Assessment of Ethiopian Multidimensional Poverty Implications for National and Regional Government Policies

Abstract

This study utilizes the Alkire and Foster approach to analyze the Multidimensional Poverty Index (MPI) using data from Ethiopian Demographic and Health Surveys (EDHS) conducted in 2011, 2016, and 2019, aiming to provide detailed insights for national, regional, and local governments to plan and monitor poverty alleviation strategies. The research highlights Ethiopia's significant progress in reducing multidimensional poverty, with prevalence decreasing from 81 percent in 2011 to 64.7 percent in 2019. However, the intensity of poverty has declined more slowly, indicating severe deprivation among those still impoverished. The study emphasizes the need for well-funded and effectively implemented poverty reduction programs, focusing on both prevalence and intensity of poverty. It recommends prioritizing rural development, enhancing agricultural productivity, and addressing gender disparities by supporting female-headed households. Furthermore, the study identifies rising urban poverty and regional disparities, suggesting tailored interventions, conflict resolution, and post-conflict reconstruction, particularly in conflict-affected areas like Oromia, to ensure comprehensive poverty alleviation. Furthermore, enhancing access to quality education and healthcare, improving sanitation and safe drinking water, promoting sustainable farming practices, and fostering economic diversification are crucial to sustaining and accelerating poverty reduction efforts across Ethiopia.