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The international development policy agenda is currently dominated by the theme of poverty reduction. The theme has been vigorously pursued by multilateral donors, such as The United Nations Development Programme (UNDP), World Bank, and others. Their assistance has also been tuned to pro-poor policy frameworks. Poverty, however, is understood mainly to be a rural phenomenon. This is based on the fact that rural poverty is widespread and pervasive and affects a large segment of the population since the majority of people in less developed countries reside in rural areas. There is, however, an increasing trend of urban growth and with it urban poverty all over the world. In Ethiopia urban poverty, in comparison to rural poverty and national level poverty, has increased over time. This has necessitated urban poverty reduction as an important area of intervention in urban development and planning. The objective of this study is to understand the livelihood situations of the poor in big and small towns, and identify the gaps and linkages between the livelihood requirements of the poor and policies at municipal level. The study was conducted in nine cities and towns of the country, including the capital city.
The urban sector in Ethiopia has largely been neglected by researchers and policy analysts, and ignored in debates on poverty. This has resulted in a 'rural bias', which is reflected in development policies and public debate in the country. If one of the goals of development is to reverse the dominance of the rural economy, and to place the urban environment on the centre stage, it is important to shift the balance of the research agenda from the rural to the urban. The papers in this volume were first presented at the Third International Conference on the Ethiopian Economy convened by the Ethiopian Economic Association in 2005.
This paper explores these issues for Ethiopia utilizing an economy-wide computable general equilibrium (CGE) model based on a detailed social accounting matrix (SAM). We present the results of four alternative investment scenarios -- faster investment in i) cities; ii) crop agriculture; iii) the rural non-farm sector and agro-industry; and iv) livestock. The simulations suggest that investments in cities generate faster economic growth and structural transformation. However, given the large share of the population with incomes linked to agriculture and the rural economy, investments in the rural economy are likely to continue to be more pro-poor than urban public investments through the mid-2020s. After the mid-2020s, investments in cities become more pro-poor. In short, though rapid economic growth and structural transformation have diminished the relative importance of the agricultural sector in Ethiopia’s economy, continued public investments in agriculture and the broader agri-food system remain crucial for equity and poverty alleviation in Ethiopia, as well as for reducing food import dependency.
The three papers published in this volume were originally presented at the First International Conference on the Ethiopian Economy, convened by the Ethiopian Economic Association in Addis Ababa in 2003. From historical perspectives, the papers consider: poverty and agricultural involution; poverty and urban governance institutions; and HIV/AIDS and poverty.
This strategic paper discusses Ethiopia’s growth and transformation plan (GTP) for the periods 2010/2011 and 2014/2015. The Ethiopian government’s main development agenda has been poverty eradication. The government has designed, and is implementing, strategies, policies, and plans to guide and manage the overall development of the country accordingly. The GTP envisages that, besides maintaining a fast-growing economy, better results will be realized in all sectors. Implementation of the GTP requires mobilization of financial and human resources, especially for infrastructure development.