This paper presents an analytical framework for analyzing the sustainability of rural livelihoods. It is argued that one reason projects fail is because of lack ability to understand the way people get by. The article defines livelihoods in terms of access to "capital" assets, which are produced, human, natural, social and cultural. Assets are more than a way to make a living; it is also a way to give meaning to the person's world. There is a need to understand a) assets access b) how people transform assets into livelihoods to meet their needs, c) how assets are expanded through the network, d) how people are able to organize and enhance their ability to negotiate power relations. Social capital is seen as an important asset that facilitates peoples' access to resources and networks; it is an empowering asset.