DEVELOPMENT DEVELOPMENT COOPERATION IN COOPERATION IN DEVELOPING COUNTRIES: DEVELOPING COUNTRIES: THE CASE OF ETHIOPIATHE CASE OF ETHIOPIA

May 14, 2013

Background Information-Background Information-EthiopiaEthiopiaLocated in horn of Africa

covers an area of 1.14 million square Kilometers

Climate :- tropical monsoon with wide topographic-induced variation

Physical features :- high plateau with central mountain range divided by Great Rift Valley;

Natural hazard: susceptible to earthquakes, volcanic eruptions; frequent droughts

Background Information-Background Information-EthiopiaEthiopiaPeople and Society> 80 ethics and ethnicities are living in

EthiopiaPopulation - 84million and a growth rate of

2.1 % per year. 83% - rural area; 17%- urban areas.

Birth rate:- 30.7 births/1,000 population, 2011 Death rate:- 9.3 deaths/1,000

population ,2011 Maternal mortality rate:- 840 deaths/100,000

live births (2011)Infant mortality rate:- 77. deaths/1,000 live

births (2011)

Background Information-Background Information-EthiopiaEthiopia

Fertility rate births per woman: 4.04

Life Expectancy at birth – female 60 and meal 57

Contraceptive prevalence (ages 15-49, %)- 28.6 (2011)

Literacy rate:- 42.7% of the population are literate among them 35.1% are female

Background Information-Background Information-EthiopiaEthiopia Socio- economic situation

Economy depends on agriculture. 85% of the population gains its livelihood directly or indirectly from agricultural production.

2nd largest country in Africa in livestock

GDP Growth annul 7.29% , 2011GDP Per capita -356 USD, 2011Prevalence of HIV – 1.4% , 2011Unemployment rate – 17%, 2006

Background Information-Background Information-EthiopiaEthiopiaEthiopia has been one of the major

recipients of official and private development assistance in recent times.

According the OECD-DAC statistics development net ODA to Ethiopia amounted to US $1.94 billion in 2006, making it the 7th largest recipient among 169 aid receiving developing countries

Currently , Ethiopia adopted 5 years police (GTP)

Background Information-Background Information-EthiopiaEthiopia

Indicators 2000 2011

Birth Rate 45 30.7

Death Rate 17.6 9.3

Infant mortality rate 138.6 77

Fertility rate 6.08 4.08

Literacy rate 27 (1995) 42.7

GDP growth 6% 7.29%

GDP per Capita 356 USD 123 USD

Source: World Bank

Background Information-Background Information-EthiopiaEthiopiaExistence of feasible development

polices and strategies- that assure the aid effectiveness

Significant development intervention by development actors and cooperation

Encourage foreign direct investment

Strategy shift- from short to long term development intervention ….

The role of Aid towards The role of Aid towards poverty eradication poverty eradication CASE

The role of Aid towards The role of Aid towards poverty eradication poverty eradication Generally, it overcomes poverty traps, increase

economic growth and better living standards Instrumental in bridging the country’s saving-

investment and foreign exchange gap Importance as a source of financing for the

development of capacity building Human capacity Administrative capacity Institutional building Police reforms

The role of Aid towards The role of Aid towards poverty eradication poverty eradication

Social welfare and empowerment:- Improve social relationship with in the family and at community level

Improve the relative social standing of low castes, minority ethnicities or new immigrants

Social preferences could shift- participants may learn new information about the social preferences of others

The role of Aid towards The role of Aid towards poverty eradication poverty eradication To realize the national development strategy and

prevail over the capacity gaps in effective public service delivery

Increases pro-poor public expenditure and has a positive impact on growth

To achieve from satisfactory growth to self-sustaining growth

Fostering broad based intervention and complementing national development intervention

Case

Added value of Aid Vs private Added value of Aid Vs private sectors sectors Development Actors Private Sectors

Focus on development projects – social welfare and empowerment at grass root level

Business oriented projects , maximization of profit

Motives- poverty reduction Motives- profit maximization at the cost of poor , labor exploitation Bangladesh

Beneficiaries- includes poor, vulnerable, marginalized and out coasted groups, minority. Advocate for pro poor

Target market- the one who can afford, the quality of good and services vary as per the purchasing power of their target market

Social equality- by narrowing the income disparity among the given community

Aggravating income disparity among the given society

Addressed social malpractices Not consider + even it goes to aggravation level

Concentrated on Problem solving like environmental protection, child protection, gender equality….

Always link with conducive business environment . Some, PS knowingly or unknowingly contribute for environmental degradation, human trafficking, gender inequalities

What is needed from What is needed from Development actorsDevelopment actorsIntervention should be:

Demand driven Adopt the hosting

countries development polices

Focuses on knowledge and technology transfer by contextualizing under the hosting countries situation

Consider the changing dynamism of the 3rd world

Focuses on long term development intervention

Addressing underline problems of vulnerable groups

Mainstream environmental issues, gender equalities and HIV/AIDS

Position of European Position of European development actors development actors Consider themselves as

development partners of the hosting countries

Development intervention in line with the country priority - not imposing their interest

Sustainability of Sustainability of Development Project Development Project Promotion of participatory approach in all

PCMPromotion of community contribution,

using local resourcesFocus on soft wear development- better to

teach how to caught fish rather than teaching how to eat fish”

Closely work with community level actors like CBOs,

Should be concentrate on felt need of the community (demand driven) + in line with the country police and strategy

Get involved the private sectorsCapacitate local partners

Challenges Challenges Lack of institution coordination-

duplication of efforts Financial crisisRelation between popular sector

and government- bureaucratic one (impeded smooth operation

Some interventions creates dependency syndrome

Unable to work on human right issues