Rural Poverty and Inequality in Ethiopia: Does Access to Small-scale Irrigation Make a Difference?

Abstract

The underlying causes of rural poverty are many in Ethiopia. However, the
persistent fluctuation in the amount and distribution of rainfall is considered as a
major contributing factor. Cognizant of this reality, the successive Ethiopian
governments, NCOs and fanners have made considerable investments in smallscale
irrigation systems. Based on data obtained from a survey of 1,024 fa rmers
drawn f rom four major regional states of Ethiopia, this article analyzes the
efficacy of these investments in reducing poverty. The Foster, Creer and
Thorbecke poverty indices were used to compare the incidence, depth and severity
of poverty among groups of farmers defined by relevant policy variables including
access to irrigation. Logistic regression model was jilled to explore the correlates
of rural poverty. The main conclusion of the study is that poverty is affected more
by the intensity of irrigation use than mere access to irrigation and there seems to
be an economy of scale in the poverty-irrigation nexus.