1. Introduction
1.1. Disasters in Ethiopia
Ethiopia is exposed to a wide range of hazards associated with the country’s diverse geo-climatic
and socioeconomic conditions. Drought and floods represent major challenges, but a number of
other hazards affect communities and livelihoods. These include: frost and hailstorms, crop pests
and diseases, livestock diseases, human diseases, conflicts and other manmade hazards (like
price shocks/inflation, car accident etc), landslides, earthquakes and urban and forest fires. Major
disaster risks (such as drought, flood, frost, hailstorm, crop diseases and pests and livestock
diseases) mainly affect agricultural production thereby deteriorating the overall economy of the
country and the livelihoods of households (particularly smallholder farmers and vulnerable
groups of the community). This is due to the fact that agriculture is the main economic activity in
Ethiopia and the overall economic growth of the country is highly dependent on the success of
the agricultural sector. The sector represents 42% of the GDP of Ethiopia and about 85% of the
population gains their livelihood directly or indirectly from agricultural production (CSA, 2015).
As a result, it plays an important role in the country’s political, economic and social stability.
However, Ethiopia’s agriculture is mainly subsistence, traditional and rain-fed which is highly
vulnerable to the above mentioned hydro-meteorological and biological hazards. The resilience
capacity of stallholder farmers and the country in general is also low.
Many studies have indicated that disaster risks are increasing globally. Ethiopia is also facing
challenges from frequent occurrence of disasters particularly drought and flood for many
decades. Studies indicated that the magnitude, frequency and effect of drought have increased in
Ethiopia, now encompassing almost all parts of the country. Historically, the widely known
catastrophic event of the 1984 drought killed hundreds of thousands and affected millions of
lives in Ethiopia. Moreover, 14 million people affected by drought in 2003, and in the period
between 2000 and 2007 the number of people affected was never less than 1.5 million (NDRMC,
2014). In 2015/16, about 10.2 million people are being supported with food and non-food items
due to the 2015 drought effect caused by El-nino. The humanitarian requirements document
indicated that 1.4Billion USD is required to address the crisis (HRD, 2016). This has shifted
scarce government fund intended for development purposes towards emergency response which
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