IMPACT OF LARGE-SCALE AGRICULTURAL INVESTMENT ON THE LIVELIHOOD OF LOCAL COMMUNITY IN GAMBELLA REGION, ETHIOPIA
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Date
2019-10-20
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Addis Ababa University
Abstract
The phenomenon of larege-scale agricultural investment (hereafter LSAI) has raised profound
concerns and debates regarding food security, livelihoods, and socio-economic status of the societies
where such investment projects transpire. Particularly, empirical evidence regarding the impact of
LSAI on the livelihoods of the local community is limited. The purpose of this study is, therefore, to
quantify the actual impact of such investment on the livelihoods of the local community and contribute
to filling knowledge, empirical, and methodological gaps in the literature. By using a primary
retrospective data collected from 505 households and 150 married women in Abobo and Itang
districts, this study employed a Propensity Score Matching method to estimate the impact of LSAI on
food security and asset/wealth status of the affected households as well as on women empowerment
level. Statistical techniques such as Multiple Correspondence Analysis and Principal Component
Analysis were employed to construct various indexes. The quantitative analysis was complemented by
qualitative data collected from 31 key informants and nine focus group discussions. The qualitative
data were analyzed using content analysis. Various primary and secondary data sources were also
utilized to analyze and understand the history, policy and legal frameworks, nature, magnitude, and
benefits of LSAI in Ethiopia in general and Gambella region in particular.
The result of this study indicates that government agencies have a weak capacity to administer
investment land and projects and are characterized by flimsy horizontal and vertical coordination and
integration. The land governance system is also found to be unresponsive, non-transparent, and
unaccountable, and characterized by rent-seeking, corruption, and rule of man. The existing
institutions, structures, land and investment policies are also failed to safeguard the local
communities against potential and actual risks of the investment and to ensure potential benefits and
rights expected from the investment. Above all, investment projects are poorly integrated to or
isolated from the local community due to the enclave business model they adopted. Contrary to the
neoclassical but consistent with middle path theories of investment, the study finds that LSAI has a
negative impact on food security and wealth status of the affected households mainly due to
government failure. On the other hand, in line with the argument of the resource in culture theory, the
result shows that married women’s employment in LSAI projects does not have an impact on their
empowerment level.
In general, LSAI has contributed to the deterioration of livelihood assets of the local people and
worsened the food insecurity and wealth status of the affected community than they would have been
without the investment. Moreover, the federal government and Gambella regional state failed to
respect, protect, and fulfil food security needs of investment hosting community through LSAI. From
the gender perspective, women’s access to paid employment in LSAI projects does not improve their
empowerment level. We, therefore, recommend that the state should not promote LSAI at the expense
of local people’s livelihoods and urge the government to reform the sector in such a way that take the
local context and rights into account and involve local people at each stage of decision making so that
they can directly benefit from employment opportunities, infrastructural development, and
technological transfer. Besides, the government need to look at other investment alternative models,
for example, eco-tourism (that include diversified production systems of the indigenous community
and promote people-centred and empowerment approach).
Keywords: Large-scale agricultural investment, Livelihoods, food security, asset, women
empowerment, Gambella, Ethiopia