The major interest of this study was to identify institutional challenges in smallholders’ commercialization, to assess perceived sources of social risks, to analyze factors affecting the choice of institutional arrangements for social risk management; and to evaluate the impact of institutional arrangements on social risk management on smallholder’s commercialization the case of Mieso and Gumbi-Bordode districts of West Hararghe zone of Oromia Regional State. To meet these objectives a total of 382 sampled households were randomly selected from ten kebeles. Descriptive and inferential statistics of principal component analysis, multivariate regression, and propensity score matching (PSM) were employed to achieve these objectives.
Social risks are a global phenomenon, having severe and direct implications for society, incurring large-scale influence, depending on the cultural, political, and economic context in which this phenomenon manifests itself. In recent years, a more holistic approach and society-wide arrangements of social risk management that go beyond social protection have become increasingly important to assist individuals and households to better manage multiple social risk factors. Given this, in the West Hararghe zone, pastoralists and agropastoralists often deal with social risks through the market, informal and public arrangements in the case of risks due to different reasons. However, the impact of the institutional arrangements for social risk management has not been well studied and documented.
Table of Contents
1. INTRODUCTION
1.1. Background of the Study
1.2. Statement of the Problem
1.3. Research Questions
1.4. Objectives of the Study
1.5. Significance of the Study
1.6. Scope and Limitation of the Study
2. LITERATURE REVIEW
2.1. Concepts and Definitions of Terminologies
2.2. Theoretical Framework
2.2.1. Social risk: sociological perspectives
2.2.2. Theoretical perspectives of social risk management
2.2.3. Models of poverty traps
2.2.4. Smallholders’ Commercialization
2.2.5. Agricultural household model
2.2.6. Transaction Cost Theory
2.2.7. Theory of Change
2.3. Analytical Framework
2.3.1. Institutional analysis paradigm
2.3.2. Impact assessment method
2.4. An Empirical Literature Review
2.4.1. Institutional Challenges facing Smallholders’ Commercialization
2.4.2. Risk perception and institutional response to social risk management
2.4.3. Choice of Institutional Arrangement for Social Risks Management
2.4.4. Impacts of social risk management Arrangement on Smallholder Commercialization
2.5. Conceptual Framework
3. RESEARCH METHODOLOGY
3.1. Description of the Study Area
3.2. Sample Design and Techniques
3.3. Data Type, Source, and Collection Methods
3.4. Methods of Data Analysis
3.4.1. Descriptive statistics
3.4.2. Econometric models
3.4.2.1. Multivariate probit regression
3.4.2.2. Propensity Score Matching (PSM)
4. RESULTS AND DISCUSSION
4.1. Description of demographic, socio-economic, and institutional characteristics
4.1.1. Demographic and social-economic characteristics of household
4.1.2. Social networks /organization, Social cohesion, and trust
4.1.2.1. Helpfulness of participation in different networks /organization
4.1.2.2. Social cohesion
4.1.2.3. Trust
4.2. Institutional Challenges in Smallholder s’ Commercialization
4.3. Types and Major Institutional Causes of Social Risks
4.3.1. Types of social risks
4.3.2. Institutional traps: as major causes of social risks
4.3.2.1. Governance traps of social risk
4.3.2.2. Institutional disincentives
4.3.2.3. Elites and security forces exploitation
4.3.2.4. Inefficient of social protection arrangements
4.4. Determinants of Institutional Arrangements for Social Risk Management
4.4.1. Types of institutional arrangements for social risk management
4.4.2. Determinants of Institutional Arrangement social risk management
4.5. Impact of Institutional Arrangements on Smallholder Commercialization
4.5.1. Estimation of the propensity scores
4.5.2. Average Treatment Effect on the Treated (ATT)
5. CONCLUSIONS AND RECOMMENDATIONS
5.1. Summary
5.2. Conclusion and Recommendations
6. REFERENCES
7. APPENDICES
7.1. Appendix Tables
7.2. Appendix Figure
7.3. Questionnaire for Sample Households
Objectives and Thematic Scope
This dissertation investigates the influence of institutional arrangements on the social risk management and subsequent commercialization efforts of smallholder pastoralists and agro-pastoralists in the Mieso and Gumbi-Bordode districts of the West Hararghe Zone, Ethiopia. The research aims to evaluate how institutional frameworks facilitate or hinder the transition from subsistence farming to market-oriented production.
- Identification of institutional challenges within smallholder commercialization.
- Assessment of perceived sources and types of social risks.
- Analysis of determinants influencing the selection of institutional arrangements.
- Evaluation of the impact of these arrangements on smallholder commercialization outcomes.
Excerpt from the Book
2.4.1. Institutional Challenges facing Smallholders’ Commercialization
A widely accepted objective for agricultural development in Africa is to achieve sustainable intensification (Reardon, 1998) with the adoption of new technologies that use purchased inputs (such as improved seeds and inorganic fertilizers) to increase land and labor productivity. There are, however, a daunting set of generic and often mutually reinforcing problems that commonly inhibit such processes in poor rural areas that need them most. These problems include poor roads and telecommunications; poor human health; lack of a well-developed and diversified monetary economy; and thin markets for agricultural inputs, outputs, and finance, despite significant direct and indirect dependence of the local economy on agriculture.
Thin markets contribute to and are the result of a business environment generally characterized by weak information (on prices, new technologies, and other potential market players), by difficult and weak contract enforcement, by high risks (not only in production and prices but also in access to inputs and markets and in enforcing contracts), and by high transaction costs (as buyers and sellers protect themselves against risks of a transaction failing by searching for and screening potential suppliers or buyers and their goods and services, then negotiating and contracting with them, and monitoring and enforcing their adherence to the contract) (IFPRI, 2009).
Smallholders supply about 70 percent of Africa’s total food requirements and provide around 80 percent of the food consumed in both Asia and sub-Saharan Africa (IFAD, 2013). Furthermore, smallholders in several developing countries produce the bulk of these countries’ main agricultural exports. However, despite their important contribution, smallholders have suffered various challenges as a result; smallholders in the developing world continue to account for a large proportion of the poor. Estimates show that 70 percent of the developing world’s 1.4 billion extremely poor people live in rural areas, particularly in South Asia and in sub-Saharan Africa.
Summary of Chapters
1. INTRODUCTION: Provides the background of the study, identifies the problem of smallholder vulnerability to risks and barriers to commercialization, and outlines the research questions and objectives.
2. LITERATURE REVIEW: Examines theoretical frameworks including risk society theory, institutional economics, and agricultural household models to understand the interplay between risk, poverty, and institutional arrangements.
3. RESEARCH METHODOLOGY: Details the mixed-methods research design, including sampling techniques, data collection in the Mieso and Gumbi-Bordode districts, and analytical tools like Principal Component Analysis and Propensity Score Matching.
4. RESULTS AND DISCUSSION: Presents findings on the demographic characteristics, identifies specific institutional challenges and social risks, and discusses the determinants and impacts of choosing various institutional arrangements for risk management.
5. CONCLUSIONS AND RECOMMENDATIONS: Synthesizes the study's findings and offers policy recommendations to enhance social risk management and support smallholder commercialization in the region.
Keywords
Institutional Challenge, Social Risk, Institutional Arrangements, Social Risk Management, Smallholders' Commercialization, Ethiopia, Mieso, Gumbi-Bordode, Pastoralism, Agricultural Extension, Propensity Score Matching, Poverty Traps, Household Income, Market Participation, Rural Institutions.
Frequently Asked Questions
What is the core focus of this dissertation?
This work examines the institutional arrangements used by smallholder pastoralists and agro-pastoralists in West Hararghe, Ethiopia, to manage social risks and their subsequent impact on agricultural commercialization.
What are the primary thematic areas explored?
The study centers on institutional challenges to commercialization, sources of social risk, the decision-making processes regarding institutional arrangement choices, and the measurable impact of these arrangements on farm income.
What is the main objective of the research?
The primary goal is to analyze how different institutional arrangements for social risk management influence smallholder farmers' commercialization efforts in the study area.
Which scientific methods were employed?
The research uses a mixed-methods approach, utilizing both qualitative data from focus group discussions and key informant interviews, alongside quantitative analysis including descriptive statistics, Principal Component Analysis, multivariate probit regression, and Propensity Score Matching.
What does the main body address?
The main body reviews existing literature on poverty traps and social risk theories, describes the study area's methodology, and provides an in-depth analysis of the institutional traps and management strategies currently utilized by farmers.
Which keywords characterize this work?
Key terms include Institutional Challenge, Social Risk, Smallholders’ Commercialization, Institutional Arrangements, and Ethiopia.
How do institutional traps influence social risks in the study area?
The research identifies institutional traps—such as governance failures and inefficient protection arrangements—as root causes that transform manageable social problems into persistent social risks, thereby deepening the poverty of smallholders.
What specific impact does institutional arrangement participation have on income?
The analysis indicates that participation in institutional arrangements for social risk management is associated with increased household income from crop and livestock sales, although it may decrease the probability of participating in the output market by 14%.
- Quote paper
- Aman Kiniso (Author), 2020, Institutional Arrangement for Social Risk Management and its Impact on Smallholders’ Commercialization. The Case of Mieso and Gumbibordode Districts of West Hararghe Zone, Oromia National Regional State, Ethiopia, Munich, GRIN Verlag, https://www.grin.com/document/1165157
