Links between rural poverty and the environment in developing countries: Asset categories and investment poverty

This paper presents a framework for analyzing the links between poverty and the environment in rural areas of developing countries. It introduces the concept of ''investment poverty'' and relates it to other measures of poverty in analysis of these links. The notion of poverty is examined in the context of categories of assets and categories of environment change, with particular focus on farm household income generation and investment strategies as determinants of the links. The strength and direction of the poverty-environment links are shown to differ (even invert) depending on the composition of the assets held by the rural poor and the types of environmental problems they face. Policy strategies need to focus on conditioning variables that affect market development, community wealth, infrastructure, household asset distribution, and the affordability and appropriateness of natural resource conservation technologies.