School Papers

Statement fell from 34.7% in 2010/11 to 27.1%

Statement
of the problem

Ethiopia
poverty incidence has declined markedly over recent years. The national
headcount poverty rate fell from 29.6% in 2010/11 to 23.5% in 2015/16. When it
compare rural to urban, rural poverty headcount index declined from 30.4% in
2010/11 to 25.6% in 2015/16, while that of urban poverty incidence declined
from 25.7% to 14.8% over the same period. As far as the rural food poverty is concerned,
it fell from 34.7% in 2010/11 to 27.1% in 2015/16.However, between 2010/11 and
2015/16 only about 5.3 million people have been lifted out of poverty nationally.
Moreover, based on the result of 2015/16 HICE survey data, the region of SNNPRG
head count index is 20.7%, which is lower than the national average 23.5% (HICES,
2015/2016). This shows that rural poverty incidence is still almost twice as
high as the urban poverty so requires further attention.

 

Generally, there is a declining trend of poverty both at
regional and national levels, there are great difference among Regions and
lower level of administration (Zones,
weredas & kebeles). However, it ranked 173rd out of 187
countries in its HDI value of 0.396 and the country’s MPI value was 0.564 (HDR,
2013). Therefore, the progress that Ethiopia government report announcement
could not be expressing the well being of the people particularly who live
rural area. It is certain that by any standard of measurement, the majority of
people in Ethiopia are among the poorest country in the world.

 

Moreover,
detailed analyses of poverty and wellbeing in developing countries, based on
large-scale, nationally representative household surveys, have been ongoing for
more than three decades. The large majority of developing countries now conduct
on a regular basis a variety of household surveys income, consumption, health,
demographics, labour force, and others. In addition, the information having in
developing countries with respect to poverty and wellbeing has improved
dramatically. Nevertheless, appropriate measurement of poverty remains complex
and controversial (Ravallion 2016). ……………economics
of poverty

 

 

 

In
this regard, Dercon and Krishnan (1996) strongly advise that one should be
careful about the implications derived from measurement and factors of poverty
at national level, because it hides many important differences that exist in
different locations, and hence, are likely to be reliable only for particular
localities.

 

Thus,
the problem is not to analyzing poverty at nationally or regionally level. The
analysis of poverty that conducted at country (regional) level could not give
full picture through all localities (areas) due to the nature and complexity of
poverty and also the diverse socio-economic settings, agro-climatic zones and
the livelihood asset of the area. In fact, there are some studies conducted in
the country regarding poverty analysis an aggregate level and at grass root
level although they missed the exit time from poverty in their analysis. This
is very important input for the policy maker and also for all the concerned
bodies who really feel about rural poor.

 

To
this end, the need to prioritize the problem in this area is due to the urgency
of the issue. There is no adequate information (in the study area) existed
which tell about the magnitude and the causes of poverty in the area. However,
the manifestation of poverty and the living condition of the society observable.
The problem is getting worse and worse day by day. Thus, this situation
(absence of authentic data) has been a hindrance to bring the poor as an agenda
as well for intervening in poverty eradication programme.

 

Therefore, this
study will follow the approach measuring poverty in the context of the monetary
, especially consumption. Since, income or consumption
is traditionally used to measures material deprivation. Especially consumption
rather than income is viewed as the preferred welfare indicator because
consumption better captures the long-run welfare level than current income. However, there is other approach/dimensions/study
of poverty.

 

Thus,
the worst is that people who are not necessarily poor now may inevitably be
vulnerable to poverty in the years to come unless they adjust themselves to new
circumstances against poverty hence keep on ensuring their survival, along with
taking remedial measures accordingly to help those who are poor now to exit
poverty. Because the profiles  of our country as
well as respective  Regions rely on some specific
statistics of poverty. However, when thinking about poverty reduction strategies,
it may be useful to show how long it would take, at different potential
economic growth rates, for the average poor person to exit poverty.