Improving Rural Poverty And Level Of Income Inequality

3.4 Data Analysis This section discusses the approaches used in augmenting the conventional household income accounts with incomes from CF, how these incomes do influence rural poverty and level of income inequality. 3.4.1 Income accounting Since our focus is primarily on forest resources (rather than the entire set of environmental resources), we attempt to account for consumptive forest products that households generate from forests such as timber, fuel wood, fodder, farm implements, construction materials, wild food items, herbs, medicines and the like. In measuring the value of a household s uses of forest goods and setting this in the context of the overall household livelihood portfolio, an appropriate measure of the household s economic status has to be chosen. Following Cavendish (2002), we use the total net income (monetary or cash income and income in kind) approach as a broad measure of a household s economic welfare status. We define six major categories of household total income: crop income, livestock income, off-farm income, net remittances (transfers), forest income and miscellaneous income. Following the approaches used in other ‘poverty–environment’ relationships studies (Ellis, 2001; Cavendish, 2002; Twnie et al., 2003; Fisher, 2004; Narain et al., 2008; Babulo et al., 2009), the following simplifying assumptions are made in household income accounting. †¢ Own labour value was not deducted from net income: For poor rural households working in areas whereShow MoreRelatedGlobalization Is Not A New Concept1414 Words   |  6 Pagesand poverty The relation between globalization and poverty is a very significant concept for governments and other international organizations. This is because the definition of globalization is still unclear. This leads to the discussion that gives rise to two groups: the pessimists and optimists. 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