Livelihood Diversification as a Strategy for
Economic and Environmental Sustainability in the
Amhara Region of Ethiopia
Joseph K. Assan, PhD
Research Group on Global Development and
Sustainability
Heller School for Social Policy and Management
Brandeis University, MA, USA
And
Fikirte Beyene, HOERC, Addis, Ethiopia
Introduction
Poor rural households in Africa rely
disproportionately on local environmental
resources for their livelihoods and well-being
A livelihood that guarantees access and entitlement to
a range of reliable economic resources, assets and
opportunities is essential to achieving human
wellbeing (Chambers, 1997).
2
Objective
The objective of the paper is to ascertain the effect of
income diversification interventions introduced
through environmental conservation programs on the
livelihoods and economies of rural holds in the
Amhara region of Ethiopia.
3
Economic Liberalisation
Post Structural Adjustment Programme in Africa
Introduction of neo-liberal policies
Privatisation and divestiture of state control
Removal of subsidies in the agricultural sector
Liberalisation of trade and reduction in Foreign Direct Investment
Impact:
Removal of safety nets
4
Conceptualising Livelihood Divrsification and
Economic Sustainability
The integration of livelihood diversification into
environmental conservation programs has been considered
as an effective strategy in achieving household food
security, opportunities for investment, development of
local business and economic stability (Kulindwa et al. 2006)
.
5
1. Primary Environmental Care Approach
This is a people-centred approach and argues that human activity is
not necessarily or inherently detrimental to nature and if humans are
given the opportunity, people will often manage their environment
sustainably because it is in their best interest (UNRISD, 1994).
6
Salafsky (2000) refers to this approach as
economic substitution:
- livelihood and conservation are indirectly linked
- this approach enables local people to continue
to meet their livelihood needs while protecting
their environment
7
2. Market Based Policies Approach
The introduction on of market-based policies with the
intention of creating incentives for positive or neutral
behaviours for the environment is argued could create
disincentives for environmentally destructive behaviour
(UNRISD, 1994).
8
The goal of this approach is:
- balance the trade-offs between human activities
and
- achieve maximum economic efficiency
- thereby ensure sustainable development.
9
Environment and land degradation in
Rural Ethiopia
 Rural livelihoods, are exposed to the precarious effects of climatic
variability and extreme weather conditions
 Precipitated by several years of environmental degradation
 Negatively impacting on household economies (MoWRMA, 2007)
 Land degradation is an alarming challenge in the Amhara region
 Loss of approximately 2 to 4 billion tones of top soil annually through
erosion
 20,000 to 30,000 hectares of land unproductive (Taffa, 2009).
10
Ethiopia
Poverty in the Amhara
region is still high (7.3
million) in spite of recent
achievements in poverty
reduction.
11
12
Bosona WorenaWoreda (District) of Ethiopia
Socio-economic Characteristics
Land Area (sq. km)
Elevations (metre above sea level)
Climate
- Average annual rainfall (mm)
- Temperature (oC)
Basona Worena Woreda
1,399
1,980 – 3,000
1,100
6-20
Population (2002/'03 est.)
- Total population
- Population density (persons per sq. km)
- % of working age population (15 - 64 years)
- Rural population (%)
165,716
118
52
95
Rural farm household
- Average family size
- Average land holding (ha)
- Male-headed
- Female-headed
4.5
1.7
HH 27,918
HH 8,796
Land use (%)
- Cultivated land
- Grazing land
- Forest, shrub, bush land
- Others including waste land
13.1
47.3
8.5
31.1
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Causes of environmental degradation in
Amhara
natural factors coupled with the effects of a long
history of settlement
prevailing farming methods and increasing
population pressure
forces people to cultivate even steeper slopes have
exacerbated the devastating land and resource
degradation in the region
(Belay, 2010)
14
The Tree Gudifecha Project
In an attempt to tackle environmental degradation and
secure the livelihood of rural households in the Amhara
region, an environmental conservation project called ‘Tree
Gudifecha’ (adoption) has been implemented.
15
The ‘Tree Gudifecha’ project involved
 Tree plantations AND soil and water conservations
activities:
- the construction of check dams,
- terraces, trenches,
- micro basins,
- water harvesting and spring developments

-
Livelihood diversification activities
income generating activities,
financial support,
capacity development and training,
input support, groups formation)
16
Project implementation
Integrated Rural
Development
Association (ADHENO)
a local NGO with the
help of international
donors sought to
integrate livelihood
sustainability and
conservation
programmes as a
development strategy
in the Amhara Region
17
This was followed by
the implementation
of various soil and
water conservation
interventions and
livelihood activities
in the North Shoa
Zone, Basona
Worena Woreda
(District) in 2005
and expanded into
12 village in 2007.
18
Project Implementation
• The Global Environment Fund
(GEF) funded the integrated
project in Enchelele Village
• the project in Workegur village
was funded by the Swedish
International Development
Agency (SIDA)
• the implementation was done in
partnership with Consortium of
Christian Relief and
Development Association
(CCRDA), a local NonGovernmental Organization.
19
Field Strategy and Sampling Procedure
100 rural households located in Enchelele village
(in Metkoria Kabele) and Workegur (in Goshe
Bado Kebele) village of Basona Worena Woreda
(District) in the Amhara Region participated in
the environmental conservation rehabilitation and
livelihood enhancement intervention projects.
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Small Sample Scoping Study
Fieldwork Strategy
Our study sampled 50 households
25 households from each village
Economic active members of the sampled households
Individual households served as the unit of analysis
Interviews, focus groups,
questionnaires
21
Key Findings of the Study
22
Number of Trees Planted at Village
Level
Village Names
Tree Plantation
Total
Enchelele
Workegur
13,862
31,376
45,238
150
2,050
2,200
Communal Land
1000
350
1,350
Family Land
5,191
110
5,301
20,203
33,836
(20,350 is
eucalyptus)
54,089
Private Land
Government Land
Total
(3,741 are other
tree species)
23
Households Trained in Soil and water
conservation practices
24
Benefits
Home ownership:
the average number of households who owned their of
homes within the sample increased
Benefits
Transport access:
the availability and access to transport through the use of
donkeys also improved as more individuals were able to
own a donkey after the project
Livestock Production
• There was high mortality rate for poultry, sheep and goat
production due to poor management techniques and low skill
levels of participants
• This pattern was also due to the lack of veterinary services
within close proximity of the sampled communities
29
Livestock Production
• “The lack of adequate personnel and medication is still the
biggest challenge for the veterinary office, especially in times of
epidemics. Many households had lost their animals and could
not gain much benefit from their production.
30
Livestock Production
• The Lack of proper management also causes the death
of animals. For example the chicks we distributed are
hybrids and needed more intensive level of care which
is different from the local stock”.
(District Agricultural Officer)
31
Livestock Production
• “Ayeeee [expressing frustration], most of my
sheep and hens died and I’m currently left with
only two sheep out of ten. Because of their death,
I lost significant income not to mention the wasted
time and energy managing the activities”.
(Alemitu, a female participants in Enchelele
village)
32
Households’ Source of Fuel in the Two Villages
Before the Project
Households
Source of Fuel
Collection
from
After the Project
Enchelele
Workegur
Enchelele Workegur
25
25
25
25
1
2
1
6
22
22
25
25
communal lands
and/or wood lot
Kerosene
Dung
33
34
35
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Conclusion
• Rise in Household Income:
There was a rise in household income after the project. This also
introduced a rise in income disparities between households
• Increase in Household savings:
The study observed a mean increase in the total household savings
with an associated increase in the disparity between the two
communities
37
Synthesis
Livelihood
Sustainability
• Survival rather
than
accumulation
• Risk prone
Opens new
Economic
Pathways
Within the
community/District
• Income, savings
and Market
differentiation
•Non-uniformity
of outcomes of
diversification
•Wealth disparity
•Marginal and
compulsive
alternatives
•Thrives on social
capital
Poverty
Reduction
• Requires
empowerment
of state actors
• Requires
formal
institutional
support
• Demands
budgetary
frameworks