IMPACT OF PRODUCTIVE SAFETY NET PROGRAM ON ASSET ACCUMULATION AND SUSTAINABLE LAND MANAGEMENT PRACTICES IN THE CENTRAL RIFT VALLEY: THE CASE OF ADAMITULU JIDO KOMBOLCHA AND MESKAN DISTRICTS M. Sc. Thesis TADELE MAMO October 2011 Haramaya University IMPACT OF PRODUCTIVE SAFETY NET PROGRAM ON ASSET ACCUMULATION AND SUSTAINABLE LAND MANAGEMENT PRACTICES IN THE CENTRAL RIFT VALLEY: THE CASE OF ADAMITULU JIDO KOMBOLCHA AND MESKAN DISTRICTS A Thesis Submitted to the School of Agricultural Economics and Agribusiness Management, School of Graduate Studies, HARAMAYA UNIVERSITY In Partial Fulfilment of the Requirements for the Degree of MASTER OF SCIENCE IN AGRICULTURE (AGRICULTURAL ECONOMICS) By Tadele Mamo October 2011 HARAMAYA UNIVERSITY SCHOOL OF GRADUATE STUDIES HARAMAYA UNIVERSITY As thesis research advisor, I hereby certify that I have read and evaluated this thesis prepared, under my guidance, by Tadele Mamo entitled “IMPACT OF PRODUCTIVE SAFETY NET PROGRAM ON ASSET ACCUMULATION AND SUSTAINABLE LAND MANAGEMENT PRACTICES IN THE CENTRAL RIFT VALLEY: THE CASE OF ADAMITULU JIDO KOMBOLCHA AND MESKAN DISTRICTS”. I recommend that it be submitted as fulfilling the thesis requirement. Chilot Yirga (PhD) ________________ _______________ Major Advisor Signature Date As members of the Examining Board of the Final M. Sc. Open Defence, we certify that we have read and evaluated the thesis prepared by Tadele Mamo. We recommend that it be accepted as fulfilling the thesis requirement for the degree of Master of Science in Agriculture (Agricultural Economics). ______________________ _________________ _______________ Chair Person Signature Date ______________________ _________________ _______________ Internal Examiner Signature Date ______________________ _________________ _______________ External Examiner Signature Date ii DEDICATION I dedicate this thesis manuscript to all of my family members. iii STATEMENT OF AUTHOR First, I declare that this thesis work is my bonafide work and that all sources of materials used for this thesis have been properly acknowledged. This thesis has been submitted in partial fulfilment of the requirements for M.Sc. degree at the Haramaya University and is deposited at the University Library to be made available to borrowers under rules of the Library. I seriously declare that this thesis is not submitted to any other institution anywhere for the award of any academic degree, diploma or certificate. Brief quotations from this thesis are allowed without special permission provided that accurate acknowledgement of source is being made. Requests for permission for extended quotation or reproduction of this manuscript in whole or in part may be granted by the head of the department of Agricultural Economics or the Dean of the School of Graduate Studies when in his or her judgment the proposed use of the material is in the interest of scholarship. In all other instances, however, permissions must be obtained from the author. Name: Tadele Mamo Signature: ______________ Place: Haramaya University, Haramaya Date of Submission: _________________ iv BIOGRAPHICAL SKETCH The author was born on August 18, 1983 in Abichuna Nye’a district of North Shewa Zone. He attended his elementary, junior and high schools in Gara Botora Elementary School, Mendida Junior Secondary School and Debre Berihan Hailemariam Mamo Comprehensive Secondary School, respectively. Then he joined Haramaya University (the then Alemaya University) in 2001 and graduated with B.Sc. degree in Agribusiness Management in July 2005. After his graduation, he was employed in the ministry of agriculture, Ardaita ATVET College as a junior instructor of agricultural economics where he worked for two semesters until he joined the Ethiopian Institute of Agricultural Research (EIAR). He has been working in EIAR, Holetta Research Center, in project planning, monitoring and evaluation department as a junior researcher for three years until he got the chance to rejoin Haramaya University in October 2008 to pursue his M.Sc. study in Agricultural Economics. v ACKNOWLEDGMENTS I have got helpful assistances from many persons and institutions at various levels. It is impossible to acknowledge all the individuals and institutions that supported me in conducting this research since they are so many to list by their names here. Nevertheless, I would like to take the chance to acknowledge some of them who have helped me in a special way. First of all, my appreciation and gratitude goes to my research advisor, Dr. Chilot Yirga, for his invaluable advices and guidance. I greatly acknowledge him for his allocating his golden and busy time for my research work. Without his encouragement, stimulation and professional support the thesis work would have not been completed. I would like to thank Mr. Mistiru Tesfaye, W/ro Yewbdar Tadesse and W/ro Genet Ayele for hosting me throughout my study time. I have really no words to express their support in all aspects. Mr. Dagne Getachew, Mr. Wudneh Getahun, Mr. Yohannis Gojam, Mr. Zenebe Admasu, W/ro Tenagne H/silassie, Mr. Kasaye Negash and Mr. Alemu Tolemariam should be acknowledged for their special support. I am very glad to acknowledge the sample farmers for their willingness and patience in responding me to my questionnaire at the expense of their invaluable time. If they had not extended their cooperation, it would have been impossible to complete this thesis. I am also indebted to extend my acknowledgement to Adamitulu Jidokombolcha and Meskan districts agriculture and rural development office with a special thank to food security departments for their support and guidance in provision of basic information. I would like to thank all staff members of Holeta agricultural research center for their encouragements and support. I would like to thank Wageningen University which funded this research through ILCE (Improving livelihoods and resource management in the central rift valley of Ethiopia). I also thank Dr. Aad Kessler from land degradation and development group and Dr. Huib Hengsdijk from plant research international of Wageningen University for their comments. Last but not least; I would like to express my heartfelt appreciation and gratitude to all my family for their support and encouragement. Above all, I praise God the almighty and Saint Marry, for allowing me to make my dreams come true after a very difficult journey and a burdensome effort. vi LIST OF ACRONYMS ACF Action Contre la Faim BoARD Bureau of Agriculture and Rural Development CFSTF Community Food Security Task Force DPPC Disaster Prevention and Preparedness Commission DS Direct Support EDRP Emergency Drought Recovery Program EGS Employment Generation Scheme ESAFW Environmental and Social Arrangement Framework FAO Food and Agriculture Organization FDRE Federal Democratic Republic of Ethiopia FFSCB Federal Food Security Coordination Bureau FFSP Federal Food Security Project FSTF Food Security Task Force GTZ German Technical Cooperation IDB International Development Business IDS International Development Studies KFSTF Kebele Food Security Task Force MoARD Ministry of Agriculture and Rural Development NGO Non-Governmental Organization OFSP Other Food Security Programs PASDEP Plan for Accelerated and Sustained Development to End poverty PIM Programme Implementation Manual PSNP Productive Safety Net Programme PW Public Works SC_UK Save the Children (United Kingdom) SWC Soil and Water Conservation SLM Sustainable Land Management SNTG Safety Net Targeting Guideline UNDP United Nations Development Programme USAID United States Agency for International Development WFSTF Woreda Food Security Task Force vii TABLE OF CONTENTS STATEMENT OF AUTHOR iv BIOGRAPHICAL SKETCH v ACKNOWLEDGMENTS vi LIST OF ACRONYMS vii LIST OF TABLES xi LIST OF FIGURES xii LIST OF TABLES IN THE APPENDIX xiii ABSTRACT xiv 1. INTRODUCTION 1 1.1. Background 1 1.2. Statements of the Problem 4 1.3. Research Questions 4 1.4. Objectives of the Study 5 1.5. Significance of the Study 5 1.6. Scope and Limitations of the Study 6 1.7. Hypotheses to be tested 6 1.8. Organization of the Thesis 7 2. LITERATURE REVIEW 8 2.1. Concepts of Food Security and Productive Safety Net Programs 8 2.1.1. Definitions and overview of food security 8 2.1.2. Food security strategy of Ethiopia 9 2.1.3. Productive safety net program 10 2.1.4. Other food security programs 12 2.1.5. Concept of asset and asset accumulation in the context of farmers 12 2.2. Land Degradation and Sustainable Land Management Measures 13 2.2.1. Land degradation problems in Ethiopia 13 2.2.2. Sustainable land management 14 2.2.3. Previous approaches used to promote sustainable land management in Ethiopia 15 viii TABLE OF CONTENTS (CONTINUED) 2.2.4. Sustainable land management technologies 15 2.4. Impact Assessment Concepts and Approaches 17 2.4.1. Concept of impact assessment 17 2.4.2. Impact assessment approaches 18 2.5. Empirical Studies on SLM Practices and Impact of Productive Safety Net Program 22 2.5.1. Studies on sustainable land management practices 22 2.5.2. Studies on the impact of productive safety net program on asset accumulation and sustainable land management practices 23 2.5.3. Studies on the application of propensity score matching method 24 2.5.4. Studies on the application of Heckman’s two-step model 25 3. RESEARCH METHODOLOGY 26 3.1. Description of the Productive Safety Net Program in the Study Area 26 3.2. Description of the Study Area 27 3.3. Sources of Data, Methods of Data Collection and Sampling Technique 29 3.3.1. Sources and Methods of data collection 29 3.3.2. Sampling technique 29 3.4. Methods of Data Analysis 30 3.4.1. Descriptive statistics 30 3. 4.2. Econometric models 31 3.5. Definitions and Choices of Variables 42 3.5.1. Choice and descriptions of variables included in PSM model 42 3.5.2. Choices and descriptions of variables included in Heckman’s two step model 45 4. RESULTS AND DISCUSSION 52 4.1. Descriptions of Sample Households' Characteristics 52 4.1.1. Households’ demographic background and farm characteristics 52 4.1.2. Plot level characteristics of the households 54 4.1.3. Perceptions of households 55 4.1.4. Access to extension and credit services 58 4.1.5. Farming system and crops grown 60 ix