Title_ Impact of Irrigation on Household Multidimensional Poverty Reduction in the Koga Irrigation Development Project, Northern Ethiopia

Author_ Koyachew Enkuahone Kassie, Bamlak Alamirew Alemu, Aseffa Seyoum Wedajoo

Pages 159-187

Abstract_ Agriculture remains the mainstay of the Ethiopian economy. However, the sector is affectedby climate change induced extreme weather events that aggravates rural poverty. As a result,the Ethiopian government has been making different interventions to alleviate poverty. Kogairrigation development project (KIDP) is one of such initiatives. However, due to politicalunrest, poor water management practice, limited market linkages and other institutionalchallenges, the project has not reached its desired goals. This paper is thus intended to evaluatethe efficacy of the KIDP to reduce poverty. Data were collected from 395 sample farmhouseholds (220 irrigators and 175 non-irrigators) drawn using multi-stage sampling technique.Multidimensional poverty index and endogenous switching regression model wereemployed to measure poverty and estimate the impact of irrigation on household poverty,respectively. The study found that poverty intensity and multidimensional poverty index ofthe study area were lower than the national and regional averages. Nonetheless, the trend ofpoverty reduction was not evenly progressed in irrigator and non-irrigator households. Theproportion of non-irrigator poor and MPI poor households were greater than irrigators. Theendogenous switching model and key informant interviews proved that irrigation has positiveimpact on multidimensional household poverty reduction. However, the incidence ofpoverty among the sample households, regardless of access to irrigation, is still higher. Thisimplies access to irrigation should be accompanied by institutional supports and complementaryproduction inputs. So as to excel the impact of irrigation, the government shall alsoexpand the technology over non-irrigated areas.

Keywords_ Irrigation, Household, Multidimensional poverty index, Switching regression