RURAL-URBAN LINKAGES UNDER DIFFERENT FARMING SYSTEMS: THE CASES OF COFFEE AND NON-COFFEE GROWING REGIONS IN ETHIOPIA
Tegegne Gebre Egziabher
Abstract: This study examines the nature and magnitude of rural-urban linkages in Robe and Limu Kossa Weredas of Oromiya region in Ethiopia. The study is motivated by the belief that sustainable development requires a symbiotic development of both rural and urban areas which is grounded on the assumptions of the virtuous circle model of rural-urban linkages.
The study uses data from surveyed farm and urban households and traders to provide background information and investigate ten testable hypotheses.
The study found out that the farm sector in the study areas shows consumption linkages in terms of expenditures on urban goods and selected social services. The hinterlands have also shown limited marketing linkages in the sale of rural products to the small towns. The main rural products brought to the small towns are: coffee in Limu Kossa Wereda and grain in Robe Wereda. Most of the expected linkages such as input, financial and processing linkages between the hinterlands and the small towns do not exist.
The linkage of the urban households to the rural hinterland varies in each study site. In Robe town, urban households mainly derive their grain needs from the local market where local grains are sold. In Limu Genet town, however, though most of the urban households purchase grains from the local market in the town, these grains are not produced in the surrounding hinterland but are brought from far off places by urban traders.
The urban traders survey revealed that both towns are collecting centres for the national and regional markets. Limu Genet town is a collecting centre for coffee while Robe town is a collecting centre for grains. The urban traders in the study sites, though with limited capital, are mainly family-run. They, however, play an important role in connecting the city and the hinterland to the national markets for different products.
The virtuous circle model of rural-urban linkages gets partial support in the study sites. It was found that a truncated linkage fits well the study sites. The subsistence nature of the rural economy, the functional composition of the towns which are limited to basic services and administration, the role of some state organizations and the lack of economic infrastructure to attract further investment in the towns and foster forward production linkages are some of the reasons for the truncated patterns of linkages observed in the study areas.
There are some policy implications that emanate from the study in order to strengthen rural-urban linkages and bring about a reciprocal relationship in the study areas. These are: the provision of infrastructure such as electricity and water supply in small towns to support processing activities; financial sector reform to enable rural people to get access to banking services; involving private traders in input delivery; increasing the labour absorptive capacity of towns; strengthening the towns as sources of information and, improving the production capacity of rural areas.