Agriculture,Growth and Poverty Reduction in Ethiopia Policy Processes Around the New PRSP (PASDEP)

By Amdissa Teshome
March 2006

“Agriculture is the mainstay of the Ethiopian Economy”. This statement has almost become a cliché for development professionals in Ethiopia. Those who went to school 50 years ago, read it; and later on wrote about it. So has the present generation. The Report on the Ethiopian Economy, Volume IV (EEA/EEPRI, 2004/05:10) stated, for example: “…agriculture is the mainstay of the Ethiopian economy and the most volatile sector…. mainly due to its dependence on rain and the seasonal shocks that are frequently observed”. As things stand, our children and grandchildren will be repeating this refrain for generations to come. Yet, the sector has been unable to realise its potential and contribute significantly to economic development. How can we change this?

In the Ethiopian context, agriculture is proving to be the most complex sector to understand. On the one hand, it contributes the largest share to GDP, export trade and earnings, and employs 84% (PASDEP, 2006) of the population. On the other hand, despite such socio-economic importance, the performance of the sector is very low due to many natural and manmade factors. As a result, Ethiopia is characterised by large food self-sufficiency gap at national level and food insecurity at household level (EEA/EEPRI, 2004/05:145).

Whereas in the Northern highlands, farmers struggle to make ends meet on completely degraded land, in the South and Southwestern part of the country, people live in extreme poverty in the midst of plenty – fertile land and relatively preserved environment. To complicate matters further, the country’s future is pinned on agriculture as demonstrated in a statement by the Prime Minister of Ethiopia in 2000.

The agriculture sector remains our Achilles heel and source of vulnerability …. Nonetheless, we remain convinced that agricultural based development remains the only source of hope for Ethiopia [emphasis added] (quoted in Devereux et.al. 2005: 121) ].

This complex nature and such high profile statements about the sector has led some commentators to believe that Ethiopia is unusual in emphasising agriculture over a long period of time. Carswell (2002) and Keeley and Scoones (2003) review four decades of intensive agricultural research and extension and policy debate, which brought about little change, primarily because the research focused on a “narrow range of technical options” that failed to appreciate the wider livelihood contexts within a given region let alone the entire country.