Economic dependence on forest resources: A case from Dendi District, Ethiopia

This paper examines variation in dependence on forest resources among rural households in Chilimo, Ethiopia, and the income-equalizing effects of such resources. Data were collected through a systematic questionnaire survey of 102 households, randomly selected from two peasant associations in the area. Forest income contributed 39% of the average household income, roughly equal to agriculture, which contributed 40%. Forest income was more important than all other income sources combined for the poorest 40% of households and contributed more to household income than agriculture for 65% of households. While forest income represents 59% of the total household income for the poorest quintile, the contribution drops to 34% for the wealthiest quintile. On the other hand, the rich households derive a larger absolute income from forest resources than the poor households. Forest resources have an important income-equalizing potential among the rural households. Reduced access to forest resources would greatly affect the welfare of the rural population and increase wealth differentiation among rural households in the study area.