Politics of development dynamism in Ethiopia 2022

1. Discuss the strength and weakness of development plan of Ethiopia during

imperial regime by focusing on agriculture, industry and political development
The performance of the Ethiopian economy mostly explained and has been determined by
natural phenomena and political influence. Here we will try to revise the topic looking from
the Imperial Regime (1950-1974), then Military (Derg) regime (1974-1992), finally will see
the current regime since 1993. The Imperial Regime (1950-1974) Has had experience of an
absolute monarchy. Feudalism was the major political and social system, adopted during the
imperial regime. Like the state of early development most of African, Latin America, and
Asia countries, policy maker at the imperial regime also adopt market economy with
capitalist mode of production. Export promotion –Import substitution that was a famous
policy strategy for industrialization. Beside, they encourage urban-based model and FDI as
part of the main pillar of development strategy. However, the economy was explained by
immature market economy that lacks major determinant factors of market economy. Worth
mentioning here, the silent feature of the regime is land ownership, which was monopolized
by landlord tenants assigned by the king based on ethnic group. It had been creating a
frequent challenge and violence from students’ revolutionist, politician, and other social
right activities.
Ethiopia’s national development strategy under the monarchy aimed to foster
industrialisation. Export-oriented growth strategies were first adopted in order to attract
foreign direct investments. Due to the unsuccessful outcomes of export-oriented strategies,
the monarchy switched to import substitution industrialisation (ISI) strategies in order to
develop an industrial sector.
Three five-year development plans were launched during the monarchy. The First Five-Year
Development Plan (1957-62) promoted improved production of cash crops, including
coffee, which accounted for 70% of foreign exchange earnings (Welteji, 2018[1]).
Similarly, the Second Five-Year Development Plan (1963-67) continued to prioritise
industrial development. Large-scale commercial farms for production of cotton, coffee and
sugar were promoted as a source of income over small-scale subsistence farms, which
accounted for 80% of cereal production (Alemu et al., 2002[2]).

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 Politics of development dynamism in Ethiopia 2022
The Third Five-Year Development Plan (1968-73) shifted its focus to the development of
the agricultural sector in order to address the rising problem of food shortages in Ethiopia.
The Integrated Rural Development project was also established to address rural
development challenges and expand the agricultural commercial market system. It
predominantly focused on improving the distribution of agricultural inputs, such as
fertilisers and seeds used by commercial farmers, and expanding rural health services.
Nonetheless, the monarchy continued to envision the development of the non-agricultural
sector as the main driver of economic development (Alemu et al., 2002[2]).
During the monarchy, Ethiopia had a complex land tenure system, with very limited private
ownership of land. The monarchy and the church had strong control over most of the
agricultural land.
A combination of public dissatisfaction, food shortages and the rise of a military
government led to the monarchy to be overthrown in 1974 (Clapham, 2019[3])
The Derg government changed the previous national development strategy, placing the
emphasis on a centrally planned economy. Industry-led development was deployed as the
main development strategy. Rural land and other productive assets were nationalised, and
land was distributed among farmers. Commercial farms were put under GoE control, and
land tenancy was abolished. Furthermore, private commercial labourers and commercial
farming were marginalised, and large collectivisation programmes were promoted through
resettlement and villagisation programmes (Welteji, 2018[1]). The military government
maintained an overvalued currency and implemented marketing and pricing policies; in
addition, the GoE established the Agricultural Marketing Corporation (AMC) to set pricing
systems, for agricultural goods and set quotas for grain production which were significantly
lower than market prices (Alemu et al., 2002[2]).
Rural development was not part of the overall development agendas of either the Derg
government or the monarchy. Investment in the agricultural sector was primarily used as a
means to manage foreign exchange earnings or capital accumulation for investment in the
industrial sector. However, by the end of the period of the Derg government, and with the
formation of the new government, national development strategies had shifted focus.

2. critically analyze the following issues under derg regime in Ethiopi a

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 Politics of development dynamism in Ethiopia 2022
2.1 overall strengths and weakness of development plan derg regime
The Derg government changed the previous national development strategy, placing the emphasis
on a centrally planned economy. Industry-led development was deployed as the main
development strategy. Rural land and other productive assets were nationalised, and land was
distributed among farmers. Commercial farms were put under GoE control, and land tenancy
was abolished. Furthermore, private commercial labourers and commercial farming were
marginalised, and large collectivisation programmes were promoted through resettlement and
villagisation programmes (Welteji, 2018[1]). The military government maintained an overvalued
currency and implemented marketing and pricing policies; in addition, the GoE established the
Agricultural Marketing Corporation (AMC) to set pricing systems, for agricultural goods and set
quotas for grain production which were significantly lower than market prices (Alemu et al.,
2002[2]).

Following the severe drought of 1983-84, the government introduced the Ten-Year Perspective
Plan. This plan primarily aimed to promote self-sufficiency in food production, as well as surplus
agricultural production. The central government set production targets and utilised the AMC to
increase the production surplus of agricultural resources (Alemu et al., 2002[2]). In 1987, the
government unveiled a mixed economy strategy and the Ten-Year Perspective Plan was partially
changed to focus on the production of staple food crops, until the plan was terminated in 1990.

Rural development was not part of the overall development agendas of either the Derg
government or the monarchy. Investment in the agricultural sector was primarily used as a means
to manage foreign exchange earnings or capital accumulation for investment in the industrial
sector. However, by the end of the period of the Derg government, and with the formation of the
new government, national development strategies had shifted focus

The Ethiopian state consists, territorially, of the only area in Africa that was never colonized by a
European power, with the exception of a brief Italian occupation from 1936 to 1941. Indeed,
Ethiopia—or Abyssinia, as the area was once called—is one of the oldest independent countries
in the entire world. Modern Ethiopia, characterized by political centralization and a modern state
apparatus, emerged in the mid-19th century. Throughout much of the 20th century, Ethiopia was
presided over by the emperor, Haile Selassie, who ruled the state autocratically (single-handedly

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 Politics of development dynamism in Ethiopia 2022
and dictatorially), until he was overthrown and subsequently executed in the revolution of
1974..Under Selassie's rule, the Ethiopian economy relied primarily on agriculture, particularly
coffee production. During this time, agricultural production resembled a feudal system since land
ownership was highly inequitable, and the vast majority of Ethiopians were obliged to till the
fields of the wealthy landowners. Much of the marginal amount of industry that did exist was
concentrated in the hands of foreign ownership. For example, by 1962, the Dutch H.V.A. Sugar
Company, which commenced operations in Ethiopia in the early 1950s, employed 70 percent of
the Ethiopian workforce involved in the industrial food-processing sector. The food-processing
sector, in turn, employed 37 percent of all workers involved in manufacturing and industry..

Spouting anti-feudal and anti-imperialist (anti-foreign dominance) rhetoric, an administrative

council of soldiers, known as the Derg, overthrew Selassie in 1974, ushering in a lengthy period
of military dictatorial rule. The Derg regime, in turn, vocally promoted a Marxist -Leninist
system, though according to Ghelawdewos Araia, author of Ethiopia: The Political Economy of
Transition, it was only ostensibly (superficially) based on socialist principles. The Derg
introduced substantial land reform and nationalized almost all of the country's important
industries. The Derg regime, however, known for its particularly brutal suppression of opposition
forces, failed to solve Ethiopia's many economic problems. In 1991, massive discontent led by
the student movement, declining economic conditions caused by drought and famine, and
provincial insurrections led by ethnic separatist groups forced the Derg chairman and Ethiopian
president, Mengistu Haile Mariam, to flee the country. Following a period of transitional rule by
the Transitional Government of Ethiopia, free elections were held in 1995, resulting in a victory
for the Ethiopian's People's Revolutionary Democratic Front (EPRDF).

Since its democratic assumption of power, the EPRDF has supported a process of economic
reform based on the privatization of state-owned enterprises, promotion of agricultural exports,
and deregulation of the economy. By 1999, the Ethiopian Privatization Agency had already
overseen the privatization of more than 180 parastatals , including most state-owned retail shops,
hotels, and restaurants..

Since the fall of the Derg regime, the economy has experienced several positive economic
developments. In 1992, for example, the International Monetary Fund's (IMF) Staff Country
Report No. 98/6 stated that 62,941 persons were registered as unemployed, whereas in 1996, the

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 Politics of development dynamism in Ethiopia 2022
figure of officially unemployed fell to 28,350 persons. Of course, for both years, many
unemployed Ethiopians, and perhaps even the majority, did not register themselves as such.
Nonetheless, it would be fair to deduce that a considerable amount of formerly unemployed
Ethiopians have found jobs throughout the 1990s. At the same time, however, the UNDP
estimates that the annual growth rate in gross national product (GNP) per capita between 1990 to
1998 was 1.0 percent, while the average annual rate of inflation during the same period was 9.7
percent. This means that Ethiopians were having an increasingly difficult time purchasing the
commodities, such as food, that are essential for human existence.

The Ethiopian economy remains highly dependent upon coffee production, with 25 percent of
the population deriving its livelihood from the coffee sector. Indeed, from 1995 to 1998, coffee
accounted for an average of 55 percent of the country's total value of exports. Gold, leather
products, and oilseeds constitute some of the country's other important exports. Major export
partners include Germany, Japan, Italy, and the United Kingdom, while import partners include
Italy, the United States, Japan, and Jordan. Ethiopia's imports include food and live animals,
petroleum and petroleum products, chemicals, machinery, and motor vehicles.

Since Ethiopia mostly exports agricultural products and imports higher valued capital goods , the
country runs a severe balance of trade deficit. This deficit, in turn, means that Ethiopia must
borrow heavily to finance its imports, a factor that has led to the development of a significantly
sized external debt (owed to both foreign-owned banks and international financial institutions,
such as the World Bank and the IMF). In 1997, the total debt stood at US$10 billion. The
frequent droughts that plague the country also prevent the creation of a self-sufficient
agricultural economy. Consequently, as many as 4.6 million people rely on annual food
assistance provided by the wealthy industrial countries. Indeed, Ethiopia is the largest recipient
of U.S. aid in sub-Saharan Africa. Notwithstanding (not including) emergency food aid, in 1996
Ethiopia received a total of US$45 million in Official Development Assistance (ODA) from the
United States alone.

2.2 the social, political and economic impacts of land perform

The problem of land reform in Ethiopia has hampered that country's economic
development throughout the late 19th and 20th centuries. Attempts to modernize land ownership
by giving title either to the peasants who till the soil, or to large-scale farming programs, have

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 Politics of development dynamism in Ethiopia 2022
been tried under imperial rulers like Emperor Haile Selassie, and under Marxist regimes like
the Derg, with mixed results. The present Constitution of Ethiopia, which was put into force
January 1995, vests land ownership exclusively "in the State and in the peoples of Ethiopia." The
relevant section continues, "Land is a common property of the Nations, Nationalities and Peoples
of Ethiopia and shall not be subject to sale or to other means of exchange." [1] Despite these
different approaches to land reform, Ethiopia still faces issues of sustainable food self-
sufficiency. When the communist Derg regime took power in 1974, it set out to undo
exploitative landlord-lessee relationships that prevailed in the previous era through socialization
and collectivization. The land proclamation of 1975 nationalized all Ethiopian land and
prohibited the sale, lease, or collateralization of land. It also prohibited farmers from hiring labor
to work their fields. Land was redistributed, resettled, and collectivized in order to address
landlessness. The result was major losses in productivity, famine, increased poverty, and even
death in cases where traditional farmers were settled on arid, pastoralist land. As a result,
Ethiopia quickly became a major food aid recipient and a focus of development NGOs.

Socioeconomic Impacts Land is one of three major factors of production in classical economics
(along with labor and capital) and an essential input for housing and food production. Thus, land
use is the backbone of agricultural economies and it provides substantial economic and social
benefits. Land use change is necessary and essential for economic development and social
progress.

Land use change, however, does not come without costs (see Table 1). Conversion of farmland
and forests to urban development reduces the amount of lands available for food and timber
production. Soil erosion, salinization, desertification, and other soil degradations associated with
intensive agriculture and deforestation reduce the quality of land resources and future
agricultural productivity (Lubowski et al. 2006). Urbanization presents many challenges for
farmers on the urban fringe. Conflicts with nonfarm neighbors and vandalism, such as
destruction of crops and damage to farm equipment, are major concerns of farmers at the urban
fringe (Lisansky, 1986). Neighboring farmers often cooperate in production activities, including
equipment sharing, land renting, custom work, and irrigation system development. These
benefits will disappear when neighboring farms are converted to development. Farmers may no
longer be able to benefit from information sharing and formal and informal business

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 Politics of development dynamism in Ethiopia 2022
relationships among neighboring farms. Urbanization may also cause the “impermanence
syndrome” (i.e., a lack of confidence in the

Environmental Impacts Land–use change is arguably the most pervasive socioeconomic force
driving changes and degradation of ecosystems. Deforestation, urban development, agriculture,
and other human activities have substantially altered the Earth’s landscape. Such disturbance of
the land affects important ecosystem processes and services, which can have wide–ranging and
long–term consequences (Table 2). Farmland provides open space and valuable habitat for many
wildlife species. However, intensive agriculture has potentially severe ecosystem consequences.
For example, it has long been recognized that agricultural land use and practices can cause water
pollution and the effect is influenced by government policies. Runoff from agricultural lands is a
leading source of water pollution both in inland and coastal waters.

3. Critically analyze the following issue under FDRE government in

Ethiopia
3.1 Overall strengths and weakness of development plan during FDRE
government

Ethiopia has registered strong social and economic development in recent years, leading to
important progress towards Sustainable Development Goal 2 (zero hunger). Rates of wasting,
stunting and underweight have fallen significantly. Cereal yields have surged. The food system is
undergoing a rapid transformation. Major challenges remain, however, and are exacerbated by an
infestation of desert locust and the pandemic of coronavirus disease 2019. Rates of food
insecurity and malnutrition are still high, especially in rural areas. Agricultural productivity
growth is insufficient and is hampered by post-harvest losses and poor food safety. Capacity for
logistics and supply chains is limited, leading to high storage, marketing and processing costs.
Pursuit of Sustainable Development Goal 17 (partnerships for the goals) has led to expanding
public sector capacity in the humanitarian and development spheres, with strong government
leadership and ownership in both. Significant gaps remain, however, especially at the regional
and subregional levels. The more prominent role in Ethiopia’s development envisioned for the

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 Politics of development dynamism in Ethiopia 2022
private sector will require key policy and institutional reforms that create a more conducive
environment for resource mobilization and investment.

While Ethiopia’s goal of achieving middle-income status by 2025 continues to shape policies,
institutional arrangements and investment strategies, some macrolevel economic, environmental
and political perspectives have shifted or been intensified, opening new areas for attention and
action. Several political, social and economic challenges and risks arise as Ethiopia makes the
transition to a more open, inclusive, equitable and democratic society. Some of these risks will
challenge food and nutrition security and must be carefully managed by the Government and its
partners. Humanitarian needs are high and expected to remain so over the medium term owing to
chronic hunger and food insecurity, vulnerability to climate shocks, pest and disease outbreaks,
potential conflict, persistent inequalities and the presence of large numbers of refugees.
Ethiopia’s impressive development gains are at risk if these substantial humanitarian challenges
are not adequately addressed, along with the underlying drivers of vulnerability. The
Government continues to cover a large proportion of humanitarian and social protection needs
but requires partners that will share the burden.

The national policy priorities set out in a new ten-year perspective plan and the three-year
Homegrown Economic Reform provide guidance and direction for design and implementation of
the United Nations sustainable development cooperation framework and for WFP.
Recommendations from recent reviews, assessments and evaluations include solidifying WFP’s
work at the humanitarian–development–peace nexus, leveraging social protection as an entry
point for innovations in resilience building and nutrition improvement, and expanding
investments in livelihoods, emphasizing equitable access to water and markets for food-insecure
people. Implementation of the interim country strategic plan has revealed new challenges and
opportunities for WFP such as those in enhancing partnerships for school feeding and nutrition,
expanding capacity strengthening efforts at the regional level, and strengthening monitoring and
accountability in relief and nutrition activities. Also evident is WFP’s capacity to boost the
efficiency and equity of Ethiopia’s food assistance system and broader food industry through
partnerships in the analysis and operation of logistics and supply chain management.

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 Politics of development dynamism in Ethiopia 2022
The five-year country strategic plan is based on WFP’s recognized strengths and on strong
strategic and operational partnerships with the Government, private sector entities, non-
governmental organizations and other United Nations agencies. While the bulk of operations will
continue to address the immediate short-term needs of refugees, internally displaced persons and
other food-insecure and undernourished people, there will be a gradual expansion and
intensification of resilience and livelihood diversification initiatives at the humanitarian–
development–peace nexus. WFP will focus on the prevention of malnutrition, the building of
resilience and the integration of nutrition concerns and gender equality throughout the portfolio.

The country strategic plan has five strategic outcomes, which are aligned with WFP Strategic
Results 1, 2, 5 and 8 and with the people, peace, prosperity and planet outcomes of the United
Nations Sustainable Development Cooperation Framework (2020–2025) for Ethiopia, which, in
turn, is aligned with the Government’s Ten-Year Perspective Plan (2020–2030) and the
Homegrown Economic Reform agenda.

The outcomes are also linked to the humanitarian response plan, the Productive Safety Net
Programme and the Comprehensive Refugee Response Framework. WFP’s five strategic
outcomes are as follows:

 Strategic outcome 1: Shock-affected populations in targeted areas and refugees in camps are able
to meet their basic food and nutrition needs.
 Strategic outcome 2: Vulnerable and food-insecure populations in targeted areas have increased
resilience to shocks.
 Strategic outcome 3: Nutritionally vulnerable populations in targeted areas have improved
consumption of high-quality, nutrient-dense foods that prevent all forms of malnutrition.
 Strategic outcome 4: Federal and regional government institutions, the private sector and local
non-governmental organizations benefit from capacity strengthening in the areas of early
warning and emergency preparedness systems, safety nets programme design and
implementation and supply chain management.
 Strategic outcome 5: Government, humanitarian and development partners in Ethiopia have
access to and benefit from effective and cost-efficient logistics services, including air transport,
common coordination platforms and improved commodity supply chains.

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 Politics of development dynamism in Ethiopia 2022
3.2 Briefly discuss the ADLI, urban and industrial development plan of FDRE
government
ADLI is defined as a development strategy which aims to achieve initial industrialization
through robust agricultural growth and close linkage between domestic agriculture and
domestic industry. This strategy was formulated in the early 1990s and has been
implemented in stages, especially from the early 2000s, in Ethiopia. ADLI is considered to
be an evolving strategy subject to pragmatic experimentation and adjustments rather than an
immutable principle. The revisions made from SDPRP 2002/03–2004/05 to PASDEP
2005/06–2009/10 (section 5-1-2) as well as the currently proposed expansion of policy
space, discussed below, reflect the evolving nature of ADLI that enables it to respond to
changing circumstances, evaluation of past policies, and rising policy capability of the
Ethiopian government. An early exposition of ADLI was given in An Economic
Development Strategy for Ethiopia in 1994 as follows.
The long term objective of development in Ethiopia is structural transformation of the
economy in which the relative weight of agriculture, industry and service changes
significantly towards the latter two. Especially, the objective is to raise appreciably the
share of the industrial sector in the economy both in output and employment. This structural
transformation is envisaged to occur with a high growth of agriculture which is superseded
by growth of industry and services. In essence the development strategy revolves around
productivity improvement of smallholder agriculture and industrialization based on
utilization of domestic raw materials with labor-intensive technology. The strategy is akin to
what is known in economic literature as agricultural-development-led industrialization
(ADLI), framed into the Ethiopian context. It visualizes export-led growth which feeds into
an interdependent agricultural and industrial development. Exports, be it agricultural and
mineral, initiates growth thereby creating space for a process of an interdependent
agricultural and industrial development (or ADLI), which increasingly becomes a self-
generating process of development. Here the strategy has two layers; an outer crust of
export-led growth and an inner core of ADLI… The strategy of ADLI in Ethiopia focuses
primarily on agricultural development. This is to be attained through improvement of
productivity in smallholdings and expansion of large-scale farms, particularly in the
lowlands. The contribution of agriculture to economic development is conceived in two

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 Politics of development dynamism in Ethiopia 2022
ways. On one side, agriculture will supply commodities for exports, domestic food market
and industrial output, and on the other side, it will expand the market for domestic
manufacture. At present, the importance of agriculture lies as a source of supply rather than
demand. As industrialization picks up pace, over the long term the significance of
agriculture as a source of demand will also rise.

4. How do you understand the concept of development from multiple

perspectives? Discuss briefly.
The term Development is used to describe improvements in the lives of people. This can take
place in a number of ways and anywhere in the world. Most research in the area of development
tends to focus on using the term ‘developing countries’ to restrict its use to a certain category of
countries or a part of the world such as ‘Third World’ the ‘Global South’. These terms were
created after the Second World War to help international development agencies to create
interventions that would take these countries through a European route to development. These
terms assume that all countries not considered developed are homogenous and their only route to
be developed was through capitalism (Willis, 2011). In 1960 there were two broad groups of

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 Politics of development dynamism in Ethiopia 2022
countries, those with low levels of fertility and infant mortality (‘developed’), and those with
high fertility rates and infant mortality (‘developing) (Khokhar, 2019).

The concept of development draws upon a number of disciplines including economics,

government, sociology and international relations. Zheng, Hatakka, Sahay, and Andersson
(2018) suggest that the discourse on how ICTs effect development has been largely static and
offer a perspective of development they call the theory of change. They conceptualize
dimensions of development to be discourses on short and medium-term goals and long-term
societal transformation. They suggest that individuals are agents of change. Human agency is
key for the use of ICTs for achieving development outcomes. In fact human agency may involve
the use of ICTs that lead to negative development outcomes. Research into such cases is also
very valuable to understanding the varied relationships between ICTs and development
outcomes.

A well-known perspective on development is an economic one that considers growth in levels of

income generated by individuals, businesses or multi-national organizations, countries and
regions. Economic Development is defined as ‘the interruption of the business cycle’ according
to Schumpeter (1935) and is often used to describe growth in organizations and the regions in
which they reside. The outcomes from the adoption of ICT on development can be assessed in a
number of ways. The measures of economic development in micro-enterprises most often used
are: increase in income, job creation and clientele (Qureshi, Kamal, & Wolcott, 2009).

Another lens often used to understand improvements in the lives of people is Social
Development. This is a concept in social science explores how reality is constituted in the
development process (Arce, 2003). The social development perspective enables a broader
understanding of development to be achieved through top-down national policy-making
processes as well as bottom-up, ‘micro level’ traditions like the actor-network approaches, which
works upwards from individual-level actions (Arce, 2003). Social development activities are
designed to raise living standards, increase local participation in development and address the
needs of vulnerable and oppressed groups (Midgley, 2003). This concept is often equated with
government programs that offer healthcare, education, environmental protection and other public
services.

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 Politics of development dynamism in Ethiopia 2022
 Every human being has an ambition or desire of his or her own to achieve progress in life.
Similarly, we have ideas about how a country should progress. If our thinking turns towards
progress and about the ways to achieve the many goals for progress, it leads to development.

From the above diagram, you will notice that other than income, people seek freedom to grow on
their own. Thus, development refers to the improvement in quality of life such as higher income,
better education, better health and nutrition, less poverty and more equal opportunity.

The term ‘economic development’ refers to the overall growth of all sectors of the economy by
adoption of new technologies. Economic development improves the living standards of the
people as well as the status of the country

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