SOCIO ECONOMIC IMPACTS OF PRODUCTIVE SAFETY NET PROGRAM ON THE LIVELIHOODS OF FARMING HOUSEHOLDS: THE CASE OF CHIRO DISTRICT, WEST HARARGHE ZONE, OROMIA REGION, ETHIOPIA

The aim of this study was to assess the socio-economic impact of productive safety net program (PSNP) on the livelihoods of the farming households in Chiro District of West Hararghe Zone, Oromia Regional State, Ethiopia. The study has objectives to identify major features of PSNP have on households and community level, to identify the impact of PSNP on asset creation, HHs income, food consumption, and protection of asset from depletion, and to identify challenges that affect PSNP implementation in the study area. Evaluating the impact of the program has vital role in making the program more effective and the communities to benefit more from. The study made use of primary and secondary data. Primary data were collected from household survey and focus group discussions. Through household survey, primary data was collected from 230 randomly selected PSNP and non PSNP households through probability proportionate to sample size from 3 kebeles of Chiro district, namely Saro Fugnan Dimo and Gara Nigus No.2. As a result, 120 beneficiary households and 110 non-beneficiary households were covered in the household survey. Secondary data were collected from published and unpublished source of different governmental and non-governmental offices. Descriptive statistics and econometric models were used as methods of data analysis and triangulating the data were also basis for the study results. In Econometric models, logistic regression and propensity score matching were used to address the research objective. The finding of the study revealed that the logit estimates of participation in PSNP program was significant for 9 independent variables-sex of household, labor force, land, ownership of corrugated iron sheet, number of days visited by development agents, number of months of food gaps, and tropical livestock unit. The beneficiary households were able to narrow their food gap The study result also shows the productive safety net program had brought significant positive impact on social capital of the beneficiaries and of community assets through visible impact on improvement of households’ educational status, increased gross enrollment, water development and considerable improvement in the health status of the target population. The average distance to schools, human health and veterinary institutions, local markets, feeder roads, water points and means of transport have been reduced through PSNP public work project, access and utilization of these facilities contribute to the socioeconomic status of PSNP and non-PSNP households in the community. Moreover, most PSNP beneficiary households reported that they were able to maintain their assets and creating additional assets. However, there were challenges like targeting problem, lack of good governance, dependency attitudes, deteriorating of entrepreneur abilities in the community and labor market distortion that hinder the program to fully attain its objectives that concerned bodies need to provide due attention and address the needs of the poor