The Role of Foreign Aid in Ethiopia Since 1991 PDF Download
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Author: Yonas Sertsedengel
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659302725
Category :
Languages : en
Pages : 112
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Book Description
Democracy and governance are useful instruments to hasten economic growth and better living condition. However due to long autocratic administration and ever extended feudal regimes that followed by a military dictatorship rule there is lack of both governance and democracy in Ethiopia. Some say democracy may be conceived and procreate by foreign assistance. Foreign aid would cultivate both, if it is handled appropriately. The research attempts to evaluate and assess the role of foreign aid in the democratization and formation of governance in Ethiopia: one of list developed nation but with glorious past and future. Ethiopia is highly dependent on foreign aid. Nevertheless due to the political, diplomatic and economic reasons together with indisposition of the donors, the prevalent international political condition and the political defiance of the recipient particularly the ruling regime made aid not viable to attain its latent objective. Foreign aid together with pluralistic culture and above all political willingness of government officials can dexterous democracy and governance. The findings of the research will tell how aid can cultivate democracy and governance in Ethiopian
Author: Yonas Sertsedengel
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659302725
Category :
Languages : en
Pages : 112
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Book Description
Democracy and governance are useful instruments to hasten economic growth and better living condition. However due to long autocratic administration and ever extended feudal regimes that followed by a military dictatorship rule there is lack of both governance and democracy in Ethiopia. Some say democracy may be conceived and procreate by foreign assistance. Foreign aid would cultivate both, if it is handled appropriately. The research attempts to evaluate and assess the role of foreign aid in the democratization and formation of governance in Ethiopia: one of list developed nation but with glorious past and future. Ethiopia is highly dependent on foreign aid. Nevertheless due to the political, diplomatic and economic reasons together with indisposition of the donors, the prevalent international political condition and the political defiance of the recipient particularly the ruling regime made aid not viable to attain its latent objective. Foreign aid together with pluralistic culture and above all political willingness of government officials can dexterous democracy and governance. The findings of the research will tell how aid can cultivate democracy and governance in Ethiopian
Author: Habtie Adane
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659767838
Category :
Languages : en
Pages : 104
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Book Description
Historically, Ethiopia has been receiving development assistance in its various forms. Thus, it goes without saying that humanitarian assistance has been crucial for the country mainly due to its recurring tragedies, including drought, famine, poverty, and civil wars. This book has concisely summarized the historical account, theoretical picture, and basic rationales for the aid regime and most importantly it draws attention to the role of democracy assistance in democratization processes in post-1991 Ethiopia. Since there is inadequate literature on the subject, the book endeavors to fill the gaps by systematically discussing and analyzing issues on the subject in a more comprehensive way. The argument of the book is that the contribution of democracy assistance in democratizing the post-1991 Ethiopian state and society has been trifling. However, the processes and outcomes of external assistance were and are still saddled with issues of sovereignty, ideology, political power, national interest, and geopolitics. Policy makers, academicians, researchers, and students may find the analyses and explorations made in the book relevant while dealing with the subject
Author: Anteneh Mengistu Gedamu
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The paper discussed the role foreign aid is playing in the world and the motivations behind donors decision in providing assistance. It took the case of Ethiopia to examine the driving forces for the increasing flow of foreign aid and the roles it is playing in the political and economic evolution of the country. Ethiopias case is an interesting scenario to scrutinize the terms of foreign aid assistance and the factors affecting it, mainly because of the countrys contradictory economic and democratic routes. The main objective of this study was to examine whether foreign aid to Ethiopia is developmental, democracy oriented, or a regional stability instrument. In order to address this objective, it was necessary to describe the flow of foreign aid to the country and the economic, political, and regional role it is playing in the country. Donors reaction to the violation of democratic and human rights was also an important part of the study. Despite deteriorating political conditions, the flow of foreign aid has continued to dramatically increase over the last decade. The major proportion of this aid flows to the public sector, with multilateral organizations also taking a significant share. A big part of the aid remains undefined under the label of to be defined. The share of the civil society in the total aid is extremely low and it is continually decreasing. When we look at the major sectors of the flow, more than 90 % of the aid reaching the country is allocated to the so called developmental sector. The amount and share of foreign aid allocated for governance and democracy promotion has been very limited and diminishing over time. The same can be said regarding aid for the conflict, peace, and security sector. Although the countrys role in consolidating peace and security in the regional has been mooted as a significant factor influencing donors decision in their aid allocation, the official aid database does not confirm any significant allotment to the sector. Donors reaction to series of severe democracy and human rights violations has been very limited. None of the incidences under consideration have affected the flow of foreign aid to the country. Donors do not seem to be worried about the deteriorating democratic and human rights condition in the country. Generally, the paper concluded that aid to the country has been more of developmental. Donors were not found to be strong democracy promoters in Ethiopia. This was, in part, believed to be because of the trade-off between developmental goals and the security concerns of donors. The countrys economic achievement in recent years together with its strategic significance in the horn of Africa is believed to play an important role in donors treatment of the regime.
Author: Fikadu Goshu
Publisher: GRIN Verlag
ISBN: 3656826226
Category : Business & Economics
Languages : en
Pages : 78
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Book Description
Master's Thesis from the year 2014 in the subject Economics - Other, grade: Frst Grade, Wollega University (Business and Economics), course: Development Economics, language: English, abstract: This study has examined sectoral analysis of the impact of foreign aid on aggregate and sectoral economic growth in Ethiopia over the period 1981 to 2012 using multivariate Vector auto regression analysis. All the necessary time series tests such as stationary test, co-integration test, weak exiguity test, vector error correction, and causality test in vector error correction model and the like are conducted. The empirical result from the growth equation shows that aid has a significant positive impact on educational sector GDP in the long run. On the other hand, foreign aid has positive but insignificant impact on real GDP, agriculture GDP, and health sector GDP of Ethiopia. Foreign aid is effective in enhancing growth at aggregate level of the economy in general and education sector of the economy of Ethiopia in particular. The test result of the study result reveals that there is a bi-directional causal relationship between educational GDP and educational foreign aid in Ethiopia. However, the agricultural and health sector does not show any bi-directional causality with their respective sector aid. This implies that all aid allocated for sectors is ineffective all in all in achieving its objectives of economic development. Therefore, aid recipient country like Ethiopia has to work how to enhance the domestic revenue raising capacity of the country which is at the heart of the mechanism to meet the capital required for the economy in times of short falls and ineffectiveness of external resources.
Author: Getnet Alemu
Publisher:
ISBN:
Category : Economic assistance
Languages : en
Pages : 38
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Book Description
Foreign aid has played a major role in Ethiopia's development effort since the end of World War II. It has been instrumental in bridging the country's savings-investment and foreign exchange gaps. Its importance as a source of financing for the development of capacity building (human capital, administrative capacity, institutional building, and policy reforms) is also unquestionable. Thus, increasing efforts were made to mobilize foreign aid in the last two regimes. Following the change in political regime in 1991 and the adoption of the structural adjustment program in 1992/93 in particular, the country has enjoyed a significant amount of aid. A large and growing inflow of concessionary loans and grants has occurred since 2001, following the issuance of the first poverty reduction strategy paper (known as the Sustainable Development Poverty Reduction Program) from 14 multilateral sources--mainly IDA, EC, the Global Fund, and the African Development Fund and more than 30 bilateral sources--mainly the USA, UK, Italy, Canada, Germany, Ireland, Japan, Netherlands, Norway, and Sweden. ... We have seen that Ethiopia has been one of the major recipients of international aid in recent times. The health sector is among the few that enjoyed large shares of ODA. A large and growing inflow of aid followed the development of the Health Sector Development Plans (HSDPs) by MoH. Resources were delivered by ten multilateral sources, more than 22 bilateral sources, and more than 50 international NGOs. Getting the complete picture on the flow of aid in the health sector is very difficult because of problems associated with the disbursement channel itself. This problem may be understood better by briefly looking into the three disbursement channels practiced in Ethiopia. It could be said that funds disbursed through "channel 1," MoFED, are immune to data reporting problems: they are invariably captured in the budget. Funds disbursed through "channel 2" via sector bodies, are disbursed outside the mainstream government budget and thus might not be captured. As noted by MoFED (2005), some federal line ministries deal directly with donors and may spend funds without notifying MoFED, let alone reporting to MoFED. Funds through "channel 3" are those disbursed directly by donors without involving any government agency; they are usually not captured in the budget and, disturbingly, are not reported at all in many cases. In some cases they do report to the regional bureaus or to the sectoral ministry concerned but these parties may not report to MoFED. There seems to be no systematically organized and comprehensive data available on a regular and consistent basis regarding the trends of aid flows to the health sector--either by MoFED or MoH.
Author: Fikadu Goshu
Publisher: GRIN Verlag
ISBN: 3656862702
Category : Business & Economics
Languages : en
Pages : 76
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Book Description
Scientific Study from the year 2014 in the subject Economics - Case Scenarios, Wollega University (Department of Economics), language: English, abstract: This study has examined the impact of foreign aid on government expenditure in Ethiopia over the period 1981 to 2012 using Multivariate Vector Auto Regression analysis. All the necessary time series tests such as stationary test, co-integration, weak exiguity, and other tests are conducted. The empirical result from the long run fungibility equation result indicates that sectoral aid has negative effect on its sector spending in developmental sectors except for agricultural sector government spending. The estimate of agricultural aid also support that a 1percent increase in agricultural aid leads to a 0.83percent increase in agricultural spending. Aid other than health aid also has positive impact on health spending. The positive coefficient of aid other than the health implies that there is an aid diversion towards health sector from the others. The negative coefficients of sectoral aid on the sector spending and the negative coefficients of aid other than sector-specific aid, indicate diversion of aid away from the specific sector. Negative coefficients of explanatory variables may arise when there is a diversion of categorical aid from developmental investment towards non developmental expenditure such as general service government expenditures. The result also shows education aid is fungible both in short and long run. Health aid is fungible in the long run but not in the short run. Agriculture aid is non fungible in both long and short run in Ethiopia. The coefficient of aid other than education aid has positive sign that implies the diversion of foreign aid to the education sector. Foreign aid have also negative impact on all of non developmental government spending In order to get the desired benefit from foreign aid, Ministry of Finance and Economic Development has to set sound financial management system which stimulates economic growth and mitigate any diversion of developmental sector aid to other non developmental expenditure particularly in education and health sectors. Therefore, effective and efficient monitoring system which was purpose oriented utilization of foreign aid is central to make sectoral spending non fungible in Ethiopia.
Author: Dambisa Moyo
Publisher: Macmillan
ISBN: 0374139563
Category : Business & Economics
Languages : en
Pages : 209
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Book Description
Debunking the current model of international aid promoted by both Hollywood celebrities and policy makers, Moyo offers a bold new road map for financing development of the world's poorest countries.
Author:
Publisher: World Bank Publications
ISBN: 9780195211238
Category : Political Science
Languages : en
Pages : 164
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Book Description
Assessing Aid determines that the effectiveness of aid is not decided by the amount received but rather the institutional and policy environment into which it is accepted. It examines how development assistance can be more effective at reducing global poverty and gives five mainrecommendations for making aid more effective: targeting financial aid to poor countries with good policies and strong economic management; providing policy-based aid to demonstrated reformers; using simpler instruments to transfer resources to countries with sound management; focusing projects oncreating and transmitting knowledge and capacity; and rethinking the internal incentives of aid agencies.
Author: Katarina Tomaševski
Publisher: Burns & Oates
ISBN:
Category : Economic assistance
Languages : en
Pages : 230
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Book Description
Populations for the sins of their rulers.
Author: Fikadu Goshu
Publisher: Anchor Academic Publishing
ISBN: 9783954893584
Category : Business & Economics
Languages : en
Pages : 80
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Book Description
Master's Thesis from the year 2014 in the subject Economics - Other, grade: Frst Grade, Wollega University (Business and Economics), course: Development Economics, language: English, abstract: This study has examined sectoral analysis of the impact of foreign aid on aggregate and sectoral economic growth in Ethiopia over the period 1981 to 2012 using multivariate Vector auto regression analysis. All the necessary time series tests such as stationary test, co-integration test, weak exiguity test, vector error correction, and causality test in vector error correction model and the like are conducted. The empirical result from the growth equation shows that aid has a significant positive impact on educational sector GDP in the long run. On the other hand, foreign aid has positive but insignificant impact on real GDP, agriculture GDP, and health sector GDP of Ethiopia. Foreign aid is effective in enhancing growth at aggregate level of the economy in general and education sector of the economy of Ethiopia in particular. The test result of the study result reveals that there is a bi-directional causal relationship between educational GDP and educational foreign aid in Ethiopia. However, the agricultural and health sector does not show any bi-directional causality with their respective sector aid. This implies that all aid allocated for sectors is ineffective all in all in achieving its objectives of economic development. Therefore, aid recipient country like Ethiopia has to work how to enhance the domestic revenue raising capacity of the country which is at the heart of the mechanism to meet the capital required for the economy in times of short falls and ineffectiveness of external resources.
