NZAID Tools Analytical Tools 

Sustainable Livelihoods Approach

How do you use the Sustainable Livelihoods Approach?

The SL principles are ones that are basic to good development practice and should be applied in the identification, design and appraisal of livelihood programmes and projects. General guidance on the application of the SL principles is given in Annex 2: Application of the Sustainable Livelihoods Principles and key questions for SL analysis are given in Annex 3: Key Questions for Sustainable Livelihoods Analysis.

There is no specific ‘right’ way of applying the sustainable livelihoods approach and nor does it come with its own exclusive ‘toolbox’. Rather livelihoods analysis should draw upon, and flexibly combine, a variety of existing perspectives, analyses and methods to meet the breadth and depth of analysis required for a particular situation.

An example of a process for the undertaking of practical livelihoods analysis is given in Annex 4: A Process for Practice Livelihoods Analysis. Potential approaches and methods that can be drawn on for initial or more in-depth livelihoods analysis include:

• participatory methods. See Annex 5: Participatory Methods for Livelihoods Analysis
• stakeholder analysis. See NZAID Logical Framework Approach Guideline
• gender analysis. See NZAID Gender Analysis Guideline
• institutional analysis. See NZAID Logical Framework Approach Guideline
• value chain² analysis
• cost benefit analysis
• environmental assessment

Challenges and lessons in using the sustainable livelihoods approach are summarised in Annex 6: Challenges and Lessons in using the Sustainable Livelihoods Framework.

For guidance on how to best tailor a livelihoods analysis to a particular context, or more information on the process and specific steps for practical livelihoods analysis, contact the relevant NZAID Advisor.

² The value chain describes the full range of activities which are required to bring a product or service from conception, through the intermediary of production, delivery to final consumers, and final disposal after use.