Ethiopia

Overview

The second most populous country in sub-Saharan Africa (85 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 2011 human development index, Ethiopia ranks 174 out of 187 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 a country of focus. Canada is the third largest bilateral donor in Ethiopia. CIDA's programs in Ethiopia supports the vision set out in Ethiopia's Plan for Accelerated Sustained Development to Eradicate Poverty (PDF, 281 KB, 56 pages). 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 programs

Food security

CIDA is committed to supporting Ethiopia's efforts to achieve food security as a prerequisite to its sustainable development. CIDA continues 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.

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.



To achieve sustainable results in the areas of food security and children and youth, CIDA continues to support Ethiopia's efforts to deliver services to the public effectively. Building on earlier successes, CIDA is also assisting Ethiopia in improving access to the justice system for the poorest and in increasing public safety by helping to introduce alternative dispute resolution methods in 20 districts.

Progress on Aid Effectiveness

Ethiopia's strong ownership of development priorities and planning, combined with its impressive commitment of national resources to antipoverty programs, 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.

Accomplishments 2009-2010

Food security

• Helped decrease the number of people vulnerable to food insecurity by two percent, with child malnutrition rates dropping 1.5 percent per year
• Helped train 6,213 farmers in integrated crop management, organic farming, and marketing
• Helped 455 farmers adopt environmental conservation measures, resulting in the protection of nearly 75 percent of their farmland from soil erosion
• Helped improve access to safe drinking water for 43,200 people

Children and youth

• Helped raise the vaccination rate against diptheria, pertussus (whooping cough) and tetanus to 82 percent of all children, versus 73 percent in 2008
• Helped raise the vaccination rate against measles to 77 percent of all children, versus 65 percent in 2008
• Helped increase the number of births attended by health extension workers (who use kits procured in part by CIDA) to 25 percent, versus 16 percent in 2008
• Helped decrease malaria deaths in Ethiopia by more than 55 percent since earlier this decade

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