The Federal Democratic Republic of Ethiopia and the IMF

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Ethiopia Joint Staff Assessment of the PRSP
July 27, 2002

Poverty Reduction Strategy Papers (PRSPs)

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Ethiopia
Sustainable Development and Poverty Reduction Program

Federal Democratic Republic of Ethiopia (FDRE)
Ministry of Finance and Economic Development (MOFED)
July, 2002
Addis Ababa, Ethiopia

Poverty Reduction Strategy Papers (PRSPs) are prepared by member countries in broad consultation with stakeholders and development partners, including the staffs of the World Bank and the IMF. Updated every three years with annual progress reports, they describe the country's macroeconomic, structural, and social policies in support of growth and poverty reduction, as well as associated external financing needs and major sources of financing. This country document is being made available on the IMF website by agreement with the member country as a service to users of the IMF website.

Use the free Adobe Acrobat Reader to view full text (2,609 Kb pdf file)

Contents

Introduction
 
I.
 Socio-economic Performance & Poverty Profile of Ethiopia
  1.1 Socio-economic Performance During the 1990s
  1.2 Poverty Profile of Ethiopia
  1.2.1 Trends in consumption poverty : Inter-temporal and Spatial Dimension
  1.2.1.1 Trends in per capita Real Consumption Expenditure
  1.2.1.2 Trends in the Level of Consumption Poverty
  1.2.1.3 Trends in the Level of Food Poverty
  1.2.2 Distribution of National Poverty
  1.2.3 Household Characteristics and Poverty
  1.2.4 Household Vulnerability to Shocks and Vulnerability Dimensions
  1.2.5 Temporal and Spatial Dimensions of Non-Income Poverty
  1.2.5.1 Nutrition, Health and Literacy
  1.2.6 Asset ownership and Sources of Livelihood
  1.2.7 Access to public services and Economic Infrastructure
  1.2.8 Determinants of Poverty
  1.2.9 What Has Emerged from the Analysis?
 
II.
 Analysis of Growth and Poverty Linkages.
2.1 Sources of Growth: A Growth Accounting Exercise
  2.1.1 Growth History of Ethiopia
  2.1.2 Main Sources of Growth
  2.2 Determinants of Growth
  2.2.1 Determinants of Growth: The Macro Version
  2.2.2 Determinants of Growth: The Micro-Version
  2.3 Growth, Poverty and Inequality
  2.4 Millennium Development Goals and Ethiopia's Prospects
  2.5 Pro-poor Growth
  2.6 Equitable Growth and Social Impact of Policies
     
III.
 The Consultation Process and overview of the Major Outcomes
     
IV.
 Development and Poverty Reduction Challenges
     
V.
 Overview of Ethiopia's Development Goals, Policies, Strategies, and Targets
  5.1 Fundamental Development Objectives of the FDRE
  5.1.1 Ensuring Rapid and Sustainable Economic Growth
  5.1.2 Enhancing the Benefits of the People
  5.1.3 Minimizing Dependency on Foreign Aid
  5.2 Building Blocks : Interaction of the Economic and Political Process
  5.2.1 ADLI and Food Security
  5.2.2 The Justice System and Civil Service Reform
  5.2.3 Governance, Decentralization and Empowerment
  5.2.4 Capacity Building
  5.3 The Major Thrust of Ethiopia's Development and Poverty Reduction Strategy
  5.3.1 Objectives of the Development and Poverty Reduction Strategy
  5.3.2 Required Growth to Meet Millennium Development Goals (MDGs)
  5.3.3 Equitable Growth and Social Impact of Policies
  5.3.4 Overview of Main Policy Instruments to Achieving the Objectives of the Strategy
  5.3.5 Poverty Reduction Policy Matrix, 2002/03-2004/05
     
VI.
 Capacity Building and Governance
  6.1 The National Capacity Building Strategy
  6.1.1 Focus on Building Capacity to Build Capacity
  6.2 The National Capacity Building Programs
  6.3 The Democratization Process
     
VII.
 Key Sector Development Policies and Strategies
  7.1 Rural and Agricultural Development Policies and Strategies
  7.1.1 The Major Directions of Rural and Agricultural Development
  7.1.2 Human Capacity Building and Utilization
  7.1.3 Proper Use of Land
  7.1.4 Preparing Compatible Development Packages for Each Agro-ecological Zone
  7.1.5 The Role of the Market in Agricultural Development
  7.1.6 Rural Finance
  7.1.7 Rural Electrification
  7.1.8 Rural Telecommunications Development in Ethiopia
  7.2 Food Security
  7.2.1 Overview of the Revised Food Security Strategy (FSS)
  7.2.1.1 Increasing Domestic Production (Supply Side Action)
  7.2.1.2 Ensuring Access to Food (Demand Side)
  7.2.1.3 Credit Service
  7.2.1.4 Nutrition and Health Intervention
  7.2.1.5 Emergency Capabilities
  7.2.1.6 Institutional Strengthening, Networking, and Capacity Building
  7.2.1.7 Food Security Assistance
  7.2.2 The Implementation of the Food Security Strategy
  7.3 Pastoral Development
  7.3.1 Major Socio-economic Constraints in Pastoral Development
  7.3.2 Envisaged Development Approaches /Interventions in Pastoral Areas
  7.3.3 Objectives of Pastoral Development
  7.3.4 Strategies of Pastoral Development
  7.3.75 Technical Intervention in Pastoral Development
  7.4 Road
  7.4.1 Linkages between RSDP and Poverty Reduction
  7.4.2 Performance of RSDP I
  7.4.3 Impact of RSDP I
  7.4.4 Issues Identified in the Course of Implementing RSDP I
  7.4.5 Lessons Drawn from Past Performance
  7.4.6 Overall Policies and Strategic Objectives of the Road Sector
  7.4.7 Road Sector Development Program II
  7.4.8 Sustainability of The Road Program
  7.5 Water Resource Development
  7.5.1 The Goals of the National Water Resource Management Policy
  7.5.2 Water Sector Strategy
  7.5.3 Water Sector Development Program
  7.5.3.1 Program Priorities
  7.5.3.2 Program Targets
  7.6 Education
  7.6.1 Assessment of ESDP I
  7.6.2 Issues, Overall Goals, and Strategies of the Sector
  7.6.3 Program Targets and Activities
  7.6.3.1 Pre-Primary Education
  7.6.3.2 Primary Education
  7.6.3.3 Secondary Education
  7.6.3.4 Technical and Vocational Education and Training TVET
  7.6.3.5 Adult and Non-Formal Education
  7.6.3.6 Special Needs Education
  7.6.3.7 Territory Education
  7.6.4 Program Cost and financing
  7.7 Health
  7.7.1 Review of the Performance of Ethiopia's HSDP (HSDPI)
  7.7.2 Goals and Objectives of the HSDP II (2002/03-2004/05)
  7.7.3 Policy Framework of HSDP II
  7.7.4 General Targets
  7.7.5 Strategies
  7.7.6 Specific Targets and Activities
  7.7.7 Opportunities and Challenges of the Decentralization Process at the Woreda Level
  7.7.8 Financial Plan of HSDP II
  7.7.9 Program Implementation Arrangements of HSDP II
     
VIII.
 Private Sector and Export Development
  8.1 Investment Climate
  8.1.1 Peace and Stability
  8.1.2 Macro Economic Stability
  8.1.3 Institutional and Legal Environment
  8.1.4 Access to Land
  8.1.5 Competition
  8.1.6 Taxation
  8.2 Investment Finance
  8.2.1 Current Status of the Banking Sector
  8.3 Infrastructure
  8.3.1 Short to Medium-Term Program
  8.3.1.1 Construction Sector
  8.3.1.2 Energy Sector
  8.3.1.3 Telecommunications
  8.4 Input Output and the Export Market
  8.4.1 Agricultural Inputs and Outputs
  8.4.2 Human Resources
  8.4.3 Knowledge Information (ICT) and Technology
  8.5 Export Sector Development
  8.6 Tourism
  8.7 Developing the Manufacturing Sector
  8.8 Developing the Mining Sector
  8.9 Institutions
  8.9.1 Public-Private Consultative Forum
  8.9.2 Institutions Giving Services to the Private Sector
  8.,9.3 Institutions of the Private Sector (Chambers and Sectoral Associations)
   
IX.
 Vulnerability and Response Capability
  9.1 Domestic Shocks and Disaster Prevention and Preparedness
  9.1.1 Strengthening Emergency Response Abilities
  9.2 HIV/AIDS
  9.3 External Shocks
  9.4 Ethiopian social Rehabilitation and Development Fund
  9.5 Emergency Recovery Program (ERP)
     
X.
 Cross-cutting Issues
  10.1 Environment and Development
  10.2 Population and Development
  10.3 Gender and Development
  10.4 Urban Development and Management
  10.4.1 Overview of the Status of Urban Ethiopia
  10.4.2 Strategic Actions to Enhance Urban Development and Management
  10.5 HIV/AIDS, Development and Poverty Reduction
  10.5.1 Overview of the Status of HIV/AIDS in Ethiopia
  10.5.2 The Link between HIV/AIDS and Poverty
  10.5.3 Overall Impacts of HIV/AIDS
  10.5.4 The Strategic Framework for Fighting HIV/AIDS
  10.5.5 Medium term Goals for Fighting HIV/AIDS
  10.5.6 Financing HIV/AIDS Programs
     
XI.
 Overview of Macroeconomic Development and Objectives
  11.1 Macroeconomic Development
  11.2 Macroeconomic Objectives, Strategies and Policies in the Medium Term
  11.2.1 Real Sector
  11.2.2 Fiscal Policy
  11.2.3 Monetary Policy
  11.2.4 Financial Sector Reform
  11.2.5 External Sector
     
XII.
 Financing the Program and the Macroeconomic and Fiscal Framework
  12.1 Sectoral Program Costing
  12.1.1 Agriculture
  12.1.2 Water
  12.1.3 Road
  12.1.4 Education
  12.1.5 Health
  12.2 The Macroeconomic Fiscal Framework (MEFF)
  12.3 Medium Term Resource Envelope
  12.4 Additional Resources from Enhanced HIPC Debt Relief
  12.5 Allocation of Resources Within MEFF
  12.5.1 Allocation of Resources for Poverty Oriented Sectors
  12.5.2 Allocation for Other Sectors
  12.6 Prioritization of Sector Programs and Resource Allocation
  12.7 Financing Sectoral Requirements
     
XIII Program Targets and Monitoring and Evaluation System
  13.1 Objective of the PRS Monitoring System
  13.2 Existing Monitoring Systems as a Bases for PRS Monitoring System
  13.3 Institutional Responsibilities and Links to other Monitoring systems
  13.4 Existing Data and Monitoring System
  13.5 Indicators for Monitoring the National PRS
  13.5.1 Criteria for Selection of Indicators
  13.5.2 Proposed SDPRP Indicators and Targets
  13.5.3 Targets for the SDPRP: Aspirations and Commitments
  13.6 Directions for Strengthening the Monitoring system
  13.6.1 Data Collection and Utilization
  13.6.2 Ensuring Consistency and Standardization of Reporting Systems
  13.7 Regional and Woreda Level Systems.
  13.8 Outline of a Framework for Preparation of SDPRP Progress Report and Other Dissemination Plans
  13.9 The Role of Development Actors in the SDPRP
   
XIV
Conclusions
 
Annexes