DEVELOPMENT COOPERATION IN DEVELOPING COUNTRIES THE CASE OF

DEVELOPMENT COOPERATION IN DEVELOPING COUNTRIES: THE CASE OF ETHIOPIA May 14, 2013

Background Information. Ethiopia Located in horn of Africa covers an area of 1. 14 million square Kilometers Climate : - tropical monsoon with wide topographic-induced variation Physical features : - high plateau with central mountain range divided by Great Rift Valley; Natural hazard: susceptible to earthquakes,

Background Information. Ethiopia People and Society > 80 ethics and ethnicities are living in Ethiopia Population - 84 million 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 1549, %)- 28. 6 (2011) Literacy rate: - 42. 7% of the population are literate among them 35. 1% are female

Background Information-Ethiopia Socio- economic situation Economy depends on agriculture. 85% of the population gains its livelihood directly or indirectly from agricultural production. 2 nd largest country in Africa in livestock GDP Growth annul 7. 29% , 2011 GDP Per capita -356 USD,

Background Information. 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 7 th largest recipient among 169 aid receiving developing countries Currently , Ethiopia adopted 5 years police (GTP)

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 ….

The role of Aid towards poverty eradication CASE

The role of Aid towards poverty eradication 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 q Human capacity q Administrative capacity q Institutional building q Police reforms

The role of Aid towards poverty eradication Social welfare and empowerment: - q Improve social relationship with in the family and at community level q. Improve the relative social standing of low castes, minority ethnicities or new immigrants q. 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

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

What is needed from Intervention should be: Development 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 3 rd world

Focuses on long term development intervention Addressing underline problems of vulnerable groups Mainstream environmental issues, gender equalities and HIV/AIDS

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

Sustainability of Development Project Promotion of participatory approach in all PCM 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 coordinationduplication 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