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Risk sharing is a norm in almost all communities where in the developing economies it constitutes an integral part of the overall livelihoods process and the outcome thereof. What are the components of risk sharing arrangements adopted by rural households, what is the likelihood of risk sharing networks among households, and what are the welfare implications of these sharing arrangements, therefore, need to be understood so that policy intervention can result in desirable impact on the lives of poor communities.

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Solomon Petros is a senior lecturer in Mekelle University (Ethiopia). He has earned his M Sc on Rural Development from the University College Cork (Ireland)and Mekelle University.

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