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14 JOHN HODDINOTT


fertility, distances to markets, and quality of infrastructure. The physical environ- ment also incorporates phenomena that directly affect human health—access to safe water and the presence of communicable human and zoonotic diseases being primary examples. The social setting captures such factors as the existence of trust, reciprocity, social cohesion, and strife. Norms of gender roles, “correct” behaviors, and folk wisdom—for example, what type of foods mothers “should” feed their children—are also part of the social setting. The legal setting can be thought of as the rules that govern economic exchange.


It affects agriculture through the restrictions it imposes on and the opportunities it creates for the production and sale of different foods, and through the regula- tion of labor and capital markets. The legal setting also affects health in terms of regulations applicable to the health sector in addition to those that govern food processing and safety. The governance setting captures how rules are developed, implemented, and enforced. It includes the political processes that create rules—for example, centralized or decentralized decisionmaking, dictatorial or democratic governance, and so on—and the implementation of these rules through bureaucra- cies, parastatals, and third-party organizations. Finally, the economic setting captures policies that affect the level, returns, and variability of returns on assets and, as such, influence choices regarding productive activities undertaken by individuals, firms, and households.


Resources Households have resources—time and capital. Time refers to the availability of physical labor for work. Capital includes such assets as land, tools, livestock, social capital, financial resources, and human capital in the form of schooling and knowl- edge. It also includes human capital in the form of health and nutrition status. Some resources, such as health and schooling, are always held by individuals, while others, such as land, may be individually or collectively owned. These resources are allocated to different productive activities, including food production, cash-crop production, livestock raising, and nonagricultural income-generating activities, such as wage labor, handicrafts, and services. Households may receive transfer income from other households or from the


state. For smallholder households, agricultural production will be the predomi- nant use of household resources. For landless or near-landless households, urban households, or households located in more advanced economies, wage labor or nonagricultural business activities will matter most. While differences in livelihoods do not change the basics of the framework presented in this brief, they imply that certain links among agriculture, health, and nutrition will be more important for some households than for others.


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