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In this paper the structure of the rural economy in Armenia is explored from a household perspective. The paper draws on the livelihoods framework, recognizing the different capitals and activities that support rural households' livelihood strategies. Ownership of capitals and access to activities are examined in relation to the incidence of poverty on the basis of data from a recent large-scale survey of rural households in Armenia. Different measures for the outcome of livelihood strategies in terms of well-being are observed, which are consistently linked to income levels across poor and other households. Income-poor households are found to be less well-endowed especially with financial and social capital. They derive smaller income shares from economic activities, and more from dissaving and social payments. The findings are relevant to policies aimed at alleviating rural poverty.


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