PRODUCTIVE SAFETY NET PROGRAM IN BUILDING CLIMATE CHANGE RESILIANCE OF HOUSEHOLDS: THE CASE OF DIRE DAWA ADMINSTRASTION, ETHIOPIA

Abstract

Ethiopia Productive safety net program (PSNP) is one of the largest social protection programs in Africa, receiving significant attention from the Ethiopian government and from donors. It was being under implementation for more than 19-years (since January 2005) and will continue to undefined periods. This study was assessed and evaluated the impact of PSNP in building households resilience from climate change shocks on the selected livelihood assets of Dire Dawa Administration rural Kebele households. To this end, cross-sectional research design method was used for the study. Data were collected from 394 randomly selected rural households, comprising 177 PSNP participants and 217 non-PSNP participants from four PSNP Kebeles within the Administration. Data were analyzed using descriptive and inferential statistics, along with econometric (PSM) model analysis. Findings of descriptive and logit results showed that out of 12 explanatory variables, 8 variables were influencing factors in determining PSNP participation towards resilience. Also, descriptive results of outcome variables revealed that among program participants and non-participants, the total annual income has increased on average by 30198.6 birr and 29464 birr respectively. The average livestock holding was 3.2 TLU and 3.3 TLU for participant and non-participant households, respectively. Propensity Score Matching (PSM) model with radius caliper (0.1) matching techniques was used to estimate the counterfactual results to investigate the impact of the program. It was found that PSNP have positive impact on participant’s annual income and education expense, and negative impact on client’s physical productive livelihood asset (livestock holding). Besides, the average treatment effect on treated (ATT) was positive and significant on outcome variables of annual income and education expense at 1% significant level except livestock holding which is negatively affected by the program. Thus, PSNP enabled program participants in financial assets and human assets which supporting participants in building their resilience, but still productive assets not supporting as expected in building their resilience. In addition, the finding of the study using descriptive statistics showed that more than 65% of household participants have negative graduation perceptions; and participants’ build dependency syndrome on the program which also results negative impact towards their climatic resiliency. In addition, the result of the study also indicates as, Low credit provision, Low Extension Services, Low Community Participation, Premature Graduation, Inadequate Capacity Building, Graduation by Quota, Inadequate Livelihood Support, Absence of Asset Registration, Low wage rates, Absence of Job Opportunity, Drought, and High Food Price were the major challenging graduation problems towards their resiliency. Therefore, in order to make the beneficiaries to be better build their resilience, more focus has to be given on introducing and access to market-oriented improved small ruminant livestock breeds, awareness creation trainings on graduation perceptions and criteria, livelihood diversification, job creation, access to credit, extension, and technology, and safeguarding mechanisms like risk financing, are the major advisable activities so as to enhance participants climatic resilience.