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Economic Aspects | Natural Resource Aspects | Institutional Aspects | Social Aspects |Ethiopia

ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN ETHIOPIA

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INTERNATIONAL COOPERATION AND TRADE

Decision-Making: Coordinating Bodies    

No information available.

Decision-Making: Legislation and Regulations  

No information available.

Decision-Making: Strategies, Policies and Plans  

No information available.

Decision-Making: Major Groups Involvement   

No information available.

Programmes and Projects   

Environmental projects are a prominent part of international cooperation with Ethiopia. Wildlife, biodiversity, forest conservation, pollution control and waste management are some of the areas presently receiving donor support in the country. But the inflow of resource was twenty-five percent less than what had initially been envisaged by the government. Weak project implementation capacity, lengthy donor disbursement procedures, and conditionalities that lack sufficient flexibility are among the major problems that can account for this. 

The assistance programme by the World Bank is very wide ranging, but it has increased its focus on economic reform, food security, economic infrastructure (roads, energy), and the social sectors.  The African Development Bank is also active in a range of sectors, including health, education, water and roads, but has an increasing focus on economic reform and food security and agriculture.   

USAID concentrates its support in food security and agriculture, education, health, HIV/AIDS and population/gender issues. Japan has a clear focus on a limited number of sectors: food security and agriculture, roads, water and sanitation, and education.   

Status   

No information available. 

Challenges  

See under Programmes and Projects.

Capacity-building, Education, Training and Awareness-raising   

No information available.

Information   

No information available.

Research and Technologies   

No information available.

Financing   

The country's desired fast growth requires a significant amount of resources that the economy may not be able to generate.  External finance would, therefore, enable the economy to make up for the saving and foreign exchange gaps. Foreign financing plays a large-scale resource role to meet the short-term transitional costs of reform and to introduce economic liberalization and stabilization measures. These foreign financial requirements are expected to be covered from bilateral and multilateral sources in the form of grants and loans.  However, this is uncertain since, in Agenda 21, developed countries were committed to contribute 0.7% of their GDP annually for sustainable development, and in practice, this target was never achieved and aid to least developing countries (LDCs) is now less than 0.25%.

As long as efforts in increasing absorption capacity are improved, the country can continue to enjoy significant assistance from overseas development assistance (ODA) and credit from international financial institutions.  For the four-year period of 1995–1998, Ethiopia received development assistance averaging 13.4 percent of GNP. See also under Programmes and Projects.

Cooperation

No information is available.

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CHANGING CONSUMPTION PATTERNS

Decision-Making: Coordinating Bodies    

No information available. 

Decision-Making: Legislation and Regulations  

No information available. 

Decision-Making: Strategies, Policies and Plans  

No information available. 

Decision-Making: Major Groups Involvement  

No information available. 

Programmes and Projects   

No information available. 

Status   

The majority of Ethiopians do not consume resources even at the level that meets their basic needs.  There have been some achievements in the delivery of safe water, the provision of energy for lighting and cooking, and the improvement of sanitation and waste management. However, much more can also be done to improve the efficiency of the delivery and use of the resources available.  

The households using unclean or unsafe sources of drinking water take it from rivers, lakes, and unprotected wells and springs. Safe drinking water comes from protected wells, whether piped or not, and from treated water supply system. With respect to energy for lighting, most of the households use kerosene, and electricity accounts for a very small percentage of the overall energy use. In 1996, kerosene was predominantly used for lighting (68percent) and electricity served to light only 9.3 percent of the households. Other sources comprised 23 percent. In 1998, the situation changed only slightly. For cooking, 76 percent of the households used firewood, kerosene accounted for 2.6 percent, while charcoal, butane, gas, and electricity constituted 0.8, 0.4, and 0.5 percent, respectively.  Other sources of fuel for cooking served 1.7 percent of the households 

In urban centres, a large proportion of the households use pit latrine toilets while a very small proportion use flush toilets. Members of the vast majority of the rural households defecate directly in fields or forests; some use pit latrines and a very few use flush toilets. 

Challenges  

No information available. 

Capacity-building, Education, Training and Awareness-raising   

No information available. 

Information   

No information available. 

Research and Technologies   

No information available. 

Financing   

No information available. 

Cooperation  

No information available. 

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FINANCING

Decision-Making: Coordinating Bodies    

No information available. 

Decision-Making: Legislation and Regulations 

No information available. 

Decision-Making: Strategies, Policies and Plans  

Based on the new economic policy, the government has formulated a long-term economic development strategy - Agricultural Development Led Industrialization (ADLI) - that is geared towards the transformation of the poor economic structure. Moreover, Ethiopia is trying to promote sustainable development by fund allocations from the government revenue, by loans and grants through multilateral and bilateral international co-operation, and by encouraging the involvement of the private sector in various development endeavours of the country.  But neither donor aid nor private investment has been available in amounts related to the promises made in Agenda 21 in 1992.

Decision-Making: Major Groups Involvement  

No information available. 

Programmes and Projects   

No information available. 

Status   

No information available. 

Challenges  

Sustainable development is as much the conservation and regeneration of scarce resources as their judicious use. The lack of food security (resulting in bouts of famine and malnutrition), lack of alternative energy sources, failure to sustain economic growth, scarcity of productive employment and hence lack of improvement in the quality of life and habitat constitute Ethiopia’s priority concerns requiring immediate financing towards sustainable development. 

Capacity-building, Education, Training and Awareness-raising   

No information available. 

Information   

No information available. 

Research and Technologies   

No information available. 

Financing   

No information available. 

Cooperation

See under Decision-Making: Strategies, Policies and Plans.

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TECHNOLOGY

Decision-Making: Coordinating Bodies    

See under Decision-Making: Legislation and Regulations and Decision-Making: Strategies, Policies and Plans.

Decision-Making: Legislation and Regulations 

The Environmental Protection Authority (EPA) played a leading role in the negotiations of the Cartagena Protocol on Biosafety under the Convention on Biological Diversity (CBD). The EPA also assisted the Organization of African Unity/African Union to prepare an ‘African Model Law on Safety in Biotechnology’ that has been approved to be domesticated into national laws by its member countries. Ethiopia is now preparing its domestic biosafety law based on the African Model Law and is being assisted through the UNEP GEF Biosafety Project to set up an institutional framework for biosafety. 

Decision-Making: Strategies, Policies and Plans  

Modern Biotechnology is seen as a new development that could bring benefits to agriculture, medicine, industry, etc. But, the impacts of its applications on human health and natural and agricultural ecological systems, and their attendant socio-economic changes have first to be carefully studied and assessed. There should, therefore, be a biosafety system established to regulate activities in modern biotechnology. 

The Ethiopian Science and Technology Commission has assessed the national capacities, opportunities and needs in biotechnology, and determined feasible and appropriate ways that would both strengthen existing national efforts in biotechnology and related fields, and help develop national capability for the development and utilization of appropriate applications of modern biotechnology. Ethiopia has drafted a National Biotechnology Policy, which is awaiting government approval.  

EARO recently developed a twenty-year Strategic Agricultural Biotechnology Research Plan and is implementing national programmes on agricultural biotechnology. 

Decision-Making: Major Groups Involvement  

No information available. 

Programmes and Projects   

No information available. 

Status   

Ethiopia is particularly rich in agricultural biodiversity – see under Biodiversity – and is globally recognized as one of the Vavilov centres for the domestication and diversification of crops. 

Challenges  

Great care has to be taken to protect this genetic wealth from contamination by genetically modified organisms. See also under Decision-Making: Strategies, Policies and Plans.

Capacity-building, Education, Training and Awareness-raising   

No information available. 

Information   

No information available. 

Research and Technologies   

Alemaya University of Agriculture is investing in strengthening its agricultural biotechnology research capacity. The East African Regional Programme and Research Network for Biotechnology, Biosafety and Biotechnology Policy Development (BIO-EARN) aims at building national research capacities in Biotechnology, Biosafety and Biotechnology Policy in four East African Countries (Ethiopia, Kenya, Tanzania and Uganda).  

Financing   

No information available. 

Cooperation

See under Decision-Making; Legislation and Regulations and under Research and Technologies.

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INDUSTRY

No information available. 

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TRANSPORT

No information available.

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SUSTAINABLE TOURISM

No information available.

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