How do we Sustain Multidimensional Poverty Escape? Employing the Zero poverty Tripods Evidence from Rural Ethiopia

Abstract Ending extreme multidimensional poverty needs three-pronged approaches of sustained escapes, stopping impoverishment of the vulnerable non-poor, and tackling chronic poverty. Using the Ethiopian Socioeconomic Survey data (2011/12–2015/16), this study attempted to explore the major options for eradicating multidimensional poverty. Multidimensional poverty is estimated using Alkire and Foster methodology. The study finds a moderate decline in multidimensional poverty through the change in the headcount than the intensity of deprivation. The findings suggest that multidimensional poverty needs to be interrupted by investments in infrastructure to improve market access, commercialization, and human capital formation. Hence, urbanization and rural livelihood transition deserve much more attention when striving for sustainable poverty alleviation. Moreover, institutional measures that enhance rural transformation would go a long way in creating the conditions that enable sustained multidimensional poverty escape and breaking the vicious cycle of subsistence and vulnerability of smallholder farming. Policies requiring more attention to enhance sustained escape from poverty are access to productive assets, commercialization, saving, wage labor participation, and promoting the rural non-farm economy to get to poverty zero. The need to foster growth from below is also the most vital solutions of creating the conditions that enable poor households to escape and then stay out of poverty. Equally important, impoverishment of the vulnerable non-poor needs to be protected by enhancing social protection, in the form of ex-ante insurance and post-shock safety nets, that would have substantial returns, not just in terms of the short-run welfare gains, but also in ways to meet long-term objectives.