Transcript Development Actors Private Sectors

DEVELOPMENT COOPERATION
IN DEVELOPING COUNTRIES:
THE CASE OF ETHIOPIA
May 14, 2013
Background Information-Ethiopia
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Located in horn of Africa
covers an area of 1.14 million
square Kilometers
Climate :- tropical monsoon
with wide topographicinduced 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-Ethiopia
People and Society
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> 80 ethics and ethnicities are living in Ethiopia
Population - 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-Ethiopia
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
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Background Information-Ethiopia
Socio- economic situation
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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% , 2011
GDP Per capita -356 USD, 2011
Prevalence of HIV – 1.4% , 2011
Unemployment rate – 17%, 2006
Background Information-Ethiopia
Ethiopia 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)
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Background Information-Ethiopia
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-Ethiopia
Existence 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 ….
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The role of Aid towards poverty
eradication
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CASE
The role of Aid towards poverty
eradication
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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 poverty
eradication
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Social welfare and empowerment:-
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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 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
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Case
Added value of Aid Vs private 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 Development
Intervention should be:
actors
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
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Focuses on long term
development
intervention
 Addressing underline
problems of vulnerable
groups
 Mainstream
environmental issues,
gender equalities and
HIV/AIDS
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Position of European development
actors
Consider themselves as development
partners of the hosting countries
 Development intervention in line with the
country priority - not imposing their
interest
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Sustainability of Development
Project
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Promotion of participatory approach in all PCM
Promotion of community contribution, using local
resources
Focus 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 sectors
Capacitate local partners
Challenges
Lack of institution coordination-duplication
of efforts
 Financial crisis
 Relation between popular sector and
government- bureaucratic one (impeded
smooth operation
 Some interventions creates dependency
syndrome
 Unable to work on human right issues
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