In attempting to assess the effectiveness of wildlife enterprises as tools for conservation and development, the African Wildlife Foundation (AWF) commissioned researchers to develop a common methodology for assessing their 'economic and livelihood impacts.' The methodology was developed for use in half a dozen East African projects, but is also useful for demonstrating the importance and difficulties of livelihood impact analysis. The material in this example focuses on The Kipepeo Project, one of two enterprises described in a working paper on developing methodologies for livelihood impact assessment by Caroline Ashley and Karim Hussein of the Overseas Development Institute (Ashley, C. and Hussein, K., ODI, Working Paper 129, Developing Methodologies for Livelihood Impact Assessment: Experience of the African Wildlife Foundation in East Africa). The Kipepeo Project is a butterfly-farming enterprise in the Arabuko Sokoke Forest Conservation Project, near the Kenyan coast.

The rationale for a new methodology for impact assessment emerged from three perceived shortcomings of existing methods:

1. In 'conservation and development' projects, local development is usually assessed in rather narrow terms of the generation of cash, increased production or jobs. Wider social issues and livelihoods concerns are often ignored;
2. Projects are usually assessed in terms of how many of their outputs have been achieved; the intended and unintended consequences for people's livelihoods may not be revealed. Impact assessments should go beyond target beneficiaries to consider all stakeholders;
3. Enterprises should be assessed both for their commercial viability and for their contribution to local incomes. The latter feeds into an assessment of impact on livelihoods. The former is quite different, though also necessary.

To address these, the AWF methodology focuses heavily on assessing livelihood impacts, and combines this with stakeholder analysis, financial analysis, and commercial analysis.