The Contribution of Livelihood Diversification Activities to Poverty Mitigation in Dodota Woreda, Arsi Zone, Central Ethiopia

Demeke, Leykun (2024): The Contribution of Livelihood Diversification Activities to Poverty Mitigation in Dodota Woreda, Arsi Zone, Central Ethiopia. Published in: Journal of Economics and Sustainable Development , Vol. 15, No. 5 (2024): pp. 41-53.

Abstract

Diversifying livelihoods has over the last two decades been identified as an important theme in the development work, particularly for poverty reduction agenda. In the developing world, farm households, urged on by their survival instinct, diversify away from traditional subsistence agriculture to the production of high-value crops and at other times engage in off-farm and non-farm activities. The contribution of non-agricultural activities to household income in the developing world in general and Sub-Saharan Africa in particular is substantial. This study was conducted in Dodota Woreda of East Arsi Zone, Oromiya Region with a general objective of assessing the contribution of livelihood diversification activities to poverty mitigation of rural householders in Dodota Woreda. By using two stage sampling procedure 294 sample respondents were selected from four Kebeles. The result of the logit regression showed that most of the variables tested for the probability of farmer’s participation in livelihood diversification activities had expected sign. Thus; educational status, access to infrastructure, training and participation in safety net had positive sign and significantly affects the probability of farmers’ participation in livelihood diversification activities. Whereas; land size owned, agricultural activity, participation in irrigation, access to credit and perceived level of poverty had negative sign and significantly affect the probability of farmers’ participation in livelihood diversification activities. Thus, improving rural householder knowledge through formal educational and training, expanding availability of accessible infrastructure, and enhancing participation of smallholder farmers in safety net were recommended as possible policy intervention to improve farmers’ participation in livelihood diversification activities so as to mitigate the level of poverty in the study area.

• Item Type: MPRA Paper
• Language: English
• Keywords: livelihoods, poverty reduction, Dodota Woreda
• Subjects: I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I31 - General Welfare, Well-Being; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

References

Adebayo, A. A. (2009). “Theoretical Perspectives on Poverty Reduction: Challenges for Policy in Nigeria”, International Journal of Economics. Retrieved on September 2, 2017.

Adger, W. N. and K. Vincent (2005). ‘Uncertainty in adaptive capacity.’ C. R. Geoscience 337 (2005) 399-410.

Admiral N. (2014). Impact of livelihood diversification on Household food security: the case of Hurungwe district, zimbabwe. Development studies, University of South Africa.

ADOD, ( 2010). Report on Agricultural production in the district, Ethiopia. Un published.

ADOD, (2016). Report on Agricultural production. Ethiopia. Un published.

Alemu, Z.G. Livelihood strategies in rural South Africa: Implications for poverty reduction. In Proceedings of the 2012 International Association of Agricultural Economists (IAAE) Triennial Conference, Foz do Iguacu, Brazil, 18–24 August 2012; pp. 1–24.

Allison, H., F. Ellis, (2011). The Livelihood Approachs and Management of Small scale Fisheries. Marine policy 25.SDS,university of Anglia. Norwich, UK.

Asfir S (2016). Determinants of Rural Households Livelihood Strategies: Evidence from Western Ethiopia. Journal of Economics and Sustainable Development 7(15):103-109.

Ashely, (2003). Understanding Livelihoods in Rural India: Diversity, change and exclusion.

Ashley, C. & Carney, D. (1999). Sustainable livelihoods: lessons from early experience. London: Department for International Development.

Asmamaw Enquobahrie,(2005). Understanding Poverty: The Ethiopian Context A Paper presented at the Gambia AAPAM Roundtable Conference, Banjul, The Gambia, April 19 - 23, 2004.

Awotide, O. D., Kehinde, A. L. & Agbola, P. O. (2010). Poverty and rural livelihood diversification among farming households in southwest Nigeria, Journal of Food,Agriculture & Environment.

Babulo, B.; Muys, B.; Nega, F.; Tollens, E.; Nyssen, J.; Deckers, J.; Mathijs, E. Household livelihood strategies and forest dependence in the highlands of Tigray, Northern Ethiopia. Agric. Syst. 2008, 98, 147–155.[CrossRef]

Baumann, P., (2000). Sustainable Livelihoods and Political Capital: Arguments and evidence from Decentralization and Natural Resource Management in India. Working Paper 136

Befekadu Wolede,(2011).Households Livelihood Strategies of Drought Prone Areas: The case of Fedis Districit, Eastern Hararge Zone of oromiya Region, Ethiopia. An M. Sc Thesis Presented to the School of Graduate Studies of Haramaya University.

Belay Mamo :( 2015). Enhancing rural livelihoods through sustainable land and water management in northwest Ethiopia. Geography, Environment, Sustainability

Berehanu Eshete, 2007. Livelihood Strategies of Smallholder Farmers and Income Poverty in Draught prone areas: The case of Gena- Bosaworeda, SNNPRS. An M. Sc Thesis Presented to the School of Graduate Studies of Haramaya University.

Bhandari, B.; Grant, M. Analysis of livelihood security: A case study in the Kali-Khola watershed of Nepal. J. Environ. Manag. 2007, 85, 17–26. Block. S and Webb P, (2001). The dynamics of livelihood diversification in post famine Ethiopia.

Brown, D.R.; Stephens, E.C.; Ouma, J.O.; Murithi, F.M.; Barrett, C.B. Livelihood Strategies in the Rural Kenyan Highlands; Cornell University: Ithaca, NY, USA, 2006.

Bryceson, D. F. (2002). Multiplex livelihoods in rural Africa: recasting the terms and conditions of gainful employment. The Journal of Modern African Studies.

Byg, A.; Herslund, L. Socio-economic changes, social capital and implications for climate change in a changing rural Nepal. GeoJournal 2016, 81, 169–184.

Carter, M.R. & Barrett, C.B. (2006). The economics of poverty raps and persistent poverty: An asset- based approach. Journal of Development Studies 42(2): 178-199.

Castells-Quintana, D.; Lopez-Uribe, M.d.P.; McDermott, T.K. Geography, institutions and development: A review of the long-run impacts of climate change. Clim. Dev. 2016.

Daw, T.; Brown, K.; Rosendo, S.; Pomeroy, R. Applying the ecosystem services concept to poverty alleviation: The need to disaggregate human well-being. Environ. Conserv. 2011, 38, 370–379. constraints. Agric. Econ. Res. Rev. 2012, 25, 115–124.

DC. Mboho, and Ibok (2009). “Women Organisations and Poverty Alliviation in Rural Communities in Nigeria: A Study of Akwa Ibom State”. Retrieved on September.

De Haan, A (ed.) 1997.Urban Poverty: A New Research Agenda, ZDS Bullefin, 28(2).

Debele B, Desta G (2016). Livelihood diversification: strategies, Determinants and Challenges for Pastoral and Agro-Pastoral Communities of Bale Zone, Ethiopia. International Review of Social Sciences and Humanities 11(2):37-51

Degeaf Tolossa, (2005).Rural Livelihoods, Poverty and Food Security in Ethiopia: A case study at Erenssa and Garbi Communities in Oromiya. Doctoral Thesis: Norwegian University of Science and Technology. Trondheim. Retrieved on September 2, 2017.

Demissie A, Legesse B (2013). Determinants of income diversification among rural households: The case of smallholder farmers in Fedis district, Eastern hararghe zone, Ethiopia. Journal Development Agricultural Economic 5(3):120-128.

Dercon, K. (2004). ‘Growth and shocks: evidence from Ethiopia.’ Journal of Development Economics 74 (2004) 309-329.

Deshingkar, P and Start, D., 2003. Seasonal Migration for Livelihoods in India: Coping, Accumulation and Exclusion ODI, London,UK,working paper no 220.

Destaw Berhanu, 2003. Non-farm Employment and Farm Production of Small holder Farmers: A Study in Edja Woreda of Ethiopia. A Thesis Submitted to the School of Graduate Studies Alemaya University.

Devereux, S.( 2005). Food Insecurity in Ethiopia: a discussion paper for DFID, IDS Sussex

DFID. 2004. Sustainable livelihoods and poverty elimination. London: Department for International Development.

Dorward, A. Poole, (2003), “Markets, Institutions, and Technology: Missing Links in Livelihood Analysis”, Development Policy Review.

Ellis F. (2005), Small Farms livelihood Diversification and Rural-Urban Transitions: strategic Issues in sub-Saharan Africa. paper prepared for the research workshop on: The Future of small Farms organized by International Food policy Research Institute (IFPRI) 26-29 June 2005.

Ellis, F. The determinants of rural livelihood diversification in developing countries. J. Agric. Econ. 2000, 51, 289–302.

Fang, Y.-P.; Fan, J.; Shen, M.-Y.; Song, M.-Q. Sensitivity of livelihood strategy to livelihood capital in mountain areas: Empirical analysis based on different settlements in the upper reaches of the Minjiang River, China. Ecol. Indic. 2014, 38, 225–235.

FDRE, 2002. Government of Ethiopia (GOE): Food Security Strategy, Addis Ababa, Ethiopia

Fitsum Tsehaye:(2002).Poverty in Addis Ababa: A Comparison of Female and Male Headed household. Master thesis presented to the school of Graduate studies of Addis Ababa University.

Frehiwot Fantaw: (2007). Food insecurity and its determinants in rural households in Amhara Region Master thesis presented to the school of Graduate studies of Addis Ababa University.

Galab. S, (2006)..Livelihood Diversification in Rural Andhra Paradesh: Households Asset Portfolios and Implications for Poverty Reduction.Young Lives Save the Children.

Gordon, A. & Craig, C. (2001) Rural non-farm activities and poverty alleviation in sub-Saharan Africa. Social and economic development department. Natural Resources Institute.

Haggblade et al. (2007).Transforming the rural nonfarm economy: Opportunities and threats in the developing world. Baltimore, MD: Intl Food Policy Res Inst. John Hopkins University Press.

Hanazaki et al. (2012). Livelihood diversity, food security and resilience among the Caiçara of coastal Brazil, Human Ecology. Retrieved on September 2, 2017.

Heshmati, G, & Squires, V. (2013). Combating desertification in Asia, Africa and the Middle East.

Hilson, G. (2016). Farming, small-scale mining and rural livelihoods in Sub-Saharan Africa: A critical overview. The Extractive Industries and Society.

Hirzel, A. H., & Le Lay, G. (2008). Habitat suitability modeling and niche theory. Journal of Applied.

Holden, S., Shiferaw, B. & Pender, J. (2004). Non-farm income, household welfare, and sustainable land management in a less-favoured area in the Ethiopian highlands. Food Policy, 29(4), 369–392.

Hussein, K. and Nelson, J., 1998. Sustainable Livelihoods and Livelihood Diversification. IDS WorkingPaper 69, Institute of Development Studies, Sussex.

Hyewon, K. (2011). Livelihood Diversification in Rural Uganda: Its pattern and contribution to income generation with a focus on the role of social network. School of Oriental and African Studies (University of London).

Ibrahim, H. and Umar, H.S. (2008). Determinants of Poverty among farming Households in Nasarawa State, Nigeria. Media and Agricultural Marketing. PAT 2008; 4 (1): 11-21:

Jansen, H.G.; Pender, J.; Damon, A.; Wielemaker, W.; Schipper, R. Policies for sustainable development in the hillside areas of Honduras: A quantitative livelihoods approach. Agric. Econ. 2006, 34, 141–153.

Kassie Geremew:(2013). Livelihood Diversification and Sustainable Land Management: The Case of North East Ethiopia Thesis Presented to the Higher Degree Committee of Ritsumeikan Asia Pacific University

Kassie, Geremew :(2016). Agroforestry and farm income diversification: Synergy or trade-off? The case of Ethiopia. Environmental Systems Research.

Khatun and Roy. (2012).Rural livelihood diversification in West Bengal: Determinants and constraints. Agricultural Economics Research Review.

Kimenju, S. C. & Tschirley, D. (2008). Agriculture and Livelihood Diversification in Kenyan Rural Households. Tegemo Institute of Agricultural Policy and Development.

Kollmair, M., and Gamper, S., (2002). The Sustainable Livelihoods Approach: Input Paper for the Integrated Training Course of NCCR North-South Aeschiried, Switzerland

Kurfi, I. M. (2009). “The Socio-Economic Effects of Poverty on Nigerian Development”. International Journal of Economic and Development Issues.

Kuwornu, J. K. M., Suleyman, D. M. & Amegashie, D. P. K. (2010). Analysis of food security status of farming households in the forest belt of the central region of Ghana. Russian Journal of Agricultural and Socio-Economic Sciences.

Lanjouw, J.O. (2004). The rural non-farm sector: issues and evidence from developing countries. Agricultural Economics

Losch, B., Freguin-Gresh, S., & White, E. T. (2012). Structural transformation and rural change revisited: Challenges for late developing countries in a globalizing world. Washington,

MOFED :( 2017). Growth and Transformation Plan (GTP) 2015/16-2019/20: Addis Ababa, Ethiopia

Momoh, J.(2005).“The Role of Microfinance in Rural Poverty Reduction in Developing Countries”.

Morse, J.M., (2002). Approaches to qualitative-quantitative methodological triangulation. Nursing Research , 40(1). 120-123.

Mouton. J. (2001): How to succeed in your Master’s and doctoral studies. A South African guide and Resource Book. Van Shaik Publishers, Pretoria 2001.

Mulu Debela, (2008).Livelihood Diversification Strategies of Female-Headed Households in Kombolcha Woreda, Eastren Hararge Zone Oromiya Region, Ethiopia. . An M.Sc. Thesis presented to the School of Graduate Studies of Haramaya university ,Haramaya.

Mutenje, (2010). Rural Livelihood Diversity to Manage Economic Shocks: Evidence From South East Zimbabwe. Agricultural Economics Research. in Southern Africa Vol. 49 (3).

Nigatu Regasa (2016). Livelihood Diversification Under Severe Food Insecurity Scenario Among Smallholder Farmers In Kadida Gamela District, Southern Ethiopia

Oumer, A.M.; de Neergaard, A. Understanding livelihood strategy-poverty links: Empirical evidence from central highlands of Ethiopia. Environ. Dev. Sustain. 2011, 13, 547–564.

Oyeranti, O. and Olayiwola, K. (2005). “Policies and Programmes for Poverty Reduction in Rural Nigeria”. Inter im Research Report Submitted to the African Economic Research Consortium

Preston, D. (1994). Rapid household appraisal: a method for facilitating the analysis of household livelihood strategies. Applied Geography, 14(3), 203–213.

Punch, (1998 ).Introduction to social research:Quantitative and qualitative approaches (2nded). London

Rao and Bavaiah,2005. Livelihoods perspectives and rural development, Journal of Peasant Studies36(1)

Raphel O., 2009. Patten of Income Diversification in Rural Nigeria: Determinants and Impacts. University of Ilorin, Nigeria.

Reardon, T. (1997). Using Evidence of Household Income Diversification to Inform Study of the Rural Nonfarm Labor Market in Africa. World Development.

Reardon, T; Freguin, S. & White, E. (2001). Rural Nonfarm Employment and Incomes in Latin America: Overview and Policy Implications, World Development, 29(3): 395-409

Risjord, (2002).Research strategy designs,mixed methods, multi-method /methodological triangulation. (2nd ed.). London

Saha, B., & Bahal, R. (2012). Constraints impeding livelihood diversification of farmers in West Bengal. Indian Research Journal of Extension Education

Scoones I., (1998). Sustainable Livelihoods, a Framework for Analysis, IDS working paper accessed, December 2008, Brighton.

Scoones, I. (2009). Livelihoods perspectives and rural development, Journal of Peasant Studies, 36(1).

Simtowe, F.et al, (2016). Determinants of agricultural technology adoption under partial population awareness: The case of pigeon pea in Malawi. Agricultural and Food Economics

Solomon Asfaw, (2006). Does Food Aid Reach the poor? New Evidence from Northern Ethiopia; Hannover, Germany

Soltani, A.; Angelsen, A.; Eid, T.; Naieni, M.S.N.; Shamekhi, T. Poverty, sustainability, and household livelihood strategies in Zagros, Iran. Ecol. Econ. 2012, 79, 60–70.

Tamerat T (2016). Livelihood Resources and Determinants in Tigray Region of Ethiopia. International Journal of Lean Thinking 7(2):57- 66

Tesfaye Kumbi: (2005). Household food insecurity in Dodota, Arsi zone: coping strategies and policy options. Master thesis Presented to the School of Graduate Studies of Alemaya University

Tesfaye Lemma, (2003). Diversity in Livelihoods and Farmers Strategies in Hararghe highlands, Eastern Ethiopia, University of Pretoria, South Africa.

Thuo C. M. (2011) . The influence of enterprise diversification on household food security among small-scale sugarcane farmers: a case study of Kenya District.

Tiffen, M., Mortimore, M. & Gichuki, F. (1994). More people, less erosion, environmental recovery in Kenya. John Wiley and Sons Ltd.

Titay Zeleke:(2013). Impact of Livelihood Diversification on Rural Households' Food Security in Fedis Weroda, Eastern Hararge Zone, Oromiya Region, Ethiopia

Todaro and Smith (2009). The Growth and Development of Educational Status of Society. UNDP, 2004. Reclaiming the land sustaining lively hoods New York.

Todaro, (1997 ) . Economic Development; Longman Publishing Ltd. London and New York

Tsegay Gebrehiwot :( 2009). Determinants of Food Security in Rural Households of The Tigray Region: Master Thesis presented to the school of Graduate Studies of Addis Ababa University

Tsehay Tadese. and Mengistu Beyene.(2002). “The Impact of Micro finance Service among poor women in Ethiopia.” Occasional paper No. 6, AEMFI, Addis Ababa.

UNDP, (2014). The Millennium Development Goals Report 2014. New York. United Nations Development Program (UNDP) (2016). Bole District Assembly Human development.

Warren, P., 2002. Livelihoods Diversification and Enterprise Development: An Initial Exploration of Concepts and Issues. Rome: FAO

Webb, and Black, 2001. The dynamics of livelihood diversification in post-famine Ethiopia. Food Policy 26(4): 333-350.

World Bank (2002). Project appraisal document for a productive safety net project. Report No. 15430-ET. Washington D.C: World Bank; 2002

World Bank (2016). World development indicators data base, Oct 7, 2017

World Bank. (2003). Project appraisal document for a productive safety net project. Report No. 29767-ET. Washington D.C

Yamin, F., A. Rahman & S. Huq (2005). ‘Vulnerability, adaptation and climate disasters: a conceptual overview.’ IDS Bulletin 36 (2) 1-14.

Yemane T. (1969). Statistics: An Introductory Analysis, 2nd Edition, New York.