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Recurrent shocks, poverty traps and the degradation of pastoralists’ social capital in southern Ethiopia

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  • Berhanu, Wassie

Abstract

This paper examines the long-term effects of shocks experienced by a traditional pastoral community, with the aim of testing the micro-level poverty trap hypothesis. It uses the instrumental probit technique to examine empirically the way that shocks, poverty traps, and the social capital base of the pastoral livelihood system are connected. The results strongly confirm that the likelihood of falling into permanent destitution is significantly associated with recurrent exposure to covariate shocks. The detrimental effects of shocks are transmitted through poverty traps that undermine the efficacy of the indigenous welfare system. Shockinduced poverty has significantly eroded trust and confidence in the traditional social support system and appears to have increased the dependence on aid agencies. These findings emphasize the importance of focusing on innovative risk management initiatives and substantial resource commitment to socioeconomic transformation in pastoral areas rather than unduly emphasizing conventional emergency response operations.

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  • Berhanu, Wassie, 2011. "Recurrent shocks, poverty traps and the degradation of pastoralists’ social capital in southern Ethiopia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 6(1), pages 1-15, March.
    • Handle: RePEc:ags:afjare:156950
    DOI: 10.22004/ag.econ.156950
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    1. Berhanu, Wassie & Beyene, Fekadu, 2014. "The impact of climate change on pastoral production systems: A study of climate variability and household adaptation strategies in southern Ethiopian rangelands," WIDER Working Paper Series 028, World Institute for Development Economic Research (UNU-WIDER).
    2. Teferi Tolera & Feyera Senbeta, 2020. "Pastoral system in the face of climate variability: household adaptation strategies in Borana Rangelands, Southern Ethiopia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 3133-3157, April.
    3. Wassie Berhanu & Fekadu Beyene, 2014. "The Impact of Climate Change on Pastoral Production Systems: A Study of Climate Variability and Household Adaptation Strategies in Southern Ethiopian Rangelands," WIDER Working Paper Series wp-2014-028, World Institute for Development Economic Research (UNU-WIDER).
    4. Wassie Berhanu & Fekadu Beyene, 2015. "Climate Variability and Household Adaptation Strategies in Southern Ethiopia," Sustainability, MDPI, vol. 7(6), pages 1-23, May.

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