IMPACT OF SMALL-SCALE IRRIGATION ON HOUSEHOLD POVERTY: EMPIRICAL EVIDENCE FROM THE AMBO DISTRICT IN ETHIOPIA

A study was conducted in the Ambo district of western Ethiopia in 2006 to understand the poverty reduction impacts of small-scale irrigation development, using the Indris irrigation system as a case study. The study was based on a survey of representative farm households with and without access to irrigation. The total sample size for the study was 222 (107 households with access to irrigation and 115 without). Data were analysed using descriptive statistics, the Foster, Greer and Thobeck poverty indices, and Heckman's selectivity model. Results indicate that the incidence, depth, and severity of poverty are significantly lower among those farm households with access to irrigation. In addition to irrigation, other variables such as farm size, livestock holding size, land productivity, and family size significantly influence the level of household consumption expenditure. However, the proportion of poor people in the overall sample, notwithstanding access to irrigation, is alarmingly high, indicating the deep-rooted and critical situation of poverty in rural Ethiopia. Copyright (C) 2009 John Wiley & Sons, Ltd.