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DPMF Publications: |
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Opening Statement By State Minister of Ethiopia (Mekonene Manyazewal) |
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It is a great pleasure for me to be invited to make opening remarks at the 6th Development Policy and Management Forum (DPMF). The theme of this year’s Annual Conference is ‘‘Democracy, Sustainable Development and Poverty Reduction: Are They Compatible?’’ This is a timely issue for debate as most African countries are still trying to grapple with the double challenge of achieving sustained economic growth and poverty reduction, while building a democracy under complex conditions.
As you all know, in spite of the resources and tremendous efforts put forth to accelerate the socio-economic development and poverty reduction in many African countries, the realities on the ground show that significant segments of the population are too poor to lead meaningful lives. It gives no comfort to realise that, according to The World Bank, close to 300 million people in Africa subsist on US $0.65 per day. What is more worrying is that the number is still growing. Moreover, this situation is exacerbated by the internal conflicts and inter-state conflicts prevailing in a number of countries.
We all also realise that many African countries are making promising, concerted efforts to effect democratisation and a sustainable development process to get rid off poverty in their countries. This process has generated debate on whether democracy, sustainable development and poverty reduction are compatible with the African situation.
The concept paper for this conference broadly identifies three schools of thought regarding the linkage and compatibility between democracy and sustainable development.
The first approach emphasises democracy in a neo–liberal setting. The proponents of this approach argue that there is a correlation between democracy and a high level of development. It is argued that the more democratic a country is, the higher its economic development.
The second approach proposes that it is not feasible to build democracy while at the same time pursuing sustained development. For those following this path, the first thing to do is to strengthen and expand the economic base in which the accumulation of wealth is only possible under an authoritarian political condition. The argument is that those people who are not well off cannot afford to trade consumption for savings, which would make them favour any public policy that is pro-consumption as opposed to accumulation. Thus, this approach considers dictatorships that limit political participation in order to speed up accumulation as desirable instruments for economic development.
Advocates of this approach give
the Southeast Asian countries as examples. These countries have shown the world
very rapid economic growth under authoritarian regimes. The role of leaders in these countries was
in the forefront on development. But
the advocates forget the positive global geo–politics and economic environment
that such countries enjoyed at the time; and that such an environment is not
available now. Africa has its share of
authoritarian regimes, which have not delivered development but rather have
produced poverty and failed states.
The third approach, which
bases itself on a synthesis of the above two approaches, argues that a
hierarchy of priorities that would put economic growth and poverty before
attending to democracy, or vice-versa, is misleading. This argument does not
take into consideration the historical and other specific factors of continents
like Africa. There are pressures due to
delayed development from internal forces to improve the economy and increase
freedom and participation, and from external forces to globalise and open up
the market, etc. This condition could
not give time for African countries to pursue one priority and leave
others. All need to be addressed
simultaneously.
In the African context, the view that argues for simultaneous pursuit of economic development, democracy and poverty reduction is, I believe, the appropriate direction we have to adopt and implement. To be sure, this is not an easy matter given the complex realities existing in many African countries. All the same, it is an urgent imperative we have to face.
It is not difficult to see the connection between low socio-economic development and the incidence of conflict. Lack of economic development, through time, leads to internal instability. Also, authoritarian regimes gain opportunities to emerge with the justification of the need to maintain law and order.
To prevent the possibility for internal conflicts, it is not sufficient to have a growing economy. The benefits of economic growth must be equitably distributed among the citizens. If not, the rich will growth richer while the poor, the majority, will grow impoverished, again creating possible sources of internal conflicts.
Thus, promoting broad-based and equitable economic development will reduce internal conflicts. It will also promote democracy. By ensuring the human rights and civil liberties of the population, democracies succeed in defusing sources of internal conflicts. Therefore, because it creates the condition for peace and domestic stability, which is necessary for socio-economic development, democracy is a political process that needs to be cultivated by African countries.
These two concepts, i.e. democracy and sustainable economic development, are linked because history is replete with examples of success or failure in one area enhancing the opportunity for success or failure in another. Present day African countries do not have the luxury of making choices, but must squarely face the simultaneous pursuit of democratisation and sustainable development. For this to succeed, a developmental and effective state that mobilises and co-ordinates the efforts of civil society, NGOs and communities is central to the process of effecting democratisation and sustainable development.
Let me now briefly inform you what we are doing in Ethiopia. As a low-income country, sustainable development and poverty eradication is high on our development agenda.
As you may know, over the last several years the Ethiopian government has put in place development policies, strategies and key sector programmes to generate faster and equitable socio-economic development and eradicate poverty over the long-term. In this scheme of things, agriculture and rural development is central.
Given the weight of agriculture in the Ethiopian economy, the size of the population engaged in agriculture, and the large under-employed factors of production, we have put agriculture at the centre and as the basis of our development. We call our development strategy, Agricultural Development Led Industrialisation (ADLI).
The adoption of Agricultural Development Led Industrialisation (ADLI) provides a long-term framework for economic transformation and poverty eradication. Improved agricultural production will increase the supply of food for urban areas, and raw materials for industries and export. Improved farm income, in turn, creates a large internal market for the development of especially small and medium enterprises. This generates internal sources of growth, attaining dynamism through reinforcing the agriculture-industry linkage. In Ethiopia, given that poverty is primarily a rural phenomenon, ADLI is a poverty eradication strategy. Complementary policies, i.e. policies on women, population, environment, education, health, and water resources development, have also been put in place.
We have also implemented a series of economic reform programmes to effect the transition from a command to a market-based system, to restore and maintain macroeconomic stability, and to create a conductive legal, institutional and political environment for private sector development. The private sector is expected to play a role as a strategic partner with the government to expedite Ethiopia’s socio-economic development.
Equally important is the importance we attach to the effort and progress made in the democratisation, devolution and empowerment process to create a conducive and effective participatory environment for the Ethiopian people; hence, the establishment of a federal system in a highly devolved environment. We are also making progress to strengthen the transparency and accountability of government.
In this respect, the launching of the Civil Service Reform (CSR) is another important step in instituting good governance by enhancing transparency, accountability and efficiency in the public sector. With respect to participation, the political process in Ethiopia has put in place a highly devolved and decentralised environment, which entrusted the regional and local governments with due legislative, judiciary and executive power and functions to mange their affairs. Regional and local governments plan, prepare budgets, implement and monitor their development programs. This is an important empowerment of citizens. At the grassroots level, there are farmers’ associations in rural areas as well as Keble administrations in urban areas that provide the interface with the local governments, facilitating participation of the community in their affairs.
Our Constitution recognises and is based on Ethiopia’s diversity. The preamble of our Constitution begins with: ‘‘We, the Nations, Nationalities and Peoples of Ethiopia…’’
There is a strong commitment to the principle that a political process which is inclusive of all nationalities is key to Ethiopia’s sustained development. Institutional arrangements are meant to ensure representation for all nationalities. In certain cases, decision–making bodies such as the regional councils include special representation of minorities. These practices are informed by our bitter past experiences.
From our past experiences in Ethiopia, the efforts of development through an authoritarian regime only resulted in civil war and political unrest, and thus a deepening poverty level. In this country, the only way development can be realised and its fruits equitably distributed is through devolution and empowerment, through a political process that is inclusive and respects the rights of all Ethiopian peoples. This creates the condition for and enhances socio-economic development.
Overall, as result of the various
measures taken since 1991-92, notable progress has been made in reversing the
declining trend in economic and human development of the 1980s. Access to education, health and water
supplies progressively showed improvement.
Since 1992-93, real GDP showed an annual average growth rate of more
than 5 percent, compared to the approximate 2 percent of the 1980s. The constitution has ensured the democratic
rights of the Ethiopian peoples and is managing their affairs through their
regional states. The pace of the
devolution of the powers and functions of the state to lower levels of
government is quite significant.
Despite this, however, the challenges of ensuring economic growth and
poverty reduction on a sustained basis and of furthering the task of building a
democratic institution are still quite enormous, and we will have to struggle
with these challenges over the years to come.
As you realise from what I have said thus far, we have been pursuing two key transitions: the transition from war to peace, democracy, devolution and empowerment, on the one hand; and the transition from a command-based to a market-based economy designed to bring about faster, broad based economic growth and poverty eradication, on the other.
These two processes are
closely interlinked; they are two sides of the same coin for us. Our task is to stay the course and further
deepen the political and economic transitions to ensure a democratic, stable
and prosperous Ethiopia.
This, ladies and gentlemen, is our experience, which you may wish to consider as information. You have quite an exciting task before you in a critical area of development for Africa: democracy and sustainable development.
I hope you will all listen attentively to the presentations, engage fully in the discussions, and through this process bring new insight and understanding to what more should be done to deepen democracy and to generate sustainable development, in order to ensure a democratic, stable, and prosperous Africa in the millennium.
Thank you for your attention.