Impacts of Water Supply and Sanitation on Poverty in Ethiopia to Meet MDGs Poverty Reduction Goal
17 Pages Posted: 26 Aug 2010
Date Written: August 25, 2010
Ethiopia’s water supply and sanitation coverage is one of the lowest in Africa. Such a situation made people in the country to spend much more time collecting drinking water. In addition to this people have been becoming unhealthy due to the spread of water related diseases. The lack of water supply and sanitation is considered as one factor for the deep and wide spread of poverty in the country. This study investigated the impacts of water supply and sanitation on the poverty incidence through improving the health status of people and increasing crop production. The secondary data, mainly from CSA, MOWR and MOFED used to analyse water supply and sanitation situation in the country and even to estimate the impact of water supply and sanitation in poverty incidence. The study used panel data which were collected from different locations over selected years. The log-log model was specified to get the elasticity of poverty incidence due to the change in the water supply and sanitation. The Fixed Effect Instrumental Variable (FE-IV) estimator was used to estimate the equation.
Under the new water supply and sanitation program (2006-2012) a total of 58 million people would get water supply at the end of the 2012. In addition to this a total of 75.5 million people would get basic sanitation service during the same period. In the rural areas a total of 149,023 new water supply and 15,893,313 sanitation infrastructure would be constructed during the plan period. Similarly in the urban areas a total of 1,335 new constructions would be undertaken in the same period. The efforts to reach the universal access program would reduce the incidence of poverty by 23 million by improving the health status of 7 million people and increasing the total crop production by 26 million quintals. But Absence of consistent development plan, lack of appropriate technology, poor cost recovery and lack of fund, poor coordination and experience sharing practices, lack of private sector and absence of micro-enterprise would be the major challenges to realize UAP target in Ethiopia.
Keywords: Millennium Development Goals, Poverty, Water Supply, Sanitation
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