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CABI Book Chapter

Sustainable poverty reduction in less-favoured areas.

Book cover for Sustainable poverty reduction in less-favoured areas.


The 19 chapters included in this book provide an overview of research conducted within the framework of the collaborative research programme on 'Regional Food Security Policies for Natural Resource Management and Sustainable Economies' (RESPONSE). The programme aimed to identify strategic options for agricultural and rural development in less-favoured areas and policy instruments than enhance rura...


Chapter 17 (Page no: 421)

Poverty targeting with heterogeneous endowments: a micro-simulation analysis of a less-favoured Ethiopian village.

Spatially targeted programmes for poverty reduction in less-favoured areas (LFAs) are typically constrained by a large heterogeneity amongst households in terms of the quantity and quality of available resources. The objective of this chapter is to explore, in a stylized manner, the role of heterogeneous household endowments for: (i) policies aimed at poverty reduction; (ii) within-village income inequality; and (iii) resource degradation. Using a micro-simulation model, we analyse for each household in a remote Ethiopian village three sets of policies commonly put forward to reduce poverty: technology improvement, infrastructure investment (assumed to reduce the price band) and off-farm employment through migration or cash for work programmes. In the analysis of single policies, migration was found to produce the largest decrease in poverty headcount. Because of self-selection, cash-for-work (CFW) programmes performed best in terms of reaching the poorest of the poor. This policy also results in the largest reduction of within-village income inequality, while a reduction in price band increases income inequality. Richer households buy more consumer goods and thus benefit more from reduced consumption good prices. Only in the case of technology improvements was a trade-off between poverty reduction and soil erosion found. Price band and non-farm policies, however, lead to (sometimes considerable) reductions in erosion, while also having a better performance in terms of poverty reduction than technology improvements. Analysing the relation between assets and income, ownership of oxen was found to be crucial: households with no oxen are below the US$1/day poverty line, households above the US$2/day poverty line own oxen. Oxen ownership does not fully determine income: in addition to oxen, sufficient land (in terms of quantity and quality) is needed to escape poverty. Analysing combinations of policies, we find that combining policies helps poorer households overcome the limitations of their asset endowments. This complementarity of policies is less important for better-endowed households. As a result, combining complementary policies helps in targeting the poorest households, reducing income inequalities. Combining a CFW programme with a reduction in price bands yields most in terms of poverty reduction and income inequality. In terms of the effect on soil erosion, the combination of a reduction in fertilizer prices with improved technologies yielded unexpected interaction effects. Changed relative prices of inputs affect the choice of technology such that erosion levels increase, as opposed to decrease, as was expected based on the impact of single policies.

Other chapters from this book

Chapter: 1 (Page no: 1) Sustainable poverty reduction in less-favoured areas: problems, options and strategies. Author(s): Ruben, R. Pender, J. Kuyvenhoven, A.
Chapter: 2 (Page no: 65) Designing and evaluating alternatives for more sustainable natural resource management in less-favoured areas. Author(s): López-Ridaura, S. Keulen, H. van Giller, K. E.
Chapter: 3 (Page no: 91) Dimensions of vulnerability of livelihoods in less-favoured areas: interplay between the individual and the collective. Author(s): Brons, J. Dietz, T. Niehof, A. Witsenburg, K.
Chapter: 4 (Page no: 111) Market imperfections. Author(s): Nazneen Ahmed Peerlings, J. Tilburg, A. van
Chapter: 5 (Page no: 135) Soil nutrient dynamics in integrated crop-livestock systems in the Northern Ethiopian Highlands. Author(s): Abegaz, A. Keulen, H. van
Chapter: 6 (Page no: 159) Rural development and sustainable land use in the hillsides of Honduras. Author(s): Jansen, H. G. P. Pender, J. Damon, A. Wielemaker, W. Schipper, R.
Chapter: 7 (Page no: 181) Resource use efficiency on own and sharecropped plots in northern Ethiopia: determinants and implications for sustainability. Author(s): Tesfay, G. Ruben, R. Pender, J. Kuyvenhoven, A.
Chapter: 8 (Page no: 205) Food security through the livelihoods lens: an integrative approach. Author(s): Roa, J. R.
Chapter: 9 (Page no: 228) Changing gender roles in household food security and rural livelihoods in Bangladesh. Author(s): Ahmed Ali Niehof, A.
Chapter: 10 (Page no: 248) Does social capital matter in vegetable markets? The social capital of indigenous agricultural communities in the Philippines: socio-cultural implications and consequences for local vegetable trade. Author(s): Milagrosa, A. Slangen, L.
Chapter: 11 (Page no: 273) Making markets work for the poor: the challenge in the age of globalization. Author(s): Gabre-Madhin, E. Z.
Chapter: 12 (Page no: 301) Market access, agricultural productivity and allocative efficiency in the banana sector of Uganda. Author(s): Bagamba, F. Burger, K. Ruben, R. Kuyvenhoven, A.
Chapter: 13 (Page no: 328) Land and labour market participation decisions under imperfect markets: a case study in North-east Jiangxi Province, China. Author(s): Feng ShuYi Heerink, N. Ruben, R.
Chapter: 14 (Page no: 354) Land and labour allocation decisions in the shift from subsistence to commercial agriculture. Author(s): Jaleta, M. Gardebroek, C.
Chapter: 15 (Page no: 375) Effects of deregulation of the rice market on farm prices in China: a marketing channel model. Author(s): Chen Le Peerlings, J.
Chapter: 16 (Page no: 397) Consequences of the abolition of multi-fibre arrangement import quotas on the apparel industry of Bangladesh: a computable general equilibrium analysis. Author(s): Nazneen Ahmed Peerlings, J.
Chapter: 18 (Page no: 442) Less-favoured areas: looking beyond agriculture towards ecosystem services. Author(s): Lipper, L. Pingali, P. Zurek, M.
Chapter: 19 (Page no: 461) Livelihood strategies, policies and sustainable poverty reduction in LFAs: a dynamic perspective. Author(s): Dorward, A.

Chapter details

  • Author Affiliation
  • International Trade and Development, Public Issues Division, Agricultural Economics Research Institute (LEI) - Wageningen UR, PO Box 39703, 2502 LS, The Hague, Netherlands.
  • Year of Publication
  • 2007
  • ISBN
  • 9781845932770
  • Record Number
  • 20073253242