SOCIO-ECONOMIC EFFECTSOF URBAN EXPANSION ON THE SURROUNDING AGRICULTURAL COMMUNITY: A CASE STUDYOF SHINSHICHO TOWN, SOUTHERN ETHIOPIA

ABSTRACT The main objective of this study was to assess the socio-economic effects of urban expansion on the surrounding agricultural community of Shinshicho town in SNNPR. To achieve the objectives, a multi-stages sampling technique and Systematic random sampling technique used to select 127 sample households. Besides this, 12 for key informant and 20 FGD selected purposively. The quantitative data analyzed by using frequency and percentage when appropriate while the qualitative data analyzed by narrative word description. Both primary and secondary data used. Primary data from the sample respondents and secondary data from different organizations collected and used for the study. The major findings of this study were the majority of household’s respondents could not get formal employments due to low educational preparation. Rapid urban expansion caused by population growth, in-migration, and reclassification of rural land. Natural, social, financial and human capitals reduced after urban expansion. Farmer’s participation on the planning and decisions making processes was very low. The promised compensation and the executed compensations for expropriated farmland and resources are mismatched and after the urban expansion, famers’ changed their livelihood strategies from agricultural to non-agricultural livelihood strategy. Based on the findings the town administration, Regional and Federal Government should introduce land saving construction designs for homeless people in urban area. give priorities to agreement, awareness and participation on decision-making before actual implementation of the program, Pay Compensation based on the detail observation of expropriated farmland and properties lost and encourage Self-coping mechanisms are created by the expropriated people’s engages to survive their sustainable life.