Livelihood Diversification as a Strategy for
Economic and Environmental Sustainability in
the Amhara Region of Ethiopia
Joseph K. Assan, PHD
Sustainable International Development Programme
Heller School for Social Policy and Management
Brandeis University,Waltham, MA, USA
Email: joeassan@brandeis.edu
DSA, 2013
Co-author
Fikirte Regassa Bayene, MA
Horn of Africa Regional Environment Centre and Network (HoAREC&N), Addis Ababa University, Addis Ababa, Ethiopia.
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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 (both tangible and
intangible) and opportunities, is essential to achieving human
wellbeing (Chambers, 1997).
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Introduction
The objective of the paper is to ascertain the effect of
environmental conservation and development interventions on
the livelihoods and economies or rural holds
It specifically seeks to determine the contribution of the
environmental conservation programmes to sustainable
livelihoods and household economies of rural communities in
the Amhara region of Ethiopia.
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Livelihood and Economic Sustainability
Kulindwa et al. (2006) highlighted that livelihoods should go beyond a
particular level of income, paid labour or ability to meet household food
security, opportunities for investment, business and economic stability.
The integration of livelihood diversification into conservation approached has
been considered an effective strategy in achieving this end
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Linking Sustainable Livelihoods and
conservation
1. Primary Environmental Care Approach
2. Market Based Policies Approach
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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). 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
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2. Market Based Policies Approach
 Here, market-based policies are introduced with the intention of
creating incentives for positive or neutral behaviours for the
environment and creating disincentives for environmentally
destructive behaviour (UNRISD, 1994).
 The goal of this approach is balancing the trade-offs between human
activities and achieving maximum economic efficiency and thereby
ensuring sustainable development.
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Environment and Poverty Reduction
in Ethiopia
 Ethiopia’s economy and social wellbeing, especially rural livelihoods, are
exposed to the precarious effects of climatic variability and extreme
weather conditions, mainly precipitated by several years of environmental
degradation which is negatively impacting on household economies
(MoWRMA, 2007).
 Land degradation is an alarming challenge in the Amhara region
 Erosion is the main cause of the loss of approximately 2 to 4 billion tones
of top soil annually
 leaving between 20,000 to 30,000 hectares of land unproductive (Taffa,
2009).
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Environmental degradation in the Amhara
Region of Ethiopia
In spite of recent advances, poverty in the Amhara region is still high (7.3
million) next to Oromia (9.3 million) although the latter shares the largest
population size compared with other regions (DPRD & MoFED, 2008).
This significantly undermines agricultural livelihoods
Causes of environmental degradation in Amhara - (Belay, 2010).
- natural factors coupled with the effects of a long history of settlement
- prevailing farming methods and increasing population pressure
- which forces people to cultivate even steeper slopes have exacerbated
the devastating land and resource degradation in the region
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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
The ‘Tree Gudifecha’ project involved:
1. Tree plantations AND soil and water conservations activities
(the construction of check dams, terraces, trenches, micro basins,
water harvesting and spring developments).
2. Livelihood diversification activities (income generating activities,
financial support, capacity development and training, input support,
groups formation)
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Project implementation
 In 2007, the Integrated Rural Development Association
(ADHENO) a local NGO sought to integrate
livelihood/economic sustainability and conservation programmes
as a development strategy in the Amhara Region
 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.
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Field Strategy and Sampling Procedure
 100 rural households located in Enchelele village (Metkoria Kabele)
and Workegur Goshe Bado Kebele) village of Basona Worena Woreda
in the Amhara region participated in the environmental conservation/
rehabilitation and livelihood enhancement intervention projects.
 Our study sampled 50 households; 25 households from each village
and targeted the adult members of the sampled household
 Individual households served as the unit of analysis
 Data collection was done through household interviews/
questionnaires
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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 in partnership with
Consortium of Christian Relief and Development Association
(CCRDA), a local Non-Governmental Organization.
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Key Findings of the Study
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Benefits
Home ownership:
It was observed that the average number who owned
their of homes within the sample increased although this
is not statistically significant.
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
 “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. 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)
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Livestock Production
 ‘Ayeeee [expressing frustration], most of my sheep and hens had
died and 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)
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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
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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