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Accueil du site → Doctorat → Allemagne → 2015 → The private sector and the marginalized poor - An assessment of the potential role of business in reducing poverty and marginality in rural Ethiopia

Rheinischen Friedrich-Wilhelms-Universität Bonn (2015)

The private sector and the marginalized poor - An assessment of the potential role of business in reducing poverty and marginality in rural Ethiopia

Husmann, Christine

Titre : The private sector and the marginalized poor - An assessment of the potential role of business in reducing poverty and marginality in rural Ethiopia

Auteur : Husmann, Christine

Université de soutenance : Rheinischen Friedrich-Wilhelms-Universität Bonn

Grade : Doktor der Agrarwissenschaften (Dr. agr.) 2015

Résumé partiel
The present research analyzes the role that the private sector can play in reducing poverty and marginality in Ethiopia by providing improved agricultural inputs to marginalized poor farmers. Two important insights motivate the present research : one is the rise of various innovative business approaches in the last years that aim at reducing poverty or contributing to the solution to other societal problems. The other insight motivating this research is that the very poorest have long not benefitted from poverty reduction efforts. In that context, marginality has been identified as a root cause of poverty and its persistence. Against this background, the concept of marginality is presented and applied to the context of Ethiopia. Using Geographic Information System (GIS) software, a marginality map of Ethiopia is created by overlaying seven indicators capturing different aspects of marginality. Results show that marginality is a severe and widespread problem in Ethiopia with more than 40 million people being severely marginalized. Marginality hotspots are found in Amhara and SNNP. Interestingly, marginality hotspots are not correlated with agro-ecological zones and are ethnically more homogeneous than non-hotspot areas. Furthermore, areas posing specific business opportunities and challenges are identified based on information on population density, quality of road and mobile phone connection and farming systems. This area classification reveals that companies catering to the marginalized poor need to go the ‘last mile’ within areas exhibiting special business challenges and opportunities rather than investing in separated areas. After having identified and located the marginalized poor in Ethiopia, survey data that is representative for the most marginalized in the country is analyzed concerning purchasing behavior and needs expressed by the marginalized poor. Using descriptive statistics it can be shown that the amount of cash the marginalized poor have at hand varies considerably across regions but not very much within regions. The marginalized poor have in common that they spend a high percentage of their expenditures on food (around 70%), followed by commodities such as kerosene and clothes. The three most bought products are salt, kerosene and soap. This translates into considerable market sizes of these products.

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