Presented by Kiros Habtu at an IWMI Seminar, Addis Ababa, Ethiopia, 19 April 2012.

1. Nile Basin Challenge program : N3 on targeting and
scaling out
By: Kiros Habtu
19 April 2012
Addis Ababa, Ethiopia

2.  Introduction
 The conceptual framework
 Classify the informal institutions(governance
structure) for Ethiopia
 Compare the informal institutions(governance
structures)
 Conclusion

3.  Understanding what rainwater management
practice (RMP) works where?
◦ Bio-physical
◦ Socio-economic
◦ Institutional
 Often RMP requires cooperation between
farmers (social capital)
◦ No maps for cooperation at basin scale
 Can we use informal institutions (governance
structures) as a proxy for assessing
cooperation/social capital?

4. • Identify the existing informal institutions in
Ethiopia
• Define their respective role and economic purpose
• Classify informal institutions based on their roles

5.  Material
◦ Literature review
◦ Existing secondary data (IFPRI ERH survey, NBDC
farmers’ focus group discussion)
 Methods
◦ Desk study on informal institutions in Ethiopia
◦ Development of a conceptual classification
framework
◦ Applied the classification framework to Ethiopian
context

6.  Introduction
 The conceptual framework
 Describe the identified informal institutions(
structures) for Ethiopia
 Classify the structure
 Conclusion

7.  New institutional economics (Williamson
2000)
◦ Multi-level approach of institutional analysis
Governance structure emerge to address particular
issues linked specific transaction characteristics.
 Poor Economics by Banjeree and Duflo 2011
◦ Rewriting economic theory from the perspective of
the poor
=> Dimensions regulated by informal governance
structures in developing countries

8. Risk
reducti…
2
Informati
1 credit
on
0
Conflict Labor
R. power
NRM

9.  Introduction
 The framework
 Describe the identified informal
institutions(governance structures) for
Ethiopia
 Classify the structure
 Conclusion

10.  Iddir
 Eqqub
 Mehber
 Debo/Wonfel/Jigie/labor sharing
 Oxen sharing
 Elder’s group
 Gadaa system
 Women’s association

11. Iddir : mainly organizes funeral
activities and supports financially
the family
 85% of HH are members
 Sometimes
◦ Cover medical expenses
◦ Support oxen loss
◦ Compensation in case of fire
Offer weather insurances
◦ Conflict resolution within the
community
◦ Gives credit (23% in survey
data)
◦ Shares information from
campaigns (HIV)
◦ House construction

12.  Primary role : risk reduction
 Secondary role : credit, information, conflict
resolution

13. Mahber/Senbete-are voluntary and mutual aid
community (religious) associations peculiar to
Orthodox Church followers.
 Financial support to needy families
 Share information / campaign
 Sometimes
◦ Support sick person
◦ Gives credits
◦ Share information / campaigns
◦ Conflict resolution
◦ Organize collective action and labor sharing
◦ Supports funerals

14.  Primary role : risk reduction, Information
 Secondary role : credit, labor, conflict
resolution

15.  Eqqub-an informal organization established
voluntarily to collect a specific amount of money
from the members on a specific date to be paid on
round and lottery basis to the members (Rotating
savings and credit associations)
 Gives credit
 Allows to save money
 Sometimes
◦ Information sharing
◦ Business trainings
◦ Consultancies

16.  Primary role:Credit
 Secondary role: Information

17.  Women’s association- is a voluntary association of
women group who have explicit agreement to help
each other in a specified way when well-defined
events occur
 25 % HH are members (IFPRI)
 Give credit to women
 Cover expenses that Iddir does not cover
 What they sometimes do:
◦ Share information

18.  Primary role:Risk reduction, credit
 Secondary role:information

19.  Debo/Wenfel/labor share-are arrangement of
agricultural work groups in rural Ethiopia.
◦ “pooling the labor of a number of people from
an area to assist one or more individuals with
building a house, cultivating a large piece of
land, or ploughing, harvesting crops, clearing
forests and similar tasks through promises of
future reciprocity among member participants
 Sometimes :
◦ Share information about common issues of
member
◦ Support if unexpected natural catastrophies

20.  Percentage of HH who  Percentage of HH who
called the members for work in
work party(44%) reciprocity(63.4%)
not call for work party call for work party
0 1

21.  Primary role:labor(man) power
 Secondary role:risk reduction, information

22. Pairing oxen if both households do not have
sufficient oxen
=> Considered similar to labor sharing

23.  Gadaa/Cheffee Kore-one form of social
organization based on the age-grade classes of
males that succeed every 8 years to serve the
community in economic, political, military and
social issues.
 Do mainly conflict resolution
◦ mainly about ressource related conflict
 Sometimes
◦ Resolve other conflicts
◦ Resource management
◦ Information sharing / campaigns
◦ Water management
◦ Management of wetlands
◦ Management of rangeland

24. Primary role:conflict resolution
Secondary role:information, NRM
Gadaa/Cheffee kore
Risk reduction
2
Information 1 credit
0
Conflict R. Labor power
NRM

25.  Elder’s’ Group- Group-called Shimagelay is a
traditional association of Elders people who are
elected by the local community in order to serve
the society in times of disagreements and
coordinate them in common resource
management.
 Mainly they do Conflict resolution
◦ Natural ressource related conflicts
◦ Boundaries conflict
◦ Family conflict
◦ Ethnic conflicts
 Sometimes
◦ Natural ressource management
◦ Information sharing

26. 0 Village officials
Land use committee Social court
Village elders Woreda court

27.  Primary role:Conflict resolution
 Secondary role:NRM, Information

28.  Introduction
 The conceptual framework
 Classify the informal institutions(governance
structure)
 Compare the informal institutions(governance
structures)
 Conclusion

30.  Cover specific issues connected to market failures
only

31. Gadaa/Cheffee kore
Risk reduction
2
Information 1 credit
0
Conflict R. Labor power
NRM
 Focus on social cohesion
 Play an important role in natural resource
management though it is not their primary role

32. 1. Classify informal institutions in to three categories :
• Risk Reduction (iddir, mehber, women’s association)
• Market failure (Eqqub, Debo/Wenfel/labor/oxen
sharing)
• Conflict resolution (Elder’s group and gadda/cheffe)
2. Institutions involved in risk reduction are more important
for the cooperation/social captial
• Might be the best proxy for cooperation /social capital
3. No institution address natural resources management as
a primary role