Rural-Urban Linkage of Adwa Town and its Surrounding Rural Areas: Its Nature and Effects on Rural Livelihood Diversification

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Addis Ababa University


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.



Rural-urban linkage, Livelihood Diversification, Adwa