Income and Livelihoods

1. Income and Livelihoods Miriam Wyman CIFOR PEN Workshop Bogor, Indonesia March 2009

2. I. Context 1. Where is the PEN study located: country, region, climate and forest zone(s) • Community Baboon Sanctuary (CBS) • Belize, Central America, along the Caribbean coast • Climate: climatic region of north-central Belize • Forest Zones: lowland, semi-deciduous rainforest • IUCN Category IV protected area • private landowners CBS forests have been periodically logged for 300 yrs. Area is patchwork of secondary forests from 10-75 yrs, interspersed with cleared areas and secondary growth. • 2. How large is the study area (km2)? • Approximately 88 km2

3. I. Context 3. What # of villages sampled? 7 How many people live in surveyed villages? 4. Your sample had how many households? 131 Average # of people per household? 5.2 people • 5. Are there key sub-dimensions dividing the sample in terms of livelihood strategies: ethnicity, closeness to markets, migrants vs. non-migrants, history of settlement, etc.? • Some villages more remote than others • distance to roads, closeness to markets, access to Belize City • a few minority ethnicities (Guatemalans, Chinese) but not specific to a village

4. Note: all income is in Belize Dollars. 1 $US = 2 $BZ II. Household Income Sources • How large are household incomes – separating subsistence and cash • Forest Derived Income issue: • Once input costs have been taken into account, ave. hh is making a loss • A valuation problem: C1 undervalued or C2 over-estimated

5. II. Household Income Sources 2. What sources contribute to household income?

6. III. Income Sources and Seasonality 1. Four bar charts (one for each Q1-4), each with mean and SD intervals Mid May – early Aug (rainy season) Mid Oct – mid Dec (dry season) Feb – April (dry season)

7. Mid Oct – mid Dec (dry season) Feb – April (dry season) Mid May – early Aug (rainy season) • 2. Other evidence of environ. inc as “seasonal gap filler” when ag. inc low (qualitative)? • Q3 (mid may – early Aug = rainy season) = Mean forest income highest and agriculture lowest • Slash and burn milpa clearing happens right before the rains so harvesting not as large • Cashew season (late April – June) (forest income) • June-July-August Mango season (other environmental income) • Q1 and Q2 drier seasons: agricultural harvesting highest

8. IV. Key forest and environmental products • List products that provide at least 10% of forest and other environmental income, show % contribution, and distribution between cash and subsistence income. Direct Forest Income (total net income BZ $119,106.75) Forest Derived Income (total net income BZ $34,192.95) Note: all income is in Belize Dollars. 1 $US = 2 $BZ

9. IV. Key forest and environmental products • List products that provide at least 10% of forest and other environmental income, show % contribution, and distribution between cash and subsistence income. Direct Fish Income (total net income BZ $16,540.88) Aqua Income (total net income from ponds (aquaculture) BZ $766.00) Note: all income is in Belize Dollars. 1 $US = 2 $BZ

10. IV. Key forest and environmental products Non-forest Environmental Income (total net income BZ $18,687.73) • 2. Comment on which are “forest” vs. “other environmental income” sources…. • “forest” = products collected from forest (firewood, wild berries, medicinal plants, game meat) • “other environ. income” = harvesting resources provided through natural processes not requiring intensive mgmt (fish, fruits, nuts, medicinal plants etc. not in forest area) • Explain how the main subsistence forest/environmental goods were priced • Equate subsistence products with their comparable economic values in the marketplace • For example, firewood used subsistently was priced as if it was sold • (e.g, a 100 lb krokis sack of firewood sells for $15 BZE in Belize City) • Focus group meetings held in the villages provided a forum to discuss and • average economic value for various products used subsistently • (e.g., forest products, fish, game meat and agricultural crops).

11. V. Income composition and poverty 1. Divide the households into quintiles ranked according to total household income, and list average total income and forest income share for each. • What patterns emerge, and how are they explained? • Households in the 4th income quintile have the highest forest income • Households in the 5th income quintile have 0 forest income • Those making a lot of $$ probably have their own business, work primarily with cattle or outside wage (Belize City) don’t need to resort to their natural environment to make a profit • It would be interesting to see % subsistence vs. % cash for these quintiles • e.g., to assess if lowest quintile made majority of forest income from subsistence income

12. VI. Other patterns • What percent of households report using forests particularly to weather misfortune • Number of HH = 72 Percent of HH = 55% What are their most common alternatives to mitigate shocks?

13. VI. Other patterns • 2. Is there any evidence that forest income is used, directly or indirectly, as a stepping stone out of poverty? • Firewood (the alternative is buying propane gas) • To a lesser degree… • Cohune palm • (tourism - selling fly swatters) • Cashew (seasonal importance) • Direct = 57.41% cash income • Processed (cashew wine) = 44.74% cash income • $ BZ 8,362.50 cash income

14. VI. Other patterns 3. Does closeness to roads and markets associate with, for example, higher product extraction volumes, higher forest clearing, or patterns of specialization in your study? Pearson correlations: Net direct forest income (DFI) and distance Pearson’s correlation (r): r = 0.10 - 0.29 small r = 0.30-0.49 medium r = 0.5 - 1.0 large Pearson correlations: Net forest derived income (FDI) and distance

15. VII. Policies and overall findings • Are there any particular projects or policies in the study area that have had a major impact on the patterns observed above? • 69% of direct forest income is subsistence • What is sold is primarily sold within nearby villages (distance to markets not critical) • - Both direct and derived (oils, etc.) forest products • Paving of road has increased access to Belize City for wage income mainly, tourism, cattle • What are the most surprising, exciting or convincing findings from your study? • Seasonal importance “fillers”: • non-forest environmental income (e.g., mango) • forest products (cashew) • Remittances play an important role: • 43 hh / 131 total (33%) • Total $95,850 BZ over 1 year • Remittances made up 32% of “other” incomes • direct Forest Income = 69% subsistence • feeling that more remote villages rely more on subsistence use of land • villages along paved road have more family members working in Belize City • If I separated out villages, I think these difference would be more obvious.