Development-Induced Impacts on the Livelihoods of Displaced Communities: The Case of Bole Lemi Industry Park, Addis Ababa, Ethiopia

Abstract

Livelihood encompasses the resources and capabilities that individuals and households utilize to ensure their survival and to enhance their well-being. This study examined the impact of the Bole Lemi Industry Park on livelihood systems in Addis Ababa, Ethiopia. It focused on how the establishment of the industrial park affected the livelihoods of displaced communities. A survey was conducted on 379 household heads who were displaced by the industrial park, ensuring representation across various factors such as gender, marital status, education level, ethnic group, and religion. Descriptive statistics, including frequency counts, mean values, standard deviations, and percentages, were used to analyze the data. Multiple linear regression models were employed to investigate how socioeconomic variables predicted the household heads’ annual income before and after the establishment of the park. The findings revealed that 84% of the household heads said that the BLIP has hurt their livelihoods. The majority of respondents (69%) became jobless as a result of the BLIP. Another 16% transitioned to urban lifestyles, while 7.3% shifted to semi-agrarian and 5.6% to trade and services. This study identified the balance gap between industrial development and the interests of local farming communities, and how it failed to ensure sustainable livelihoods. It is recommended that development projects in Addis Ababa prioritize the affected communities by offering compensation, support for resettlement, and opportunities for livelihood diversification. Taking a comprehensive and participatory approach to industrial park development is crucial for achieving sustainable and equitable economic growth while safeguarding the well-being of local communities.