This study aims to explore the role of local community-led initiatives embedded with development-oriented values, norms and members’ mindset in the reduction of monetary and non-monetary deprivations using primary data collected from 200 households in Northwest Ethiopia. The results highlighted that, despite enduring numerous challenges (social exclusion, displacement, and extreme poverty) spanning a generation, a community called Awra Amba demonstrates resilience by adapting its unique community development principles (golden rule, children’s right, gender equality, the value of work and solidarity) and diversifying economic activities. About 98% of members exhibit a growth mindset, with only 4% of households below the $2.15/day poverty line, compared to 27% in the control group. A significant difference in all non-monetary indicators except housing was also observed. However, further comprehensive research that addresses the complex interplay between poverty, mindset and other factors remains important.
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