Conceptualising Livelihoods of the Extreme Poor

This paper argues that the conception of the 'extreme poor' in development literature has emerged from an analysis that is primarily based on economic indicators such as income and consumption.

The paper observes that in the context of Bangladesh:

• The concepts of social exclusion and vulnerability are linked with other concepts;
• There is a co-relation between poverty, social exclusion and vulnerability;
• The major issues related to the livelihoods of the extreme poor include:
  • Social injustice and insecurity;
  • Female-headed households;
  • Calamities and coping with these;
  • Social network;
  • Migration and remittance;
  • Labour market;
  • Policy and institutions;
  • People's perception of extreme poverty.

Further, the paper identifies some new dimensions of exclusion and vulnerability, such as:

• Social exclusion inhibits the access and active participation of the extreme poor;
• There are variations of exclusion and vulnerability for different groups;
• Coping with vulnerability is easier for those among the extreme poor who have access to any type of asset;
• Social exclusion and vulnerability function as both the cause and the effect in creation and re-creation of poverty;
• One sudden shock can create vulnerability, and in the long-term, can make people 'excluded.'

Finally, the paper states that the concept of 'extreme poor' can be seen from different angles, and is linked with other development concepts.