The role of natural capital in sustaining livelihoods in remote mountainous regions: The case of Upper Svaneti, Republic of Georgia

- Low-income households depend on CPRs for up to 60% of their total income
- Households in remote villages have a greater dependence on CPRs than households in market centers
- Households report that there are few available substitutes for goods and services collected from forests
- To sustain livelihoods households require secure access to non-substitutable components of natural capital

In the Greater Caucasus of the Republic of Georgia, proponents of a new ski tourism zone and long-term timber concessions claim that new wage opportunities will benefit households. These developments will also limit access to common-pool resources (CPRs). This study uses the sustainable livelihoods framework to identify the conditions under which a development strategy will improve livelihood outcomes in the region. Analysis of original household survey data, in-depth interviews, and field observation reveals that households depend on CPRs for a range of market and non-market benefits. Low-income households depend on CPRs for up to 60% of their total income. OLS regression estimates show that households in villages farthest from market centers have a higher income dependence on CPRs and are more likely to participate in forest use activities. A majority of households report that there are few available substitutes. To improve livelihood outcomes, a development strategy should secure access to market benefits from CPRs, or wage income must increase in proportion to lost CPR income and affordable substitutes must be provided. Access to non-substitutable components of CPRs must be secured, and the distribution of changes in access to natural capital and new wage opportunities must be accounted for.