Risk aversion in low income countries: Experimental evidence from Ethiopia

"Production systems in low-income developing countries are generally poorly diversified, focusing on rainfed staple crop production and raising livestock. These activities are inherently risky and investment and production decisions by farm households are therefore made within environments that are affected by risk. Because of poorly developed or absent credit and insurance markets it is difficult to pass any of these risks to a third party. As a result, it is often found that even when the expected net return is high, households are reluctant to adopt new agricultural technologies when they involve risk. Better understanding risk behavior will be essential for identifying appropriate farm-level strategies for adaptation to climate change by low-income farmers. Despite risk's potentially central role in farm investment decisions, there have been few attempts to estimate the magnitude and nature of risk aversion of farm households in low-income developing countries. To partially close this gap, this paper uses an experimental approach applied to 262 households in the Ethiopian highlands with real payoffs. By incorporating both small and large stakes and gains and losses into the experiment, we test for the presence of low stake risk aversion and loss aversion. We find that more than 50 percent of the households are severely or extremely risk averse. This contrasts with studies in Asia where most household decision-makers exhibit moderate to intermediate risk aversion. We find that households that stand to lose as well as gain something from participation in games are significantly more risk averse than households playing gains-only games. This strongly suggests that agricultural extension efforts involving losses as well as gains may face systematic resistance by farmers in low-income, high-risk environments. Promotion of technologies with downside risks – even if the upside potential is enormous – should therefore be combined with insurance or other support. We also find that even without the possibility of losses households are much more averse to risk when stakes are high. Results indicate that insurance or other support can likely be phased out. After initial successes have convinced farmers that technologies are viable, risk aversion declines. There are also significant differences in risk averting behavior between relatively poorer and wealthier farm households, which is consistent with decreasing absolute risk aversion. This suggests that as wealth is built up households are willing to take on more risk in exchange for higher returns. Both these findings suggest a strong path dependence. Efforts to develop poor rural areas through promotion of risky technologies should take this path dependence into account. Early successes are important, but households should also be allowed to build up wealth before they are challenged or tempted to take on more risky ventures. Furthermore, the finding that even without the possibility of losses households are much more risk averse when stakes are higher, suggests that agricultural extension should start modestly before asking households to take on larger gambles." from Authors' Abstractexperimental studies, loss aversion, risk aversion, Risk management, econometric models, Farm households,

Effect of Interpregnancy Interval on Low Birth Weight in Gondar and Bahir Dar Referral Hospital: A Case Control Study from North West Ethiopia

Background: Study findings on interpregnancy interval and its effect on low birth weight are contradictory. Some studies report that it is a risk factor for low birth weight while others say it has no association. Still less attention has been given to the way in which changes in family planning related behavior may affect low birth weight. Identifying the interpregnancy interval at which risk of low birth weight is occurred may benefit developing countries to prioritize family planning services.Methods: unmatched case control study design was used in a sample of 453 mothers (88 cases and 365 controls) who gave birth two or more times in Gondar and Bahir Dar teaching-referral hospital, Ethiopia. Cases were mothers who gave birth to low birth weight and controls were mothers who gave normal birth weight. Data was processed and analyzed using EPI Info and SPSS statistical software. A logistic regression was performed to identify the independent effect of interpregnancy interval on low birth weight.Result: The median of interpregnancy interval for cases and controls were 30 and 38 months respectively. The odd of low birth weight was 2.67 (95% CI = 1.36, 5.01) when interpregnancy interval was less than 24 months compared to the interval 24 and above months. Multivariate analysis showed that women who had interpregnancy interval less than 24 months were about 2.7 times more likely in delivering low birth weight infant compared to the interval 24 and above. Likewise women who were age of 20 or less, daily laborer, being moderately or severely food insecure and having pregnancy complication had a significant effect on low birth weight. Conclusion: interpregnancy interval less than 24 months had a significant effect on low birth weight. So mothers at the study area; not be pregnant before 24 months of the birth preceding child. Keywords: birth weight, interpregnancy interval, referral hospital, Ethiopi

The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands

This paper provides empirical evidence of production risk impact on sustainable land- management technology adoption, using two years of cross-sectional plot-level data collected in the Ethiopian highlands. We used a moment-based approach, which allowed a flexible representation of the production risk (Antle 1983, 1987). Mundlak’s approach was used to capture the unobserved heterogeneity along with other regressors in the estimation of fertilizer and conservation adoption. The empirical results revealed that impact of production risk varied by technology type. Production risks (variance and crop failure as measured by second and third central moments, respectively) had significant impact on fertilizer adoption and extent of adoption. However, this impact was not observed in adoption of conservation technology. On the other hand, expected return (as measured by the first central moment) had a positive significant impact on both fertilizer (adoption and intensity) and conservation adoption. Economic instruments that hedge against risk exposure, including downside risk and increase productivity, are important to promote adoption of improved technology and reduce poverty in Ethiopia.Production risk, sustainable land management technology adoption, moment based estimation, Ethiopia

Globalization and Identity/Locality Formation: Beyond the “Homo-Hetero” Debate

This short article tries to problematize a commonplace discourse in the sociology of globalization, viz., the problem of identity or locality formation. After briefly traversing the two major camps in the field—the “homogenizers’” and the “heterogenizers’”--it finally seeks a way out of this predicament, which it assumes to be virtually untenable. It rather attempts to demonstrate the validity of the insight of those recent scholars who emphasized that “the local” and “the global” are neither strictly distinct nor necessarily contradictory. The term “glocalization” can best stand for such reasoning. This is briefly exemplified by the nature and incidence of one ubiquitous phenomenon in our world: nationalism

Review of Impact of Climate Change on Food Security in Africa

Food Security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life. African continent is found to be the most susceptible and vulnerable places to climate change impacts, which is marked as the most food insecure region in the world, because of its reliance on climate sensitive and vulnerable economic sectors (rain fed agriculture) and its lower financial, technical, and technological capacity to adapt the climate change risks, and climate change is considered as posing the greatest threat to agriculture production and food security in the 21st century, particularly, in many of the poor, agriculture-based countries of Africa. Climate change affects food security in various ways: through impacting on all four components of food security (availability, accessibility, affordability, utilization and nutritional value and food system stability), through impacting on crop production and yield, through impacting on water availability, through impacting on fisheries production, through impacting on agricultural pests (weed, insect and disease pests), and through impacting on livestock production. African continent specially, Sub-Saharan African region is found to be the most drought prone area in the World. The severity of climate change extreme events/or drought induced food insecurity and malnutrition in Africa is emphasized. In Africa, food insecurity and malnutrition became chronic induced by repeatedly occurring drought. Due to climate change extreme event/or drought drive food crises/hunger many Africans were badly affected For instance, more than 100 million people were affected by drought driven hunger in Africa. So, Africa especially, Sub-Saharan Africa is marked as the most food insecure region in the world, and has the highest proportion of food insecure people, with an estimated regional average of 26.8% of the population undernourished and this rates could be over 50%. Moreover, the risk of hunger will increase by 10-20% in 2050. Similarly, in Africa, due to climate change impacts, the number of malnourished children is projected to be increased in 2030 and 2050 from the baseline (33 million) to 42 million and 52 million respectively. Thus, climate change impacts on food security has to be taken as key issue and impact reduction strategy options have to be implemented. Keywords: Impact of climate change, food security, malnutrition, food insecurity DOI: 10.7176/JRDM/90-03 Publication date: January 31st 202

Assessment of Service Quality and Customer Satisfaction in Private Minbus Transports: In the Case of Western Part of South Wollo Zone Some Selected Districts

The aim of this research was to assess the service quality of minibus transport and customer satisfaction in Southern part of South Wollo in some selected districts. The questionnaire was adopted and modified from the past studies. The questionnaires were administered to passengers of four districts.  Convenience sampling was used for this research. A total of 221 returned questionnaires was analyzed by using descriptive statistics, correlation and multiple regression analysis to test for the impact of service quality on customer satisfaction. The results showed that assurance β 0.951, produced the greatest influence on customer satisfaction followed by reliability 0.681. Empathy β 0.041 has the lowest positive and insignificant impact on customer satisfaction.  This study indicates that service quality is important because it can lead to increased customer satisfaction. The results imply that private Minibus transport service provider should improve service quality provision to increase customer satisfaction. Keywords: Service, quality, customer satisfaction, passenger, SERVQUAL, SERVPERF DOI: 10.7176/EJBM/12-13-01 Publication date:May 31st 202

Performance Evaluation of the Commercial Bank of Ethiopia: pre and post Liberalization

Financial sector reform is so important to ensure well-organized and stable financial system to increase the contribution of the banking system towards economic development. An exemplary reform measures undertaken by the Ethiopian government start the year 1992 was “liberalizing” the financial sector. Thus, this study was conducted under the title “performance Evaluation of Commercial Bank of Ethiopia: pre and post Liberalization”. The rational of this study is let the CBE and NBE know the performance of the bank in the pre and post liberalization and hence, to comment and recommend them on what they have to do, for the banks’ prosperity. The main objective of the study is to evaluate the financial performance of the Commercial Bank of Ethiopia in the pre and post liberalization. The researcher employed before and after study design using case study approach to evaluate how the bank has been financially performing in the pre and post liberalization. Both primary and secondary data were used in the study. Primary data gathered through structurally designed questionnaire from the selected employees’ and management who are working in seven different operations of the bank and secondary data from the annual reports for CBE for the period covering the year 1976 to 2009 were used in the study. The researcher employed financial statement analysis and test the hypothesis using t-test statistical tools. The major findings of the study indicate that performance of the bank after the liberalization is better than before liberalization. However, further reform measures in the deposit market, in establishing strong legal ground for providing technology banking services, let the bank to do business with financial institutions of their own choice, improving the capacity and independence of the regulatory/supervisory organ and full liberalization of the foreign market needs to be areas that need further liberalization or reform measures. Finally, the study suggested that the bank should use its maximum effort to further improve its performance and reform measures should be initiated on lifting the minimum interest rate for deposit to be determined on market basis, modify the commercial code to incorporate new article to enhance IT, fully liberalizing the foreign market, and encouraging the bank to do business with a financial institutions of their own choice

Determination of Optimum Harvesting Age for the Existing Sugarcane Varieties at Amibara/Middle Awash Agricultural Development Enterprise, Ethiopia

A field experiment was conducted at Amibara/Middle Awash Agricultural Development Enterprise farm in factorial combination of two sugarcane varieties and five harvesting ages in RCBD with five replication to determine the optimum harvesting age for the existing sugarcane varieties on heavy and light soils. The combined analysis over soil types proved significant differences for all parameters considered. Significant variation was observed by main and interaction effect of harvesting age and sugarcane varieties on cane yield, sugar yield, brix percent juice , pol percent and recoverable sugar on both light and heavy soils. The maximum sugar yield ton ha-1 month-1 (1.49) and  (1.60) were obtained from the variety B52298 at the harvesting age of 14 months on both light and heavy soils, respectively. since no significant variation is observed among the 14 and 15 months of  harvesting ages and attractive benefit cost ration was observed on light soils there is a possibility of harvesting both B52298 and Nco334 varieties at the age of 14 and 15 months while on heavy soils, there is a tendency to harvest at the range of 14 to 16 months for the variety B52298 and at 15 and 16 months for the variety Nco334 at Amibara situation. Keywords: harvesting age, sugarcane varieties and soil type

Effects of Industrial Park Induced Displacement on Natural, Economic and Social Assets of Small-Scale Farm Holders in Peri-Urban Area of Kombolcha, Ethiopia

To carry out various infrastructural and developmental projects displacement of local peoples from their original land becomes increases. This imposes cost for the poor and marginalized peoples due to the failure to restore their livelihood. Industrial parks are one of the state vital infrastructures to promote industrialization and economy reformation in Ethiopia. At this time government is highly committed in attracting investors to increase FDI (Foreign Direct Investment) of the country. FDI driven by investor’s interest in new industrial park development. The availability of large plot of land including low cost of production, and the increasing demand of FDI triggered IPD (Industrial Park Development) in the study area.The only option for government might be expropriating agricultural land and make available for investment activities. However, the   establishment of IP (Industrial parks) fails to exemplify the community context.As a result, this study aimed at explaining effects of Industrial Park Induced Displacement (IPID) on natural,  economic and social asset of small scale farm holders in peri urban area of kombolcha city, Amhara, Ethiopia. Furthermore, the study explained about the property rights held by small scale farm holders whose land were expropriated, and how were the small scale farm holders affected by expropriation compensated, the changes in livelihood (natural, economic and social asset) of the displaced farm holders,what areadaptation strategies adapted by households to deal with the new changing conditions.  In order to carry   out this study, primary and secondary data collection sources such as semi structured interview, observation, desk review, and content  analysis of relevant secondary sources have been used. Accordingly, qualitative analysis employed for analyzing the findings of the study.Expropriation of land for IPD implemented with no consultative, consent, and honest involvement of the displaced farm holders. This showed that IPD deprived property rights of displaced farm holders by changing land  use from agricultural land towards non farming activity. Furthermore, delay in compensation provision, corruption, and improper calculation generated insignificant amount of compensation. The result of this study indicated that IPD affected displaced farm holders’ access to farm land, grazing land and natural resources, this   generated landlessness, joblessness and triggered economic marginalization.of the displaced. Additionally, their relationship with neighbours, their engagenement in labor association and their mutual supporting mechanisms also affected. Moreover, the study depicted out that displaced farm holder’s livelihood adaptation strategies rely on off-farm employment (as permanent and temporary worker), and most of the displaced are fails to adapt. Keywords:IPID, Expropriation, Property rights, Compensation, Natural asset, Economic asset, Social asset, Livelihood adaptation strategies, Small-scale farm holders DOI: 10.7176/RHSS/11-15-02 Publication date:October 31st 202

Developing and validating a multi-dimensional instrument for measuring the performance of district health systems in a national region in Ethiopia

Background: Despite being the main vehicles of primary healthcare provision in Ethiopia, district health systems lack comprehensive set of valid performance indicators that are both process and outcome oriented. Therefore, we aimed to develop and validate a set of performance indicators for district health systems of Oromia Region, Ethiopia. Methods: We used a sequential mixed-methods design. During development stage, we employed a qualitative interview study in Oromia Region, Ethiopia. We transcribed, did in vivo coding and inductive analysis of the interviews. Moreover, we conducted a narrative systematic review. Records on performance of health systems were appraised and synthesized. Then, during the validation stage, we supplied the indicators generated from the previous two studies to experts in the field of health systems as part of a Delphi study. In the Delphi study, experts voted on the inclusion- or exclusion-of indicators in three stages. Results: Eleven functions of district health systems emerged from the interviews including: creating capacity of health centers for the provision of health care; and provision of comprehensive health care for communicable diseases and maternal health conditions, among others. Furthermore, 59 out of 238 indicators generated by the interviews and the systematic review were found to be valid by experts. Among these, 40 were found to be able to be drawn from the information systems in the districts. The indicators addressed multiple dimensions of performance of district health systems, such as capacity, quality, and outcomes. Among valid and feasible indicators were rate of utilization of family planning methods, and tuberculosis cases per 1000 people. Conclusion: Policy makers can use the valid indicators to monitor national policy priority areas like the expansion of family planning services. Moreover, the indicators can be used in the districts for local decision making, for example, to identify poorly performing functions and take corrective action