ANALYSIS ON THE INCIDENCE AND DETERMINANTS OF URBAN HOUSEHOLD POVERTY: THE CASE OF DURAME TOWN, KAMBATA TAMBARO ZONE, SNNPRS, ETHIOPIA

Abstract

Poverty is a complex and multidimensional social problem in the world including Ethiopia. It has been a long time that the attention of the international community is drawn to alleviate it. However, poverty is still continued to be a challenge for global community. Recently, poverty is becoming a typical urban phenomenon due to rapid urbanization particularly in developing countries. Various factors could determine the incidence and extent of household poverty in urban areas. Studies that identified factors that determine the level and extent of urban household poverty particularly in small and medium towns were not adequate. The objective of this study, therefore, was to analyze the incidence and determinants of urban household poverty in Durame town with the specific objectives of measuring the incidence and extent of urban poverty using consumption expenditure approach, analyzing the determinants of urban household poverty, assessing the role of GOs and NGOs in reducing urban poverty and identifying the possible opportunities that enable reduce poverty in the study area. In order to attain these objectives, 227 sample households were selected using systematic random sampling method from two kebeles of the study town. Primary data was collected from the sample households using survey questionnaire. Key informant interview and FGD were also conducted as planned and these data were used qualitatively to substantiate the findings. Poor and non-poor households were identified by using preset poverty line of birr 5142.16 for the study area. Consumption expenditure per adult equivalent per year was computed against the predetermined poverty line to categorize poor and non-poor households. FGT method was employed to identify indices of incidence, gap and severity of poverty. The results revealed that about 29.9 % of the sample households’ fall below poverty line with 5.9% and 2% poverty gap and severity respectively. Econometric results of binary logistic regression model demonstrated that sex and household size were found to be statistically significant determinants of poverty and have strong positive association with poverty status of urban household whereas education, income, access to safe water and electric energy were associated negatively with poverty status of the urban household at statistically significant level at 1 percent. The remaining predictor variables revealed as positively associated except credit which is negatively associated with poverty status of the household at statistically insignificant level. The findings of the study confirmed that the role of GOs and NGOs is not significant except providing some school materials for few poor households by some religious institutions. The GOs projects were mainly focused on upgrading urban infrastructure and social protection activities were not yet practical. As it was common elsewhere, the focus of NGOs is mainly rural than urban in the study area. As poverty incidence is higher in the study area, it requires greater attention to design pro poor projects to improve the living condition of poor urban households. Emphasis should be given to family planning strategies as the average household size is larger in the study area. In addition, adequate effort should be needed to improve the accessibility of safe drinking water and electric energy to poor households without which escaping poverty is difficult for urban households.