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Proactive Disclosure

Proactive Disclosure

Ethiopia

CIDA Disbursements in Ethiopia: Breakdown by Aid Channels (in $ millions), 2007-2008

Source: CIDA Statistical Report on International Assistance, 2007-2008

Spotlight

HIV/AIDS in Ethiopia

Children at the Adaa-Liben Coop drop off site in Ethiopia. © ACDI-CIDA/Patti Gower

Overview

The second most populous country in sub-Saharan Africa (79 million), Ethiopia is one of the world's poorest nations. Some 39 percent of the population lives on less than US$1.25/day. On the United Nations Development Programme's 2009 human development index, Ethiopia ranks 171 out of 182 countries. Human development indicators are low, with exceptionally alarming statistics regarding food security and women's status and well-being. Despite having emerged as the most stable country in the Horn of Africa, Ethiopia still faces several long-standing internal and external security challenges.

Ethiopia's macroeconomic situation has become precarious over the past year, and double-digit inflation has negatively impacted the poor. Corrective measures are in place, and inflation rates are declining, but these measures will interact with the global economic downturn and will result in lower economic growth over the next 12 to 18 months.

In spite of these enormous challenges, Ethiopia has made major development strides, principally since the 1984-1985 famine when it was the focus of world attention. Poverty rates have fallen, and the country is considered on track to achieving six of the eight Millennium Development Goals.

This progress has been founded on high economic growth in previous years, a series of good harvests, and country-led investments to increase food security and expand the coverage of basic services such as health and education services. These gains remain fragile, as the country continues to be highly vulnerable to shocks, especially climate-related events such as drought.

Ethiopia's continued investment in national programs that aim to maintain household food supplies and build productive capacity is necessary in order to protect the fragile gains of the past decade and increase food security for people.

Thematic Focus

In 2009, as part of Canada's new aid effectiveness agenda, Ethiopia was selected by CIDA as one of 20 countries of focus. Canada is the fourth largest bilateral donor in Ethiopia. CIDA's programming will support the vision set out in Ethiopia's Plan for Accelerated Sustained Development to Eradicate Poverty. This plan establishes the framework for national poverty reduction programs for the 2006-2010 period. Ethiopia's budget allocation for the benefit of the poor is the highest in Africa, and numerous human development indicators have shown systematic improvements over the past five years.

Ethiopia's priority needs as set out in its national development plan include:

A sustained effort to address the root causes of food insecurity
A concerted effort to improve the coverage and quality of basic services
Investments to promote market-based agricultural development
Support to build accountable and effective public institutions at all levels and to increase civil society capacity for engaging in poverty reduction policies and programming

Food security

CIDA is committed to supporting Ethiopia's efforts to achieve food security as a prerequisite to its sustainable development. CIDA will continue to help address the root causes of chronic food insecurity in Ethiopia and to protect the vulnerable through productive safety net programs and by increasing agricultural productivity and farmers' incomes by means of improved production techniques and market-oriented approaches.

Selected examples of expected results

Agricultural extension services will be improved by upgrading 2,500 farmer training centres with tools and equipment and by providing in-service training for 7,500 agricultural extension agents
Some 6,000 farmers will participate in the development of demand-driven research and extension
Degraded watersheds will be rehabilitated through soil and water conservation measures, for example, by constructing protective soil and stone embankments
Market-based agribusinesses (e.g. bamboo processing) will be introduced in food insecure areas

Children and youth

CIDA is committed to protecting and improving the lives of Ethiopia's children and youth-who are among that country's most vulnerable citizens-by ensuring that children and youth living in rural areas are reached by high impact health interventions.

Selected examples of expected results

Bed nets will be distributed throughout all malaria-affected areas (2 per household)
Essential drugs will be available at frontline health facilities all year around

To achieve sustainable results in the areas of food security and children and youth, CIDA will continue to support the Government of Ethiopia's efforts to deliver services to the public effectively. Building on earlier successes, CIDA will also assist Ethiopia in improving access to the justice system for the poorest and in increasing public safety by helping to introduce alternative dispute resolution methods and community policing in 20 districts to ensure the safety of these established programs.

Progress on Aid Effectiveness

Ethiopia's strong ownership of development priorities and planning, combined with its impressive commitment of national resources to anti-poverty programming, make it a country where official development assistance produces results. Donors have responded with growing and increasingly harmonized aid commitments, resulting in lower transaction costs and greater impact.

The main challenge for aid effectiveness at present is the difficult environment for civil society. Donors continue to work together to facilitate dialogue between civil society and all levels of government.

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Ethiopia: Building on Progress ― A Plan for Accelerated and Sustained Development to End Poverty (280.67 KB, 56 pages)

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