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Development stakeholders build confidence in Ethiopia
Tesfaye Lemma
The encouraging emerging economy in Ethiopia has brought a number of development partners in the past twenty six years. According to government reports the real GDP growth of the country has averaged to 10.5 percent per year between 2003 and 2015. The past twenty six years witnessed that the country has been growing well in all economic sectors. The development has backed, by various stakeholders.
One of these Ethiopia development partners is the World Bank. It has been intervening in Ethiopia’s development efforts for many years and has been cooperating with the country by offering both technical and financial issues. At the very beginning of the announcement of the Ethiopia Agriculture Development Led Industrial policy, there were different criticisms.
Many international organizations, including the World Bank had doubts about the effectiveness of the policy. Many economic analysts also argued that investing on small farm holder could take the country nowhere. They rather advised the Ethiopian government to change its development policy and give priority to the industrial development. However, the Ethiopian government realized the tangible resources of the country.
Although industrial development is the ultimate goal of any country in economic transformation,
Ethiopia had no enough capital to build different factories and industries and staff them with the necessary machines. Rather, it had a large farm land and a large number of working force. Despite resistance from different organizations and groups, the country has implemented its policy, which eventually resulted in such progressive transformation.
Now, just twenty six years later, the implementation of the Ethiopian development strategy has contributed for the fast sustainable economic growth that the stakeholders have also learnt from that and persistently assisting the country in its development efforts.
The recently announced support of the World Bank is one of the indications that Ethiopia is still moving in the right track in the eyes of the international community. The Bank has made vivid that a five-year partnership Framework with Ethiopia. It planned to back the Ethiopian development aspirations and gains registered so far.
According to recent briefings, the World Bank determined to support Ethiopia in its struggle to achieve its second Growth and Transformation Plan. The current plan to support Ethiopia is the sequel of the supports the Bank had been doing in the past fifteen years.
It is undeniable that the country has achieved significant economic, social progress as well as human development. Following the designations of the appropriate development policies and strategies, the Ethiopian government managed to mobilize and ensure the participation of its people so as to meet its pro-poor development strategy.
Due to the consolidated efforts exerted in the past fifteen years, the poverty rate of the country has declining. It was about 55 percent in 2000. However, the implementation of the pro-poor development strategies and gains in various development sectors reduced the rate of poverty to 34 percent in 2011 and currently minimized to about 22 percent.
Many international organizations have also witnessed that Ethiopia has also achieved a number of the Millennium Development Goals. World Bank has been supporting the country in forging a more inclusive and sustainable economic growth through promoting structural and economic transformation of the country.
This is done through efforts to raise the agricultural productivity of the farmers investing on small farm lands. The country has become successful in different areas, including the expansion of education, health, infrastructure and investment.
The support of World Bank has a significant role, particularly in building resilience and inclusiveness by improving safety nets, investing in productive and landscapes. It will also support Ethiopia in combating corruption.
It recently announced that, it has upgraded its intervention in the country’s efforts to alleviate poverty via addressing vital challenges facing the country. The interventions of the World Bank in the Ethiopian economic development will support the increased citizen engagement, greater resilience to the effects of climate change, more inclusive growth, and youth employment. It is believed that the development in the country has been taken by different African countries as a model. In this regard, public investment is at the centre.
There are raising needs and opportunities to unlock the potential of the private sector, including offering products aimed at de-risking investments to make more investment possible, the World Bank announced. Ethiopia aims to achieve lower middle-income status by 2025. In spite of the progress achieved over the past decade, there are still intra-regional disparities in resource endowments and access to services, with pockets of poverty, even in relatively well-off areas of the country.
The Bank has been cooperating with Ethiopia in developing the energy sector so as to raise public access to electricity. It made vivid that the recent approval of 170 million USD could assist the country to boost the economic contribution of the livestock and fisheries sectors in Ethiopia.
According to the report from the World Bank, it is known that developing the livestock and fisheries sector could help more than 1.2 million households. The people mainly depend on keeping and livestock and fishing. Providing the necessary skills and tools to these people could increase the quantity and quality of their product.
According to the report from the World Bank, it is known that developing the livestock and fisheries sector could help more than 1.2 million households. The people mainly depend on keeping and livestock and fishing. Providing the necessary skills and tools to these people could increase the quantity and quality of their product.
Developing the sector will contribute a significant role in the country’s move to be a middle-income country status. The sectors will also contribute to the country’s green growth priorities. The country has great potential of livestock and fisheries. The support made by the World Bank could play a significant role in addressing the challenges that Ethiopia is facing in developing the sector.
Ethiopia’s development stakeholders including, the International Monetary Fund and the World Bank have developed confidence on the nation’s commitment in using the loans and supports from them. As a result, the Bank offered the country various funds that could support the overall development efforts of the country, particularly the second Growth and Transformation Plan.
