Classifying informal institutions(governance

structures) in EthiopiaNile Basin Challenge program : N3 on targeting and scaling

out By: Kiros Habtu 19 April 2012

Addis Ababa, Ethiopia

Introduction The conceptual framework Classify the informal

institutions(governance structure) for Ethiopia

Compare the informal institutions(governance structures)

Conclusion

overview

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?

Nile 3 on targeting and scaling out

• Identify the existing informal institutions in Ethiopia

• Define their respective role and economic purpose

• Classify informal institutions based on their roles

Objectives of the Study

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

Material and methods

Introduction The conceptual framework Describe the identified informal institutions(

structures) for Ethiopia Classify the structure Conclusion

Overview

New institutional economics (Williamson 2000)◦ Multi-level approach of institutional analysis Þ 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

Conceptual classification framework

Conceptual classifying framework

Risk reduction

credit

Labor power

NRM

Conflict R.

Information

0246810

Introduction The framework Describe the identified informal

institutions(governance structures) for Ethiopia

Classify the structure Conclusion

Overview

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

Institutions analyzed in the Ethiopian context

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

Iddir

Primary role : risk reduction Secondary role : credit, information, conflict

resolution

Classification of Iddir

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

Mahber

Primary role : risk reduction, Information Secondary role : credit, labor, conflict

resolution

Classifying Mehber

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

Eqqub

Classifying Equub Primary role:Credit Secondary role: Information

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

Woman’s association

Primary role:Risk reduction, credit Secondary role:information

Classifying Women’s assocaition

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

Labor sharing : Debo/Wenfel/Jigie

Some statistical evidence about Debo/Wenfel/oxen/labor

sharing Percentage of HH who

called the members for work party(44%)

Percentage of HH who work in reciprocity(63.4%)

not call for work party call for work party0 1

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

Classifying Debo/wenfel/labor sharing

Pairing oxen if both households do not have sufficient oxen

=> Considered similar to labor sharing

Oxen sharing

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

Gadaa/Cheffee Kore

Classifying Gadaa/Cheffee Kore

Primary role:conflict resolutionSecondary role:information, NRM

Risk reduction

credit

Labor power

NRM

Conflict R.

Information

0

1

2

Gadaa/Cheffee kore

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

Elders’ Group

40% of conflicts are resolved by elders group (IFPRI)

0 Village officials

Land use committee Social courtVillage elders Woreda court

Primary role:Conflict resolution Secondary role:NRM, Information

Classifying Elder’s group

Introduction The conceptual framework Classify the informal institutions(governance

structure) Compare the informal

institutions(governance structures) Conclusion

overview

That reduce risk

Cover specific issues connected to market failures only

That avoid market failures

Focus on social cohesion Play an important role in natural resource

management though it is not their primary role

Social duties and conflict resolution

Risk reduction

credit

Labor power

NRM

Conflict R.

Information

0

1

2

Gadaa/Cheffee kore

Conclusion

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

capital3. No institution address natural resources management

as a primary role