Households Poverty and Livelihoods Nexus in Small Towns of East Gojjam, Amhara Region, Ethiopia

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Date

2017-03

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Addis Ababa University

Abstract

Poverty in Ethiopia is one of the pressing problems catching the attention of the government, development practitioners and researchers for more than two decades and will draw the attentions in the years to come. This study aims to explore the extent of poverty and examine the link between poverty and livelihoods of households in small towns of East Gojjam guided by sustainable livelihoods framework. The study was based on quantitative and qualitative data generated from both primary and secondary sources. The sample for the survey was selected using two-stage sampling technique. In the first stage, the study towns was selected purposively based on set criterion and in the second stage, 328 households were selected using simple random sampling technique after the sample size was statistically determined. In contrast, in this stage key informants and group discussants were selected purposively. Questionnaire survey was used to generate mainly quantitative data and key informant interview, group discussion and observation were employed to generate qualitative data from the selected primary sources. Thus, both quantitative and qualitative methods of data analyses were employed for the study. Descriptive statistics such as percentages and mean and inferential statistics such as chi-square test, independent t-test, one way ANOVA and logistic regression were employed to analyze the quantitative data. In addition, indices for the multidimensional poverty and livelihood security were constructed. Direct quotation, paraphrasing and pattern matching were used to analyse the qualitative data. The study, therefore, found that the incidences of consumption and multidimensional poverty were 37% and 55% respectively. The chi-square test shows the absence of significant differences among the incidences of poverty of the study towns though the percentages show some differences. Both the poor and the non-poor households were deprived of the productive assets though the poor were more deprived. The chi-square tests and t-tests confirmed that these differences in the asset possessions between the poor and the non-poor were statistically significant. About 9 out of 10 households were self-employed, 70% of the businesses were non-licensed and the place of work for 30% of the businesses was residential house and compound. The study also found that the livelihoods of about half (50%) of the households was improved due to largely better profit from their businesses and the livelihood of 20% of the households was decreased due to shocks. Households pursue a living from agricultural land (32%), grazing land (25%), cooking energy (33%), quarrying site and social assets from the rural areas. Agriculture was the primary source of income for significant proportion of the poor. The study also found that over a third (35%) of the households were insecure in their livelihood. More proportion of households was insecure in economic dimension followed by housing, but a few was insecure in food dimension. The livelihood of households who were employed in private organization (80%), casual labourer (62%) and beggars (60%) were more insecure than the others who engaged in other livelihood activities. Household size, monthly income, housing crowdedness, radio/television possession, livestock, credit and the interaction of municipality and population were found statistically significant determinants of poverty. In order to reduce poverty and improve livelihood security, the federal and regional governments should design small towns targeted poverty reduction programmes and trainings on skills of various kind and reengineering low price but high quality housing materials should be some of the top priorities in these towns. Furthermore, the local businessperson should involve in the establishment of agro-processing industries rather than migrating to the larger towns. This will help to improve employment opportunities in these towns. Key words: Small Towns, Poverty, Livelihoods, Assets and Livelihood Insecurity

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Keywords

Small Towns, Poverty, Livelihoods, Assets and Livelihood Insecurity

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