CAP Influence on Rural Households Livelihood Strategies

Dimitar Nikolov, Minka Anastasova, Teodor Radev

Abstract: A livelihood strategy can be defined as a portfolio of activities and choices that people make to achieve their livelihood outcomes, including productive activities, investment strategies, reproductive choices, etc. These activities and choices are reflected in the way that people use their capital assets and as such are an important part of household behaviour. The decision making process underlying livelihood strategies, is sometimes regular and seasonal, and sometimes occasional and unexpected. This concept also stresses the importance of reducing vulnerability, enhancing environmental sustainability, and building on local strengths and priorities. It recognizes that rural households are active agents of change and pursue a range of livelihood strategies. The article used the results of the survey conducted within the Project “Assessing the multiple Impacts of the Common Agricultural Policies (CAP) on Rural Economies” (CAP-IRE) funded under FP7. The aim of this paper is to analyze and examine the impact of the development of CAP based on analysis of livelihood strategies of rural farm households. The ways (strategies) of making a living depend on the means. These are summarized in the so-called capital asset pentagon, or, as some call it, the livelihood platform. The capital assets normally mentioned for rural livelihoods are: physical capital, natural resources, fnancial capital, human capital and social capital. The analysis of the impact of CAP on the livelihood strategies of rural agricultural households was conducted in three areas: management of production factors in terms of own and rented arable land - natural resources, an analysis of employment - human capital and social capital. Livelihood outcomes result from livelihood strategies. Despite the declining share of employment in agriculture, agriculture remains an important source of income for many rural households, particularly in the poorest and most underdeveloped regions of new EU Member States. In this sense, the CAP impact on livelihood strategies of rural households.

Keywords: CAP; livelihood strategies; rural households

Date published: 2018-01-19