Railway Development and its Implications: Displacement, Resettlement and its Effects on Livelihoods and the Environment in South Wello Zone of Amhara Region, Ethiopia

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Date

2025-06

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Addis Ababa University

Abstract

The dissertation examines the impacts of railway development-induced displacement on household livelihoods in the South Wello Zone Amhara Region, the northern part of Ethiopia. The region works on multiple development projects, including railway expansion for economic growth, and leads to disruptions of livelihoods and creates social challenges due to displacement. The dissertation utilized a mixed-methods approach, collecting data from 304 households, including both displaced and non-displaced participants, through surveys, interviews, and focus group discussions. To analyze the primary and secondary data, the study employed quasi-experimental techniques such as propensity score matching, ordered logistic regression, and probit analysis. The research demonstrates that involuntary displacement causes major income reduction together with financial instability that erodes natural resources while breaking down social unity. Displacement of households leads to major income decreases as well as expense reductions which suggest that current resettlement plans and compensation schemes do not provide adequate support in rural areas - worsening socio-economic challenges. The research findings demonstrate how demographic characteristics including marital status together with religious background and age along with educational level that affect household satisfaction concerning paid compensation. Education functions as a vital factor that powerfully controls different aspects of livelihood elements. Research demonstrates that people who advance their education level gain much stronger human capital because those holding tertiary degrees experience 3.80 times better advantages in obtaining advanced skills and training compared to those with elementary education only. People who transition from elementary education to certificate-level training show nearly double the probability to advance their skills and build their social networks. Thus, education is a far way impactful on livelihood sustainability. Moreover, employment status strongly determines livelihood results. The stability and resilience benefits of obtaining employment on one's own farm surpass private business and organizational work. On the other hand, there was a pronounced disparity among households compensated in their willingness to accept and the compensation they received. This was due to the fact that the compensation received was by far lower than the expected amount. Sustainable rehabilitation becomes difficult because training programs do not match the requirements and recovery plans that do not support long-term success. The dissertation proposes developing compensation programs that combine non-financial benefits with customized training and methods to earn additional income and community participation to minimize displacement’s adverse impacts.

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Keywords

Livelihood Change, Displacement, Compensation, Resettlement, Railway

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