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Agricultural and Rural Transformation in Ethiopia: Obstacles, Triggers and Reform Considerations

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  • Diriba, Getachew

Abstract

Ethiopia’s agriculture has shown remarkable resilience over many years but is now increasingly failing. In spite of national efforts, the number of poor and food insecure population has remained very high, with an estimated 25 million people at the threshold of survival. The numbers of people on emergency and safety net program assistance have been consistently increasing both in aggregate number and in spatial manifestations, now covering nearly all the Regional States. In addition, Ethiopia’s import of cereals, edible oil and lint cotton, has continues to rise dramatically, costing over a billion dollars every year. This is an underlying trend that should alarm policymakers and development practitioners alike. The traditional factors of production, land, labor and capital, have now been merged with the knowledge system. The real difference between the rich and poor countries is no longer only endowment of the factors of production as they used to be; rather it is how effectively nations, and people, utilize knowledge. Knowledge, that is scientific invention, technology, innovation, and the internet are all growing at an accelerated rate leaving far behind countries such as Ethiopia. Important incentives and reform priorities are suggested as a basis for enacting agricultural and rural transformation including supportive legal environment, facilitate and support agricultural mechanization and input distribution as well as encourage and support decisive private sector participation and leadership in agricultural and rural transformation.

Suggested Citation

  • Diriba, Getachew, 2018. "Agricultural and Rural Transformation in Ethiopia: Obstacles, Triggers and Reform Considerations," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 27(02), October.
  • Handle: RePEc:ags:eeaeje:343216
    DOI: 10.22004/ag.econ.343216
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    References listed on IDEAS

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    1. Staatz, John M., 1994. "The Strategic Role of Food and Agricultural Systems in Fighting Hunger Through Fostering Sustainable Economic Growth," Staff Paper Series 201190, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. John W. Mellor, 2017. "The Economic Transformation," Palgrave Studies in Agricultural Economics and Food Policy, in: Agricultural Development and Economic Transformation, chapter 0, pages 17-28, Palgrave Macmillan.
    3. Naseem, Anwar & Oehmke, James F. & Anderson, Jock & Mbaye, Samba & Pray, Carl & Nagarajan, Latha & Moss, Charles B. & Post, Lori, 2017. "Measuring Agricultural and Structural Transformation," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258549, Agricultural and Applied Economics Association.
    4. John W. Mellor, 2017. "Agricultural Development and Economic Transformation," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-3-319-65259-7, November.
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    1. Yohannes, Darebe; Purushottam, Kishor ; Mihret Dananto; Mathewos, Markos, 2024. "Evaluation of Current Farm Machinery Utilization and Farm Productivity in Hadiya Zone, Central Ethiopia," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 5(4), October.

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