Rationality, Adaptation and Social Capital in Household Livelihood Shifts Following the Construction of the Bili-Bili Reservoir, Indonesia

Abstract

Large-scale infrastructure development disrupts not only the material foundations of agrarian livelihoods but also the social and ecological systems through which households manage uncertainty. This study argues that the livelihood shifts observed among households affected by the construction of the Bili-Bili Reservoir in Lanna Sub-district, Gowa Regency, Indonesia, are best understood as products of contextual rationality operating at the individual level and enacted through household-level strategies. Using a qualitative phenomenological approach with 15 purposively selected informants, each representing a distinct household directly affected by the reservoir’s construction functioned as a structural shock that exceeded the adaptive capacity of the existing agrarian system, triggering differentiated household responses—including reservoir fisheries, small-scale trade, home-based enterprise, and labor migration—whose variation reflects systematic differences in individual skills, asset endowments, and social capital access rather than arbitrary or purely compelled choice. Theoretically, this study advances the sustainable livelihoods framework by specifying the mechanism linking individual rationality to household adaptive outcomes, and by showing how social capital—in its bonding, bridging, and linking dimensions—shapes the option set within which rational calculations are made. These findings suggest that post-displacement livelihood recovery is more effectively supported by policies that strengthen social network structures alongside physical and financial provision.