DOCSLIB.ORG

Ethiopia Poverty Assessment

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Ethiopia Poverty Assessment Public Disclosure Authorized ETHIOPIA POVERTY ASSESSMENT Public Disclosure Authorized 2014 Public Disclosure Authorized Public Disclosure Authorized P.O.Box 5515 POVERTY Addis Ababa Bole Road/ Africa Avenue GLOBAL PRACTICE www.worldbank.org/ethiopia AFRICA REGION Report No. AUS6744 ETHIOPIA POVERTY ASSESSMENT January 2015 Poverty Global Practice Africa Region Document of the World Bank For Official Use Only iii TABLE OF CONTENTS ACKNOWLEDGEMENTS ................................................................................................................................ xi ABBREVIATIONS AND ACRONYMS .......................................................................................................... xiii EXECUTIVE SUMMARY ..................................................................................................................................xv INTRODUCTION ...........................................................................................................................................xxv 1. PROGRESS IN REDUCING POVERTY AND INCREASING WELLBEING, 1996-2011 ......................1 1.1 Recent progress in poverty reduction ..................................................................................................................2 1.2 Sensitivity of poverty estimates ...........................................................................................................................5 1.3 The incidence of progress and shared prosperity .................................................................................................9 Growth incidence ...............................................................................................................................................9 Shared prosperity .............................................................................................................................................11 Inequality .........................................................................................................................................................13 Decomposing changes into growth and redistribution......................................................................................14 1.4 Who are the poor and poorest households in 2011? ..........................................................................................16 1.5 Outlook: Ending extreme poverty in Ethiopia ..................................................................................................21 2. MULTIDIMENSIONAL POVERTY IN ETHIOPIA .................................................................................25 2.1 Introduction .....................................................................................................................................................25 2.2 Trends in non-monetary dimensions of wellbeing .............................................................................................26 Education ........................................................................................................................................................28 Health ..............................................................................................................................................................29 Command over resources and access to information ........................................................................................29 2.3 Overlapping deprivations .................................................................................................................................30 2.4 Perceived improvements in wellbeing................................................................................................................35 2.5 Deprivations that particularly affect girls and women .......................................................................................35 2.6 Conclusion .......................................................................................................................................................37 3. THE CHANGING NATURE OF VULNERABILITY IN ETHIOPIA ......................................................39 3.1 Sources of risk in today’s Ethiopia .....................................................................................................................39 3.2 Measuring vulnerability in Ethiopia ..................................................................................................................42 3.3 Vulnerable places or vulnerable people? ............................................................................................................46 3.4 Summary and conclusion .................................................................................................................................50 iv ETHIOPIA – POVERTY ASSESSMENT 4. DRIVERS OF POVERTY REDUCTION IN ETHIOPIA ..........................................................................51 4.1 Decomposing poverty reduction .......................................................................................................................52 4.2 Drivers of poverty reduction .............................................................................................................................56 Has growth contributed to poverty reduction? .................................................................................................56 Understanding the relationship between agricultural growth and poverty reduction .........................................58 Safety nets and investments in public services ..................................................................................................63 4.3 Implications for future poverty reduction .........................................................................................................64 5. A FISCAL INCIDENCE ANALYSIS FOR ETHIOPIA ...............................................................................67 5.1 Taxation incidence ............................................................................................................................................68 5.2 Incidence of public expenditure ........................................................................................................................73 Direct transfers made through the PSNP and food aid .....................................................................................74 Education ........................................................................................................................................................75 Health ..............................................................................................................................................................77 Indirect subsidies .............................................................................................................................................78 Overall incidence of public spending ...............................................................................................................79 5.3 Overall incidence of taxes and spending and impact on poverty and inequality ................................................80 6. NON-FARM ENTERPRISES AND POVERTY REDUCTION IN ETHIOPIA ......................................83 6.1 Introduction .....................................................................................................................................................83 6.2 Prevalence and nature of NFEs in Ethiopia .......................................................................................................84 6.3 The role of NFE in incomes of poor households ...............................................................................................86 6.4 Constraints to NFE activities ............................................................................................................................89 6.5 Conclusion .......................................................................................................................................................93 7. MIGRATION AND POVERTY IN ETHIOPIA .........................................................................................95 7.1 Introduction .....................................................................................................................................................95 7.2 Migration in Ethiopia .......................................................................................................................................96 7.3 Migration and poverty ....................................................................................................................................100 7.4 What constrains migration in Ethiopia? ..........................................................................................................104 7.5 Conclusion .....................................................................................................................................................106 8. UNDERSTANDING URBAN POVERTY .................................................................................................107 8.1 Work and urban poverty .................................................................................................................................108 8.2 Reducing poverty in urban centers through work: a framework ......................................................................113 8.3 Urban poverty among those unable to work ...................................................................................................118
Load more

Recommended publications
  • Evidence on Redistribution and Poverty Reduction in Ethiopia
    Working Paper 61 Linking taxation and social protection: Evidence on redistribution and poverty reduction in Ethiopia Kalle Hirvonen, Giulia Mascagni and Keetie Roelen December 2016 www.ictd.ac ICTD Working Paper 61 Linking taxation and social protection: Evidence on redistribution and poverty reduction in Ethiopia* Kalle Hirvonen, Giulia Mascagni and Keetie Roelen December 2016 *This paper is reproduced here with acknowledgement of UNU-WIDER in Helsinki, which commissioned the original studyand holds copyright thereon. Linking taxation and social protection: Evidence on redistribution and poverty reduction in Ethiopia Kalle Hirvonen, Giulia Mascagni and Keetie Roelen ICTD Working Paper 61 ISBN: 978-1-78118-346-5 First published by WIDER as Working Paper 111/2016 © UNU-WIDER 2016 This study has been prepared within the UNU-WIDER project on ‘The political economy of social protection systems’, which is part of a larger research project on ‘The economics and politics of taxation and social protection’. The United Nations University World Institute for Development Economics Research provides economic analysis and policy advice with the aim of promoting sustainable and equitable development. The Institute began operations in 1985 in Helsinki, Finland, as the first research and training centre of the United Nations University. Today it is a unique blend of think tank, research institute, and UN agency— providing a range of services from policy advice to governments as well as freely available original research. The Institute is funded through income from an endowment fund with additional contributions to its work programme from Denmark, Finland, Sweden, and the United Kingdom. Katajanokanlaituri 6 B, 00160 Helsinki, Finland.
    [Show full text]
  • Rural Poverty in Ethiopia
    Rural poverty in Ethiopia Source: IFAD (International Fund for Agricultural Development) Location: http://www.ruralpovertyportal.org/web/guest/country/home/tags/ethiopia An agrarian society in a land of drought In one of the world’s poorest countries, where about 44 per cent of the population lives under the poverty line, more than 12 million people are chronically or at least periodically food insecure. Most of them live in rural areas. More than eight out of ten Ethiopians depend on agriculture as their main livelihood. But agricultural production is extremely vulnerable both to climatic conditions and to the disruptive impact of war and civil conflict. The increased incidence and severity of drought have caused major fluctuations in agricultural and economic growth. The persistent lack of rainfall is a major factor in rural poverty. Recurring droughts leave poor farming families without food crops, causing periodic famines. People lack coping mechanisms for facing drought-induced famines, and contingency planning is inadequate. The situation worsened recently because of sharp increases in the prices of food and fertilizers on world markets, which made it more difficult for poor households in Ethiopia, as elsewhere, to secure adequate food supplies. Who are Ethiopia’s rural poor people? The largest group of poor people in Ethiopia is composed of small-scale farmers. Most rural households live on a daily per capita income of less than US$0.50. More than half of the country’s 12 million smallholders have 1 hectare or less of land. Their productivity is low and they are vulnerable to drought and other adverse natural conditions.
    [Show full text]
  • Ethiopia Socio-Economic Assessment of the Impact of COVID-19
    ONE UN ASSESSMENT ETHIOPIA ADDIS ABABA MAY 2020 SOCIO - ECONOMIC IMPACT of COVID­‑19 in ETHIOPIA ABOUT This document is a joint product of the members of the United Nations Country Team in Ethiopia. The report assesses the devastating social and economic dimensions of the COVID-19 crisis and sets out the framework for the United Nations’ urgent socio- economic support to Ethiopia in the face of a global pandemic. FOREWORD BY THE UN RESIDENT / HUMANITARIAN COORDINATOR This socio-economic impact assessment has been This assessment aligns fully with the ‘UN framework drafted by the United Nations (UN) in Ethiopia in for the immediate socio-economic response to the spirit of ‘One UN’. It reflects our best collective COVID-19’ launched by the Secretary-General in assessment, based on the available evidence and April 2020, even though its design and preparation our knowledge and expertise, of the scale, nature preceded the publication of this vital reference and depth of socio-economic impacts in the country. document. This assessment addresses all aspects of We offer this as a contribution to the expanding the framework, in terms of the people we must reach; knowledge base on this critical issue, acknowledging the five pillars of the proposed UN response – health and drawing upon the work of the Government of first, protecting people, economic response and Ethiopia (GoE), academic experts, development recovery, macroeconomic response and multilateral partners and consulting firms, among others. collaboration, community cohesion and community resilience; and the collective spirt deployed to deliver Given the high level of uncertainty and volatility in the product and our upcoming socio-economic conditions, whether in Ethiopia or outside - not least response.
    [Show full text]
  • World Food Program Ethiopia Office and Central Statistical Agency of Ethiopia
    © World Food Program Ethiopia Office and Central Statistical Agency of Ethiopia All Rights reserved. Extracts may be published given source is duly acknowledged. This summary report and a report are available online: www.wfp.org and www.csa.gov.et For further information on this report please contact: World Food Program Ethiopia Office, P.O. Box 25584, code 1000: Phone: +251 115 51 51 88 Website: www.wfp.org Central Statistical Agency of Ethiopia, P.O. Box 1143: Addis Ababa, Ethiopia; Phone: +251 111 55 30 11 Website: www.csa.gov.et Design and Layout: Berhane Sisay Email: [email protected], bssinna@gmail. com Phone: +251 918722510 +251 913506462 Addis Ababa, Ethiopia ACRONYMS AND ABBREVIATION AGP: Agricultural Growth Project HCES: Household Consumption Expenditure Survey BMI: Body Mass Index HDDS: Household Dietary Diversity Score CARI: Consolidated Approach for Reporting on Food Security IFPRI: International Food Policy Research Indicators Institute CFSAM: Crop and Food Security IOD: Indian Ocean Dipole Assessment Mission LEAP: Livelihoods, Early Assessment and CFSVA: Comprehensive Food Security and Protection Project Vulnerability Analysis MDER: Minimum Dietary Energy CPI: Consumer Price Index Requirement CSA: Central Statistical Agency MICS: Multiple Indicators DHS: Demographic and Health Survey MT: Metric ton EA: Enumeration Area MW: Mega Watt ECX: Ethiopian Commodity Exchange NBE: National Bank of Ethiopia EDHS: Ethiopia Demographic and PAE: Per capita and Per Adult Equivalent Health Survey PCA: Principal Component Analysis EGTE:
    [Show full text]
  • Sustainable Development’: Towards Integrating Development with the Ecosystem in Ethiopia
    Interrogating the Economy-First Paradigm in ‘Sustainable Development’: Towards Integrating Development with the Ecosystem in Ethiopia Tsegai Berhane Ghebretekle . Abstract This article examines the concept of sustainable development after the Post- 2015 Paris Climate Change Agreement with particular emphasis on Ethiopia. Various African countries are vulnerable to climate change, as is evidenced by recent droughts. Ethiopia is selected as a case study in light of its pace in economic growth and as a country which is among the ones that are most affected by climate change. I argue that the concept of sustainable development will be meaningful if it is related only to the core idea of ecological sustainability. Long-term economic growth in Ethiopia is possible if the underlying environmental resources that underpin it are protected and enhanced. Sustainable development remains peripheral and impractical as long as the pursuit of economic and social development remains the practical driving force behind the Ethiopian government’s policy as the primary measure of success. It is argued that the overarching standard for the application of sustainable development should be the integrity of the country’s ecosystem. It is the economic growth which needs to be aligned to the ecological integrity, not the other way round because equitable economic growth requires the protection of its foundation, i.e. the ecosystem. If sustainable development is not based on ecological integrity; it remains a form of hegemonic knowledge, ‘based on a narrow, weak notion of sustainability that promotes reformist fantasies that the crisis can be addressed within the social, political, economic and cultural structures that created it.’ Key terms Ethiopia, sustainable development, economic growth, social development, ecological sustainability, weak sustainability, strong sustainability DOI http://dx.doi.org/10.4314/mlr.v11i1.3 This article is licensed under a Creative Commons Attribution-NonCommercial- NoDerivs (CC BY-NC-ND) .
    [Show full text]
  • Implementing Policies for Chronic Poverty in Ethiopia
    Background Paper for the Chronic Poverty Report 2008-09 Implementing Policies for Chronic Poverty in Ethiopia Taylor Brown What is Chronic Poverty? Amdissa Teshome The distinguishing feature of chronic poverty is CPRC and ODI extended duration in absolute poverty. Therefore, chronically poor people always, or usually, live below a poverty line, 2007 which is normally defined in terms of a money indicator (e.g. consumption, income, etc.), but could also be defined in terms of wider or subjective aspects of deprivation. This is different from the transitorily poor, who move in and out of poverty, or only occasionally fall below the poverty line. The research for this Background Paper was made possible by CPRC core www.chronicpoverty.org funding from the United Kingdom's Department for International Development (DFID). Implementing Policies for Chronic Poverty in Ethiopia Table of Contents Index of Boxes.....................................................................................................ii Acknowledgements .............................................................................................ii Introduction ................................................................................................................1 1 Ethiopia’s chronic poor ....................................................................................2 1.1 Quantifying chronic poverty in Ethiopia ......................................................2 1.2 Who are the chronic poor? .........................................................................5
    [Show full text]
  • Understanding Changes in the Lives of Poor Children: Initial Findings from Ethiopia
    ETHIOPIA ETHIOPIA Young Lives is a long-term international research project investigating the changing nature of childhood poverty in four developing countries – Ethiopia, India (in Andhra Understanding Changes Pradesh), Peru and Vietnam – over 15 years, the timeframe set by the UN to assess progress towards the UN Millennium in the Lives of Poor Children: Development Goals. Survey Report Through interviews, group work and case studies with the children, their Initial findings fromETHIOPIA parents, teachers and community representatives, we are collecting a wealth of information, not only about their material and social circumstances, but also their perspectives on their lives and aspirations for the future, set against the Tassew Woldehanna environmental and social realities of their communities. Retta Gudisa Round 3 Round Yisak Tafere This report presents initial findings from the third round of data collection by Alula Pankhurst Young Lives in Ethiopia, carried out from late 2009 to early 2010. It gives a broad outline of some of the key indicators of childhood poverty and changes that have taken place in the children’s lives between the earlier rounds of data collection in 2002 and 2006 and this third round. In particular, we are able to make comparisons between the older children at age 8 in 2002 (in Round 1), and the younger cohort at age 8 in 2009 (Round 3) – to highlight changes that have happened in the children’s lives and their communities over that time. The Young Lives survey team in Ethiopia is based at the Ethiopian THIOPIA Development Research Institute and works alongside a team of qualitative researchers.
    [Show full text]
  • Eradicating Extreme Poverty and Hunger in Ethiopia
    Eradicating Extreme Poverty and Hunger in Ethiopia A Review of Development Strategies, Achievements, and Challenges in Relation with MDG1 Aklilu Amsalu NCCR North-South Dialogue, no. 45 2012 dialogue The present study was carried out at the following partner institution of the NCCR North-South: Addis Ababa University Addis Ababa, Ethiopia The NCCR North-South (Research Partnerships for Mitigating Syndromes of Global Change) is one of 27 National Centres of Competence in Research established by the Swiss National Science Foundation (SNSF). It is implemented by the SNSF and co- funded by the Swiss Agency for Development and Cooperation (SDC), and the participating institutions. The NCCR North-South carries out disciplinary, interdisciplinary and transdisciplinary research on issues relating to sustainable development in develop- ing and transition countries as well as in Switzerland. http://www.north-south.unibe.ch Eradicating Extreme Poverty and Hunger in Ethiopia A Review of Development Strategies, Achievements, and Challenges in Relation with MDG1 Aklilu Amsalu NCCR North-South Dialogue, no. 45 2012 Citation Aklilu Amsalu. 2012. Eradicating Extreme Poverty and Hunger in Ethiopia: A Review of Development Strategies, Achievements, and Challenges in Relation With MDG1. NCCR North-South Dialogue 45 (Working Paper, Special Research Project 4 – Beyond the MDGs). Bern, Switzerland: NCCR North-South. Series Editing Anne B. Zimmermann, NCCR North-South, Management Centre Editing Simon Pare, Didier Péclard Cover photos Left: View of a rural area around South Wolo in the Northeastern part of Ethiopia. Like much of the land in this area used for graz- ing and natural rehabilitation, it is degraded and would require conservation measures, especially as agriculture is still the main development sector in the country.
    [Show full text]
  • Status and Determinants of Poverty and Income Inequality in Pastoral and Agro-Pastoral Communities Household-Based Evidence
    World Development Perspectives 15 (2019) 100123 Contents lists available at ScienceDirect World Development Perspectives journal homepage: www.elsevier.com/locate/wdp Research paper Status and determinants of poverty and income inequality in pastoral and agro-pastoral communities: Household-based evidence from Afar Regional State, Ethiopia ⁎ Araya M. Tekaa, , Gabriel Temesgen Woldub, Zeremariam Frec a Department of Economics, Andong National University, 1375 Gyeongdong-ro, Andong-si, Gyeongsangbuk-do 36729, Korea b Department of Economics, Adigrat University, Ethiopia c Development Planning Unit (DPU), University College London (UCL), UK ARTICLE INFO ABSTRACT JEL classifications: This paper analyzes poverty and its determinants and income inequality in pastoral and agro-pastoral com- J15 munities in Ethiopia. 2295 households from zone 1 and zone 2 of the Afar region were surveyed and examined P25 using the FGT index, the Gini coefficient, and logistic regression. 47.6 percent of the households are poor,with R11 poverty gap index of 0.178 and poverty severity index of 0.092. Food poverty accounts for 33.7 percent with an income gap of Birr 33 per month. Food poverty is highest in pastoral (35.6%) than the agro-pastoral commu- Keywords: nities (29.8%). 35.6 percent of PSNP non-participants and 32 percent of the participant households are poor. Afar Gender of the household head, family size, access to credit, mobility, participating in safety net programs and Determinants FGT index local institutions, distance to market and remittances are determining poverty in the area. There is an alarmingly Income inequality high degree of income inequality (0.592) in the study area.
    [Show full text]
  • Review Article on Poverty Status and Income Inequality in Ethiopia
    Busin l & es te s o M a H n f a o g l e a m n r e u n o t J Journal of Hotel & Business management ISSN: 2169-0286 Review Article Review Article on Poverty Status and Income Inequality in Ethiopia Getachew Wollie* Department of Economics, Samara University, Ethiopia ABSTRACT The paper aimed to organize the main findings of different scholars studied on poverty and income inequality in Ethiopia since started from 2015 to 2020 in one window. This paper is a detailed review article based on an intensive reading of both published and unpublished articles and books obtained from different sources. 75% of the reviewed studies have a head count index higher than the national head count index estimated by Ethiopian Plan and Development commission (0.235). All reviewed papers revealed that there is a high level of income inequality variation among households above the national value (0.328) estimated in 2016. The incidence, gap and severity of poverty can vary from region to region or district to district based on their agro-ecological location, resources or socioeconomic factors. This review paper forwarded that, a holistic pro-poor enhanced policies were need for Ethiopians to stop huger and eradicate the severity of poverty in all dimensions as well as to narrow the income gap among households. Keywords: Poverty; Income Inequality; FGT; Ethiopia INTRODUCTION should be manifested through addressing such deprivation of the society. Accordingly, the Ethiopia is a nation characterized by Africa's second most government has formulated pro-poor development policies and populous country (more than 108 million people) after Nigeria strategies through public and the fastest growing nation on the region.
    [Show full text]
  • Climate Change, Growth, and Poverty in Ethiopia
    WORKING PAPER NO. 3 CLIMATE CHANGE, GROWTH, AND POVERTY IN ETHIOPIA By Emerta Asaminew Aragie June 2013 CONTENTS Executive Summary 2 Introduction 2 Climate Change, Growth, and Poverty Trends in Ethiopia 4 How Are Rainfall and Output Behaving over Time? 4 Trends in Climate Indicators 4 Structure of the Economy 5 Rainfall and Output 6 Climate Change and Poverty 6 Estimation of Past and Future Impacts on Climate Change 7 Data amd Empirical Strategy 7 Sources and Definition of Data 7 Stationarity and Co-intergration Tests 8 Empirical Strategy 8 Discussion of Estimation Results 9 Climate Change and Economic Growth 9 Stability Tests 10 Simulations and Alternative Scenarios 10 Climate Change on Poverty 14 A Non-technical Inference 14 The Econometrics 16 Regional Perspectives 18 Conclusion and Policy Implications 21 Appendices 22 References 24 Endnotes 28 Photo Credit: Sarah McDuff ABOUT THE STRAUSS CENTER The Robert S Strauss Center for International Security and Law at The University of Texas at Austin is a nonpartisan research center that engages the best minds in academia, government, and the private sector to develop unique, policy-relevant solutions to complex global challenges ABOUT THE CCAPS PROGRAM The Climate Change and African Political Stability (CCAPS) program conducts research in three core areas, seeking to investigate where and how climate change poses threats to stability in Africa, identify strategies to support accountable and effective governance in Africa, and evaluate the effectiveness of international aid to help African
    [Show full text]
  • Faces of Poverty: Studying the Overlap Between Monetary and Multidimensional Child Poverty in Ethiopia
    FACES OF POVERTY: STUDYING THE OVERLAP BETWEEN MONETARY AND MULTIDIMENSIONAL CHILD POVERTY IN ETHIOPIA July 2020 UNICEF Ethiopia Anaïs Dangeot, Erëblina Elezaj, Julia Karpati, Chris de Neubourg Social Policy Research Institute (SPRI Global) © UNICEF Ethiopia and Central Statistical Agency of Ethiopia All rights reserved. Extracts may be published if the source is duly acknowledged. This publication is available on the following websites: www.unicef.org/Ethiopia and http://www.csa.gov.et Faces of poverty: Studying the overlap between monetary and multidimensional child poverty in Ethiopia is based on Household Income, Consumption and Expenditure Survey and Welfare Monitoring Survey datasets from 2011 and 2016. For further information on this report please contact: Central Statistical Agency of Ethiopia, P.O. Box 1143, Addis Ababa, Ethiopia; E-mail: [email protected] UNICEF Ethiopia, P.O. Box 1169, Addis Ababa, Ethiopia; Email: [email protected] Economic Policy Research Institute and the Social Policy Research Institute, Email: [email protected] Recommended citation: CSA and UNICEF Ethiopia (2020), Faces of poverty: Studying the overlap between monetary and multidimensional child poverty in Ethiopia. Design, layout and editing: Prime Production Ltd Faces of poverty: studying the overlap between monetary and multidimensional child poverty in ethiopia i ACKNOWLEDGEMENTS This research was implemented in partnership with the Central Statistical Agency (CSA), the United Nations Children’s Fund (UNICEF), the Economic Policy Research Institute (EPRI) and the Social Policy Research Institute (SPRI). We would like to thank all the participants from CSA and UNICEF who were very helpful in providing input for the analysis in terms of reviewing the report and in attending the technical workshops.
    [Show full text]