Natural Capital

Natural capital, probably the most important of all the capitals after human capital represents all the natural resource stocks which serve as source to materials and services that are critical for livelihood (DFID, 1999, p.11). There are different elements that constitute natural capital which can either be intangible elements such as air quality, storm protection, and tangible elements like Land, forests, marine/wild resources, water among others (ibid).

According to DFID (ibid), there is a strong linkage between natural capital and

“vulnerability context” in the context of sustainable livelihood. DFID (ibid) argues that, shocks (flooding, drought, earthquakes) which leads to vulnerability of the livelihoods of the poor are all as result of one way or the other a natural developments which depletes natural capital where the shock may occasion seasonal production as the natural capitals changes in value at certain periods within the year or over the year.

Natural capital is indispensable to individual and groups whose livelihoods are all or partially come from works such as fishing, farming, mineral extraction and so on which are in fact resource-based activities (ibid). The survival of all human beings is significantly connected with the services derived from the environment and food

production from natural capital and it is worthy to note that for example the poor quality of say air might affect human capital where health is one of the elements. This is so because as human beings, the state of our health and well-being depends on existence and functioning diversify bionetwork (ibid).

Building and sustaining the natural capital of the poor is important whiles in the past years the focus of attention of donors concerning rural development was on only building (ibid).

This according to DFID (ibid) did not help in looking at how natural capital is exploited, combined with the remaining assets in order to achieve a sustainable livelihood. The sustainable livelihood concept in building natural capital takes a holistic look at people and comprehend the key structures and processes in coming up with how natural capital is used and its worthiness (ibid).In this regard, there is the need to provide both direct and support in order to promote natural capital under the sustainable livelihood concept where the former has to do with promoting/protecting resource conservation and biodiversity, provision of services/inputs for agricultural, forestry and fishery activities, and the latter is connected to making changes in institution(s) that manages and control access to natural resources, supporting the market chain to increase the value of natural resources, and legislations law enforcement to protect natural resources (ibid).

Analysing natural capital is imperative especially in promoting the sustainable livelihood concept. The existence of natural assets though is important, it will be a mirage if we fail to assess how accessible, quality and the way other natural assets are put together and their contributions in terms of value seasonally (ibid, p.12). According to DFID (ibid) when analysing natural capital, it is salient that one finds out long-term development in quality and use of natural resources taking into account the following typical issues:

identify groups and the type of natural resources they have access to; how did they come have access to the natural resources (e.g. private ownership, rental, common ownership etc.); multi-usefulness of the resources; the level of unevenness in quality of resource;

external effect on resources (how the activities of other users impact on the resources);

the existence of technical know-how to improve productivity; mitigations over natural resources; and productiveness of the natural resources.

According to Bosompem et al. (2011, p.7), under the cocoa high technology programme (CHTP) to promote sustainable livelihoods of cocoa farmers in Ghana has resulted in positive impact of all the four components mentioned under the natural capital. In ranking

the perceived impact of the CHTP on cocoa farmers in Ghana, natural capital which was based on increase in yield, increase in yield per unit area, increase in yield per unit cost of inputs, and better quality of cocoa beans came first (ibid, p.9).

An estimation of 10 000 hectares of forest lands have been reclaimed under the Lempira Sur project in Honduras where activities such as “slash-and-burn agriculture and cattle ranching led to a rapid loss of soil fertility” (Neel et al., 2004, p.14). Not only has the Lempira Sur project led to reforestation, it has also helped in the prevention of water bodies been dried up (water retention) in the area (ibid).

UTZ certified impact report (UTZ, January 2014) under good agriculture practices programme (GAP) gives a very good account on how the programme has contributed to the sustainable livelihoods of cocoa, coffee and tea farmers in over fifteen countries across the continent. According to UTZ (January 2014, p.27) through its certification under GAP, farmers are now more aware of the relevance of saving water and efficient management of water. Findings about the impacts of the certification shows that 82% of the farmers under the GAP have improved their knowledge management techniques which includes preventing water contamination by establishing buffer zones between water ways and their farmlands.

In Uganda, the Esco organic cocoa and vanilla projects according to Barry Callebaut (undated, p.22) has led to planting of trees to serve shades for cocoa and vanilla plants where all the seedlings are giving to the farmers free without charges. The impact as reported is an improvement in the soil fertility, prevention of drying up of water bodies and promotion of biodiversity.

Bharat Petroleum report (2013-2014, p.79) give a very positive account of the impact of its water conservation project called “Project Boond” in the Mokhada, Thane district, Maharashtra of southern India where there is persistent water scarcity as a result of poor water management in the aforementioned communities. According to Bharat Petroleum report (2013-2014, p.80), it collaborated with DHAN Foundation an NGO in water management project in order to create positive awareness about water preservation and the project has now impacted positively 90 villages found within arid regions in southern India.

On the impact of the Boond project by Bharat Petroleum in collaboration with DHAN Foundation, there has been 50% cut on water supply from water tank car deliveries among the beneficiary communities and at the same time booming horticultural and agricultural activities in these arid regions thereby promoting some form of sustainable livelihood of the people and most especially the landless people in the communities. The landless people have now opportunity to engage in fishing activities which declined some years back as a result of poor water management in the communities. Besides this positive impact, migration of young people from these communities (Mokhada, Thane district, Maharashtra) in search of non-existing jobs in the urban centres has reduced (Bharat Petroleum, 2013-2014, p.80).

Kuapa Kokoo in collaboration with Conservative International is giving farmers modern techniques on how to give a new lease of life to their old cocoa farms, whiles at the same time under the Chocolate Halba/Pur project Kuapa Kokoo has established an Environmental Department which is training and educating cocoa farmers on sanitation and reforestation (Valarie et al., 2013, p.124). According Valarie et al (ibid), the above project has led to cocoa farmers being conscious about environmental issues at the district and local level with farmers now engaging in activities like; “tree planting, land/soil management, shade and fire prevention, safe use of chemicals and safe disposal of containers”.