Livelihood Diversification Strategies and Their Contributions to Household Income and Food Security in Rural Areas of Ethiopia

Abstract

Agriculture is the major occupation for the majority of rural population in Ethiopia. Although its production and productivity is constrained by backward production technologies, small and fragmented land holdings, irregular/erratic/ rainfall, soil infertility, drought /moisture stress/ and risks associated with climatic variability. In order to cope and recover from the prevailing shocks and stress and support their livelihood, rural households in Ethiopia have engaged in different types of non-farm and/or off-farm income generating activities through combining all or some of their livelihood capitals including physical, human, natural, economic and social endowments. The objectives of this review were to identify type and intensity of livelihood diversification strategies and to assess the contribution of livelihood diversification strategies to household income and food security in rural areas of Ethiopia. This paper mainly depends on reviewing secondary date sources browsed from internet and assessed the type and intensity of livelihood diversification strategies and their contribution to income and food security status of rural households in Ethiopia. This paper also pointed out the existed institutional, social, financial and economic constrains challenges that practitioners have faced for farther policy interventions by governmental and non-governmental organizations.