DETERMINANTS OF MULTIDIMENSIONAL POVERTY OF RURAL HOUSEHOLDS IN NORTH WEST ETHIOPIA: IN THE CASE OF WOGERA DISTRICT

Abstract

Poverty is one of the core issues and the most widespread social problems in the world. It has no geographical boundary. It is found in all direction and corners. Despite world exceptional advance in science, technology and wealth creation, poverty in all its manifestations remain deep and persistent. Rural households’ multidimensional poverty is still widespread and severe everywhere. For instance, worldwide a total of 1.3 billion people 23.1% are multidimensional poor from 101 countries and from the above figure two-thirds of multidimensional poor people live-in middle-income countries. In East Africa, 559 million (42%) people are multidimensional poor. In Ethiopia, the new global 2018 multidimensional poverty index revealed that 49% of the Ethiopian population is multidimensional poor. So that analysis of the nature and determinants of multidimensional poverty is a key input for interventions to reduce this enemy of mankind. Thus, the general objective of this study is an analysis of the status and the main determinants of rural households’ multidimensional poverty in wogera woreda (Ethiopia). Primary data are collected from 196 household heads by using multi stage sampling technique from rural households using survey questionnaires. In the analysis of the data, both descriptive and econometrics methods of analysis are used. Binary logistic regression model is used to investigate the determinants of multidimensional poverty. Result of the descriptive analysis that is AF methods counting approach show that the incidence (H) of the household 80 %, the intensity of poverty (A) 50 % and multidimensional poverty index (MPI) 40.1%. Dimensionally the living standard is the highest contributor to the overall multidimensional poor of the households (52.6%) following by the education dimension (33.1%) and health dimension (14.3%). Among eleven multidimensional poverty indicators, improved sanitation (9.3%) and cooking fuel indicator (9.2%) have the highest relative contribution to the overall multidimensional poverty index of the study woreda. Furthermore, the result of the regression analysis indicated that, family size, educational level of the household, health problem and room density are significant determinants of multidimensional poverty of the household of the study area. Policy recommendation that give top priority to living standard, education and health dimension respectively that give due consideration to significant variables in poverty reduction efforts required.