Economic development ethiopia issues, growth, economic. After the severe drought of the last fiscal year, ethiopias real gdp recovered strongly, reaching an estimated growth rate of 11. The economic outlook is positive, and real gdp growth is projected to stabilize at 7. There has also been tremendous growth in the number, diversity and market share of private businesses in the ethiopian economy. Government has the duty to hold, on behalf of the people, land and other natural resources and to deploy them for their common benefit and development. To achieve this goal, usaidethiopia will partner with the government of ethiopia goe, other donors, the private sector, and civil society across. Ministry of finance and economic development megawatt office of the federal auditor general. The paper starts with an overview of ethiopias economic growth and the change in the domes tic economic structure. In 1998 government adopted export promotion strategy a fullfledged industrial development strategy ids was formulated in 200203 concretized into action by various sub sector strategies and by the successive development plans such as. Socioeconomic impacts of flooding in dire dawa, ethiopia alemu yonas tadesse supervisor. Iv development and poverty reduction challenges 33 v overview of ethiopias development goals, policies, strategies, and targets 36 5. The gtp recognizes that sustainable development in ethiopia can only be achieved if development is pursued in the social, economic and environmental areas in a balanced manner and ensuring that benefits accrued are equitably shared among the citizens of the country. Selection of key themes for ethiopia developmental state via 5 year plans rapid industrialisation strategy key role of logistics infrastructure in growth building tourism around ethiopian airlines fragile state political unrest emergency rule o. In order to avert the situation the government has prepared a poverty reduction strategy based on its development policy.
Ethiopia aims to achieve middleincome economy as of 20202023 while. The current paper addresses the chineseinitiated special economic zones sezs in africa through a case study of the ethiopian eastern industrial zone eiz. Ethiopia is massive, chronic, exceedingly deep and severe. Local economic development led, challenges and solutions. The manufacturing sector is seen as the success of ethiopia s growth, and its development to a. Additionally, if the extra revenue is used for essential services like education, health care, and infrastructure, economic development will increase and it could. Implementing agricultural development led industrialization principle since ethiopia is an agrarian country the building up of industrialized ethiopia can be realized only through the implementation of agricultural and rural centered economic and industrial development strategy. The manufacturing sector is seen as the success of ethiopias growth. In the last decade ethiopia has consistently registered doubledigit gdp growth buoyed by stateled investments in infrastructure and manufacturing. Aim to be a global lightmanufacturing hub building a climate resilient green economy aim to become a net exporter of energy ultimate goal is to push ethiopia into. Productive capacity and economic growth in ethiopia. Projections indicate, however, that governments target of 7 % growth. Subnational governance structures in ethiopia in ethiopia, the governance structures at the region, zone, woreda and the kebele level follow the same tripartite structurean elected head of the administration, a council with. Assessment of local economic development led approach in ethiopia.
In brief, we find that ethiopias rapid economic growth, concentrated in agriculture and services, was driven by substantial public infrastructure investment and supported by a conducive external environment. The goal for usaidethiopias 20192024 country development cooperation strategy cdcs is. The economic growth rate is likely to remain high despite large fluctuations in agricultural production. The report dealt with the general national policy and strategy, regional and local enabling environment for local economic development, the led practice of programs and projects in. The paper investigates the development potential of this innovative cooperation strategy for africa based on the theoretical foundation of an unbalanced growth. Jayawardena mee08182 abstract dire dawa, the second largest city of ethiopia, has been suffering from disastrous floods in its history. Ethiopia holds a long record of steady economic growth. The main purpose of this brief article is to present the recent economic development in ethiopia. Sustainable development and poverty reduction program sdprp 200203200405 and. It is the second most populous country in subsaharan africa. The country is a net importer of fuel, which accounts for onefifth of goods imports. Apr 12, 2017 ethiopias national development plan ethiopias economic policy is guided by the second phase of the growth and transformation plan 201516 202021. Country development cooperation strategy ethiopia u.
Implementing agencies from the federal up to the regional and local levels have. Support to local economic development led project document. Farmers have reacquired the economic freedom of price, of production, and of settlement. According to national statistics office of ethiopia, 2012, the population density estimated. However, basic challenges such as unskilled labor, high transport costs. A carefully designed understood as selfreliance strategies that are locally. Although ethiopia is experiencing a double digit growth in last several years, limited local capacities to deliver economic and social services, rampant unemployment and high income inequality are some of the major factors. Country strategy for development cooperation with ethiopia 2014. The gtp aims to achieve the millennium development goals mdgs in 2015, and provides for ethiopia to reach the status of middleincome country by 20202023. Ethiopia economic outlook african development bank.
In developing countries like ethiopia economic growth is one of the preconditions for economic development. The growth and transformation plangtp is directed towards achieving ethiopias long term vision and sustaining the rapid and broad based economic growth anchored on the experiences that has been drawn from implementing development policies and strategies and undertaking policy. Government shall provide special assistance to nations, nationalities, and peoples least advantaged in economic and social development. The gtp envisages the creation of a stable macroeconomic framework and nationbuilding process, within a democratic and developmental state. Led therefore refers to a territorybased economic development strategy, whose. The banks contribution to development results in ethiopia the relevance of the anks strategy and program in ethiopia is assessed as satisfactory. Assessment of local economic development led approach. Field work data collection from the relevant donor offices, local governments, regional development offices and the concerned ministry were also done. The paper starts with an overview of ethiopia s economic growth and the change in the domes. The local economic development led project supports the government of ethiopia seeks to strengthen publicprivate partnerships at regional and local levels in order to stimulate investments, generate employment and create an enabling environment for private sector and entrepreneurial development. These issues are central to the government of ethiopia goe and its economic growth strategy, agriculture development led industrialization adli. Ethiopias midterm strategy, the growth and transformation plan gtp which spans. In this paper, an attempt has been taken to discuss socio economic circumstances of ethiopia. Introduction human resources development 11rd can be broadly defined as the development and utilization of human potentials for social and economic progress, essentially through education, training and employment.
Assessment of local economic development led approach in. Federal democratic republic of ethiopia sustainable development. Analysing the processes of the local economic development. International conference on a development strategy of horn of africa. The political economy of growth in ethiopia chapter 4 of volume 2 alemayehu geda1 we are pleased to tell you that we have finally submitted the growth project manuscripts to cambridge university press. Growth should benefit from the homegrown economic reform program, which seeks to address macroeconomic imbalances and unlock structural. National development strategies and environment, a challenge ahead, ethiopian case w. Local government discretion andlocal government discretion. Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise. Ethiopias growth miracle, coupled with its large population and significant land mass, has attracted. Ethiopia is considered to be one of the oldest nations in the world but at present its socio economic condition is not satisfactory. Solomon berhe, phd in development economics and planning, university of economics hungary july 2011. Support to local economic development led programme undp. In the electronic mass media the problems of ethiopia have become less economic and more political in nature.
The national development policies of ethiopia economics essay. In this paper, an attempt has been taken to discuss socioeconomic circumstances of ethiopia. Introduction ethiopia is one of the populated countries in africa, and its population growth is 2. A woreda environment management planning manual was prepared. Ethiopias government has made great strides in raising human development indicators, increasing female labour force participation as well as pursuing propoor growth policies. Since it was formally set forth in 1995, this strategy has motivated efforts to accelerate agricultural growth through the commercialization of smallholder production fdre 2005, 2002. National development strategies and environment, a challenge. Ethiopia overview international development, poverty. Iv development and poverty reduction challenges 33 v overview of ethiopia s development goals, policies, strategies, and targets 36 5. According to the ethiopian mse development strategy moti 1997, textile and. The ethiopian government has developed comprehensive agricultural and economic development plans that have contributed to the countrys substantial growth in agriculture, industry and services.
The recent fall in global oil prices is expected to have a positive economic impact on ethiopia. Implementing agricultural development led industrialization principle since ethiopia is an agrarian country the building up of industrialized ethiopia can be realized only through the implementation of agricultural and rural. National report of ethiopia sustainable development. Ethiopia economic development the policy of the ethiopian government is to create the conditions necessary for sustained economic growth. Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. Especially after world war ii, tourism, banking, insurance, and transport began to contribute more to the. Agricultural development led industrialization, judiciary and civil service reform. Child marriage, food aid, food price inflation, political instability, poverty, food security. Ethiopias national development plans, including the current growth. The strategy was allied with the goes priorities, both at country and sector level, and the portfolio was generally well aligned with the. Furthermore, the study assessed the economic structural changes at national level as well as the strengths and weaknesses and elaborated regional and structural strategies for ethiopia. Pdf local economic development led, challenges and. National policy principles and objectives ethiopia.
In ethiopia, public participation is currently a political principle of the constitution and t is an. In brief, we find that ethiopias rapid economic growth, concentrated in agriculture and services, was driven by substantial public infrastructure investment and supported by a. Evolution and current performance mulu gebreeyesus unumerit, maastricht. Partners are currently considering how to build on this progress in light of the accra agenda. Ethiopias strategy is predicated on achieving poverty reduction through accelerated growth, while at the same time building the human and institutional capacity the country will need for the. Economic developments in ethiopia economic development shows the change in economic growth and at the same time change in the living standard of the people. Ethiopia transitions to a more democratic, prosperous, and resilient society, with accountable institutions and privatesector led growth. The case of the northern free state region, south africa july 2014 mediterranean journal of social sciences 516. Assessment of local economic development led approach in ethiopia tegegne gebreegziabher team leader1 and richard clacey with contributions from zini godden2 report submitted to united nations development programme and ministry of finance and economic development of the government of ethiopia final report 18th july 2011. The objective of this study is to examine the longrun relationship between economic growth, population, export, and investment in ethiopia using annual data collected from the world development. Ethiopia is a pilot country for the organization for economic cooperation and development assistance committee harmonization agenda, and for the european unions initiative on donor division of labor. Economic reforms and structural changes in ethiopia since.
Issues of human resources development in ethiopia with particular reference to education getahun gebru i. Introduction ethiopia is one of the largest countries in africa. These issues are central to the government of ethiopia goe and its economic growth strategy, agriculture developmentled industrialization adli. Although ethiopia is experiencing a double digit growth in last several years, limited local capacities to deliver economic and social services, rampant unemployment and high income inequality are some of the major factors that impediment a sound human development of the country. Following to the adoption of this strategy the national food security program was established in 1998 by targeting food insecurity in four regions. If the price of coffee rises, it will be beneficial for ethiopia, increasing the rate of economic growth. This strong economic performance has given ethiopia an excellent platform from which to pursue its national development agenda. The other development strategy adopted with in the context of adli by the government of ethiopia in 1996 was the national food security strategy. Assessment of urban development practices on business expansion in ethiopia research team mathewos asfaw, msc in planning studies, oxford brookes universityuk abebe zeluel, ma in urban management, erasmus university the netherlands dr. Ethiopia country strategy and program evaluation 2004 20. Ethiopia has experienced two stages of dec entraliza. The article used the report published in 2014 by international monetary fund imf, world bank wb, africa development bank adb, world health organization who, and organization for economic cooperation and development oecd. To achieve this goal, usaidethiopia will partner with the government of ethiopia goe, other donors, the private sector, and civil society across sectors to.
The strong recovery, led by growth of almost 19 per cent in agricultural output, helped ethiopia to continue with its economic reform and poverty reduction. Ethiopia is considered to be one of the oldest nations in the world but at present its socioeconomic condition is not satisfactory. Pdf economic prospects for ethiopia and challenges for. Impact of business development services in local economic. The flooding of 6 august, 2006 was unprecedented and caused severe impacts in the city. The led strategies in these regions were developed through a participatory planning process and have been implemented and managed by the local partners. Economic prospects for ethiopia and challenges for poverty. The discussion on fundamental changes in strategy of economic development has come to relate to the theory of political power. The report analyses ethiopias economic performance and expected future development. Integrated regional development planning in ethiopia. Federal democratic republic of ethiopia growth and transformation. Growth and transformation plan gtp 201011201415 draft.
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