Institutional challenges of poverty reduction and household coping mechanisms in Eastern hararghe, Eastern Ethiopia

Abstract

This study examines the institutional challenges of poverty and its coping mechanism in eastern Ethiopia. A sample of 800 households was randomly selected and interviewed from three local administratives namely: Dirree-Xiyyaara, Biiftuu-Gadaa and Hawwi-Gelan. The descriptive statistics indicate that majority of the households reported that they: do not feel secured on the current land ownership status; perceive that their family members, relatives, and communities do not help to them to fight poverty; do not trust in the local or woreda authorities; perceive that their local authorities are not accountable; think that their local authorities are not transparent; perceive that their local authorities are not participatory; and know that their local authorities demand bribe to provide services to the community. Similarly, the econometric result of the probit regression illustrates that distance to the nearest market center, saving culture and saving amount, land ownership status and active participation in social networks significantly determine poverty status of the households in the study areas.