The House of Federation

Strategies for Successfully

Developing Economies
Lessons from Ethiopia

H.E. Kassa Teklebrhan

Speaker of the House of Federation
of the Federal Democratic Republic of Ethiopia
 Overview

1. Introduction
2. Development in Ethiopia
3. Conclusion

Kassa Teklebrhan, Speaker House of Federation 24-Sep-2011Slide 2

 Introduction

Ethiopia is a country of great diversity:

75 Nations, Nationalities and Peoples,
75 languages from 4 language families,
all Abrahamic religions
Ancient civilization now living a
renaissance based on respecting
diversity and through enormous efforts

House of Federation February 15, 2017 Slide 3

Development in Ethiopia
Constitutionalism, Democracy and Federalism
Ownership at all levels
Capacity development
Infrastructure development
Equity and benefits for all parts of the society
Integrated strategies for balanced budgets and
better services
Leadership capacity and commitment / Evaluation
of strategies and policies, periodical reviews
Good Governance and Political Stability
Turning the country into a middle income economy

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 4

Constitutionalism, Democracy
and Federalism
Radical system change in 1991
The Federal Democratic Constitution
assures the right to self-determination
(Article 39)
Accommodates Ethiopias diversities (Nations,
Nationalities and Peoples; cultural; religious)
Representing Nations, Nationalities and
Peoples: House of Federation
People are not only beneficiaries but also
actively involved change agents

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 5

 Capacity Development
Focus on Capacity Development on all
levels to empower the people:
Primary, secondary, tertiary education
Knowledge transfer to farmers
Institutional capacity within Parliament,
Government, Judiciary with special attention
to previously marginalized regions
Continued capacity increase for civil
servants and leaders

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 6

 Development indicators
Indicator 1991 2011
Enrolment primary Education 33 % 96.4%
Enrolment secondary 5.3% 38.1%
Education
Number of students KG Univ. N.A. 20 Mio
Number of Universities 2 31
(public)
Yearly intake of students N.A. 215,000
(Univ.)
Availability of primary Bigger Every kebele
education agglomeratio
ns
Availability of secondary Few cities Every woreda
education (district)
Electricity coverage (% of N.A. 47%
area)
Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 7
Power production per year N.A. 2500 MW
Equity and benefits for all parts of
the society
All policies are pro-poor
Non-compliance with neo-liberal ideas
helped through global financial crisis
Fighting corruption
Fiscal imbalances are equalized through
formula decided by the House of
Federation, special attention to
previously disadvantaged regions
Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 8
Integrated strategies: balanced
budgets and better services
Strategies are context sensitive
The largest resource = people
Fertile land, low education level in 1991
Agriculture-led industrialization
Fighting rent-seeking
Correcting market failures

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 9

 Results

Service delivery has significantly

improved growing level of satisfaction
of the citizens
Revenue from direct taxes tripled
between 2006 and 2009
Revenue from foreign trade taxes almost
doubled
Borrowing has been kept constant
Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 10
 Growth Rates
Sector Average growth Average
targets growth
(2005/06 2009/10) achieved
Base case High (2005/06
scenario case
scenario 2009/10)

Real GDP 7.0 10.0 11.0

(%)
Agriculture 6.0 6.4 8.00
andKassa
allied
Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 11
 Leadership
Leadership plays a significant role
Identified problems, challenges, sources of
conflict
Provided solutions
Has a long-term vision
Mobilized and motivated people
Provided stable and secure environment for
people to develop themselves
Constantly upgrades its own capacity
Has a high level of integrity

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 12

 Evaluation of Strategies

The leadership
Continuously monitors progress
Evaluates progress
Ensures quality of policies
Adapts strategies whenever necessary

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 13

Good Governance and Peace
Democratic structures, free and fair
elections
Identification of all Nations, Nationalities
and Peoples with Ethiopia as a result
Political stability = basis for sustainable
development
Internal and external peace

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 14

Becoming a middle-income
country
Success of previous plans and policies
Mobilization and commitment of people
even higher than anticipated
Objective 1: reaching the MDGs until 2015
Objective 2: turning the country into a
middle-income society within 10 to 15
years
Principle: continuously pro-poor economic
growth
Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 15
Growth and Transformation
Objectives
Plan
1.Maintain at least an average real GDP growth rate of
11% and meet the MDGs
2.Expand and ensure the qualities of education and
health services thereby achieving the MDGs in the
social sectors
3.Establish favorable conditions for sustainable state
building through the creation of a stable democratic
and developmental state
4.Ensure growth and sustainability by realizing all the
above objectives within a stable macroeconomic
framework.

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 16

 Expected development under
GTP
Sector Base Year Five Year Average
(2009/10) (2010/11 - 2014/15)
% %
Base Case High Case
Agriculture and allied 6.0 8.1 14.9
activities
Industry 10.2 20.0 21.4
Services 14.5 11.0 12.8
Real GDP 10.1 11.2 14.9

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 17

 Conclusion
Ethiopian success is based on
The insight that people are the most valuable
source of the country mobilizing people
Respecting people and their rights
Democratic and federal structures enabling
subsidiary principle to work
Strictly pro-poor economic growth strategies
Integrity of Leadership
Peaceful co-existence nationally and internationally
Eye-to eye level cooperation with international
partners

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 18

 The way forward
ASSECAAs objectives directly translate into
development and eradication of poverty
Equity as principle: enabling the society to
benefit from growth irrespective of religion,
language, ethnicity, sex, culture
Focus on the needs of the society ownership
Commitment and integrity of the leadership
Developing a vision for long-term
development
Democracy and respect of people and their
rights

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 19

 Thank you !

Kassa Teklebrhan, Speaker House of Federation 24-Sep-11 Slide 20