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This paper examines livelihood diversification as a survival strategy of rural households in developing countries. Although still of central importance, farming on its own is increasingly unable to provide a sufficient means of survival in rural areas. The paper’s objectives are first, to increase awareness of livelihood diversification in approaches to rural development; second, to consider the interactions among diversification and poverty, farm productivity, natural resource management and gender relations in rural areas; and third, to advance the policy understanding of diverse rural livelihoods.