Smallholder farmers form the largest group of poor people in Ethiopia. More than half cultivate plots of 1 hectare or less and struggle to produce enough food to feed their households. A large number of poor households face a prolonged hunger season during the pre-harvest period. Herders, like farmers, are vulnerable to increasingly frequent drought, which can wipe out their livestock and assets and bring on severe poverty.
The persistent lack of rainfall is a major factor in rural poverty. Drought has become more frequent and severe throughout the country over the past decade, and the trend shows signs of worsening. The impact of drought is most severe for vulnerable households living in the pastoral areas of lowlands and the high-density parts of highlands.
In addition to their vulnerability to climatic conditions, poor rural people lack basic social and economic infrastructure such as health and education facilities, veterinary services and access to safe drinking water. Among the more specific causes of rural poverty in Ethiopia are:
• An ineffective and inefficient agricultural marketing system;
• Underdeveloped transport and communications networks;
• Underdeveloped production technologies;
• Limited access of rural households to support services;
• Environmental degradation;
• Lack of participation by rural poor people in decisions that affect their livelihoods.
The intensity of poverty varies at the household level in relation to the land's size, quality and productivity, climate conditions and production technologies. Households headed by women are particularly vulnerable. Women are much less likely than men to receive an education or health benefits, or to have a voice in decisions affecting their lives. For women, poverty means more infant deaths, undernourished families, lack of education for children and other deprivations.
Ethiopia has an estimated 1.3 million people living with HIV and AIDS. Rural areas have low prevalence rates, but available data suggest that the incidence could increase in these areas. With the support of development partners, the government has embarked on major programmes to combat the spread of HIV and AIDS, and assist poor rural households in coping with the social and economic consequences of living with the disease.