At the international level, financial markets affect global investments of the different countries. Meanwhile, global investments impact the imports, exports, global employment, labour and demand for products and services worldwide. According to the International Monetary Fund Report (2011), the global market has been
vulnerable to the risks caused by certain financial, economic and political conditions. ‘Markets may lose patience and become disorderly if political developments derail momentum on fiscal consolidation and financial repair and reform’ (IMF, 2011).
On the other hand, the focus now of the individuals in the global society has been on how to have a higher financial capital. Income diversification is one of the strategies that can help to achieve this end (Kasem,2007). In particular, this would be through diversifying on-farm and off-farm activities especially in the rural
areas. In addition, according to the study of DeMurger (2010), the factors that affected the income diversification of households in northern China included education, migration, household position asset position and working resources, labor force and availability of local credit institutions. Moreover, income diversification also depends on one’s location, practices and the demand for labor. However, the farmers and indigenous peoples who are living in rural areas of
the different countries have been continually struggling to diversify their sources of income without losing their lands. These same situations were evident in the findings of Lopez and Sierra (2011) about the indigenous Jivaroan cultivation systems of Western Amazonia and in the study of Himley (2009) about conservation, interventions and struggles of rural Andean communities to assert territorial authority and to consolidate their livelihoods’ where social capital also plays an important role (Himley, 2009).
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