1. Joseph K. Assan, PhD Research Group on Global Development and Sustainability Heller School for Social Policy and Management Brandeis University, MA, USA And Fikirte Beyene, HOERC, Addis, Ethiopia

2. Poor rural households in Africa rely disproportionately on local environmental resources for their livelihoods and well-being A livelihood that guarantees access and entitlement to a range of reliable economic resources, assets and opportunities is essential to achieving human wellbeing (Chambers, 1997). 2

3. The objective of the paper is to ascertain the effect of income diversification interventions introduced through environmental conservation programs on the livelihoods and economies of rural holds in the Amhara region of Ethiopia. 3

4. Introduction of neo-liberal policies Privatisation and divestiture of state control Liberalisation of trade and reduction in Foreign Direct Investment Post Structural Adjustment Programme in Africa Removal of subsidies in the agricultural sector Impact: Removal of safety nets Economic Liberalisation 4

5. 55 The integration of livelihood diversification into environmental conservation programs has been considered as an effective strategy in achieving household food security, opportunities for investment, development of local business and economic stability (Kulindwa et al. 2006 ).

6. 66 This is a people-centred approach and argues that human activity is not necessarily or inherently detrimental to nature and if humans are given the opportunity, people will often manage their environment sustainably because it is in their best interest (UNRISD, 1994).

7. Salafsky (2000) refers to this approach as economic substitution: -livelihood and conservation are indirectly linked -this approach enables local people to continue to meet their livelihood needs while protecting their environment 7

8. 88 The introduction on of market-based policies with the intention of creating incentives for positive or neutral behaviours for the environment is argued could create disincentives for environmentally destructive behaviour (UNRISD, 1994).

9. The goal of this approach is: -balance the trade-offs between human activities and -achieve maximum economic efficiency -thereby ensure sustainable development. 9

10. 10  Rural livelihoods, are exposed to the precarious effects of climatic variability and extreme weather conditions  Precipitated by several years of environmental degradation  Negatively impacting on household economies (MoWRMA, 2007)  Land degradation is an alarming challenge in the Amhara region  Loss of approximately 2 to 4 billion tones of top soil annually through erosion  20,000 to 30,000 hectares of land unproductive (Taffa, 2009).

11. 11 Poverty in the Amhara region is still high (7.3 million) in spite of recent achievements in poverty reduction.

12. 12

13. 13 Socio-economic Characteristics Basona Worena Woreda Land Area (sq. km)1,399 Elevations (metre above sea level)1,980 – 3,000 Climate - Average annual rainfall (mm) - Temperature (oC) 1,100 6-20 Population (2002/'03 est.) - Total population - Population density (persons per sq. km) - % of working age population (15 - 64 years) - Rural population (%) 165,716 118 52 95 Rural farm household - Average family size - Average land holding (ha) - Male-headed - Female-headed 4.5 1.7 HH 27,918 HH 8,796 Land use (%) - Cultivated land - Grazing land - Forest, shrub, bush land - Others including waste land 13.1 47.3 8.5 31.1

14.  natural factors coupled with the effects of a long history of settlement  prevailing farming methods and increasing population pressure  forces people to cultivate even steeper slopes have exacerbated the devastating land and resource degradation in the region (Belay, 2010) 14

15. 15 In an attempt to tackle environmental degradation and secure the livelihood of rural households in the Amhara region, an environmental conservation project called ‘Tree Gudifecha’ (adoption) has been implemented.

16.  Tree plantations AND soil and water conservations activities: -the construction of check dams, -terraces, trenches, -micro basins, -water harvesting and spring developments  Livelihood diversification activities -income generating activities, -financial support, -capacity development and training, -input support, groups formation) 16

17. 17 Integrated Rural Developmen t Associatio n ( ADHENO ) a local NGO with the help of internatio nal donors sought to integrate livelihood sustainabi lity and conservati on programmes as a developmen t strategy in the Amhara Region

18. This was followed by the implement ation of various soil and water conservat ion intervent ions and livelihoo d activitie s in the North Shoa Zone, Basona Worena Woreda ( District ) in 2005 and expanded into 12 village in 2007. 18

19. 19 The Global Environment Fund (GEF) funded the integrated project in Enchelele Village the project in Workegur village was funded by the Swedish International Development Agency (SIDA) the implementation was done in partnership with Consortium of Christian Relief and Development Association (CCRDA), a local Non- Governmental Organization.

20. 20 100 rural households located in Enchelele village ( in Metkoria Kabele ) and Workegur ( in Goshe Bado Kebele ) village of Basona Worena Woreda ( District ) in the Amhara Region participated in the environmental conservation rehabilitation and livelihood enhancement intervention projects.

21. Our study sampled 50 households 25 households from each village Individual households served as the unit of analysis Fieldwork Strategy Economic active members of the sampled households Interviews, focus groups, questionnaires Small Sample Scoping Study 21

22. 22

23. 23 Tree Plantation Village NamesTotal EncheleleWorkegur Private Land 13,86231,37645,238 Government Land 150 2,050 2,200 Communal Land 1000 3501,350 Family Land 5,191 1105,301 Total 20,203 (3,741 are other tree species) 33,836 (20,350 is eucalyptus) 54,089 Number of Trees Planted at Village Level

24. 24

26.  Home ownership: the average number of households who owned their of homes within the sample increased  Transport access: the availability and access to transport through the use of donkeys also improved as more individuals were able to own a donkey after the project

29. 29 There was high mortality rate for poultry, sheep and goat production due to poor management techniques and low skill levels of participants This pattern was also due to the lack of veterinary services within close proximity of the sampled communities

30. “The lack of adequate personnel and medication is still the biggest challenge for the veterinary office, especially in times of epidemics. Many households had lost their animals and could not gain much benefit from their production. 30

31. The Lack of proper management also causes the death of animals. For example the chicks we distributed are hybrids and needed more intensive level of care which is different from the local stock”. (District Agricultural Officer) 31

32. 32 “Ayeeee [expressing frustration], most of my sheep and hens died and I’m currently left with only two sheep out of ten. Because of their death, I lost significant income not to mention the wasted time and energy managing the activities”. (Alemitu, a female participants in Enchelele village)

33. 33 Households Source of Fuel Before the ProjectAfter the Project EncheleleWorkegurEncheleleWorkegur Collection from communal lands and/or wood lot 25 Kerosene12 16 Dung22 25 Households’ Source of Fuel in the Two Villages

34. 34

35. 35

36. 36

37. 37 Rise in Household Income: There was a rise in household income after the project. This also introduced a rise in income disparities between households Increase in Household savings: The study observed a mean increase in the total household savings with an associated increase in the disparity between the two communities

38. Synthesis Survival rather than accumulation Risk prone Opens new Economic Pathways Income, savings and Market differentiation Within the community/District Non-uniformity of outcomes of diversification Wealth disparity Marginal and compulsive alternatives Thrives on social capital Poverty Reduction Requires empowerment of state actors Requires formal institutional support Demands budgetary frameworks Livelihood Sustainability