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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/1883

Title: A CASE STUDY OF NON-FARM RURAL LIVELIHOOD DIVERSIFICATION IN LUME WOREDA, OROMIYA REGINONAL STATE
Authors: FIKRU, TESFAYE
Advisors: Dr. Degefa Tolossa
Copyright: 2008
Date Added: 26-Dec-2008
Publisher: Addis Ababa University
Abstract: The objective of this thesis was to examine, on a case study basis, dominant patterns of non-farm rural diversification and identify and analyze the key constraints and opportunities as well as the determinants and principal motivations behind non-farm diversification. A blend of qualitative and quantitative methods was used where structured household questionnaire survey, qualitative investigation and participatory assessment was combined with a review of previous researches on the subject at local and developing countries level. Generally, the study showed that rural households in the study Kebeles have diversified incomes, engage in diversified activities, and non-farm livelihood diversification is important. The results indicated that diversification into low-entry-barrier, low-return activities predominate. Diversification into high value, high return activities are virtually absent. Micro-enterprise based diversification, while generally limited, is dominated by pettytrade and household-level small-scale activities. Manufacturing comprises a negligible part of all non-farm activities. Lack of access to sufficient fixed and working capital is a major constraint to undertake high-return non-farm activities. Poor infrastructure, especially lack of electricity, is also found to constrain diversification. Diversification among the ‘farm-rich’ was found to be very uncommon. The greatest extent of diversification was amongst the ‘poor’ and ‘medium’ inhabitants. Although tenural security is hardly a problem, diversification in the study sites is to a great extent associated with negative circumstances related to landlessness, especially among the youth. The results also indicated that diversification is significantly influenced by household head education and age. Other household characteristics, though positively or negatively associated with diversification, are not found to significantly influence diversification. This study has also confirmed the empirical findings of many other studies that an increase in income diversification leads to a rise in total income. The impact of proximity to urban center on diversification is found to be negative. Institutional ownership of the non-farm economy lacks while proclamations and regulations on land use and investment gloss over non-farm activities. Diversification among the poor is enhanced by access to natural resources as evidenced by significant participation of unemployed and landless persons in river sand and stone quarrying as well as pottery in the study sites.
Description: A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF MASTER OF ARTS IN DEVELOPMENT STUDIES
URI: http://hdl.handle.net/123456789/1884
Appears in:Thesis - Eniviroment & Development
Thesis - Eniviroment & Development

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