Statementof the problemEthiopiapoverty incidence has declined markedly over recent years. The nationalheadcount poverty rate fell from 29.
6% in 2010/11 to 23.5% in 2015/16. When itcompare rural to urban, rural poverty headcount index declined from 30.4% in2010/11 to 25.6% in 2015/16, while that of urban poverty incidence declinedfrom 25.7% to 14.
8% over the same period. As far as the rural food poverty is concerned,it fell from 34.7% in 2010/11 to 27.
1% in 2015/16.However, between 2010/11 and2015/16 only about 5.3 million people have been lifted out of poverty nationally.Moreover, based on the result of 2015/16 HICE survey data, the region of SNNPRGhead count index is 20.7%, which is lower than the national average 23.5% (HICES,2015/2016). This shows that rural poverty incidence is still almost twice ashigh as the urban poverty so requires further attention.
Generally, there is a declining trend of poverty both atregional and national levels, there are great difference among Regions andlower level of administration (Zones,weredas & kebeles). However, it ranked 173rd out of 187countries in its HDI value of 0.396 and the country’s MPI value was 0.564 (HDR,2013). Therefore, the progress that Ethiopia government report announcementcould not be expressing the well being of the people particularly who liverural area. It is certain that by any standard of measurement, the majority ofpeople in Ethiopia are among the poorest country in the world. Moreover,detailed analyses of poverty and wellbeing in developing countries, based onlarge-scale, nationally representative household surveys, have been ongoing formore than three decades.
The large majority of developing countries now conducton a regular basis a variety of household surveys income, consumption, health,demographics, labour force, and others. In addition, the information having indeveloping countries with respect to poverty and wellbeing has improveddramatically. Nevertheless, appropriate measurement of poverty remains complexand controversial (Ravallion 2016). ..
..economicsof poverty Inthis regard, Dercon and Krishnan (1996) strongly advise that one should becareful about the implications derived from measurement and factors of povertyat national level, because it hides many important differences that exist indifferent locations, and hence, are likely to be reliable only for particularlocalities.
Thus,the problem is not to analyzing poverty at nationally or regionally level. Theanalysis of poverty that conducted at country (regional) level could not givefull picture through all localities (areas) due to the nature and complexity ofpoverty and also the diverse socio-economic settings, agro-climatic zones andthe livelihood asset of the area. In fact, there are some studies conducted inthe country regarding poverty analysis an aggregate level and at grass rootlevel although they missed the exit time from poverty in their analysis.
Thisis very important input for the policy maker and also for all the concernedbodies who really feel about rural poor. Tothis end, the need to prioritize the problem in this area is due to the urgencyof the issue. There is no adequate information (in the study area) existedwhich tell about the magnitude and the causes of poverty in the area.
However,the manifestation of poverty and the living condition of the society observable.The problem is getting worse and worse day by day. Thus, this situation(absence of authentic data) has been a hindrance to bring the poor as an agendaas well for intervening in poverty eradication programme. Therefore, thisstudy will follow the approach measuring poverty in the context of the monetary, especially consumption. Since, income or consumptionis traditionally used to measures material deprivation. Especially consumptionrather than income is viewed as the preferred welfare indicator becauseconsumption better captures the long-run welfare level than current income. However, there is other approach/dimensions/studyof poverty.
Thus,the worst is that people who are not necessarily poor now may inevitably bevulnerable to poverty in the years to come unless they adjust themselves to newcircumstances against poverty hence keep on ensuring their survival, along withtaking remedial measures accordingly to help those who are poor now to exitpoverty. Because the profiles of our country aswell as respective Regions rely on some specificstatistics of poverty. However, when thinking about poverty reduction strategies,it may be useful to show how long it would take, at different potentialeconomic growth rates, for the average poor person to exit poverty.