This first Report focuses on the interactions between sustainable livelihoods and human development in the context of globalization. The Report begins with a frank assessment of the human development status in the state. It addresses the issues of income and employment generation, poverty reduction and regional disparities, the provision of basic services, participation and development of human capabilities. The Report draws attention on the importance of ensuring sustainable livelihoods and minimizing the effects of drought through appropriate community-centered strategies such as rainwater harvesting and watershed management. It also recommends specific areas for policy action and cooperation between Government and civil society institutions, focusing on gender equality and decentralization. Sustainability of livelihood is now at the forefront of the "People's Agenda" in Rajasthan.