Diversity and development domains in the Ethiopian highlands

In the discussion on targeting of development interventions there is an ongoing debate on the usefulness of geographic targeting versus targeting of specific household types. In this paper, we examine the degree to which there is heterogeneity in the diversity of livelihood strategies in comparable geographic areas in northern Ethiopia. We use the concept of development domains to quantify differences amongst specific geographic areas (communities) and estimate the degree to which development domain dimensions account for differences in production systems indicators and to what extent variability between the overall results and the observed patterns can be attributed to these development domain dimensions. Our research shows that development domain dimensions matter both for production indicators (choice of technology, investment, cropping pattern and livestock use), as well as for the occurrence of heterogeneity in those indicators. Diversity is especially linked to better market access, homogeneity in agricultural production indicators to poor soils. This offers scope for targeting development interventions.