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The IUP Journal of Applied Economics
Changing Pattern of Rural Livelihood Opportunities and Constraints: A Case of Orissa, India
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This paper makes an attempt to understand the changing pattern of rural livelihood in the state of Orissa in India. The study reveals that the nature of diversification of household incomes is a consequence of both diversification of activities among different members of the household, and multiple activities of a single member. Further, agricultural labor as a livelihood option of rural workforce is losing its importance at a faster rate than any other option, and the rate is faster in case of female workers compared to the male workers. The greater association of female workforce and the linkage of farm and non-farm activities, level of development and accessibility are intertwined in propagation of the non-farm economic activities in the state. It is the manufacturing activity in the non-farm sector that has absorbed the maximum number of rural female workers, non-farm sector have attracted the female labor force more towards the non-farm sector; however the participation rate of female labor force is very sluggish and confined only to the construction and manufacturing sectors. In terms of livelihood constraints in the rural economy of Orissa, finance is one of the most powerful constraints faced by the rural households in accessing the livelihood options in general, but it is more powerful with respect to accessing the non-farm activities.

 
 

Livelihood options are quite diversified and they vary over the space, in rural areas. It is mainly the household's income, asset base, education, skill, influential contact, mobility and credit access, which determine which type of livelihood option is undertaken by the households. It is however apparent that livelihood options are driven by two factors, the `demand pull' and `distress push'. In the former case, the household tries to go beyond mere consumption and livelihood, rather it responds to new opportunities. While want of adequate on-farm opportunity, inadequate farm output, land constraints, risk of farming, lack of irrigational facilities and lack of marketing linkages for agricultural produces are the important factors, which partly drive the poor households to seek non-farm employment. In most developing countries, the drawback in the operation of the dual sector approach is reflected in the adverse terms of trade, and realizing the problem of unemployment and livelihood in rural areas, there is high incidence of out-migration of rural labor force to urban areas in search of employment and avenues of income.

Considering the limited capacity of the agricultural sector in providing gainful employment to the increasing rural labor force and sustainable income to the farming households, it would be necessary to initiate suitable environment in exploring the potential non-farm economic activities. The diversification and growth pattern of different non-farm activities are directly or indirectly influenced and determined by various fundamental factors across the region. The structure and growth of these activities tend to vary according to the socioeconomic characteristics of households and the locational characteristics of the non-farm units. However, the overall contribution of different non-farm activities, have provided employment opportunities to the labor force, as a result of which the pressure on agricultural land and the problem of unemployment have reduced. A large body of literature also argues that the occupational shifting of rural households is seen to be more in favor of non-farm economic activities. Further, a mixed response has been observed that these livelihood options are associated with casualization of labor and are driven by the seasonal and temporary rural-town and rural-urban migration. To understand the changing pattern of the livelihood options and challenges in the context of India or any specific state, we need to browse through the large pool of literature in this field.

 
 

Applied Economics Journal, Rural Livelihood Opportunities, Agricultural Labor, Manufacturing Sectors, Agricultural Sectors, Socioeconomic Implications, Literature Review, Rural Economy, Political Economy, Non-Farm Employment: Trends, Farm Technologies, Human Capital Endowment, Natural Resources, Modern Manufacturing, Migratory Labors.