Assessing the Factors that Determine Poverty Levels in Rural Areas
Author: NANTUME EMILY
Supervisor: Marie Nakitende Goretti
This study assessed the factors that determine poverty levels in rural areas. The specific objectives of the study were; it also examined how limited access to the market determine poverty levels in rural areas, assessed how limited access to affordable power supply contributes to the poverty levels in rural areas and established how the production of poor quality products increases the poverty levels in rural areas of Uganda
The study used a case study research design with quantitative and qualitative research techniques using a total sample size of 44 respondents. Data was collected using self-administered questionnaires and face-to-face interviews.
It was observed that limited access to market limits the exposure to the client population resulting into reduced customer base, limited access to market prevents access to labor resulting into poor production, and limited access to market has led to few job opportunities outside of agriculture. It was discovered that poor quality products result into lack of demand for the products leading to limited market thus low earnings, it was also exposed that poor quality products lead to high competitiveness resulting in price cutting thus less profitability. It was also concluded that, limited access to modern forms of energy has limited to the transformation of agriculture-based economy, has reduced employment opportunities, which in turn has directly increased poverty levels and is an obstacle to delivery of services such as education, health, and other social services. It was further concluded that limited access to power supply has hindered the construction of agro-based industries in rural areas thus limiting income-earning opportunities to farmers, has limited business expansion and the starting of business ventures that would need power for operation.
Finally, it is recommended that the government should properly define poverty in the legislation and thus provide a vision of poverty that can elicit support and action from government, private sector and non-governmental agencies. It is also important to recognize that people living in poverty are the most critical ally of the government in reducing poverty. Working with them in changing their circumstances is another means of building our provincial economy, and acknowledging that they are an asset to the society