Abstract:
The government of Ethiopia launched Productive Safety Net Program in 2005 realizing the magnitude and severity of poverty. This study aims at evaluating the impact of productive safety net program on household asset holding in Oromia National Regional State, East Shoa zone Fentalle district using primary data from randomly selected 220 rural households. Propensity Score matching technique was used to evaluate impact of the program and to identify factors affecting participation in PSNP program. This study indicated that the Program has positive and significant effect on livestock holdings, and productive assets. Moreover, the results indicated the impact of the program on total annual income of the households was found to be positive and participating households earn on average additional income of Birr 5831.78 due to the intervention of the program. Change in livestock holding and other asset is positive and higher for Participant households than the non participants. Program participants on average hold additional 1.2 TLU and non participant households hold only 0.50 additional TLU per year. Participation in to productive safety net program was positively affected by family size, age of the household head, household dependency ratio and access to off-farm activities at 5%, 1%,1%, and 5% significance level respectively. It also negatively and significantly influenced by livestock owns and household farm experience.. In conclusion, findings of this study revealed that the program has positive and statistically significant effect on asset holding and in protecting productive and durable asset According to the findings of this research study, the program was found to have positive and significant impact on livestock holdings for program participants. Hence, the government should encourage the program participants to re-orient on commercialized dairy and fattening livestock development activities in order to reduce the problem of food insecurity and to improve their income sources Finally the researcher suggested that periodic evaluation of the PSNP at national and regional level is absolutely essential. Such evaluation alone can throw light on what is working and what is not. This allows the government to reform and consolidate the program wherever and whenever is needed. Except very few research studies at national level, evaluation of the PSNP at regional and woreda level remains under research especially in Oromia pastoral areas.
