Document Abstract
Published:
2009
Impacts of the Productive Safety Net Program in Ethiopia on livestock and tree holdings of rural households
Does the Ethiopian Productive Safety Net Program increase livestock holdings?
This paper evaluates the impacts of the Ethiopian Productive Safety Net Program (PSNP) on rural households’ holdings of livestock and forest assets/trees. It found that the number of trees increased for households that participated in the programme. Therefore, the programme does appear to encourage additional tree planting.
Nevertheless, the paper finds no evidence that the PSNP protects livestock in times of shock. There is also no trend toward increased livestock holdings as a result of the programme, despite the fact that this is one of its goals.
The paper concludes that the programme does seem to have raised the long-term income earning potential of the households in the survey, although perhaps not in the intended manner. Indeed, whether households will in fact be able to graduate from the programme at its scheduled end date in 2010 remains to be seen, but it does appear that their incomes may be higher than before. Yet, the paper underlines that to the extent PSNP has lasting effects on household welfare, its effects appear to be more complex and indirect than expected.
The paper suggests that improved credit access leads to increases in livestock holdings, although it finds it surprising that this factor appears to be more important than the existence of the PSNP itself.
Nevertheless, the paper finds no evidence that the PSNP protects livestock in times of shock. There is also no trend toward increased livestock holdings as a result of the programme, despite the fact that this is one of its goals.
The paper concludes that the programme does seem to have raised the long-term income earning potential of the households in the survey, although perhaps not in the intended manner. Indeed, whether households will in fact be able to graduate from the programme at its scheduled end date in 2010 remains to be seen, but it does appear that their incomes may be higher than before. Yet, the paper underlines that to the extent PSNP has lasting effects on household welfare, its effects appear to be more complex and indirect than expected.
The paper suggests that improved credit access leads to increases in livestock holdings, although it finds it surprising that this factor appears to be more important than the existence of the PSNP itself.



