Abstract
Multidimensional poverty is the problem of every country in the world; hence, it needs the attention of policy makers and various development actors like cooperatives. The main purpose of this study is to investigate the impact of saving and credit cooperative financial service on multidimensional poverty status of rural household in Awabel district. The specific objectives of the study is to examine the impact of saving and credit cooperative financial service on multidimensional poverty status of rural households, to identify determinants of multidimensional poverty status of rural households, to identify the dimension of household poverty affected by saving and credit cooperatives financial services. The study adopts a cross sectional, and quantitative research design. The target population was 4,675 actively registered RuSACCO members’ households. The sample size was a total of 380 i.e190 members as a treated group and 190 nonmembers as counterfactual obtained through multi-stage sampling techniques .The data is primary data collected through household survey.For data analysis firstly, binary logit models is used to identify the determinants of multidimensional poverty status of rural households; and the finding revealed multidimensional poverty status of rural household has negative relationship between RuSACCO membership status (-4.2%), size of cultivated landholdings (-5%), access for agricultural extension service (-4.01%), and access for road (-1.7%) and are all statistically significant at 1% level. Moreover, there was a negative relationship between experience of household head on agricultural activity (-0.15%) and statistically significant at 5% level, the risen in educational status of household head from illiterate to literate, primary to secondary and from secondary to higher education goes dawn multidimensional poverty status by-1.8%, -3% and -4.3% and all are statistically significance at 1% level It is also found that, there were positive relationship between, multidimensional poverty status of rural households and dependency ratio (0.11%) at 5% level of significance) in Awabel district. Secondly ,propensity score match model is applied to examine the impact of RuSACCO financial service on multidimensional poverty status of rural households, and the finding revealed that, financial service of RuSACCO had reduce the multidimensional poverty index of rural household by 0.082898018 on average for members .The findings also showed that the RuSACCOs financial service has reduced health dimension of poverty by 0.036242775, the educational dimension of poverty by 0.018915905standard of living dimension of poverty by 0.0152, on average for RuSACCO members compare to that of non members. It is recommended the government should give special attention for organization and promotion of cooperative. Cooperative extension workers should advice members of RuSACCO to spend their financial service on health, education and standard of livings respectively. Increase productivity per size of cultivated landholding, work hard to bring literate farmers, work against reducing young age dependency, rising road accessibility, increase the accessibility of agricultural extension workers, and experience sharing among farmers to reduce the multidimensional status of rural household’s members in Awabe district. Keywords : RuSACCOs financial service, Multidimensional poverty, Awabel district in Amahara region, propensity score matching model. DOI : 10.7176/DCS/9-9-02 Publication date :September 30 th 2019
Highlights
Background of the study There are a total of 1.45 billion (76%)people are multidimensional poor from 103 poor countries i.e 26.50 % of people live in these countries, 36% of people live is Sub-Sahara Africa .When multidimensional poverty index(MPI) and its indicators are disaggregated by 988 sub-national region in 78 countries, multidimensional poverty index of rural Ethiopia is still sever having MPI 0.637(from the total MPI 0.564) in year 2017. ,Amhara region had MPI of 0.58, head count ratio 90.1% and intensity of poverty (65.2%) multidimensional aspect of poverty is relevant to rural Amhara region
In response the global Campaign has gained momentum with various development actors suggesting the uses of different instrument to alleviate poverty .There is an emerging consensus among many actors such as United nation (UN), International Labuor Organization (ILO), the European Union (EU) and International Cooperative Alliance (ICA) Cooperative society is one of the few forms of organization that can meet all dimension of poverty
The chi2 test shows that there is an association between multidimensional poverty status and RuSACCO membership status at1% significance level and it is significant to multidimensional poverty status
Summary
The finding of the study shows 93.95 percent of rural peoples are multidimensional poor. in the study area. The adjusted multidimensional deprivation head count (Mo) shows that the society is in acute poverty i.e the society is deprived in 58.01 percent of the total potential deprivation it could experience over all They are deprived at least either all indicator of a single dimensions or a combination across dimensions such as being in a household with a malnourished person, no electricity, no access for clean water, shared sanitation .The result is relatively lower than the multidimensional poverty status of rural area of Ethiopia Mo 0.637, H 96.30% and A 66.20 %of poverty status ((OPHI), 2017). The finding of the study confirm with (Andualem, 2016).In poor country the standard of living is the highest contributor to multidimensional poverty status of households. Multidimensional poverty can be decomposed by dimensions, indicators and with different groups by (kebela) or sub-district to understand the deprivation poverty level among sub -district
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