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Involuntary displacement of people in the context of development projects often causes damage to livelihood of displaced people. The level of livelihood risks and impoverishments is often far reaching when the displaced people are relocated to unaccustomed livelihood settings. This research examined the impacts of development-induced displacement on the livelihoods of households displaced by Addis-Djibouti railway corridor construction in the vicinity of Dukem town. The study used mixed cross sectional research design. In-depth interview, focus group discussion and survey methods were used as tools of data collection. In addition, relevant secondary data were also collected from different secondary sources. The study used Cernea’s impoverishment risks and reconstruction model as an analytical framework. The study uncovered that majority of the displaced households have experienced deterioration of economic assets such as landlessness, cattlelessness and joblessness; decline in productivity and food insecurity, socioeconomic marginalization, weakening of social networks and deterioration of access to community services after displacement. Deterioration in access to the livelihood assets due to the displacement has resulted in impoverishments of livelihood of majority of the displaced households.

Relocating Households to Unaccustomed Livelihood: The Impacts of Development-Induced Displacement in Urban Vicinity of Dukem Town, Central Ethiopia