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The Okavango basin comprises the Cuito and Cubango active catchment areas in Angola, in addition to the Kavango-Okavango non-active catchment in northern Namibia and Botswana. The Okavango River water and its ecosystem resources are critically important sources of livelihoods for people in the basin. Pressures from livelihoods and development are already impacting on the environment. These pressures may increase in the future due to the rapid increase in population, the peace process and associated resettlement activities in Angola, and major development initiatives in Botswana and Namibia. For instance, possible future increase in water abstraction from the Okavango River may affect the long-term environmental sustainability of the Okavango Delta by minimizing channel shifting and thereby reducing spatial biodiversity. The paper argues that while conservation of the natural environment is critical, the pressing development needs must be recognized. The reduction of poverty within the basin should be addressed in order to alleviate adverse effects on the environment. The paper recommends that the development of sustainable tourism and community-based natural resource management initiatives may be appropriate strategies for reaching the Millennium Development Goals of poverty alleviation and achievement of environmental sustainability in the Okavango Basin. These initiatives have a comparative advantage in this area as demonstrated by the performance of the existing projects.

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This paper describes the impacts that three shocks in the Okavango Delta, Botswana, have had on rural livelihoods: the desiccation of river channels, animal diseases, and HIV/AIDS. Primary data was collected from five study areas, using formal questionnaire interviews and focus group discussions. The paper reveals the adverse effects on rural livelihoods. It describes the way households have been exposed to poverty and vulnerability and the various ways they have coped or adapted, such as by re-allocating their labour, liquidating their assets to cover medical expenses and funeral costs, reducing the area ploughed for crops, hiring labour, digging wells and switching from flood recession agriculture to dryland farming. The Botswana government has provided safety nets to help households cope, but this paper recommends that people's responses to these shocks should be taken into account in future policy and programme formulation.