THE IMPACT OF GIDDA INTEGRATED RURAL DEVELOPMENT PROJECT ON RURAL LIVELIHOOD INCOME DIVERSIFICATION: THE CASE OF GIDAA AYANA DISTRICT, EAST WOLLEGA ZONE OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

In the paper an attempt has been made to analyze the process of livelihood diversification through Gidda Integrated Rural Development Project intervention and its impact on rural poor household income in Gida Ayana district of East Wollega zone Oromia Region. In the course of this study primary data were collected from a sample of the project beneficiaries and non clients (who had not benefited from the project) as a control group through structured questionnaire. The totals of 200 farm households’ cases were included in the final analysis. In terms of length of program participation, 100 were selected from the project beneficiaries while the remaining 100 were from non-clients who make up the control group. Five kebeles were selected purposively, based on the length of time they stayed in the program. Households in the sample kebele were stratified as clients and non-clients of Gidda Integrated Rural Development Project. From the stratified households sample respondents were selected using systematic random sampling method for both groups. Descriptive statistics analysis such as mean, percentage, standard deviation, frequency distribution were .used and also independent t-test and were used to test mean income difference between the two groups on the dependent variable participation, improvement in household income and asset formation respectively. Nine explanatory variables were included in the model to analyze household income improvement for which eight variables were found significant at ten, five and one probability level. Therefore, these factors need to be taken into account in planning of diversification with particular focus on non-farm activities by policy makers to come up with the projects that can make the problems of community the central issue as recommended. Out of the proposed explanatory variables that are assumed to affect diversification and household income, Sex, Education, Farmland size and credit strongly predict and positively affect the dependent variable participation of the project. Therefore, these factors need to be taken into account in planning of diversification with particular focus on non/off-farm activities by policy makers to improve the rural household livelihood status. Both Descriptive and Inferential statistics result showed that project participants were in the better position in annual income generation and asset formation than the non-participant households which showed 5% and 10% significant probability difference. Generally project programme in the study area attained positive impact on the project programme participant household’s livelihood, physical asset formation and income diversifying activities that has improved their life standards through provision of social infrastructures like construction of bridges provision of credit facility and extension service to increase their production and productivity