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Salvaging the Constitutional Order (Amen Teferi)
The ruling party has engaged itself in a “soul searching” venture that is operative to effect “deep renewal” and it has made the issue of good governance the vital component of this venture. EPRDF has found this “deep renewal” as imperative in its effort to sustain the continuing momentum of economic growth that could eventually help the country to alleviate its poverty and reduce the alarming rate of unemployment. Hence, poverty alleviation and job creation still command a high priority in Ethiopia’s development project.
In this regard, we can mention the ten billion dollar revolving fund that is made available to improve the livelihoods of the unemployed youth. Ethiopia has already earmarked this huge amount of money not simply to appease the vigorous demands of the youth who had felt deprived of the chance to benefit from the ongoing economic progress the country, but to unleash the untapped potential of the young population by way of removing the financial bottlenecks they are facing.
Ethiopia has already waged war on poverty. But there is no simple solution for such a complex issue as poverty alleviation. So far Ethiopia has made various policy reforms and strategies that are considered to effectively address the serious poverty situation that it is languishing in for centuries.
Poverty alleviation most importantly requires strong commitment of the government to address the issues in practical terms. Realizing good governance is mandatory in addressing the intractable problem of poverty in Ethiopia as it facilitates participatory approaches to poverty issues and ensures power sharing and empowerment of the poor.
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Poverty alleviation programs in Ethiopia need to protect the poor from destitution, sharp fluctuations in income and social insecurity. Apart from involving the poor in urban and rural works, the provision of food-subsidy and encouraging self-employment are the basic components of Ethiopia’s poverty alleviation efforts.
Self employment of the poor can be induced through provision of productive assets and appropriate skills, subsidy and bank credit, supply of improved tools and other support services and provision of durable social and economic assets for sustained employment and development.
Such efforts would require the provision of adequate funds, appropriate policy framework and effective delivery mechanism to make use of the resources in cost-effective manner and this apparently requires high degree of commitment, motivation, competence, integrity and adequate monitoring systems.
As various studies conducted has revealed the most vulnerable segments of the Ethiopian population include: (1) the rural land-less, (2) small holders with a limited size of land, (3) drought victims as a result of shortage of rainfall, (4) female-headed households, (5) the urban unemployed in particular, and the urban poor in general and (6) street children.
Ethiopia has done commendable job by taking out large number of poor people who live in urban and rural areas from the quagmire of poverty. As there is continuous migration of the rural poor to the urban areas in search of better opportunities, the poverty alleviation program, therefore, should emphasize more on rural poverty in order to curb the flow of rural poor that has now congested the urban areas.
As reflected in the number of poverty stricken population the prevalence of poverty in Ethiopia is determined on the basis of a poverty line that separates the per capita income or consumption below which an individual is considered to be poor. According to the World Bank “poverty is generally considered as a situation in which the underprivileged do not have adequate food and shelter, lack access to education and health services, are exposed to violence, and find themselves in a state of unemployment, vulnerability and powerlessness. Poverty is multi-dimensional and has to be looked at through a variety of indicators such as levels of income and consumption, social indicators and indicators of vulnerability to risks and socio-political access and participation.”
The most common approach to the measurement of poverty is based on incomes or consumption levels. It is widely understood that an individual is considered to be poor if the consumption or income level of the person concerned falls below some minimum level that is necessary to meet basic needs i.e. poverty line.
The nature and level of basic need satisfaction varies along with time and societies. Thus, the poverty line to be established should be appropriate to the level of development, societal norms and values of the society concerned.
The study of poverty also includes developing indicators to track other non income dimension of poverty such as risk, vulnerability, social exclusion and access to social capital. This facilitates comparison of a multidimensional conception of poverty. Participatory approaches help illustrate the nature of risk and vulnerability, how cultural factors and ethnicity interact and affect the livelihood of the poor and how social exclusion sets limits to peoples participation.
A typical poverty scenario as described above is reflected in the socioeconomic condition of Ethiopia. In that respect, Ethiopia has carried out several economic reform programs in order to achieve economic stability and renewed growth in the fight against poverty. These programs have resulted in improving Ethiopia’s macro-economic performance as well as in reducing the number people living in abject poverty by half. As Ethiopia’s laudable economic growth has had a limited impact on the poverty situation at household level, we have a long way to go to realize tangible results that guarantee an improvement in the socio-economic status of the underprivileged poor.
Ethiopia’s development policy has clear pro-poor quality. However, we have still millions of people who live below the poverty line. In fact the poverty situation in Ethiopia over the past decade has been exasperated by high rate of population growth and by the irregularity of natural conditions and other human and environmental factors.
The World Banks definition of poverty indicates that poverty is “…a pronounced deprivation of well-being related to lack of material income or consumption, low levels of education and health, vulnerability and exposure to risk and voicelessness and powerlessness.” In short, poverty is characterized by inadequacy or lack of productive means to fulfill basic needs such as food, water, shelter, education, health and nutrition.
This definition fairly describes the nature of poverty in the Ethiopian context. As the concept of poverty reflects “socially perceived deprivation” of basic human needs, its understanding also considers the minimum living standards of the people. The multi-dimensional character of poverty in Ethiopia is reflected in many respects, such as destitution of assets, vulnerability and human development.
Poverty alleviation and reduction of economic inequality is the major socio-economic and political issue in the country. As experience has shown, the existence of large number of poor people and the prevalence of economic inequality may bring about social tensions which would induce various criminal acts if situations go beyond the limits of social tolerance. Poverty alleviation would, therefore, enhance economic development and result in improved incomes and better well-being of the people which is a pre-requisite for peace and further development. However, attempts to eradicate poverty would require strong commitment on the part of concerned authorities in favor of economic development to induce the sustainable livelihood of millions in urban and rural areas of Ethiopia.
The fundamental bases of livelihood comprise natural (land, forests, water, pastures and wildlife), physical (farm animals, tools/machinery, economic and social infrastructure), financial capital (income and savings), social relations and human capital (health, education etc).
The Ethiopian situation clearly reflects the degree to which the bases for sustainable livelihood are adversely affected by natural and man-made calamities. The underprivileged poor have limited access to most of the livelihood capital assets which has widened income disparity and undermined their bargaining power to establish sustainable livelihoods. This socio-economic condition emphasizes the need for “political capital” as a means of ensuring better participation in deciding on matters that affect the well-being of the poor and enhance improved security of subsistence needs.
Thus, the issue of governance in addressing poverty in Ethiopia is considered a vital element in the poverty alleviation process. Good governance can facilitate participatory approaches to poverty issues, ensuring power sharing and empowerment of the poor. The deep renewal” venture is operative in ensuring good governance and in addressing the pressing needs of the youth and salvaging the constitutional order.
