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receiving remittances from their educated children. In relation to this, a key informant from Dega zone shared of his experience as follows:

In the past, all the educated adults were employed by governmental and non-governmental organizations. They were good sources of income to their parents and were role models for others. Now, many students including my son have completed their tertiary education and yet they are not employed. The worst side to my son and others is they are engaged in bad practices, which is a problem for the community. In my opinion, schoolchildren can be encouraged if the government employs them.

The writer of this study also observed the situations during the field survey. A considerable number of students who completed University education were not employed. In relation to this, Campbell et al. (2002:26) evidently stated that:

Lack of employment opportunities has discouraged children from completing the basic four years of secondary education. It is now common to hear young children querying why they should keep on going to school given to that their brothers and sisters, who completed secondary and even tertiary education, are unemployed. Rather than wasting time in schools, many students decided to migrate towards the Republic of South Africa from semi-arid regions of Zimbabwe to seek jobs.

8.3.2. Social Capital

Social capital is a form of social network in which people share values through interactions with their neighbors for mutual advantages. According to Nkurunziza (2006), social capital includes networks, relationships and trust, which rural people have in search of livelihood opportunities. Formal political structures such as RKAs and informal systems, which include religious institutions, connections to social support base for example, remittances, local self-help groups and different co-operative institutions are defined as social capital assets in the study area. According to KIs, mutual support at time of crises such as grain and cash loans, reciprocal labor exchange and some form of informal institutions is commonly practiced social network in the study area. Adeger (2003) cited in Misselborn (2006), indicated that social capital includes reciprocity and exchange, common rules, norms and sanctions, membership of political parties in power,

180 social connectedness and social networks and groups. Social networks focus on how people are organized and solve internal conflicts and reduce powerlessness and solve immediate social problems. Twigg (2001) indicated that societies who are organized and cohesive are able to resist shocks better than divided communities. However, the poor who are devoid of productive assets are the most disadvantageous to take loans from their relatives and/or neighbors, and, in most cases, are marginalized from social networks.

Sampled households in one way or another participate in different social networks based on volunteerism. These included formal political structures such as RKAs, and informal systems which include Iddir (mutual support association), Equib (local savings association), and Mahiber (an association for mutual aid and relief to soul) and debo or wenfel (agricultural labor groups) through which people get things done. As far as their importance is concerned, Seleshi (2006), in a study made in Tach Gaint district, presented the „sayings‟ of the local communities in the following ways (Table 8.3).

Table 8.3. Local expressions of traditional institutions

Local sayings Paraphrased meanings

„Kebariye‟ (iddir ) That celebrates my funeral

„Lechigrie derash, lekfuken derash‟ (iddir) An immediate responder to my problem „Gebena debik‟ (iddir) Living like the neighbor

„Lenfese maderia‟ (mahiber) Relief to my soul

„Sewen sew yadregew‟ (equib) That makes humankinds wealthy

Mahiber is a very traditional ritual, but it is still a powerful belief both in urban or rural of the study area. The key informants in all agro-ecological zones indicated that mahiber was powerful during the last couple of years; but at the current situations, many households are not a member of mahiber mainly due to asset poverty to prepare some drinks and food to the members during the ceremonial day. Desalegn (1991) indicated that mahiber was quickly phased out in many communities in wollo as more and more households found it difficult to meet the informal obligations. The survey data pointed out that 96.4% of the better-off and 50% of the poor participated in mahiber during the field survey. Agro-ecologically, 80% of the sample households in Woina-Dega zone

181 participated in mahiber followed by Dega (56%) and the least was Kolla (34%). In total, 58% of the sampled households in all agro-ecologies participated in mahiber (Table 8.4).

Equib is a type of saving or revolving fund arranged by its members and gives services to its clients to save money at times of crises (MoFED, 2008). According to Wolde-Selassie (2001), equib is a voluntary money pooling institution rotating the sum among members weekly, bi-weekly or monthly. Membership of equib is determined by the capacity of the households to pay the pre-arranged cash. As a result, the better-off in all agro-ecologies participated more than the poor and the middle households (Table 8.4). From the total sampled households, only 21% participated in Equib during the field survey indicating that savings at times of crises was low. Participation in Equib was the least for the poor households in all agro-ecological zones. As it can be seen in Table 8.5, 34% of the better- off and 12% of the poor participated in Equib which means the poor do not have the capacity to pay the prearranged payment for Equib.

Table 8.4. Local informal institutions by agro-ecology and wealth categories (% respondents)

Agro-

ecological zone

Wealth categories

Local informal institutions Equib Iddir Mahiber

Dega Better- off 67 100 100 Middle 65 80 45 Poor 5 98 52.5 Woina-Dega Better- off - 90 90 Middle 10 95 85 Poor 5 80.5 73.2 Kolla Better- off 33.3 100 95 Middle 31.3 100 25 Poor 27.7 100 25 Total (%) 21 94 58

182 Its low contribution to be a member and treats its members on equal basis regardless of wealth strata, ethnicity and religion makes iddir16 one of the most powerful social networks in the study area. Wolde-Selassie (2001), in a study made in the relocated rural households of the Beles valley noted that iddir is the strongest multi-purpose mutual institutions of the communities in the valley. As a result, the majorities (94% of total) in this study were participated in iddir during the field survey (Table 8.4).

Its accountability, transparency, responsibility, sense of ownership added the importance of iddir in the study area and elsewhere in Ethiopia. More importantly, Iddir helps members mainly during bereavement, in establishing and maintaining good relations among members, coordinating members to prevent crime and carrying out development projects wherever necessary. In all informal institutions, Dega was the leading followed by Woina-Dega zone. However, elderly key informants informed that social networks with the exception of iddir are declining because of the problems associated with the payment of some informal obligations.