This natural capital thematic review seeks to generate new information and highlight essential issues for the implementation of the Pathways to Resilience in Semi-arid Economies (PRISE) project. The review analyses the endowment framework underlying natural resource management and drivers of natural resource degradation, including natural processes and calamities induced by climate change. Additionally, it assesses policy frameworks that embed human action in the degradation and management of natural resources in arid and semi-arid lands (ASALs). The review further attempts to unlock natural capital endowments at the global level and zooms in on East Africa, West Africa and Central Asia as case studies. The reviewed literature includes academic and official reports and online databases (research papers, journal articles and donor reports). The review generates knowledge on key drivers underlying natural resource degradation, livelihood systems and climate change impacts. The review also provides explanations on the synergistic relationship between natural resource endowment and development patterns in semiarid areas. It presents the patterns of development and the constraints underlying the attainment of sustainable natural resource management. Finally, it poses key questions that should be considered for further research in the PRISE project. The following points are emphasised: • It is necessary to have an understanding of patterns found in ecosystem services, distribution, tenure rights and gender-biased access to ecosystem services and natural resources. This also entails a better understanding of the relationship between equity and access to and utilisation of ecosystem services, and how the two can contribute to the alleviation of poverty. The following points are further emphasised: o Analysis of the importance of ecosystems in the diversification of livelihoods, associated dynamics and the nature of responses; o Generation of knowledge on how issues of tenure, especially as an incentive for natural resource management, and Payment for Ecosystem Services (PES) in order to inform policy for local-level adaptation projects. • There is a need to analyse how existing policies can strike a balance between attaining sustainable natural resource management and supporting community livelihoods, including nomadic pastoralism. Another important issue to address here could relate to how government can integrate traditional knowledge systems and institutions as viable and sustainable alternative approaches in sustainable natural resource management and in the improvement of livelihood systems in semi-arid ecosystems. • It is important to analyse the effectiveness of pastoralism in managing resources in harsh and unpredictable environments (Nori et al., 2008). It is also vital to analyse how pastoralism can contribute to debates on climate change adaptation; Tanzanian government policies do not currently address this.UKaid & IDRC