Review at least 10 main Review at least 10 main determinants of rural

developments in Ethiopia
Ethiopia has implemented a series of successful strategies to promote economic growth and
social progress, and improve rural population well-being. The rural development in Ethiopia has
a relatively longer history than many sub-Saharan African countries. It has also enjoyed
increasing government support over years, though not to be in the level expected. Review of
the evolution of the Ethiopian rural development policy under different political systems
reveals the significance of prevailing policies and development strategies on the contribution to
agricultural development.

Institutions and Organizations.

Human Capital.
Natural Resources.
Agricultural Technology.
Financial Capital.
Rural industries
Increased investments
Increased credits from banking facilities
Improved education system
Improved rural infrastructure.
Rural industries
Institutions and Organizations
Poor rural people in Ethiopia hardly control the conditions that determine their livelihoods.
Effective rural institutions and organizations can help rural people overcome such barriers by
taking measures such as; reducing the price of inputs for farmers through larger collective
purchases; acting as a forum for exchanging knowledge and experience as well as jointly-owned
assets, such as equipment and machinery; and increasing their productivity and profitability by
giving them direct access to critically needed resources, services and markets. When farmer
organizations and cooperatives join forces at higher levels, they can influence policy dialogue
and decisions that affect their ability to succeed. Moreover, strong rural institutions promote
social cohesion and stability, decreasing the adverse consequences of political and economic
disenfranchisement. Organizations such as market associations and cooperatives help rural
women and men negotiate better prices for their produce and access markets. These
organizations also facilitate dialogue among smallholder farmers, governments, donors and the
private sector. Through this, rural development becomes enhanced.
Human Resources.
Human Resources refer to the size of population of a country along with its efficiency,
educational qualities, productivity, organizational abilities and farsightedness. Human resources
also mean human capital. In order to attain an all-round rural development,the government of
Ethiopia should implemented human resource development in rural areas by offering trainings
to employees, offering capacity building to the locals so as to develop their knowledge, skills
and abilities to achieve self-fulfillment and aid in the accomplishment of organizational goals.
As a result of human resource development, the production increases as the knowledgeable
and skilled workers can make a rational use of all resources at their disposal. Moreover, it
would lead to development of innovative capacity and entrepreneurship which usually
motivate rural people to work hard, take risks, and develop new processes of innovation which
work as a tool for economic change thus enhancing rural development.
Natural Resources.
Natural resources can play a central role in poverty reduction efforts in Ethiopia. Ethiopian
rural population generally depend upon natural resources directly for their livelihoods.
Consequently, policies that improve natural resource management can have immediate and
meaningful poverty reduction impacts such as; projects that improve the capacity of
community based organizations to manage resources; assuring access to resources by providing
clear land tenure and resource use rights; and promoting tools such as participatory rural
appraisal, strategic environmental assessment, and poverty and social impact assessment. The
rural population greatly depend on natural resources for its livelihood, therefore, should have
access to resources and must also be involved in resource management decision making.
Moreover, the revenue from the natural resources can contribute to the development of
human capital through investments in education and job training. Consequently, rural
development is influenced positively.
Good example we can take afforestation project by the government which will help to sustain
the nature.
Agricultural Technology.
Agricultural technology is an exceptionally important determinant of farming’s contribution to
rural development. Three of the major agricultural technology are genetic innovations, physical
inputs, and management techniques. Plant genetic research would lead to development of new
varieties through conventional plant breeding, increasingly assisted by the techniques of
biotechnology. Many of these new varieties will have characteristics that address specific
conditions such as pest or disease resistance, environments, for example, acid soils or markets,
for example, high nutrient varieties. Farmers will benefit through this by also having access to a
wider range of inputs. Most of the new technologies that will be available to farmers will
require increased levels of knowledge for appropriate management, therefore, farmers will
have to learn how to operate in this environment hence, leading to agricultural technology
making a significant contribution to rural development.
Example the oromia state have provided farmers with farming machineries which will help in
increasing productivity so this have to be increased in national level.
Financial Capital: Credit.
Agriculture is the main economic activity in rural areas. The basic role of credit in agriculture is
to provide capital to acquire any kind of productive assets, land and/or machinery. Credit
provides the means for many farmers to adjust their operations to keep up with the constant
changes and thus improve their operations so as to meet increasing demands for agricultural
products. It provides the means for the development of new agricultural enterprises.
Agricultural credit also assist in increasing the efficiency of production of existing individual
farm operations; and helping the community by increasing prosperity of the rural areas and by
stimulating the production of more agricultural products. The problem with Ethiopia credit
providing system is that it entirely based on collateral so due to this most Ethiopian farmer are
unable to get credit and financial institutions are not much accessabel to the rural people.
Rural industries
There is more to rural economies than just farming. Rural areas are characterized by a great
diversity of economic activities including processing and marketing of agricultural products,
tourism, mining and services provision. rural industrialization offers many job opportunities to
the rural population hence reducing the higher rates of unemployment. The government should
provide the rural industries with legal licenses and provide ready markets for their final
products to motivate them to produce surplus goods. harnessing the potential of the rural
economy through decent work is key to sustainable development. In Ethiopia the rural
community is mostly dependent on agriculture so building agro processing industrys near the
rural area will benefit the rural community by providing them with market to sale their product
and the industry.
Increased investments
Investments in environmental protection ,rural health and education are critical to sustainable
rural development and can enhance national well being.Non governmental organizations are
greatly involved in rural development through establishment of projects that improve the living
standards of the rural people .The NGOs involve the local people by involving them in decision
making and encouraging their participation to come up with projects that satisfy their most
feltneed and this leads to ownership of the projects by the rural people and hence
sustainability. The government too should partner with NGOs to fund projects. When we see
most of government investment in Ethiopia most of them are in urban area so this have to
change in way that the government should increase its rural investment and facilitate things so
that private could invest in the rural area too.
Improved education systems
The government through the ministry of education should advocate for establishment of more
schools in the rural areas to reduce overcrowding and this will create more space and increase
the number of students going to school. Children are required to be empowered with the
quality education and the knowledge that can be applied in their real life to shape a sustainable
future as well as vocational training to equip them with skills .The government should also offer
jobs to the local community to encourage ownership e.g. employ local teachers and involve the
community in matters involving the school e.g. in decision making and in developing case
studies with the local community groups and businesses . improving education is key In Ethiopia
rural are because to introduce things like technology, industry educating the rural area people
is important so that they can be part of the rural area development I the future.
Improved rural infrastructure
Assets such as good rural roads, bridges, irrigation schemes, water supplies, schools, health
centers and markets are needed for the local population to fulfill their basic needs and live a
social and economic productive life. With the appropriate management tools and sufficient
resources local authorities are in a good position to effectively plan and supervise the
development of rural infrastructure and also provide those jobs to the rural people to improve
sense of ownership of those projects and enhance maintenance and sustainability of that rural
infrastructure. The main problem in Ethiopia rural area is infrastructure like rode.
Socio-cultural factors
On average, cultures with higher concentration of values are identified as an achievement
orientation , relative to a concentration of values supported with a limited good belief,
experiencing more rapid economic growth in countries where independence is emphasized in
children’s upbringing, the economy will grow. There are a lot of thing that are related to social
and cultural thing the have impact in Ethiopian rural people.

1. Review at least 10 main determinants of rural poverty in Ethiopia.

Landholding size
Owning land in rural area of Ethiopia is the most important thing to susten life in the rular area
since the major economic activity of Ethiopia rural are is agriculture. It is one of the basic assets
of the household. Empirical research carried out by Shibru et al. (2013) found that the farmland
size had negative impacts on the likelihood of a household being poor in the Dembel district of
Ethiopia.The land is found to be associated with lower poverty levels (Bersisa & Heshmati,
2016). Therefore, households having more land own are expected to positively influence the
welfare of rural households
Age of Head
Early marriage is common in Ethiopia rural. area Age of the household head is measured in
years and a study conducted in Ethiopia by Kebede and Sharma (2014) shows that the age of
household head is negatively correlated with the probability of being poor. Hence, the age of
the household head is expected to be positively and negatively associated with the welfare of
rural households.
Education
Education is key for development Education especially country like Ethiopia has contributed to
poverty reduction and increasing the welfare of the poor (World Bank, 2016). Education has a
clear and positive correlation with consumption, in both urban and rural areas. Even completing
informal education shows significant increases in consumption, showing that investment in
adult education may also pay returns in Ethiopia (FDRE, 2018). Literacy and schooling are
important indicators of the quality of life in their own right. That is the literacy was found to be
negative and significant, which means that literate household heads are less likely to be poor
than are illiterate households.
Gender of Head
It is known that most of the Ethiopian rural households are male-headed except the male
household head dies or loses functionality due to old age. Workneh (2008) argues that cultural
and societal norms in rural areas often create considerable negative impacts on the nutritional
status of women and children, making them vulnerable social groups. The household head
being female is positively correlated with the probability of being poor (Kebede & Sharma,
2014; Teka et al., 2019; Tsehay & Bauer, 2012). This reflects the low level of empowerment of
females to valuable assets in rural Ethiopia. Female farm managers in Ethiopia are 23 percent
less productive than their male counterparts. They have less time to spend on farm work and
farm less land, more of which is rented (World Bank, 2015). Later, this study hypothesis that
gender of the household head is expected to be negatively correlated with the poverty of rural
household.
Access to credit
Access to and utilization of credit is facilitated to increase or diversify household incomes and
outflow from poverty. So, access to credit is expected to be positively associated with the
welfare of rural households.
Family size
The total family size of the household affects the welfare of rural households. Households with
larger family sizes are more likely to be poor Therefore, family size effect will be expected
positive when a household has a large household size this implies more economically active
household members (less dependency ratio) and negative otherwise.
Non farm income
Non farm income is the amount of income in birr obtained from off-farm and non-farm
livelihood activities. It is the most important factor in explaining consumption and poverty.
Using selected agro-pastoral households of Ethiopia, it is remarked that the participation in
non-farm opportunities had notable impacts on the likelihood of a household being poor in
Dembel district (Shibru et al., 2013). Hence, non income is expected to positively affect the
welfare of rural households.

Health status
health status of the household head is correlated with poverty and household living standards.
The household which has poor health can lower the productivity of household members and
contribute to poverty. Health has contributed to poverty reduction and increasing the welfare
of the poor. As a result, health status is hypothesized to hurt rural households’ welfare.

Distance to market
The remoteness of rural areas that lower the price farmers get for their goods and raise the
price they pay for purchases, due to high transport costs are responsible for generating food
insecurity among the poor and contributes to poverty (World Bank Institute, 2005). Besides
distance to the city may also affect the costs of inputs of farmers.
Livestock
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