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The book examines the role that the private sector can play in reducing poverty and marginality in Ethiopia. It analyzes number, location and purchasing behavior of the marginalized poor in Ethiopia as well as institutions governing agricultural input markets to identify obstacles for private sector investments that benefit the marginalized poor.

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The book examines the role that the private sector can play in reducing poverty and marginality in Ethiopia by providing improved agricultural inputs to marginalized poor farmers. By creating a marginality map the author analyzes who and where the marginalized poor are. Data from a household survey about purchasing behavior, demand and needs indicates that this group can be a promising market segment for the private sector if adequate business models are applied. Yet, an analysis of the institutions governing agricultural input markets shows that investments by the private sector are discouraged by de facto monopolies of the government on crucial elements of the different supply chains, including seed breeding, fertilizer imports and finance.

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Contents: Marginality is a root cause of poverty - Role of private sector in poverty reduction - Purchasing behavior and needs of the marginalized poor - High transaction costs on Ethiopian agricultural input markets as disincentives for the private sector.

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Christine Husmann studied geography, economics, sociology and business administration in Trier, Valencia and Tübingen and received her PhD from the Center for Development Research (ZEF) of the University of Bonn.

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