Pathways into and out of Poverty
and the Role Played by Livestock

Scientists from the Africa-based International Livestock Research Institute (ILRI), Duke University (USA) and the Pro-Poor Livestock Policy Initiative (PPLPI) of the Food and Agriculture Organization (FAO) of the United Nations are collaborating in identifying pathways into and out of poverty. In a study spanning twenty poor communities in two districts of western Kenya, Vihiga and Siaya, the scientists are employing a methodology that allows them to understand poverty from the perspective of the communities surveyed. This study, financed by PPLPI and the United States Agency for International Development, is advancing understanding of the reasons East African households both escape and fall into poverty The study highlighted the central roles livestock play in these pathways in and out of poverty. This research will help determine optimal poverty reduction strategies, including livestock-related options.

Introduction
A community-based research method developed by Anirudh Krishna of Duke University was used to assess poverty dynamics in more than 1,700 households in 20 communities representing 2 ethnic groups in western Kenya. Results of the assessments, which determined the proportions of households that escaped or fell into poverty over the last 25 years, are providing a better understanding of pathways into and out of poverty. Further details on this approach and results can be found at: www.pubpol.duke.edu/krishna/householdpoverty

Key poverty pathways
Healthcare appears to be the single-most important pathway for stopping households from descending into poverty in this region of western Kenya. This suggests that ‘safety net’ policies to ensure access to affordable and appropriate healthcare and education should be a top priority here. Livestock also play key roles in the movement of households into and out of poverty. A major reason household members cited for their descending into poverty, for example, was a dramatic loss of livestock assets with the slaughter of farm animals to feed mourners attending the funeral of a family member. Raising public awareness of the adverse effects of these funeral customs may help communities modify customs that are crippling them economically. Other major factors cited for keeping people poor were poor infrastructure and little access to information. The communities agreed that diversifying farm income was a key means of moving out of poverty. A common way of doing this is to incorporate livestock enterprises into crop production systems.

Community definitions of ‘poverty’
A critical step for the scientists conducting this study was to define with the participating communities a common understanding of poverty. What, for example, does an extremely poor household do when a little bit of money becomes available? Which expenses are usually the very first to be incurred? As a little more money flows in, what does this household do in the second stage? The third stage? And so on.

Discussions of these questions provoked lively debate among assembled villagers followed by high levels of consensus as to the successive stages of household progress from acute poverty to economic self-reliance. Most interesting was the broad agreement across nearly all villages on the sequence of these stages. The results show that households climb out of poverty by acquiring first food, then (in the following order) clothes, shelter, school fees and small animals including chickens, sheep and goats. In almost all the villages, purchasing local cattle came in the first stage beyond the poverty threshold drawn by the villagers. Households that reach the latter ‘livestock stage’ are no longer considered poor.

A remarkably similar understanding of poverty exists within these different villages and across the two main ethnic groups found in Vihiga and Siaya Districts of western Kenya. Understanding poverty in local terms helps researchers to identify successful and unsuccessful household strategies for escaping poverty and to understand what people are doing to deal with poverty as they themselves define it. This information can be used, for example, by community leaders to request specific government services or policy changes.

Results highlights
The population growth rates in the two districts of Kenya sampled in this study are high. Vihiga, despite widespread incidence of HIV/AIDS, has a population density of 886 persons per square km, with the average farm size steadily declining to a current 0.5 ha. Poverty rates here are amongst the highest in Kenya, rising from 53% in 1994 to 58% in 1999. HIV prevalence rates rose from 12% in 1994 to 25% in 2000. In Siaya, 47% of the population fell below the rural poverty line in 1994, increasing to 64% in 1999. Farm sizes tend to be larger in Siaya than in Vihiga, but agricultural potential is lower in many areas. Most of Siaya’s population depends on small-scale agriculture (mainly subsistence crop farming), local businesses, livestock production and fishing. Siaya has the highest levels of HIV prevalence and HIV-related sickness and death rates in Kenya, rising from 14% in 1994 to 27% in 2000. 

Using a community-derived definition of poverty, 29% of households in Siaya have fallen into poverty over the last 25 years and 8% have escaped poverty. More encouragingly, 25% of households in Vihiga escaped poverty and 11% became poor. Most households (73%) in both districts that escaped poverty over the last 25 years did so because they diversified their income sources when a household member obtained a job in the formal sector or the urban informal sector. Over 80% of these jobs (accounting for a total of 61% of successful escapes) were found within the private sector.

Of the households that escaped poverty, 57% did so by diversifying on-farm income through cash crop production. These households were able to produce and consistently sell either surplus food crops (sorghum, maize, bananas) or cash crops (tea, sugarcane, rice). 

In 35% of the cases, households that had escaped poverty diversified their incomes by establishing a small business near their village. The enterprises mentioned include retail shops; butcheries; selling fish, livestock, fruits, vegetables and cereal grains; trading in timber, firewood and charcoal; making shoes and bricks; weaving baskets; brewing alcohol; and selling paraffin. However, because so few poor people have sufficient connections and networks to gain formal employment, improving farm returns remains critical to escaping poverty in this region.

Poor health and health-related expenses were the reasons overwhelmingly cited as responsible for households declining into poverty. Following these are heavy funeral expenses, particularly the slaughter of a household’s livestock assets, mentioned in 63% of the cases. Among other chief reasons cited for households declining into poverty were livestock thefts and disease, losses of livestock due to the ‘bride price’ custom, the sale or slaughter of animals to pay for healthcare or to feed the sick, and tiny landholdings that provide insufficient grazing lands and feed to support livestock. On the other hand, on-farm diversification through livestock production was cited as critical for households escaping from poverty.

The striking importance of health and health-related problems and expenses in poverty status is also seen in India and in other areas of western Kenya and Tanzania. And the critical importance of non-farm income diversification in pathways out of poverty has been highlighted in many other studies across Africa.

The findings of this study have implications in terms of what has been called ‘cargo net’ versus ‘safety net’ interventions. Cargo nets help poor people climb out of poverty; safety nets stop people from falling into poverty. Redistributive programs to build up the assets of poor people (such as giving heifers to poor households) may be effective in achieving long-term reductions in chronic poverty when complemented by safety nets. Our results suggest that the most important safety nets required by poor households in western Kenya are those that help protect the health and improve the education of community members.

This study has highlighted the key role that livestock play in both pathways into and out of poverty. On-farm diversification of income sources away from a sole reliance on crops through investment in chickens, sheep, goats and/or cattle helped many of the households in the study escape poverty. Given that investment in large animal stock is typically beyond the means of the poorest households, this finding suggests that projects that provide a heifer or a loan to buy a sheep or goat, for example, could provide a one-time transfer sufficiently substantial to help households lift themselves out of poverty. Such livestock acquisitions, however, must be accompanied by policies and interventions that reduce the risks associated with keeping farm animals alive and productive in harsh environments.

To open up opportunities for poor households to benefit from livestock even more than they do now, problems of poor roads and market infrastructure, widespread insecurity and high and multiple animal disease risks will have to be addressed. The potential for dairy enterprises in particular would be much larger if some of these risks were lowered. These are areas where local, regional and national authorities have an obvious role to play. Improving access to appropriate information regarding livestock management and disease strategies is an area where research organisations can help.

For more information, see: Kristjanson P, Krishna A, Radeny M, Nindo W. 2004. Pathways out of Poverty in Western Kenya and the Role of Livestock. Food and Agriculture Organization, Pro-Poor Livestock Policy Initiative Working Paper. FAO, Rome. Available at: www.fao.org/ag/aginfo/projects/en/pplpi/home.html


INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE
____________________________________________________________________________________________________
Research in animal agriculture to reduce hunger, poverty and environmental degradation in developing countries.

Box 30709, Nairobi, Kenya Phone (254-20) 422-3000 Fax (254-20) 422-3001 Email ILRI-Kenya@cgiar.org Web www.ilri.org