Rural-Urban Linkage of Adwa Town and its Surrounding Rural Areas: Its Nature and Effects on Rural Livelihood Diversification
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Date
2016-06
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Addis Ababa University
Abstract
This study attempts to assess the nature of RULs and its effects on rural livelihood
diversification of Adwa town and its surrounding. In the first stage, four Tabias were
chosen purposively to represent different characteristics (irrigation practices, experience
stone extraction, have industries and natural resource conservation). Random sampling
was mainly used to select the research subjects. Household sample survey, FGD and field
observation were the principal methods used to solicit the primary data. Quantitatively,
statistical tools such as Chi-square, ANOVA and regression were employed. SLF was
adopted to holistically examine the overall well-being of rural households in relation to
the RULs.
The findings of the study show that the production linkages were very weak except for the
backward production linkage which was reflected mainly in the use of inputs. The
forward production linkage was almost missing in the study area since none of the
households sold their agricultural produce to agro-processing plants. However, a strong
consumption linkage was observed as farmers tend to purchase goods and services from
the town. The insufficient crop production had made the existing marketing linkage to be
expressed only in the form of exchange of livestock, vegetables, honey and forest
products. A considerable number of the rural households took loan and saved money in
the town-based financial institution. This financial linkage was further strengthened
through the remittances sent from the town. A household’s access to irrigation, livestock
and beehive ownership, access to mobile phone, number of farm plots, age and distance
from the town were found to be the most important determinants of the orientation as
well as the magnitude of the marketing linkage. Similarly household head’s gender,
family size, livestock ownership and number of farm plots were found to be the most
important determinants of non-marketing linkage. The study found out that for most of
the rural households, diversification is a necessity than a choice. Many of the households
obtain more than 40% of their income from non-farm sources. Similarly, the poor
(33.2%) were more beneficiaries from livelihood diversifications than their rich (22.6%)
counterparts. About 62% of the poor have experienced a strong non-marketing linkage,
which was by far higher than the rich (16.4%). Considerable numbers of households
were able to improve their social and human capital as a result of the existing RUL.
Therefore, the RUL was playing a crucial role in the livelihoods of the poor. The study
found no visible difference between the poor and rich in the asset possession as the two
have similar asset pentagon.
Finally, the research recommended that urban oriented farming practices such as
irrigation practices and honey production need to be strengthened. There is a need to
further strengthen the existing financial linkages and non-farm skills to enhance
livelihood diversification. Furthermore there is a need to forge forward production
linkage as it provides opportunity as agro-processing industries exist in the town. Access to transport would strengthen the RUL.
Key Words: Rural-urban linkage, Livelihood diversification, Adwa.
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Keywords
Rural-urban linkage, Livelihood Diversification, Adwa