policy options for reducing vulnerability in conflict-prone areas: livestock market dynamics in...
DESCRIPTION
Abstract The very nature of pastoralist livelihoods in the Arid and Semi Arid Lands (asal) means exposure to substantial vulnerability. Cattle, the main productive asset doubles as a store of wealth. As such, the buffer stock provided by wealth can not be used as insurance against adverse shocks that affect productive assets. This vulnerability could be reduced substantially through monetization of parstoralist livelihoods. Indeed, over the last decades, there are signs that some markets that focus on live cattle export to Sudan and further to the Arabian peninsula have been booming. Still, the majority of pastoralists' interactions with the market remains low, with frequency and timing determined by immediate cash needs. We look at what structural factors are responsible for the growth of the export markets, and ask if lessons can be learned to increase market participation in poorly integrated pastoralist systems.TRANSCRIPT
International Congress Livelihood 2013, Sustainable livelihoods in the tropical drylands
Mekelle, Ethiopia, 17-21 September 2013
Policy options for reducing vulnerability in conflict-prone areas:
Livestock market dynamics in pastoralist areas of Ethiopia
Bjorn Van Campenhout with Fantu B. Nisrane, Derek Headey and Bart Minten
IFPRI, Kampala and Addis Ababa
Introduction
• Pastoralist and Agro-pastoralist livelihoods = extremely vulnerable
• Stengthening livestock markets to increase resilience:
“An initially localized scarcity can only persist if price signals are not transmitted to other markets” (Ravallion, 1986)
• Study of price movements of commodity in spatially seperated markets to learn how well they work
prices and market performace
1EQ
D
S
S
D
1EP
2EQ
2EP
D’
'2EQ
'2EP
'1EQ
'1EP
S’
Until TPP EE '2'1
Connecting fishermen to markets
• No transaction costs
• Symmetric transaction costs
• Time dependent transaction costs
• Impose 1 structural break in time
Econometric model
Data: livestock in Ethiopia
Addis - Adama
Addis - Adama
Adama – Dire Dawa
Adama – Dire Dawa
Shashemene - Moyales
Shashemene - Moyales
Policy options
• Trade agreements / transhumance arrangements
• Use price information in FEWS• Reduce reliance on trust based relationship• Policies that acknowledge the particular
nature of livestock in a pastoralist setting (adapted savings products, safety nets, destocking funds at regional level)
Thank you!!!