diversification strategies. E.g. armed forces, civil services and NGO sector

etc. Only two to three generations ago, very low literacy rates and were

lagging behind compared to the developments in the rest of the country. In

only a few decades the situation has completely changed, and both theregions mentioned above today constitute shining examples of successful

and rapid educational expansion and increasing shares of higher education

degree holders. This fundamental and rapid change was partly made

possible by the improvement and expansion of the formal education system

in the mountain region, which increased the locally available education

opportunities. But equally important, the rural high mountain households

have actively strived to get access to higher education by following

strategies of educational mobility and migration. In a context of

fundamental livelihood changes, where subsistence-oriented combinedmountain agriculture systems no longer suffice to sustain a living and off-

farm income generation along with formal employment gained high

importance, formal education has become a necessity for sustaining rural

livelihoods. Higher education, an essential precondition for access to the

much demanded jobs in the government and private sectors, is in many

remote valleys unavailable, since colleges and universities are located in

central places within the mountain regions or in lowland cities. High

mountain households currently invest huge shares of their budget to enable

at least some of their children to study in the urban centers. Educationalmigration has become a central component of the rural households

livelihood strategies.

The KKH was one of the main pillars of the overall development in the

Hunza valley, as many public and private organizations started many micro

and macro rural development innovations. The Government initiated

several projects in Hunza to establish a sound economic and social

infrastructure for improving social services, increasing the social contacts

within the valley and boosting economic growth on a sustainable basis.

There is also a big contribution of many public private partnership projectsin reducing the poverty and in the development of Hunza Valley. These

organizations provide grants to rural communities for undertaking initiatives

for poor people. These initiatives consist of formal and informal training

course to enhance a set of multi disciplinary skills within village

communities to use them in a variety of productive fields and activities.

These skills also played an important role in increasing the productivity of


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existing available resources. Various internationally recognized community-

based development organizations that have been working in Hunza Valley

in the field of integrated rural development to help improve the quality of life

of the local people. They are dealing with extreme poverty through linking

small farm products with potential domestic and export markets areinteresting and identify lot of unexplored areas. Agriculture in the area has

been of subsistence level till early eighties when various organizations

started interventions to increase the productivity and decrease the

production losses and succeeded in creating marketable surpluses in few

years. Since then a number of fruits and vegetables have been developed

as cash crops and the socio-economic surveys done by different NGOs. It

has shown a growing dependence of poor rural families on agriculture

incomes to pay for the education and health. The holistic and inclusive

development efforts by many public and private organization in HunzaValley contributes a lot to the social development, institutional

development, institutional sustainability, capacity building and poverty

reduction

Although up to know the exact role and meaning of higher education and

their importance for sustaining rural livelihoods are still unclear and have

remained under-researched. Therefore, this study aims to explore the

importance and role of Education in the context of Human capital and

various strategies of rural high mountain households in Hunza.

This paper reviews and extends the literature on human capital to pursue

multiple livelihoods, with particular emphasis on the social returns to

education. In other words, we study the problem of human capital

externalitiesdoes an individuals private decision to accumulate human

capital confer external benefits or costs on others?

The objective of this research is to use data from evaluations of

interventions designed to increase human capital to understand the

policies, interventions, and other factors that lead to sustainable poverty

reduction and nutritional improvements. Further, the research aims to find

the factors that facilitated development of policies and interventions for

sustainable poverty reduction and nutrition improvement in Hunza.

Introduction


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Hunza high mountainous region in the periphery have often been

considered backward regions, lagging behind the progress of socio-

economic development in the lowlands and urban centres. This is

especially the case with respect to the process of formal educational

expansion, which first and predominantly is expected to spread in theeconomic centres and cities in the lowlands and shuns comparatively poor,

rural, sparsely populated and difficult to access high mountain peripheries.

Having these widely accepted assumptions in mind, one is surprised to find

high shares of university graduates in some remote high mountain

communities, like in Hunza, Gilgit-Baltistan, Pakistan. Only two to three

generations ago, these regions would have fit into the assumptions of

modernization theories, since at that time they showed very low literacy

rates and were lagging behind compared to the developments in the rest

of the country. In only a few decades the situation has completely changed,and the Hunza mentioned above today constitute shining example of

successful and rapid educational expansion and increasing shares of

higher education degree holders which is boosting livelihoods of local

people.

But equally important, the rural high mountain households have actively

strived to get access to higher education by following strategies of

educational mobility and migration. In a context of fundamental livelihood

changes, where subsistence-oriented combined mountain agriculture

systems no longer suffice to sustain a living and off-farm income generationalong with formal employment gained high importance, formal education

has become a necessity for sustaining rural livelihoods specially in this

region. Higher education, an essential precondition for access to the much

demanded jobs in the government and private sectors, is in many remote

valleys unavailable, since colleges and universities are located in central

places within the mountain regions or in lowland cities.

Do people of Hunza have access to their basic needs? What livelihood

strategies they followed and what are the factors that helped to build to

Human Capital which helps to pursue livelihood. Do people achieve

sustainable livelihood through Human Capital? What were the hurdles in

building Human Capital?

Problem Statement


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The concept of human capital has been familiar in economics for at least

the past thirty years (e.g. Schultz, 1961; Becker, 1964); some trace it backto the work of Adam Smith in the 18th century.

Human capital can be defined in many ways, but this report adopts the

following meaning:

The knowledge, skills, competences and other attributes embodied in

individuals that are relevant to economic activity.

Recent interest among macroeconomists in the possibility of human capital

externalities follows the revival of growth theory, which is built on the idea

that human capital is central to growth. Following Lucas (1988),

neoclassical models of growth treat human capital as a produced input to astandard constant returns technology, so that growth of human capital and

growth of output are nearly synonymous.

To appreciate the special place of human capital in modern growth models,

we begin with two key facts. First, as noted by Kaldor (1961), most

countries have experienced sustained growth over very long periods of

time.

In general, people with low educational attainment, low income and who

live in deprived neighborhoods are more likely to suffer from mental health

problems than the general population, although the socio-economicgradient in the prevalence of mental illness varies greatly by condition (see

Yu and Williams, 1999; lorant et al., 2003a; and muntaner et al., 2004; for

reviews on the different associations between socio-economic status and

various mental health conditions). Other studies also have made similar

findings on this topic (marmot, 2005; Wilkinson et al., 2003). The literature

indicates that education and mental distress are negatively related; higher

education is in general associated with a lower prevalence of mental health

problems (see Ross and van Willigen, 1997 for a review; also chevalier and

Feinstein, 2007), although the relationship appears to be less strong than inthe case of physical health. Overall, however, education does not appear to

be a major determinant of other indicators of well-being, such as life

satisfaction and happiness (Witter et al., 1984; veenhoven, 1996; Hartog

and oosterbeek, 1998; gerdtham and Johannesson, 2001).

One of the pathways through which education may promote good mental

health is by enhancing individual and area-level social capital. Individuals

Impact of Human capital on Livelihoods of Hunza: A literature


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with more education may be more likely than less educated individuals to

be socially integrated, and to have opportunities to meet socially within their

communities, factors that promote social capital accumulation at the

individual level.

They may also be more likely to receive adequate emotional support;because of homophily, educated individuals are more likely to have

meaningful social contacts with individuals who also possess a high level of

education (mcpherson et al., 2001). Given that most individuals rely on the

support of those around them to deal with mental distress, if greater

education translates into higher quality psychological support, homophily

will mean that educated individuals will receive better support than those

with low levels of education (angermeyer et al., 1999). Individuals who live

in communities where the average educational attainment is high also are

more likely to enjoy better mental health than individuals in communitieswith lower education levels. Communities where the average educational

attainment is higher may in fact be more inclusive and less stigmatizing

towards individuals who have mental health problems, and provide greater

practical and emotional support to all their citizens.

As previously highlighted, evidence is emerging on the role of education in

promoting a long and healthy life. New evidence also suggests that

educational attainment plays an important role in influencing health-related

behaviors. However, the relationship is complicated between education

and specific behaviors, such as smoking, alcohol abuse, poor nutrition andlack of physical activity. Better educated individuals appear to be somewhat

more likely to engage in some forms of risky behaviors, such as consuming

alcohol and drugs (cutler and lleras-muney,

2007), but they are also somewhat better at managing their behaviors, by

keeping consumption.

Knowledge management in Hunza:

As Francis Bacon said, Knowledge is power. The power of knowledge isvery important resource for preserving valuable heritage, learning new

things, solving problems, creating core competences, and initiating new

situations for both individual and communities now and in the future which

will surely sustain and enhance human capital. (Liao, 2003).


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.The concept of ICT use in the region of Hunza was considered as

supporting tool for creating a knowledge repository and it will be a way of

communication between the stakeholders of the region to build Human

Capital. The concept of ICT as a proxy will be the mean for further creating

knowledge among the stakeholders by sharing information on developmentactivities and utilizing the knowledge repository. And will be useful for

building Human Capital. The main stakeholders are Government, LSO

(local support organization) of the region Hunza, Gilgit-Baltistan Pakistan,

local community and the Aga Khan Rural support program (AKRSP). The

knowledge repository will be the result of sharing information on

development activities among the stakeholders.

Knowledge management (KM) includes activities and process. It consists ofactivities which are intended to discover knowledge, capture existing

knowledge, share knowledge and apply knowledge. Knowledge

management can be defined as performing the activities involved in

discovering capturing sharing and applying knowledge (Fernandez et al

2004). Knowledge management pretends to maximize knowledge and

transport it elsewhere in order to be used most effectively (Victoria and

Valencia, 2008).

People and Biodiversity:

Biological diversity is an important natural resource base for the people of

Gilgit Baltistan. For centuries, plant and animal communities supported

the development of early inhabitants of this region, providing the basis for

the evolution from hunting and gathering to agriculture, animal husbandry,

forestry and now trade and tourism. People have domesticated wild

species e.g. wheat, bare l y, buckwheat, yak and wild goats and many

other species and have depended on natural resources for survival and to

meet their basic needs. Majority of the people in Gilgit Baltistan are

engaged in agriculture, animal husbandry, and forest re l a t e d works.

Continuing use and maintenance of biological diversity are, therefore,

particularly important to the people of Gilgit Baltistan. Economic

development of Gilgit Baltistan will depend on sustainable use of

biological resources, maintaining high diversity of crops, management of


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high pastures, raising fodder trees in diverse mountain environment, and

development of medicinal plants and livestock biodiversity.

These will be the viable options for ensuring food security and generating

cash income by the people of Gilgit Baltistan. The high mountains and

narrow valleys kept Gilgit Baltistanphysically isolated until quite recently.It forced people to rely on local biodiversity for food and other essential

needs. Indeed, plants and animal diversity has served as the food security

for the mountain dwellers and supported the development of early

societies, providing the basis for the evolution from hunting gathering to

agriculture, animal husbandry, forestry and now to tourism industry. There

are many historic sites in Gilgit Baltistanwhere rock carving by the early

inhabitants shows that these people were mainly hunter gathers, and they

had strong affiliation with wild animals and plants. Many of these carvingsare of mountain mammals and trees, for example ibex, snow leopard,

markhor and pine trees are the main figures depicted in these carvings.

Hunters are shown pursuing ibex with bow and arrows and many figures

depict snow leopard chasing ibex. Besides hunting for meat, people

benefited from wild species to meet their basic needs; for example ibex and

makhor skins were used for making winter.

The high altitudes are a special world. Born of the Pleistocene, at home

among pulsating glaciers and wind-flayed rocks, the animals have thrived,

the harshness of the environment breeding a strength and resilience which

the lowland animals often lack. At these heights, in this remote universe of

stone and sky, the fauna and flora of the Pleistocene have endured while

many species of the lower reams have vanished in the uproar of the

elements. Just as we become aware of this hidden splendor of the past, we

are in danger of denying it to the future. As we reach for the stars we

neglect flowers at our feet. But the great age of mammals in the Himalaya

need not be over unless we permit it to be. For epochs to come the peaks

will still pierce the lonely vistas, but when the last snow leopard has staked

among the crags and the last markhor has stood on a promontory, his ruff

waving in the breeze, a spark of life will have gone, turning the mountains

into stones of silence."


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definitions are never as permanent as they sound, new dimensions have

also been added to agriculture, especially when farming is becoming

integrated with non-farming enterprises.

However, when one looks at the Northern Areas, agriculture is not a factory

or industry. It is not merely a sector of production. Agriculture is a way oflife, a cultural practice with all the implications of the word culture. They

comprise growing crops with local seeds, caring animals that have adapted

to the environment, relishing vegetables and fruits of their own kind and

quality. There exists a system of self-reliance and sustainability. It is an

ecological agriculture in its true sense.

The importance of agriculture to the economy can be identified in three

ways: first, it provides food for consumers and fibber for industry; second it

is a source of foreign exchange earnings; and third, it provides markets forthe industrial growth.

Food Security:

It is not only a question of a sufficient amount of foodstuff in quantitative

terms as it is often expressed in official documents. The quality of food

available for the masses is important as well. Thus, apart from safety of

food, the question of food security also means diverse and quality food for

healthy lives. Green revolution is known to be the crop production boosts,

although productions are very low even though hazardous fertilizer,

weedicide and pesticide-use have increased manifold.

Thus, it was both ecologically and economically unsustainable.

Conventional intensive agricultural practices cause severe effect on

nutrition and welfare of people and cause severe health hazards. In

comparison, sustainable ecological agriculture has the potential to provide

cheap, safe and healthy food to the communities in a sustainable way. It is

a safe way of producing that ensures cheap and easily available food. This

is rich in nutrients and taste and best for human health as well. If this sort of

system is revived, majority of the population residing in rural areas will be

able to fulfill all their basic needs, "Health, Education, Clothes, Shelter,

Food, Money etc" through this approach.


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With regards to food security, there are some other traditional lifestyles,

which are important but have become extinct these days. Few of these are:

1. Use of uncultivated food by the communities: If old villagers are

interviewed, they will disclose that almost 50 percent of their food wasobtained from uncultivated plants, weeds etc., then, in fact, overall

food was a mix of cultivated/uncultivated food plants and

domesticated/wild animals meat. In the conventional modern

agriculture, uncultivated plants are considered weeds and are

eradicated through weedicides. The remaining uncultivated plants are

mostly not fit for health due to indiscriminately used agro-chemicals.

In comparison, sustainable ecological agriculture protects the

uncultivated plants as they play an important role in the ecosystemand if used for food, they are healthy too.

2. Food diversity in the routine life: At this time, our food has become

limited to only a few easily available and mostly industrialized items. In

comparison, a few decades ago food was simple, diverse and rich in

quality. There are several advantages of diverse food. For instance, it

provides diverse important nutrients to the human body needed for a

healthy life. Similarly, growing diverse food crops, coupled with on-farm

livestock, poultry and fishponds, is also best to maintain soil fertility, avoid

severe pest attacks, offer hundreds of uncultivated food plants and present

a healthy environment. As discussed above, in conventional agriculture

only a few cash crops are preferred which leads to a monoculture. In

comparison, sustainable ecological agriculture ensures hetero-culture

comprised of a mix of diverse crops, vegetables, fruit, livestock, poultry and

fish farm on the same farm resulting in good food diversity.

3. Urban agriculture: Under the concept of sustainable agriculture, it is

believed that urban dwellers should also be involved in food production.

This was, in fact, another important factor in the traditional lifestyle a few

decades ago.


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Urban dwellers were not totally dependent on villagers and used to produce

vegetables, milk, eggs and poultry, etc within homes and in urban

peripheral areas. Although, there are still examples of urban agriculture in a

few urban centers in Pakistan, but due to weak policies, over time, these

are getting rare. The sense of deprivation is the highest among rural poorespecially in female headed households and children. In NA almost 70

percent of population resides in scattered places and villages. Agriculture is

their main occupation. Most of the rural poor are small and marginalized

farmers, landless folk, artisans, female-headed households, aged persons

and children. By and large, small farmers are engaged in subsistence

agriculture where their basic concern is survival and getting ahead of life

with farming. This is why the dimensions of their farms are (most often)

more or less than 0.079 ha/farm and they usually grow multiple cropsassociated to their basic needs of food, clothing and shelter. To satisfy

other needs (education, health, clothes, money etc) farmers market the

surplus of their crop yield. This clearly shows that agriculture for farmers is

a way of life, rather than just an economic activity. As compared to the

concept of yield in the modern agricultural system that this much inputs will

result into that much yields, many farmers do not own it. According to them

the yield of an agricultural activity can only be concluded seeing how better

their level of subsistence is being satisfied. Hence, their social and cultural

values are emotionally involved with agriculture. The way modern

technologies are growing and agriculture is being commercialized, rural

communities are gradually going down the poverty line and losing their

subsistence agriculture as well as their social and cultural values. It is also

widely recognized that these technologies have benefited few of the giant

landlords and, particularly, corporation involved in agriculture. As a result,

most of the farmers are gradually losing their hold on agriculture due to the

fact that they cannot afford the increasing costs of modern inputs to

compete. Consequently, a constantly alarming number of villagers are

leaving their agricultural activities and migrating to and settling down in

urban centers. Perhaps due to these circumstances, we are not able to

achieve self-sufficiency and sustainable development. Through its basic

shift in values and priorities from a narrow focus on production and

productivity to a broader emphasis on healthy systems which nurture over


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the generations, sustainable food systems approaches can contribute in

two fundamental ways towards sustainable development. First, it can be an

important part of reducing global warming, pollution, the loss of biodiversity,

and social and economic inequities. This is because they use much less

fossil fuel and have less environmental impact than conventionalapproaches. They also encourage the maintenance and enhancement of

both bio-and cultural diversity (Dahlberg, 1996) second, by pursuing

sustainable approaches which are more environmentally and socially

efficient-as well as more economically sustainable they make sustainable

development more likely. Pursuing the new frontier of sustainable and

regenerative food systems at all levels can thus help avoid the high risk ,

while facilitating the development of healthier citizens, more sustainable

economics, increased equity, and healthier natural systems.

The present status paper attempts to look forward to food security options

and opportunities in view of the available background information for major

grain, horticultural and fodder crops, livestock, poultry and fisheries. NA

having no education and research system in agriculture but survives only

on rudimentary extension service. The meager manpower, limited

resources and little access to modern training and literature all push NA,

agriculture to a lower ebb. Until strenuous efforts are made expected

improved situation may not be possible.

Liberty has been taken to interwove in the paper some of the latest

approaches such as biotechnology to help bring revolution in the thinking

process, without losing sight of conserving the existing traditional land

races of crops, vegetables, fruits, medicinal plants and livestock and the

various genes that have bestowed perpetual continuation of these

organisms for centuries.

Cash Crops

For improving the economic conditions of farmers, promotion of cash crops

is very essential. However, some of the serious constraints are, frequent

occurrence of pests and diseases, remoteness and scatter of the


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plantations, scarcity of quality germplasm, unplanned and non-systematic

orchards, absence of quarantine, poor knowledge about economic side of

cash crops, no training in farm management, etc. However, there are

ample opportunities to promote these crops because of unique climate and

existence of natural physical barriers which can help protect crops frominvasion of pests and diseases, promote biological agents and cut-down

use of pesticides. Cultivation of multipurpose crops/trees like olive,

pistachio, pine, with kernels can be promoted. Indigenous germplasm

which has adapted itself to the environment can be conserved. Where

possible integrated agriculture can be practiced. Systematic orchards +

vegetables for seed production + bee-keeping, etc. The crops which are

considered as cash crops are listed below. These have been ranked

according to their existing and future potential:

Production System:

There are four types of livestock production system, i.e., pastoralist,

transhumant, sedentary and commercial.

Pastoral system:

The true pastoralist, who have ownership over the livestock. According to

1986 livestock census 250 households were known to graze their sheep

and goats round the year. The nomadic system is characterized by years

round continuous movement of goats and sheep herds along the fixed

routes in search of pastures. True pastoralists do not own any land neither

do any farming activities. The movement of livestock is between alpine and

sub-alpine pastures situated in the upper and lower elevation of sub-

tropical rangelands, they spend about 4-5 months in the alpine pastures

and rest of the period in the lower ranges in winter.

The non local pastoralists have to pay to the communal landowners for

grazing their animals for specific period.

Transhumant system:


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Most of the households (80-90%) are reported to have adopted the

transhumant system of animal husbandry. Farmers live at lower altitudes

for about 7 months where the main house is located. In the cold winter the

animals are kept in the houses in the valley where they are fed maize

Stover, wheat straw and hay. In the summer months the animals are takenup into the mountains to graze on the subalpine and finally the alpine

pastures. Late April or early May part of the households start trekking

through the mountains. First they move to the edge of the conifer forests

where a second house is located. Here they stay 3-4 weeks and then they

move up to a third house situated in the middle of the forest staying up to 3-

4 weeks, and finally they move to the alpine pastures high up in the

mountains. They stay there for about 6-8 weeks before trekking back to the

valley with the first snow fall in late September following the same routine.They return to the main house in the valley in October. The flock consists of

a few cows, goats, sheep along with two pack and riding animals. The

transhumant production system has a variant whereby the owner stays in

the village. But during the summer months he hires a shepherd to send

flocks at the mountain pastures. Each herdsman keeps 15-40 cattle or 100-

200 goats/sheepsor a mixture of both cattle and sheep/goat.

Sedentary system:

In this system the animals are kept in the farm, about one third of the

households are reported to stall feed part of their cattle and to graze part of

their small ruminants in the gentle topography and in the field after

harvesting season is over.

Animals are also grazed in community lands on grasses and weeds of

lands lying fallow. Maize Stover and some hay and grasses collected are

the main feed of the stall fed large animals. In some villages maize stoves,

green grass, wheat straw are sold/ exchanged among the farmers.

Commercial production system:

Commercial and sedentary large dairy farms are virtually nonexistent.

There are semi-intensive poultry farms with 50-75 birds. Only a few non-


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farm households keep 1-5 cows in the towns to supply fresh milk to

residents and tea-shops.

Micro-credit

Considerable work has been done at governmental and NGO level toenhance accessibility of easy and cheap institutional credit to women.

Since women lack in assets ownership, there was the need for a

specialized financial institution which could cater to credit needs of micro

business owners without asking for conventional tangible collaterals First

step in this regard was the establishment of

First Women Bank which from its very inception has been launching micro-

credit schemes for women from low income groups both in urban and rural

sectors. Apart from disbursing credit, for developing and updatingentrepreneurial skills among women, the bank conducts entrepreneurial

skill development training programs all over the country. How did the Gilgit

Baltistan benefit from it is not known?

Agriculture Development Bank has also come forward to finance micro

businesses of women and for that they have set up special windows in their

designated branches to look into credit needs of women. Some major

NGOs like Orangi Pilot

Project and Aga Khan Rural Support Programme apart from doing

community development work in the areas of education; health and

population planning have major focus on economic empowerment of

women. They have their own credit disbursement programmes. The

establishment of the Khushhali Bank is a major breakthrough in this regard

as it is exclusively meant for financing micro businesses through loans of

very small magnitude secured against communal guarantee only. Apart

from above notable NGOs, a large number of NGOs are doing good work

in other provinces, these are National Rural Support Programme and

Sarhad Rural Support Programme that are associated in credit

disbursement programmes of Nationalised Commercial Banks as self-help

groups and facilitators. Similar arrangements could be made/initiated in G-

B. The banks in order to cut down the transaction cost of micro loans and

for making credit available at the doorstep of small borrowers induct such

NGOs as an intermediary between bank and clusters of communities.


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obtain the loans due to high interest rate. Keeping in view the

backwardness, remoteness and potential of the area special concession in

the interest rate may be granted to the progressive farmers of the G-B for

prosperity of the nation. The existing credit ceiling for establishment of fish

farms, etc is Rs. 50000/- per acre, while the land holdings in G-B are only1-2 kanals, which does not make the most people eligible for grant of loan.

The amount of loan does not fulfill the requirement for the establishment of

fish farm. Thus it is suggested that Rs.40000/- per kanal may be fixed for

granting loan. Strong linkages are needed between key stakeholders,

registered progressive farmers, and association for utilization of credit

facility for commercial farming.

There is a strong need for strengthening existing capacity of the bank by

inducting agricultural graduates as MCOs, etc.Post Harvesting, Storage and Marketing

Marketing of fruits and vegetable is highly inefficient. Small volumes are

sold to itinerant dealers, assemblers and retailers through personal

contacts and negotiations, evidently at low prices, in the absence of proper

marketing system.

The aggregated volumes are transported to down country markets notably

Islamabad, Gujranwala, Lahore, Faisalabad and Swat.

Aga Khan Rural support Program

Transformation of the Backward Gilgit-Baltistan Areas through village

organizations.

Indicators of success

Overall improvements, both in quantity and quality, of the natural resources

base (e.g. cultivated land through increasing the area under irrigation,

forests through a forestation/reforestation, rangeland through plantation of

forage grasses, etc) improvement in the living conditions of the people,

minimization of food shortages, reduced dependence on food grains from

outside and greater and more diverse employment opportunities both in the

farm and off-farm sectors. Besides these the biggest success of the

AKRSP is in the level of mass participation (73% of the total rural


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population are actively engaged in the AKRSP programmes) and in local,

financial resources mobilization (more than 118 million rupees have been

deposited through the rural saving programme)

Central focus and underlying processes

Institutional reforms have been introduced by establishing villageorganizations and enabling them to develop managerial and technical skill

to identify, plan, implement, and maintain rural development programmes in

a sustainable, equitable and productive manner,. One of the central and

unique focuses of the AKRSP has been on the effective mobilization of half

of the total population i.e. women in development activities through the

establishment of womens organizations.

The development process begins with the introduction of productive

physical infrastructure e.g. link roads, trails, bridges, irrigation, landdevelopment, etc. This is following by the

implementation of various productive farming activities e.g. crops, livestock,

forestry and other sideline activities based on the suitability of different

areas such as crop development in the valley and on gentler sloppy lands,

livestock at higher altitudes, orchards, pasture development of steep

slopes, etc

Individual components of the strategy

Diversification

Emphasis has been placed on improved livestock farming through

improved forage and fodder production and breeding. This system has

improved both the animal feed situation and soil fertility. Cultivation of cash

crops e.g. vegetables, dry fruits and cereal crops including potatoes have

been emphasized based on their comparative advantages. Potato seeds

produced in such a cool and pristine environment fetch a premium price in

the market. Agro-forestry and timber production are other important

activities. In forestry development, fodder tree plantation receives prime

consideration.

Intensification

Areas under double cropping are increased because of the introduction of

short maturity crops and an increase in areas under irrigation. Because of

the adoption of crops with high ratio of grains and crop residue, animal


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production is also intensified. Degraded land and other unutilized/or

abandoned lands are now being used for pasture and orchard.

ISSUES AND TRENDS

The stakeholders in their meeting desired that the background paper onAgriculture and Food Security beside s covering the stipulated objectives of

NACS should also serve as a reference for them. They desired an up to

date statistics, constraints that have hampered progress in their discipline

and re l e v a n t researchable themes to put them on the right track of

thinking for future progress. They wanted to use this opportunity for

administrative reforms and as a tool for the advancement of their career as

well. An isolated, neglected, suppressed and oppressed community of

scientists, researchers and field workers desired that theiraccomplishments should also be reflected in the paper. Consequently while

focusing on sustainable development of NA, conservation of bio diversity

and protection of environment paper was forced to digress and serve much

broader spectrum of interests than an ordinary background paper would do.

It surfaced that in the conservation strategy of NA perhaps human

happiness under the fast changing environment resource poor, unskilled,

uneducated, highly conservative society may be the most wanted element.

IUCN deserves credit for taking a note of it, although AKRSP has been in

the system for a long time.

Endangered Species

The human population explosion has led to unwise use of natural

resources at a rate much faster than their regeneration. Hilton Taylor

(2000) listed several threatened species on account of depletion of natural

resources that also occur in

Pakistan. Some of these also inhabit NA. These are(a) Mammals-snow

leopard, flare-horned markhor, Marco Polo sheep, Ladakh urial, musk deer,

brown bear, woolly flying squirrel, blue sheep, Hima layan bex(b) Birds-

snow cock, monal pheasant. Medicinal plants like kuth (Saussria lappa )

and Karru (Picrorhliza kurroa) are near extinction due to over harvest in

Astore, s alpine meadows.

Some areas of Gilgit and Diamir district are subject to heavy grazing and

fuel wood collection. These two activities pose a threat to many of the rare


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plant and animal species that inhabit places at different altitudes in these

two districts.

Degradation of Agra-ecosystems Homeostasis

In our efforts for enhancing agricultural production, we have introduced

high yielding crop, vegetable and fruit varieties, stepped up use offertilizers, pesticides, water regimes, intensive agriculture, etc. Agri-

ecosystem homeostasis is faced with degradative trends in the form of the

following:

Loss of topsoil

Loss of local crop varieties.

Loss of indigenous knowledge

Climatic change

Loss of soil's water holding, micro organisms and productivity capacityLoss of floral and faunal genetic diversity

Loss of adaptive capacity of mono cultural crops to changed environmental

conditions such as water stress, extreme temperature fluctuations,

changed intensity of sun light. Due to pollution, contamination and changed

food chain, fisheries are at risk.

Unplanned and over grazing has led to degraded pastures and breakdown

of sustained traditional grazing system.

The homeostasis of crop-human/animal- posture is at risk.

Lack of Awareness

Large numbers of development projects have been going on in G-B f o r

transformation of communities, improvement of agriculture and economic

conditions of population. Although people like the change for betterment of

their life, can identify plants and animals, they deal with, are aware of

habitat and seasonal history of many organisms in the villages and

accessible mountains, however, most of the people are unaware of the

value of these resources, and the consequences of their loss in terms of

biodiversity, environmental degradation and aesthetics. Unless and until

they are knowledgeable about the general fauna and flora the questions of

sustainability and conservation remain unattended. The possible

contribution of conserving biodiversity for economic development and


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poverty alleviation at the community level needs to be attended by

planners, policy makers, educationists, etc in the G-B.

Several NGOs, like World Wide Fund and IUCN have initiated awareness

campaigns, but these are limited in coverage vis--vis the task in the G-B.

Lack of Biodiversity Inventories and Monitoring Systems

Historically some information about wildlife, forests, fisheries and

agriculture has been collected by the concerned departments in G-B. Even

this is not readily available to everyone. There is no regular agency or

department to prepare inventories of flora, fauna and micro-organisms

occurring in G-B and to monitor the trends or displacement of the various

species. Because of difficulties in accessibility to rugged mountains, verylittle quantitative and even qualitative information about animals, plants,

arthropods, bacteria, fungi, viruses, and soil micro organisms is available in

published or even unpublished form. Therefore the genetic richness,

resource sharing ability in diverse ecological habitats and impact of human

activities and interventions has remained and is still a neglected aspect.

Therefore, whatever efforts are made for natural resources conservation

will lead to partial achievements. Likewise without a regular monitoring

system, proper assessment of trends becomes impossible. Only guest

mates come to our rescues.

Institutional Capability, Capacity and Resources

The departments of agriculture, fisheries, forestry and livestock are

responsible for sustainability, conservation and management of

components of biodiversity in G-B. However, by nature of their training

there is generally a lack of conservation attitude. The employees of these

departments mostly adhere to concepts of exploitation of resources for

economic benefits and satisfying human needs. It is also partly true thatfunds, transport for mobility, equipment and on the job training for

enhancing their capability and capacity to meet the challenges under the

changing environment is lacking. To most employees, concepts of

conservation biology, carrying capacity of different habitats, sustainable


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productivity, species displacement, etc are not known. Perhaps roster of

their duties needs redefinition to suit the modern requirements.

Another setback in the G-B is, there is no researches as for as most

departments are concerned. They consider policing the resources their

prime job and are least bothered even if the entire resource is eroded.Agencies such as IUCN, WWF,

AKRSP and Himalayan Wildlife Foundation (HWF) have taken up steps to

promote concepts of conservation and sustainable use of biodiversity. This

will change the style of management of natural resources and lead to

critical assessment of trends, which are virtually non-existent now.

Gaps in Knowledge

The biological, ecological, physical and even cultural diversity of NA hasremained un-mapped. Sporadic, site specific and development oriented

efforts have provided us with only check lists. Many of these are just

extrapolations by knowledgeable persons. Some of the taxonomic and bio-

geographic information about mammals and birds are available in the

works of Schaller (1977), Robberts (1991, 1992 and 1997) and a recently

published report (2000) of floral and faunal joint expedition of the Oxford

Univ. Museum and Pakistan Museum for Natural History. Very little is

known about amphibians, reptiles and fishes. The role of many of these

taxa in the sustainability and productivity of agriculture and food security

remains obscure. Even the existing associations between various biological

taxa and the benefits of their interactions in terms of pollination of crops,

changes in the soil texture, recycling of organic matter to enrich the soil

fertility, are as less known as are the indigenous races of crops, fruits and

vegetables.

Laws in Gilgit-Baltistan

In general there are various acts and rules in G-B to protect and safeguard

the diversity of wildlife, fisheries and forests. This is however not linked to

quarantine laws but is done through policing. There are limited staffing and

resources available to departments in G-b. These short comings have led

to inadequate protection of species, in sufficient safeguarding against

degradation and destruction of habitat, weaken forcemeat of laws, low

public awareness, lack of coordination between various agencies, lack of


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involvement of local communities in migrating threats to these resources.

Most new initiatives diverge from traditional approach of policing natural

resources and alienating local communities who traditionally depend on

these resources to meet their subsistence needs

A number of organizations have been active in promoting participatoryconservation and sustainable development in G-B. The organizations

include Aga

Khan Rural Support Programme (AKRSP) IUCN, WWF and Himalayan

Wildlife Foundation (HWF).

Side Effects of NGOs Activities

The primary objective of AKRSP is to improve the lives of mountain people

by mobilizing local communities and implementing sustainabledevelopment agenda.

AKRSP covers almost entire NA and operates through 1592 Village

Organizations (VOs) and 930 Women's Organizations (WOs) for continuity

of their program. Its programs /projects/ initiatives have also contributed to

raising environmental conservation awareness among the masses. Its

activities like development of land for agriculture, forest plantation,

collaborative management of fisheries, and irrigation system at a level

lower than the irrigation channels have provided new niches and added

advantage to several faunal taxa. Shifting of agricultural associated seed

and foliage eating insects, birds and small animals to abodes has been

made possible by such activities Likewise the infrastructure established by

AKRSP has also helped in operations of other NGOS, like IUCN, WWF &

AWP. AKRSPs initiative to establish Women's Organizations is a step

towards gender integration.

Case Study:

We have taken some similar case studies from Africa and South Asia were

they have focused more on Human capital which resulted in Economic

development and it helped them in diversifying their livelihoods. Health and

education are both components of human capital and contributors to

human welfare. One index of human welfare, which incorporates income,


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education and health, shows that Africas level of human development is

the lowest of any region in the world. In this paper we will frequently

compare Africa with South Asia so we can clearly understand the role of

Human capital in economic development. . While Africas level of human

development is lower than that of South Asia, its per capita income ishigher. Africas poor economic performance has been most marked in its

growth rate which has been half that of South Asia. As Africa has found

since 1980, slow economic growth severely limits the ability of

governments and households to fund further investments in health and

education. Low investments in human capital may impinge on already low

growth rates of income. Such interrelations might be thought to imply a

vicious circle of development, but this should not be overstated. Poor

countries have considerable discretion over how much to invest in health

and education. Since Independence, Africa has achieved a rapid growth ofsome aspects of human capital - particularly in the expansion of education -

despite starting from a low level of income. The expansion of the human

capital stock has not been matched by a commensurate rise in physical

capital. The result has been low growth of incomes and low returns to the

educational investment. This paper provides an overview of Africas

achievements in the formation of human capital, and its impact on

economic growth and welfare. Human capital, economic growth and

welfare are closely interrelated.

Education, good health and longevity are intrinsically valuable outputs. Inconventional measures of economic output, health and educations

contribution is measured essentially by the costs of producing the

outcomes, ie expenditures on schools and medical facilities. Such a

procedure identifies inputs rather than outputs. The valuation of both health

and education is difficult as both are goods with attributes different from

most types of goods produced in an economy. Whilst high incomes may be

conducive to health, health cannot be directly purchased like material

goods and services. Health and education are often subsidized by the state

and in some countries education is compulsory for certain minimum lengthof times. Many, if not most, health and education services are produced by

the public sector. Governments play a direct part in providing services very

directly linked to human welfare.

The UNDP has developed a composite indicator, the human development

index (HDI), which gives equal weight to three indicators: real GDP per

capita (measured at purchasing power parity in constant prices); life


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expectancy at birth; and educational attainment, measured by adult literacy

(two-thirds weight) and combined primary, secondary and tertiary

enrolment ratios (one third weight) (see UNDP, 1997, p122 for details). The

index is valuable in extending the economic concept of welfare, but for

many purposes it is more useful to focus on the individual components ofthe index than the index itself. Africa has performed very differently in each

of the three dimensions of the welfare and the dimensions are not

independent.

The most recent UNDP Human Development Report shows that Africa has

the lowest level of human development of any region but its income per

capita is higher than that of South Asia.

In what follows, we often compare Africa with South Asia. This comparison

provides a useful benchmark, since South Asia is the region most similar to

Africa in terms of income and overall development. For example, it isinstructive to consider why Africa has a lower HDI than South Asia despite

having higher income. The proximate cause is the relatively low life

expectancy at birth of Africans.

Effects of education upon health and nutrition

One indirect effect of expenditure on education may be its effects on

health. Within developing countries, the children of educated parents face

lower risks of premature death. This is apparent from analysis of both the

World Fertility Surveys and the subsequent Demographic and Health

Surveys (Hob craft, 1993). Parental education is also associated with betterchild anthropometric status (weight and height), although the association is

less marked than that with mortality. However, in socio-economic surveys,

educated parents are often more likely to report that their children have

been ill. This suggests that educated parents are better at recognizing

medical problems in their children.

Part of the association between parental education and child mortality may

work via household income. However, the independent impact of education

in models which carefully control for income shows this cannot be the only

transmission mechanism. Indeed, many studies have found education tohave a stronger direct effect on child health than income. The direct effect

of education may be informational. In Uganda, recent work found educated

mothers to be better informed about various diseases and that such

information was strongly associated with lower child mortality

(Mackinnon,1995).Similarly, in Morocco, mothers education appears to

improve child anthropometric status by providing cognitive skills which


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increase knowledge about health (Glewwe, 1997). In Cte dIvoire and

Kenya, educated mothers are more likely to send sick children for

treatment (Appleton, 1992).

Effects of education upon fertilityWhether and how government policy should affect fertility is a controversialethical issue. However, the UN International Conference on Population andDevelopment in Cairo in September 1994 highlighted the importance ofenhancing female education as part of a successful population policy. Moreeducated women commonly tend to have smaller families, although this isless marked in Africa than elsewhere.Perhaps the best evidence on the relationship between fertility and femaleeducation in Africa is that provided by the Demographic and HealthSurveys (DHS) carried out in the late 1980s. Women with primary

education tend to have fewer children in most countries, but therelationship is weak. By contrast, women with post-primary education havemarkedly fewer children. These associations persist even after controllingfor other variables (Ainsworth, Beegle and Nyamete, 1995)9. In half of thecountries, there was no significant association between primary educationand fertility after controlling for income, age and a few other variables. Forthe other half of the countries, there was a significant negative relationshipbut it was less strong than with secondary schooling. By contrast, therewas a universally negative relationship between fertility and female

secondary schooling.The effects of higher secondary schooling (11 years of schooling or more)

were 2-4 as large as those of lower secondary schooling. Husbands

education also had a negative effect on fertility where it was significant,

although the effect was weaker than that of wives education. Education

appears to reduce fertility more in the DHS data than in the earlier World

Fertility Surveys carried out in the late 1970s (see UN, 1987). Although this

may partly be accounted for by methodological differences in the data

analysis, this seems to reflect a genuine change over time. In particular,

amongst women in the older cohort (aged 35 and over) of the DHS,schooling of less than eleven years was seldom associated with lower

fertility.

The associations between female education and fertility are likely to be, at

least partly, causal. Educated women may be able to obtain higher wages,

increasing the opportunity cost of time spent rearing children. They may

also have a preference for more educated children, making it more


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expensive to have large families. Education may also change knowledge of

and attitudes towards the use of modern contraception. However, there is

simultaneity between female education and fertility. In most countries,

child-bearing and school attendance are incompatible, so girls face a

choice between staying on at school and marrying young. This may partlyexplain why higher secondary schooling has such a large impact on fertility,

since the age of students often coincides with the typical age at marriage in

many African countries.

Poverty and Human Resources

Poverty can prevent households from making high return investments inthe human capital of their children. The poor may not be able to spare theirchildren - particularly their girls - from household work in order to go toschool. A study of gender differences in performance in the primary-leavingexamination in the Cote dIvoire found that the difference arose due to theunder-performance of girls from poor households. This may reflect thedemands on the time of girls in poor households. In their last two years ofprimary school, girls from the poorest 25% of households reportedspending 16 hours a week in school and 15 hours on housework; in themost affluent 25% of households, the figures were 27 hours and 7 hoursrespectively (Appleton, 1995a). Poor households may also not be able toafford the monetary costs of health care and education. These costs mayhelp explain why the benefits of post primary schooling accrue mainly tothe non-poor. A beneficiary assessment of social sector spending in

Tanzania found the poorest and most affluent quintiles received 19% and18% respectively of expenditure on primary schooling; but for secondaryschooling, the poorest received only 8% and the most affluent received36%. All university expenditure was estimated to accrue to the richest 20%of the population (World Bank, 1995). However, non-monetary factors arealso important: lack of parental education is often found to be more criticalthan a lack of income per se in determining child health, performance atschool and eligibility for post-primary education.Household surveys provide useful evidence on the distribution ofinvestments in human capital. For example, survey data for Cote dIvoire in1985 showed net primary school enrolment rates for boys to be 32%amongst the poorest 10% of the population but 66% amongst the non-poor(defined as the top 70% of the population. For girls, the correspondingfigures were 22% and 54%. Interestingly, girls from poor householdsappear to have suffered more from the countrys economic decline in the1980s: by 1988, net primary school enrolments for girls in very poor


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households had declined to 17% whilst amongst the non-poor they hadrisen to 57%. Male primary school enrolments rose in non-poor householdsand remained constant in very poor ones. Poverty was also stronglycorrelated with use of curative and preventive health care, although heregender differences were less marked. In 1985, 31% of very poor malesconsulted a doctor or nurse when sick; amongst the non-poor the figurewas 51% (Grootaert, 1994). By 1988, the inequalities had widened, with thecorresponding proportions being 19% and 53%.Poverty profiles of African countries invariably find rates of poverty declinesharply with the education of the household head. For example, in Nigeriain 1992, 39.5% of people in households with uneducated heads were poor;for those living in households with secondary school educated heads; thepoverty rate was only 23% (World Bank, 1996). Education reduces povertypartly by giving access to high return formal sector employment and to

higher wages within such employment. However, there is evidence thateducation and nutrition also raise productivity in farm and non-farm self-employment, activities in which the poor are concentrated.Effects of education upon child schooling and cognitive developmentChildren are typically more likely to go to school if their parents areeducated. They also tend to perform better in school and in some casesmay earn higher incomes in adulthood. For example, a study of Kenya andTanzania compared the probability of manufacturing workers havingcompleted lower secondary schooling as a function of the education of theirparents. In Kenya those entering school around 1960 were predicted tohave a 21% chance of completing lower secondary if both their parentswere uneducated and an 83% chance if one of their parent had at leastsecondary education and the other at least primary education. The figureswere similar Tanzania. Since most secondary schools at that time werestate schools, where access was rationed by performance in the primary-


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Sustainable Livelihood Framework of Hunza


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SUSTAINABLE LIVELIHOOD APPROACH (SLA)

CONTEXT LIVELIHOOD

RESOURCES

INSTITUTIONAL

PROCESSES &ORGANIZATIONAL STRUCTURES

LIVELIHOOD

STRATEGIES

SUSTAINABLE

LIVELIHOODOUTCOMES

Policy:Explorationof the policycontext andthe waypolicies areimplementedis crucial and

highlylivelihoodspecific.Are weinquiring intothe effects ofanoverarchingpolicy, suchas pro poorgrowth, or of

measurestargetingpoverty moredirectly, e.g.,services likerationschemes? Itcan bebeneficial toreview bothsupporting

andconstrainingpolicies.

History:Hunza is oneof the mostbeautifulareas of the

NaturalCapital:Natural capitalis the termused for thenaturalresourcestocks from

whichresourcesflows andservices (suchas land, water,forests, airquality) usefulfor livelihoodsare derived.People ofHunza haveinherited landfrom theirforefathersand on thisland theycultivatedifferent kindsof crops whichthey selldomesticallyand also atnational level.It especially isimportant forthose whoderive all orpart of theirlivelihoodsfrom natural

In livelihoodframeworks"institutions"embrace twoimportant elements:on one hand, therules and normativeframe conditions

that govern socialinteractions; on theother hand, the waythat organizationsoperate in both thepublic and privatesector, on thebackground ofexplicit and implicitvalues. Politicalparticipation,market systems,concepts of socialorders (such ascastes, clans, etc.)belong to this fieldof investigation.In Hunza still thereare not stronginstitutions thatwould govern theirlives and regulatetheir development.Hence, the processof development sofar is haphazard,uncontrolled at bestand directionless atworst.NGOs played vital

AgricultureExtensification &IntensificationSome NGOs

Worked onirrigationsystem andalso on

Agricultureextensificationandintensification.in Hunza. Theinterventionimprovedlevels ofproductivity,

employmentand incomeResulting fromirrigation iswidespread.irrigationdevelopmentalone, confirmthat highervalue crops,higher yields

and the moreintensivecultivationtechniqueslead to higher,less risky andmorecontinuous

Livelihood:

Achievements(results) oflivelihoodstrategies Outcome

categoriesMoreincome

Increasedwell-being

Reducedvulnerability

Improvedfood security

Moresustainableuse of thenaturalresource base Conflictbetweenlivelihoodoutcomes

When

increasedincome forparticulargroups isobtainedthroughpractices that


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world withfertile land,orchards,forests andlivestock and

a greatculture.People ofHunza havehistoricallybeenmarginalizedpolitically,socially andeconomicallyby the

dominantpowers ofFederal. Asa result theyhave hadlittleinvolvementwith, orcontrol over,national-leveldecisions.

Macro-economicconditions:In mostmountaincommunities,traditionalforms ofbartering

have givenway tomonetaryexchange.

Much of aperson'seconomic

resourcebasedactivities, andparticularly forpoor farmers

and herders.In moregeneral terms,good air andwater quantityand qualityrepresent abasis for goodhealth andother aspectsof livelihood.

Natural assetssuch asclimate andecosystems,largelydetermine thevulnerabilitycontext of poormen andwomen. Thevulnerability

context isshaped bytrends (think ofpopulationincrease),shocks (likedroughts,floods anddisease) andseasonality(dry and wetseason).Water is thekey naturalresource inlivestockproduction. Itis consumeddirectly as

role in SocialMobilization.There is much thatcan be done. Inmodern societies

higher educationand skill-basedtrainings hasbecome aninevitableprerequisite foreconomic growthand development.

levels ofRuralemploymentand income,for both farm

families andlandless labor.Livelihooddiversification

MigrationMigrationforms acentralcomponent of

livelihooddiversification.In Hunza forexample,migration iswidespreadand it is linkedto incomegenerationStrategies. Ithas been seen

how migrantremittancesmay relieverural creditconstraints,the particularimportance ofmigration tothose livingin poor agroclimatic

conditions. Inthe past someresearchershave pointedout theimportance ofmigration inproviding

aredetrimental tothe naturalresource base

Closerelationshipbetweenlivelihoodoutcomes and

Assets, withthese linkedthroughlivelihoodstrategies.

The capacity ofthe national andregionalstakeholders indealing withlivelihooddevelopmentand theprotection of theenvironment inHunza it

enhanced.Incomegeneration andresilience ofpeople in Hunzais improvedthrough capacitybuilding, theunlocking ofnew livelihoodopportunities

and bypromoting moreequitableapproaches intheInstitutional set-ups.


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value to ahousehold isincreasinglydefined bythe amount

of cash thathe or shecan bring in.

Climate:In the risk-proneenvironmentof themountains,full of

uncertaintyand diverseagro-ecologicalconditions,farmers mustmaintain acarefulselection ofcrops, plantsand livestock

varieties thatare welladapted totheir harshenvironments, demandfewresourcesand providesecurityagainst risks.

Livelihoodstrategiesdependlargely onthe wisemanagementand use of

drinking waterand indirectlythrough feed.The naturalresource

stocks (soil,water, air,geneticresources,etc.) andenvironmentalservices(hydrologicalcycle, pollutionsinks, etc.)from which

resource flowsand servicesuseful forlivelihoods arederived.Hunza is richin naturalresources likeprecious gemsand someoneof the people

sell rely ontheseresources forlivelihood andthey somemerchantsalso exportthese gemsand earn highprofits whichhelps them tobuild theirassets and orto diversifytheir livelihoodstrategies.

Economic

much neededresources forinvestment inrural

production.

Sustainability:

SustainableLivelihoodsapproaches

provide aframework foraddressingpoverty andVulnerability inbothdevelopmentandhumanitariancontexts. Theyhave emerged

from thegrowingrealization of theneed to put thepoor and allaspects of theirlives and meansofliving at thecentre ofdevelopment

andhumanitarianwork, whilemaintaining theSustainability ofnaturalresources forpresent andfuturegenerations.This willresult in theimplementationof adequatepolicies andpractices relatedto sustainabledevelopmentand


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diversegeneticresources.

Social

differentiation:the relativelyegalitarianexamples ofgenderrelations insometraditionalmountain

societieswithBuddhist oranimistbeliefs arebeingtransformedby theprevailingvaluesbelonging to

lowlandreligious,nationalisticand culturalparadigms.

Some ofthese newvalues comefromWesterninfluences,some fromregional pan-South Asianinfluencesand somefromdevelopment

orfinancialcapital:

An average

Hunzukutz,whether heworks or earnsfrom any othersource, is richbecause of thevalue of hisproperty likehouse,orchard andlivestock. If

calculated, theaverage worthof suchcommoditiesreaches themillion figures.The availabilityof cash orequivalent thatenablespeople to

adopt differentlivelihoodstrategies isfinancialcapital. Twomain sourcesof financialcapital can beidentified as:

- Availablestockscomprisingcash, bankdeposits orliquid assetssuch aslivestock and

jewellery, not

conservation ofthe environmentin the context ofsocioeconomicand climate

change.

Sustainedmanagement ofEcosystemassets, includingbiodiversity,land and waterresources,forests,rangelands, and

the relatedservices,notably byclosely involvinglocalcommunities.


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paradigmsthemselves.The marginalstatus ofmost

mountainsocietiesmakesresistance tomorepowerfulforcesdifficult, andthe processofmainstreami

ng mountaincultures intonationalidentitiesmay negatethe strongerpositions ofwomen fromthesetraditionalcommunities.

havingliabilitiesattached andusuallyindependent

on thirdparties.

- Regularinflow ofmoney(conventionalpovertyindicator ofless than onedollar a day)

comprisinglabour income,pensions, orother transfersfrom the state,andremittances,which aremostlydependent onothers and

need to bereliable.

Humancapital:Human capitalin Hunzarepresents theskill,knowledge,ability tolabour andthey have theirown farms andeat healthyfood andenvironment isclean and


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friendly so theenjoy goodhealth thattogetherenables

people topursuedifferentlivelihoodstrategies andachieve theirlivelihoodobjectives.

At thehouseholdlevel it varies

according togender, age,householdsize, skilllevels,leadershippotential,health status,etc. andappears to bea crucial factor

in order tomake use ofany other typeof assets.

Socialcapital:The socialresources(networks,social claims,socialrelations,affiliations,associations)upon whichpeople drawwhen pursuing


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differentlivelihoodstrategiesrequiringcoordinated

actions.In Hunza thereis only onecommunityliving theyhave their owncommunitycenters wherethey gather formutualbenefits.

Physicalcapital:

An averageHunzukutz,whether heworks or earnsfrom any othersource, is richbecause of the

value of hisproperty likehouse,orchard andlivestock. Ifcalculated, theaverage worthof suchcommoditiesreaches themillion figures.


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APPROACHING LIVELIHOODS WITH A

THREEFOLD FOCUS


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HUMAN CAPITAL

Human capital in Hunza represents the skills like hand weaving,

embroidery, carpet and rug making, gems cutting, handicrafts and so

on. Knowledge includes traditional farming techniques and as well asmodern farming techniques. Human capital in Hunza represents the

skill, knowledge, ability to labour and they have their own farms and

eat healthy food and environment is clean and friendly so the enjoy

good health that together enables people to pursue different livelihood

strategies and achieve their livelihood objectives.

At the household level it varies according to gender, age, household

size, skill levels, leadership potential, health status, etc. and appears

to be a crucial factor in order to make use of any other type of assets.

As they live in capacity to work and good health that together enable

people to pursue different livelihood strategies and achieve their

livelihood outcomes. Human capital is important in its own right;

health, knowledge and skills help create sustainable livelihoods.

Human capital is also necessary to be able to make use of the other

five types of assets.

SOCIAL CAPITAL

The social resources (networks, social claims, social relations,affiliations, associations) upon which people draw when pursuingdifferent livelihood strategies requiring coordinated actions.

In Hunza there is only one community living they have their owncommunity centers where they gather for mutual benefits.

Social capital in Hunza is defined as the social resources uponwhich people draw in pursuit of their livelihood objectives. Thesesocial resources are developed through (1) interactions thatincrease people's ability to work together, (2) membership ofmore formalized groups governed by accepted rules and norms,


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(3) relationships of trust that facilitate co-operation, reducetransaction costs and can provide informal safety nets.

Social Organisation & Collective Action

As the building blocks for development in Hunza, AKRSPprovided the quintessential model for social mobilisation andcommunity participation. AKRSP and KIDP helped create grassroot institutions called Village Organisations (VOs) that becamethe vehicle for development at the village and valley levels


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NATURAL CAPITAL

Natural capital is defined as the term used for the natural resourcestocks (e.g., land, water, forests, clean air, and mineral resources)

upon which people rely. The benefits of these stocks can be direct andand/or indirect, and they are tightly linked with property and userregimes.

PHYSICAL CAPITAL

Physical capital in Hunza comprises the basic infrastructure andphysical goods that support livelihoods. Infrastructure consists of

changes made to the physical environment that help people to meettheir basic needs and to be more productive.An average Hunzukutz,whether he works or earns from any other source, is rich because ofthe value of his property like house, orchard and livestock. Ifcalculated, the average worth of such commodities reaches the millionfigures.

FINANCIAL CAPITAL

An average Hunzukutz, whether he works or earns from any othersource, is rich because of the value of his property like house, orchardand livestock. If calculated, the average worth of such commoditiesreaches the million figures. Financial capital is defined as the financialresources that people use to achieve their livelihood outcomes. Mostof the people in rely on agriculture and services for their livelihood andthey save the surplus liquid cash in bank for future shocks. These areresources in the form of available stocks and regular inflows of money(for example, livestock and the related flow of income).

POLITICAL CAPITAL

Political capital is the power and capacity to influence politicaldecision-making through formal and informal participation and/or


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access to political processes. It therefore includes the ability torepresent oneself or others, the freedom and capacity to becomecollectively organised to claim rights and to negotiate access toresources and services. It also extends to the right to hold

government and service providers accountable for quality andaccess.

APPROACHING LIVELIHOODS WITH A

THREEFOLD FOCUS

Focus I is on the four key elements in the context of a livelihoodsystem. Focus II and III concentrate on the core of a livelihood

system. While focus II is on the asset portfolio, focus III

concentrates on the decision making space in which people

develops and/or adapt their livelihood strategies and strive for

outcomes with their own perception of inner and outer realities of

their livelihoods. External support becomes meaningful, if they

succeed in improving their livelihood strategies towards more

sustainability.


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FOCUS I: ANALYSING THE CONTEXT OF A LIVELIHOOD

SYSTEM


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Focus I, represented graphically above, invites exploration of four

crucial dimensions of the context of a livelihood system. Four key

questions are used to address these dimensions.


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RISKS AND VULNERABILITY: WHAT RENDERS

PEOPLE'S LIVELIHOODS VULNERABLE?

Risks and shocks, adverse trends and seasonality have a bearingon people's livelihood. Yet, a livelihood becomes truly vulnerablewhen it lacks adequate coping or adapting capacities on themicro-level of livelihood. The level of these capacities is exploredwith Focus II (asset portfolio) and Focus III (livelihood strategies).These two focuses help to clarify the following question: "Shouldthe poverty reduction measures tackle an observed risk andreduce an assessed vulnerability in the context of poor people'slivelihood, or should they target the core of livelihood and aim to

increase people's coping capacity?"

LIVELIHOOD STRATEGIES

Agriculture Extensification & Intensification

Some NGOs worked on irrigation system and also on Agricultureextensification and intensification in Hunza. The interventionimproved levels of productivity, employment and income.

Resulting from irrigation is

Documents

Human Capital impact on livelihoods of Hunza