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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/4170

Advisors: Mulegeta Abebe
Copyright: Jun-2011
Date Added: 30-Nov-2012
Publisher: AAU
Abstract: The study was conducted in the Sheshemene district of Oromiya regional state and it was selected due to its potential for agriculture, access to bank, socio-economic infrastructure, access to information, and the location advantage. Moreover, saving has remained as problem and, of course, such target specific study has not been carried out. Basically saving and diversification issues have been expected to be linked with better off households. However, some studies that have been reviewed related to the topic have not considered the compatibility between study trait (saving and diversification) and sampling frame (households’ capacity) So, the statement of this study is to fill disaggregating (targeting) gap problem better than those studies being reviewed. The overall objective of the study is to identify magnitude of cash saving, and diversification practice with mixed design along with non-probabilistic /purposive sampling. Structured/unstructured interview and observation were tools employed. Out of 360 better off sampling frame, 100 (28%) of them were purposively selected for an interview and as unit of analysis. Four sectoral offices and one MFI’ key informants were selected as they are relevant. Livelihood assets and saving scenario findings have confirmed that households have a capacity to make saving and diversify. However, interview has shown that 20%, 80% and 18% of respondents have engaged in formal informal cash saving and diversification practice since households’ establishment& 2008, respectively. Petty trade, livestock and crop trading, employment, casual labor, local brewery, fattening and rental farm land plowing are some of activities. Further , households heads travel frequency to town ,invitation and social expenditure, low surpluses cash , large family size and low diversification practice are indicated as the reasons for low performance .Weak role of institutions in awareness creation ,high informal saving practice ,input credit dependency and polygamy are ,even, some of aggravating factors to low performance. In fact, borrowing, sale of livestock and farm land out sourcing are the major copying mechanism to cover critical cash problem. The heads’ interviewees have also witnessed the remarkable role of rural women/wives in saving mobilization .The data were analyzed with descriptive statics. Though the scope is basically intended to identify households’ practice, it also has implication on households themselves, financial institutions, local development practitioners and policy makers. it can be concluded that low performance coupled with aggravating factors will lead to all forms of livelihood assets depletion and subsequently delayed rural socio-economic transformation due to trap of low asset and environmental degradation which is against the outcome of conceptual framework of the study. Recommendations are forwarded in chapter four to indicate the responsible actors along with the area of intervention,accordingly.
URI: http://hdl.handle.net/123456789/4170
Appears in:Thesis - Regional and Local Development

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