Global Women's Poverty

• Women globally constitute a substantial majority of the world’s impoverished population.
• In developing countries, Women and children often face greater deprivations such as poverty, malnutrition, and limited access to medical services, clean water and sanitation.
• Factors like female-headed households, women's lower earning potential, and limited control over spousal income contribute to women's poverty.
• Income disparities between male-headed and female-headed households are partly due to the large earnings gap between men and women.
• Women often have less access to education, formal employment, social security, and government programs, exacerbating their financial instability.
• In urban areas, women frequently are restricted to low-productivity jobs, while in rural areas, they have limited access to resources for stable incomes due to social customs and laws affecting property ownership.
• Female-headed households are often in the poorest areas with limited access to public services, leading to higher rates of illness and reduced medical care.
• Children in female-headed households are less likely to attend school and more likely to work for additional income.
• Economic hardship within a household varies based on income distribution, which may be biased against females in nutrition, healthcare, education, and inheritance.
• When women have a relatively high share of household income, there is less discrimination against girls, and women can better meet their needs.
• Programs designed to improve nutrition and family health are more effective when targeting women, as women tend to contribute a larger portion of their income to household nutritional intake.
• Women's control over household income is limited due to a large proportion of unremunerated work such as collecting firewood, cooking, and parenting.
• Women in poor households also may not be paid for their work in family agriculture or business, with male heads of household controlling funds.
• Poverty alleviation programs that work exclusively with men can exacerbate inequalities.
• Development policies should integrate women into programs to influence the welfare of women and children, increasing female participation in education, training, employment, and agricultural programs.
• It is important to ensure women have equal access to government resources such as schooling, health, and other services.
• Formalizing informal employment can improve the economic status of women.
• Neglecting women's welfare in growth processes fails to achieve principal development goals.
• Gender disparity in the long run slows economic growth. Investments in human capital are effective if women are successfully integrated into the growth process.
• Education and enhanced economic status for women are vital for meeting long-term development objectives.
• Women-centered poverty strategies are crucial and require understanding the key roles that women can play in helping their communities escape from poverty.

Poverty and Inequality in Ethiopia

• As of 2021, Ethiopia has an estimated population of 118 million people.
• From 2008/09 to 2018/19, Ethiopia's economy grew by 9.8% annually, reducing the population below the national poverty line from 38% to 24%.
• Ethiopia remains one of the poorest countries, with a per capita annual income of $883 (MoFEC, 2019).
• The headcount poverty in Ethiopia decreased from 59% in 1992 to 29.5% in 2011 (MoFED, 2012).
• Ethiopia's HDI value in 2019 was 0.485, ranking it 173 out of 189 countries, indicating low human development (UNDP).
• 44% of people earn less than $1 per day, and 89% earn less than $2 per day.
• Over 12 million people are chronically or periodically food insecure, mostly in rural areas, with households living on less than $0.50 a day.
• Smallholder farmers form the largest group of poor people in Ethiopia.
• Poverty reduction is slower in rural areas, where livelihoods depend on rain-fed agriculture and are vulnerable to climate-related issues.
• Inadequate health and education systems and poor access to basic services reflect the vulnerability of the people.
• Ethiopia uses the World Bank’s Poverty Reduction Strategy Paper (PRSP) process.
• The Central Statistical Agency conducts regular Household Income and Consumption Expenditure Surveys (HICES) and Welfare Monitoring Survey (WMS).
• The Ministry of Finance and Economic Development provides a Poverty Analysis Report with trends of poverty incidence, gap, severity, and income inequality, measured by the Gini coefficient (MOFED, 2013).

Indigenous Knowledge and Poverty Reduction

• Indigenous knowledge comprises the common-sense knowledge and ideas of local people about their everyday lives, unique to each community.
• It forms the basis for local decision-making in agriculture and connects people directly with their environment (Warren and Rajasekaran, 1993).
• Indigenous knowledge is used to solve different problems, including poverty.
• Indigenous knowledge and practices often involve pooling resources for a common good.
• Ethiopia has diverse cultures and peoples rich in indigenous knowledge and practices.
• Practices can be unique to specific areas or common across wider regions.
• Idir is a common informal social institution in Ethiopia functioning as a burial society, which provides support and consolation to its members during times of bereavement.
• It is a traditional burial association that insures family in the event of a death
• Idir has a large membership, with minimal weekly or monthly contributions.
• Idir members attend funerals and help with burial ceremonies.
• Iqub is a rotating credit association that provides funding for members to improve their lives.
• Each member contributes to a pool of money weekly or monthly.
• Iqub enables poor families to obtain funding for activities such as weddings, building a house, or starting a business.
• It is more flexible and accessible than banks, requiring minimal paperwork.
• Iqub allows members to keep a steady flow of money to help each member of the group rotationally.
• Idir is a long-term association, while Iqub can be temporary or permanent.
• Both Idir and Iqub are bottom-up socio-economic traditions that serve society's needs sustainably using available resources.
• These associations guarantee care in times of need through participatory means.
• Idir and Iqub promote accountability, transparency, tolerance, and dialogue and foster friendship among members.
• Debo is a work group where community members assist each other on a rotational basis, often for free, typically used by men for farm labor.
• Numerous similar institutions nationwide play roles in poverty reduction.
• These informal associations often do not appear on record in the formal economic life
• Rural and urban cottage industries play a role in lifting people out of poverty.
• Cottage industry comprises small-scale, decentralized manufacturing units that produce goods and services using conventional and low-technology methods.
• Cottage industries are often operated out of homes rather than purpose-built facilities.
• Examples of cottage industries include locally produced handicrafts and textiles.
• The oldest forms of cottage industry in Ethiopia are weaving, leather working, pottery, basket making, and blacksmithing.
• Cottage industries employ labor-intensive techniques, providing employment and opportunities for self-employment.
• Modern cooperatives such as coffee unions are key vehicles for poverty reduction and sustainable livelihood development in Ethiopia.

Women represent a large proportion of the world's poor, particularly in developing nations, facing issues like malnutrition and limited access to essential services. Several factors contribute to women's poverty, including lower earning potential, income disparities, and restricted access to education and resources. These challenges are especially prevalent in female-headed households and in areas with constrained access to income-generating opportunities.