Classifying informal institutions (governance structures) in Ethiopia
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
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
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
29.
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