Challenges And Opportunities Of Rural Urban Inter Linkage, The Case Of Oromia Special Zone Surrounding Finfinne, Mulo District

Abstract

Rural-urban linkages are an integral part of fostering development in both urban and rural communities. Rural and urban areas are economically, socially, and environmentally interlinked spaces. Urban and rural areas differ in economic, social and environmental terms. Due to the diverging dynamics in urban and rural areas, the social and economic distance between them might increase in the future even more. The purpose of this study was, therefore, to identify challenges and opportunities of RUL in Mulo district. The study used both primary and secondary data to achieve the objectives. The primary data were obtained from 167 sample respondents and a two stage-sampling technique was used. Descriptive statistics and ordered logit model were employed for analyzing the data. This study explores some of the challenges to strengthening rural-urban linkages for local economic development in the Mulo district of Oromia Region, Ethiopia. Participants were selected from farmers, traders, and government officials using a multistage sampling technique. Results of Ordered Logit model indicated that age, level of education, access to information, non-farm activities, participation in social organizations and access to credit affected rural urban interlinkage (RUL) significantly. Despite the enabling policy of the government to facilitate rural-urban linkages, the linkages in the district remain weak as far as their capacity to improve the overall local economies. The study, recommended that investments in rural feeder roads, improved provision of rural microfinance and access to market information, and ensuring affordable agricultural inputs would improve rural urban linkages and thus lead to stronger local economic development