Development can be seen as an asset portfolio management process, be it at national or
household level. In Madagascar, there is a network of rural observatories which, for several
years, has monitored numerous households in a number of different regions. To ensure a solid
analytical base, the livelihoods conceptual framework is used in an attempt to quantify
household strategies relating to the accumulation of capital and the diversification of incomes.
A particularly dynamic region was chosen (Lake Alaotra). Among the 252 households
monitored over a period of seven years, three main types of livelihood asset management
trajectory were identified and associated with six types of income diversification trajectory.
Identifying the asset trajectories proved most problematic, requiring work on the indicators
and an increased use of surveys.