The Political Economy of Agricultural Investment in Amhara National Regional State (Anrs): a Focus on Flower Farms in Bahir Dar Zuria Woreda

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Political Science Thesis and Dissertations

2018-07-17 THE POLITICAL ECONOMY OF AGRICULTURAL INVESTMENT IN AMHARA NATIONAL REGIONAL STATE (ANRS): A FOCUS ON FLOWER FARMS IN BAHIR DAR ZURIA WOREDA

ASABU, SEWNET http://hdl.handle.net/123456789/8869 Downloaded from DSpace Repository, DSpace Institution's institutional repository

BAHIR DAR UNIVERSITY FACULTY OF SOCIAL SCIENCE DEPARTMENT OF POLITICAL SCIENCE AND INTERNATIONAL STUDIES

THE POLITICAL ECONOMY OF AGRICULTURAL INVESTMENT IN AMHARA NATIONAL REGIONAL STATE (ANRS): A FOCUS ON FLOWER FARMS IN BAHIR DAR ZURIA WOREDA

BY ASABU SEWNET

JUNE, 2018 BAHIR DAR, ETHIOPIA

BAHIR DAR UNIVERSITY

FACULTY OF SOCIAL SCIENCES

DEPARTMENT OF POLITICAL SCIENCE AND INTERNATIONAL STUDIES

THE POLITICAL ECONOMY OF AGRICULTURAL INVESTMENT IN ANRS: A FOCUS ON FLOWER FARMS IN BAHIR DAR ZURIA WOREDA

A THESIS SUBMITTED TO THE DEPARTMENT OF POLITICAL SCIENCE AND INTERNATIONAL STUDIES IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS IN POLITICAL SCIENCE

ASABU SEWNET

ADVISOR

BELACHEW G.(PhD)

JUNE 2018

BAHIR DAR, ETHIOPIA

BAHIR DAR UNIVERSITY

FACULTY OF SOCIAL SCIENCES

DEPARTMENT OF POLITICAL SCIENCE AND INTERNATIONAL STUDIES

THE POLITICAL ECONOMY OF AGRICULTURAL INVESTMENT IN ANRS: A FOCUS ON FLOWER FARMS IN BAHIR DAR ZURIA WOREDA

BY ASABU SEWNET

Approved by board of examiners:

______Advisor’s Signature

______Internal Examiner’s Signature

______External Examiner’s Signature

Declaration

I, Asabu Sewnet, the undersigned declare that this thesis entitled ‘the Political-Economy of agricultural investment in ANRS: a focus on flower farms in Bahir Dar Zuria Woreda, is submitted by me for the award of Master of Arts in Political Science, is my own original work and it has not been presented for the award of a degree or any other purpose in any University/Institution and all the sources used for the thesis have been dully acknowledged.

______Asabu Sewnet Alamineh June 2018

This thesis was submitted for examination with my approval as an advisor of the candidate

______BELACHEW GETNET (PhD) June, 2018

Table of Contents Contents Pages

List of tables ...... IV Acronyms ...... V Acknowledgment...... VI Abstract ...... VII CHAPTER ONE ...... 1 Introduction ...... 1 1.1. Background of the Study ...... 1 1.2. Statement of the Problem ...... 3 1.3. Objectives of the Study ...... 6 1.3.1. General Objectives of the Study ...... 6 1.3.2. Specific Objectives of the Study ...... 6 1.4. Basic Research Questions ...... 6 1.5. Delimitation of the Study ...... 7 1.6. Rationales for Selecting the Studied Cases ...... 7 1.7. Significance of the Study ...... 8 1.8. Limitation of the Study ...... 9 1.9. Operational Definitions of Terms ...... 9 1.10. Structure of the Study...... 10 2. REVIEW OF RELATED LITERATURE ...... 11 Introduction ...... 11 2.1. Conceptual Clarifications ...... 11 2.1.1. Conceptualizing Political Economy ...... 11 2.1.2. Commercial Farming /Agricultural Investment ...... 12 2.2. Theories on Land Expropriation for Commercial Farming ...... 12 2.2.1. Theory of Primitive Accumulation ...... 13 2.2.2. Theory of Accumulation by Dispossession ...... 13 2.2.3. Theory of Regime Dispossession ...... 14 2.2.4. Public Choice Theory ...... 15 2.3. The Role of Commercial Agriculture to Local Economic Development ...... 16 2.4. Ethiopian Land Tenure and Agricultural Policy Framework ...... 17

I | P a g e

2.4.1. Land Tenure Policies of Ethiopia ...... 17 2.4.2. Agricultural Land Policies in Ethiopia ...... 20 2.5. The Performance and Problems of Commercial Farming in Ethiopia: an Empirical Literature ...... 26 2.6. Conceptual Framework of the Study ...... 31 CHAPTER THREE ...... 32 3. RESEARCH METHODS AND DESCRIPTION OF THE STUDY AREA SETTING ...... 32 Introduction ...... 32 3.1. Description of the Study Area Setting ...... 32 3.2. Research Methods ...... 34 3.2.1. Philosophical Paradigm of the Study ...... 34 3.2.2. Research Approach ...... 35 3.2.3. Research Design...... 35 3.2.4. Sampling Techniques and Sample Size ...... 36 3.2.5. Data Collection Instruments ...... 37 3.2.6. Data Analysis Method ...... 40 3.2.7. Ethical Consideration ...... 40 3.2.8. Reliability and Trustworthiness of the Study...... 41 3.2.9. Selection of Field Assistants ...... 41 3.2.10. Field Work Experiences ...... 41 4. DATA PRESENTATION, ANALYSIS AND DISCUSSION ...... 44 Introduction ...... 44 4.1. The Nature of Land Holdings and Expropriation ...... 44 4.1.1. Land Dealings, Participation and Consent of Peasants ...... 47 4.2. The Nature of Compensation Payment ...... 51 4.2.1. Property Valuation Committees and their Organization ...... 52 4.2.2. Valuation of Compensation ...... 53 4.2.3. Satisfaction and Orientation of Peasants on Payment of Compensation and Usage ...... 55 4.3. Economic Consequences of Flower Farms on Local Communities and the State ...... 56 4.3.1. Livelihood Deprivation and Food Insecurity ...... 56 4.3.2. Employment Generation ...... 62 4.3.3. Inefficient Utilization of Land ...... 65 4.3.4. Technology Transfer and Infrastructural Development to Local Communities ...... 67 4.3.5. Generation of Hard Currency and Export Diversification ...... 68

4.4. The Political Consequences of Flower Farms on Local Communities and the State...... 70 4.4.1. Political Violence and Conflict ...... 72 4.4.2. Tenure Insecurity ...... 79 4.4.3. Strained Government -Society Relations ...... 80 4.4.4. Distrust and Deterioration of Government Legitimacy ...... 82 5. SUMMARY, CONCLUSION AND RECOMMENDATION ...... 85 5.1. Summary ...... 85 5.2. Conclusion ...... 87 5.3. Recommendation ...... 89 REFERENCES ...... 92 APPENDICES ...... 104 Appendix-1- Survey Questions, Interview and FGD Guides ...... 104 Appendix-2: List of interviewees, key informants and focused group discussants...... 112 ANNEXS ...... 115

III

List of tables

Table 4.1: Response about the nature of landholdings ………………………………………………45 Table 4.2: Measure of central tendency about land expropriated to flower farms…………………...46 Table 4.3: Information about the nature of land dealings and expropriation…………………………47 Table 4.4: Measure of central tendency about quintal produced per expropriated land and the amount of money paid for compensation……………………………………………..………49 Table 4.5: Distribution of sample respondents’ response about compensation issues………………...51 Table 4.6: The nature of crop production after expropriation ………………………………………...56 Table 4.7: Land size owned today and family life bad after expropriation -cross tabulation…………58 Table 4.8: Information about employment generation in flower farms………………………………..62 Table 4.9: The nature of infrastructural development by farms……………………………………….67 Table 4.10: Political consequences of flower farms…………………………………………………..70 Table 4.11: The nature of state-society relation after expropriation………………………………..…80

Acronyms

ADLI Agricultural Development led Industrialization AfDB African Development Bank AILAA Agricultural Investment Land Administration Agency AMMA Amhara Mass Media Agency ANRS Amhara National Regional State ANRSIC Amhara National Regional State Investment Commission EHEPA Ethiopian Horticulture Exporters and Producers Association EIC Ethiopian Investment Commission EPRDF Ethiopian People Revolutionary Democratic Front FAO Food Agriculture Organization FDRE Federal Democratic Republic of Ethiopia FGD Focused Group Discussion GTP-I Gross Transformation Plan-I HPR House People Representatives IFAD International Fund Agricultural Development MDG’s Minimum Development Goals MIGA Multilateral Investment Guarantee Agency MNC’s Multi-National Corporations MoFED Ministry of Finance and Economic Development MoRAD Ministry of Rural and Agricultural Development MPP-I Minimum Package Projects-I PADEP Peasant Association Development Extension Program PADETES Participatory Demonstration Extension Training System PASDEP A Plan for Accelerated and Sustained Development to End Poverty PRSP Poverty Reduction Strategy Paper SDPRP Sustainable Development and Poverty Reduction Program SIDA Swedish International Development Agency SNNPRS Southern Nations, Nationalities and Peoples’ Regional State USAID United States Agency for International Development

Acknowledgment

First of all, I would like to thank the Omnipotent God with his mother Saint Marry for the completion of this study. Secondly, mercy and great thanks goes to my advisor Dr. Belachew Getnet for his thoughtful guidance, friendly approach and constructive comments to complete the thesis. The completion of the study was difficult and unthinkable without his courageous support and edition of the overall work. I am also indebted to Moges Demissie for his academic direction and guidance to focus on the issue under investigation from the inception. I am highly greateful to Mr. Kidanu Atinafu and Edmealem Mekuriaw for their valuable comments on the first draft of the research. Besides, my deepest gratitude goes to my best friends Birhanu Bitew and Getachew Fentahun for their daily help when I was in state of confusion. Astonishingly, special and great thank also goes to my lovely wife, Wubayehu Ayalneh, for her editing and daily encouragement in both material and moral aspects. Finally, I would like to thank all participants, respondents and field work assistants for their cooperation to successfully address the research objectives.

Abstract

Commercial agricultural investment has been highly recognized by the Ethiopian government to accelerate economic development and to achieve food security since 2006 in a Plan for Accelerated and Sustained Development to End Poverty (PASDEP) document. As a result of this, a large area of land has been given to both domestic and foreign investors for the production of different cash and food crops. But opposition against expropriation for commercial farming and destruction of investment sites become common incidents. Cognizant of this fact, this study assessed the Political- Economy of agricultural investment in Amhara National Regional State (ANRS), particularly in Bahir Dar Zuria Woreda, taking Jovani Alphano and Tana Flora as a focus of study. Thus, a mixed research approach was employed to address research objectives. In doing so, both primary and secondary sources of data were gathered through questionnaire, interview, Focused Group Discussion (FGD), secondary sources and simple observation. A total of 160 respondents were taken to address survey question items in accordance with sample size determination formula by stratified random sampling. The data were analyzed and interpreted through statistics-by-themes and side-by- side comparison in an integrative manner by way of joint display mechanisms. The study elucidated that land expropriation was carried out without genuine public consultation, ascertaining popular consent and written notification whereby the participation of peasants in land dealings was non- existent. It had also confirmed that compensation was paid to evictees. However, the process of valuation was full of uncertainty and jumping which produced dissatisfaction and grievance on evictees. The flower farms negatively affected the livelihood and food security of peasants and it also resulted in violence and conflict, tenure insecurity, hostile and strained government-society relations, distrust and deterioration of government legitimacy. The major conclusion drawn from the finding is the expansion of commercial farming was not made vis-à-vis with empowering the displaced poor in their former status. Finally, the researcher recommended that evictees should be incorporated as part of development and rehabilitated to the extent possible by both the government and investors for the sustainability the projects.

Keywords: Political-Economy, Commercial Farming, Expropriation, Compensation

VII

CHAPTER ONE Introduction

This chapter deals about background of the study mainly the development of agricultural investment in the world, Africa and thereby Ethiopia and factors precipitated the focus of commercialization of agriculture at the global level including Ethiopia. The major rationales of the study are precisely problemtized; objectives and research questions are clearly stated as roadmaps of the study. It also pertinently touched the scope of the study, rationales of selecting the studied cases and finally ends up by dictating the limitation and the overall structures of the study.

1.1. Background of the Study

Agricultural investment or commercialization of agriculture is the development and promotion of profitable agricultural production and marketing system (Pinder and Wood, 2003). It is the production of commodities by using new technology which is aimed to make a profit. As Deininger et al (2011) noted the increased pressure on natural resources lead to a shift in use of land from small scale farming to export-driven commercial farming. Commercialization of agriculture is one of the driving forces behind privatization and individualization of rights of land (Boserup, 1981). Agricultural investment is a key priority by governments of both developing and developed countries now days (Mclonde-Calder, N.D.). There have been growing interests to invest in agriculture in the world (Cotula and Blackmore, 2014) precipitated by unfolding agricultural commodity prices, land values and policy priority to achieve food and energy security (Cotula and Blackmore, 2014). Due to this, agricultural investment deals covered 56 million hectares of farmland around the world till the end of 2009 (Horne, 2011). This shows the rapid boom in agricultural investment in the World over the past decade (Adbib, 2012) where Multi National Corporation’s (MNC) are renting large scale fertile land for commercial agriculture through expropriation of local communities (Brüntrup et al, 2016

The desire to achieve food security and foreign exchange is the greatest challenge for most African States at the present (Shimelis et al, 2009). This forced African states to focus on commercial farming as a panacea to achieve food security and poverty reduction (Smalley, 2014). So, African agriculture is in a rapid phase of commercialization (Smalley, 2014) which results expropriation of

land previously used by communities (Fonjong and Fokum, 2015). According to Field et al (2015) the growing interest in commercial agriculture has been driven by the desire to attract foreign investment and increasing export revenues in Africa. Owing to this fact, African governments are calling investors to acquire land and engage in commercial farming (Fonjong and Fokum, 2015; Onoja, 2015; Thernsjö, 2015). Hence, Africa is the main destination for MNC’s that predominantly focused on agricultural investment for a variety of reasons (Bereket, N.D; Schoneveld, 2011; Nathan, 2013; Mesfin, 2013; Fonjong, 2016).

Currently, the Ethiopian government is strongly insisted on agricultural investment to achieve overall economic development, industrialization and rising living standards since PASDEP document by enhancing land productivity (Desalegn, 2011; Adbib, 2012; Elias, 2012; Yihenew et al, 2013). The engagement of Smallholder farmers’ long in traditional subsistence farming makes them unable to achieve food security and pull out of poverty (Amhara Mass Media Agency (AMMA), Dec. 02/2017). Hence, the government used agricultural investment as the most important and effective strategy to achieve economic growth, food security and to heal the problems of the agricultural sector to attain the Millennium Development Goal’s (MDG) (Ministry of Finance and Economic Development (MoFED), 2006; Desalegn, 2011; Yihenew et al, 2013; Azeb, 2017). As a result, almost 4 million hectares of land provided to investors until 2008 which covers 10% of its total agricultural area in Ethiopia (Ministry of Rural and Agricultural Development (MoRAD), 2009a; Berger, 2014). In this regard, floriculture investment is one business area and sub sector of agriculture (Gebre, 2011) which is unfolding in Ethiopia over the last few years (Amdissa, 2006). The relative success of floriculture business in Ethiopia attracts investors (Desalegn, 2011) and the government to intensify flower production (MoFED, 2006; Yihenew et al, 2013). The rapid boom in floriculture business in the first decade of 2000’s to the European market and elsewhere accelerated floriculture business (Mesfin, 2013) and become a focus area of investment in Ethiopia under PASDEP (Amdissa, 2006). Generally, there are more than 80 farms involving in cut flower production and 30 are starting to export to the outside market (Asefa and Gosa, 2017).

The ANRS has ample opportunities for floriculture investment within the agricultural sector (Amhara National Regional State Investment Commission (ANRSIC), 2014). As recent studies indicated the region has 43 potential Woredas for floriculture investment (ANRSIC, 2015) which

can create wide job opportunities and foreign currency earning to the country relatively in a small plot of land. There are 18 flower farms found in the region and among these 15 are found in the Peripheries of Bahir Dar city. However, the violent conflict which happened in 2016 summer has slowdown the rate of floriculture investment in the region (ANRSIC, 2017). Therefore, in this study the researcher examined the political economy of agricultural investment in ANRS: a focus on flower farms in Bahir Dar Zuria Woreda.

1.2. Statement of the Problem

Ethiopia is among the top land leasing African country in offering land for agricultural investment over the last decade (Adbib, 2012; Cotula, 2012). Owing to this fact, floriculture investment is increasing at a speed unprecedented in any commercial venture by dislocating landholders as a result of policy change in PASDEP (Amdissa, 2006; MoFED, 2006; Gebre, 2011). The government considered its expansion as the major achievement and other green gold areas (Amdissa, 2006; Elias, 2012). Paradoxically, the expansion of commercial farming to achieve food security and poverty reduction has remained a subject of scholarly debate in Ethiopia (Samuel, 2006; Desalegn, 2009; Diao, 2010; Smalley, 2014). Some argued that commercial farming is devastative to small landholders (Samuel, 2006; Desalegn, 2009; Diao, 2010). Inversely, others claimed that commercial farming is a key to achieve economic development and food security (MoFED, 2006; Amdissa, 2006). However, understanding the Political-Economy of agricultural investment in Ethiopia requires an empirical investigation going beyond theoretical debates by taking some farms at local level.

In Ethiopia, land certification and registration have been carried out to ensure the confidence and belongingness of peasants to their land albeit many have been dislocated when a demand in floriculture business is booming (Desalegn, 2011; Berger, 2014). A land used previously for crop production is given to investors through expropriation which in turn affects the freedom and food security of small landholders (Desalegn, 2011; Bereket,N.D; Fairhead et al, 2012). Land expropriation for commercial agriculture is a return to feudalism which divides communities into landholders and landless laborers (Amdissa, 2006). Although floriculture investment provides a rapid in-flow of cash, its contribution to the sustainable development of the poor is in question (Amdissa, 2006). Because the rehabilitative measures taken to promote evictees are very weak and non-existent. Besides, the commodities in commercial farming are driven for export by

disregarding home consumption. This results in the import of crops for home consumption which exacerbates food price rising at home. Expropriating peasants for flower farms entails everlasting effect on local communities and the state. Hence, the strength and breadth of anti-land dispossession politics has become strong in Ethiopia (Desalegn, 2011).

Evidently, evictees were involved in violent destruction against farms in the peripheries of Bahir Dar City in August 2016 (Reuters, 10 August, 2016; ANRSIC, 2017). The farms have been partially or fully vandalized through attacks which was an indication of opposition against expropriation for agricultural investment by the government (Reuters, 10 August, 2016). The pandemonium was an explicit conflict of interest between evictees in one hand and the government and investors on the other hand. It was a demand for rehabilitation and justice but it awfully brought destruction both on property and human life. To the extreme, Jovani Alphano 1farm has totally burnt out and stopped production since 2016 summer due to this the land has turned to be idle over the last two years. Concomitantly, Tana Flora’2s fence was partially demolished through attacks. Amazingly, the grievance of peasants’ is still continuing in news against expropriation, compensation process and its accompanied economic evils on local communities. This in turn engendered political dissatisfaction and hostility against investment sites.

In this regard, various empirical studies have been done on agricultural investment including flower farms in Ethiopia. For example, Gebre Sorsa (2011) has conducted a study on “the underlying causes of business failure of floriculture investment in Ethiopia” and find out poor management is the major causes of business failure. But he overlooked the impacts of political instability on the sustainability and success of farms in his investigation. Elias (2012) also conducted a study on “investment promotion and environment protection balance in Ethiopia’s floriculture: the legal regime and global value chain” and identified poor coordination between investment promotion and environmental protection. Similarly, Dejytnu (2012) on desktop research examined “the socio-economic and environmental impact of the floriculture industry in Ethiopia” and found that flower farms contributed to generation of employment and hard currency by negatively affecting the natural world. Furthermore, Addisu (2016) also investigated “large

1 It is an early established flower farm in Bahir Dar Zuria Woreda and Amhara region in a land accounted 144 hectares by dislocating peasants in Workemla Achadir kebele. 2 It is also the 2nd earliest flower farm in the same woreda in Wonjeta kebelesin approximately 125 hectares by expropriating prior users.

scale agricultural investments and its impact on local communities: the case of Gura Ferreda Woreda, Southern Nations Nationalities and People Regional State (SNNPRS)”. The study showed that the investment plan failed to consider the specific context of the study area and absence of communities’ participation in the land deal process.

But all the above researchers have overlooked to investigate the Political-Economy of expropriation for commercial farming beginning from the nature of expropriation, compensation process and its subsequent impacts on both the locals and the country in a comprehensive manner by taking some farms at the local level as an empirical appraisal. Studies have been conducted and solutions are recommended about agricultural investment. But the grievance of peasants is persistently heard in news against expropriation, compensation process and its accompanied economic evils on local communities. Amazingly, destruction of investment sites has continuing and become a common agenda in Ethiopian politics today. In spite of such incidents, there is still a state of paradox and polarized debates what the government and local communities claimed about commercial farming. The government in one hand reported that agricultural investment brought tremendous achievements to the country where as local communities claimed that it strongly undermined and makes evictees an outmoded section of a society. In connection to this, the implication of agricultural investment on small landholders in Bahir Dar Zuria Woreda is still unclear and yet unexplored. Besides, the farms are commenced by fully dislocating small landholders which are quite different in context from Gambella, Bakoo Tibee, Gura Ferda and Benishangul region. These and the following rationales motivated the researcher to conduct a study on the Political Economy of agricultural investment in ANRS: a focus on flower farms in Bahir Dar Zuria Woreda.  Different policies and proclamations are formulated and enforced to expropriate, compensate and rehabilitate expropriated peasants in Ethiopia. However, complaints and grievances are persistently heard in news (AMMA, Jan. 27/01/2018). Therefore, the researcher was aspired to assess the policy priority and its actual implementation in the study area  There has been contradictory view and debate among scholars, policy makers, the public and politicians whether commercial farming brings accelerated economic growth and overall development or not. It has become a hot agenda and ongoing scholarly debate at the

present. Hence, the researcher was highly wholehearted to discern this contradictory view by taking some flower farms in Bahir Dar Zuria Woreda as a focus of inquiry.  Land expropriation from peasants was made by providing compensation so as to rehabilitate expropriated peasants. In this way, public purpose and optimum utilization of land are justifications of expropriation. Thus, the researcher was highly interested to investigate why the already compensated evictees were engaged in violence in the study area.  Land is a source of livelihood and a means of survival for peasants in particular and everyone in general. Nevertheless, the expansion of commercial farming by expropriating peasants from their land exacerbates instability and lawlessness. Therefore, in this study, the investigator was interested to explore the spillover effect of flower farms in political and economic matters. Consequently, the study explored the Political-Economy of agricultural investment in ANRS: taking Jovani Alphano and Tana Flora farms in Bahir Dar Zuria Woreda as a case study.

1.3. Objectives of the Study

1.3.1. General Objectives of the Study

The overall purpose of this study was to examine the Political-Economy of agricultural investment in Bahir Dar Zuria Woreda.

1.3.2. Specific Objectives of the Study

To answer the major objective, the researcher developed the following specific objectives:

 To assess the nature of land expropriation in the study area  To investigate the nature of compensation process in flower farms in the study area.  To identify the economic consequences that flower farms entail on smallholder peasants in the study area.  To explore the political consequences that flower farms bring about in the study area.

1.4. Basic Research Questions

 How was land expropriation carried out from peasants in the study area?

 How was the compensation process made in flower farms in the Peripheries of Bahir Dar city?  What are the economic consequences of flower farms on smallholder peasants in the Peripheries of Bahir Dar city?  What are the political consequences of flower farms in the study area?

1.5. Delimitation of the Study

The study was thematically delimited on the Political-Economy of agricultural investment: taking flower farms as a case study. Consequently, it aimed to explore the nature of land expropriation, compensation process, economic and political consequences of flower farms because dislocation of prior land users to flower farms with a commensurate compensation and its subsequent impacts are aspects of Political-Economy. Although there are many flower farms in Amhara region, the study was spatially delimited on Jovani Alphano and Tana Flora farms in Bahir Dar Zuria Woreda based on a number of influences and factors as described below in rationales of selecting the studied cases. Periodically, the study delimited on the time frame in which the farms commenced as a bench mark of analysis.

1.6. Rationales for Selecting the Studied Cases

Initially, the study district was purposefully selected because of: 1) many of the flower farms in Amhara region have been found in the Peripheries of Bahir Dar city (ANRSIC, 2015). 2) The extent of land expropriation was highly severe and numbers of landholders dislocated have been many compared with other woredas for flower farms in the region (Daniel, 2009). Therefore, Bahir Dar Zuria woreda was chosen in a non-probabilistic ways due to the above justifications. The second stage involved in selecting flower farms found in the district as a case study. In this regard, Jovani Alphano and Tana Flora farms were chosen based on a number of factors and considerations. 1) Expropriation of land from peasants to agricultural investment in the woreda was unusual before. Dislocating landholders for these farms was the first in its kind to flower farms mainly in the district. Due to this, resistance and complaints against land usurpation was very intense by evictees more than others in the woreda (Bahir Dar Zuria Woreda land administration office, 2017). The issue of land appropriation in a land stressed society for commercial farming is an issue of ongoing debate at the public and academic endeavors. 2)

Peasants were dislocated from their land prior to the adoption of the details of compensation valuation implementation regulation at both the national and regional level (Bahir Dar Zuria Woreda land administration office, 2017; analysis of regulations and documents). This influenced the investigator to explore the nature of land expropriation, the ways by which valuation of compensation and payment adhered to evictees as well as its overall process. 3) These farms are early established and beginners of flower production and exporter in the peripheries of Bahir Dar city (ANRSIC, 2017). Taking long time enables to fully examine the economic and political consequences of expropriation on locals and the country and its implication on government-society relations. 4) The numbers of people evicted were numerous and extent of land appropriated was huge relatively compared with other farms in the district (Bahir Dar Zuria Woreda land administration office, 2017). 5) The popular protest against Jovani Alphano mainly and relatively in Tana Flora and its associated consequences in terms of material depredation and loss of human life was so intense (Reuters, 10 August, 2016). It was from these grounds the studied cases are chosen in a non-probabilistic ways to examine the Political Economy of agricultural investment in ANRS taking these farms as an empirical appraisal.

1.7. Significance of the Study

For administrators, the finding might serve as a clue to take rehabilitative measures for evictees and balancing investment promotion vis-à-vis with the wellbeing of local communities. It may also used as a blue print for the government to see the discrepancy between policy priority and their actual implementation by taking the studied case areas as a reference point. The inquiry might assist the government to identify the existing weaknesses demonstrated in the farms and came up with alternative solutions to the problems inherent on farms, investors, local communities and the government as well. An empirical investigation about the political economy of flower farms demonstrated the existing state of affairs which is helpful to dislocated landholders by making their voices to be heard in the eyes of administrators. Hence, the concerned body might provide alternative job opportunities and rehabilitative measures to evictees. It might also be important for the investor to identify the causes that created hostile attitude on peasants against farms and came up with solutions by taking lesson from previous experiences. Finally, the study will be significant for academics as reference and bench mark for further investigation on issues related with working conditions of employees and political ecology of floriculture industry in the region.

1.8. Limitation of the Study

This investigation had its own shortcomings. The first limitation was the impossibility to accessed documents about payment of compensation in Workemla Achadir kebele and reports in both farms about their export status. Due to this, the investigator took peasants response as it was with no cross checking with compensation payment document. Secondly, the study was simple descriptive which described only the sample information without making generalization about other farms; hence, regression analysis was required to be sure about the internal and external validity of the finding. Thirdly, the declaration of state of emergency created inconveniency on the researcher not to freely move in the studied area to gathered data on some overlapping issues demanding additional information. Peasants were thought and expected additional compensation after 10 years; hence, there is a threat to be mobilized for violence. This might fired me by security forces as galvanizer of opposition. As a result of fear, local administrators were accused an enumerator helped me in dispatching survey. To the extreme, he was not allowed to be represented as a candidate to be chairman of Youths in Atangusa Chicha which is a newly formed kebele from Wonjeta by local communities. Hence, analysis and interpretation of data was made based on data collected at one time prior to the declaration of state of emergency.

1.9. Operational Definitions of Terms

The following terminologies can have multiple academic discourses and interpretations. But they have been used in a way understood as defined below throughout the thesis.

 Political-Economy: is the political and economic consequences that flower farms inflicted on local communities and the state.  Expropriation: is an act of compulsory taking away of land from prior users’ for agricultural investment through commensurate compensation.  Compensation: is a payment paid in cash or in kind to dislocated peasants in return to permanent or temporary displacement of land and properties situated on it.  Agricultural investment/commercial farming: is the development and production of crops either in unused land or by dislocating small landholders ultimately for export by denying home consumption in a huge land. Flower farms are typical examples.

 Evictees: are peasants dislocated from their farmland to agricultural investment by the government.  Landholdings: is the nature of land size possessed by peasants  Share cropping: is a system in which an individual cultivates a land of others by sharing its yields based on agreement  Peasants: are individuals engaged in subsistence farming with in a small plot of land by employing traditional agricultural utensils.

1.10. Structure of the Study

This study organized in five chapters. The first chapter of the study presents the need for conducting a study on selected thematic areas. It primarily dealt with background information about agricultural investment and its necessity, problem statement, basic research questions and objectives of the thesis. After providing clear understanding and the motives of undertaking this research, the second chapter deals with review of related literature. In this chapter theoretical and conceptual framework of the study which are elucidated in detail. The third chapter deals with research methods employed to address research questions. The fourth chapter deals with data analysis and discussion about the nature of land holdings, expropriation, compensation and economic and political consequences of farms in the studied case areas. The last chapter deals with summary, conclusion and recommendation.

CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

Introduction

This chapter mainly deals with review of related literature in relation to the nature and evolution of agricultural investment. Initially, the chapter elucidates conceptual clarifications of various terms and their academic discourse by consulting various published and unpublished materials. The academic debates on the concept of Political-Economy and agricultural investment is precisely elaborated and operationalized what they mean in this investigation. Secondly, it pertinently examined theories linked with the Political-Economy of commercial farming followed by the land tenure policies and agricultural policy frameworks. It also examined the performance and problems of agricultural investment; specifically expropriation, compensation, economic and political impacts of agricultural investment in Ethiopia. Finally, it ends up by developing a conceptual model that clearly shows the relationship between dependent and independent variables.

2.1. Conceptual Clarifications

2.1.1. Conceptualizing Political Economy

Political-Economy is an elusive and contentious subject of scholarly debate among development and political science scholars for long. Owing to this fact, there is diverse understanding about political economy. Some contextualized it at the international level and others conceptualized it at both national and local level by basing state policies in resource allocation and developmental priorities. As Balaam and Veseth (1996) cited in Asnake (2009) the Political-Economy approach explains how politics and economics are inseparable linked in influencing each other at different level of society. According to Yeshitila et al (2016) Political-Economy is a concept that determines how power is structured, resources are allocated and developmental policies and rules are established in the country. It involves government-society relations that deals about the overall power relations and interactions between the state and local society in access to resources, exercise political power and control the means of violence. It is a policy process, allocation of resources, and access to services and development outcomes (World Bank (WB), 2006). Agricultural investment is a prioritized area of investment to achieve economic development and eradicate

abject poverty in Ethiopia. But the expansion of commercial farming brings expropriation of small landholders because it requires massive land compared with subsistence farming. So, many peasants are dislocated from their land to agricultural investment mainly to flower farms. This indirectly brought everlasting economic, social and political consequences on both local communities and the country. Therefore, in this study, Political-Economy means the economic and political consequences of agricultural investment on the locals and the state.

2.1.2. Commercial Farming /Agricultural Investment

Scholars and policy makers have defined commercial farming in different ways from different perspective. Agricultural investment or commercialization of agriculture is the development and promotion of profitable agricultural production and marketing system (Pinder and Wood, 2003). It is a capital and input intensive agribusiness entity involving modern industrial forms of agriculture on a large scale (Deininger and Bayerelee, 2012). On the contrary, scholars like Glover and Jones (2016) defined it as a way of producing crops or items for a market than home consumption. It provides potential spillover effects that affect the local population by introducing and diffusing new production techniques and enhanced access to inputs and commercial opportunities (Glover and Jones, 2016). Cognizant to the academic discourse of commercial farming, defining agricultural investment only in terms of mechanized agricultural inputs or crops produced for export might be debateable in Ethiopia. Because smallholders can use modern agricultural inputs and engaged in production of cash crops used only for market. But the engagement of smallholders in cultivation of cash crops is small in scope and marketed the products to the domestic market. In this study, agricultural investment is defined as the development of profitable agricultural production in greater extent either in unused land or by dislocating prior users for the aim of making profit mainly to the external market.

2.2. Theories on Land Expropriation for Commercial Farming

There are different approaches and theories that scholars used to analyze and contextualize the Political-Economy of agricultural investment. Appropriation of land for commercial farming is the transfer of land ownership, use rights and control over resources that have been once owned publicly or privately from the poor agrarian societies to powerful elites (Fairhead et al, 2012).

There are different theories on appropriation of land including: primitive accumulation, accumulation by dispossession and regime dispossession (Fairhead et al, 2012).

2.2.1. Theory of Primitive Accumulation

Primitive accumulation is any historical process that creates the preconditions of capitalism through the use of force (Levin, 2015). In primitive accumulation, appropriation of land and resources is made through forcible and violent means (Bakker, 1990). It is a term used by Marx to describe the accumulation of social and economic conditions which results the rise of capitalism (Bakker, 1990). The violent and bloody process of expelling peasants from their land is a precondition for capitalism which transforms the land into capital and the peasants into proletariat (Marx, 1977). It is an early chapter in the development of capitalism (Levin, 2012). This theory illuminates the emergence of the proletariat and capitalism than the Political-Economy of land dispossession for commercial farming (Bakker, 1990). However, there is no primitive accumulation today because capitalism has remained a dominant mode of production on a global scale which was practically seen in the era of colonialism (Bakker, 1990). According to Marx cited in Bakker (1990) money and private property becomes capital when they are invested by exploiting wage labor either in the agricultural or industrial sector.

From the above central premises of the theory, the current land expropriation for commercial farming in Ethiopia cannot be understood in light of primitive accumulation. It is because of the fact that there was no historical account that shows the existence of proletariat in Ethiopia. The current dispossession of land is not the reflections of early chapter of capitalism rather a more advanced form of capitalist interest on land under neo-liberalism. Besides, land expropriation from the peasants is not solely made based on violent means. Hence, it is not adequate theoretical framework to examine the Political-Economy of the current land dispossession for commercial farming in Ethiopia.

2.2.2. Theory of Accumulation by Dispossession

This theory argued that capital is accumulated by expropriation of land and natural resources from peasants and by the conversion of common property into private property (Levin, 2015). It clearly recognizes dispossession is driven by advanced capitalism and over accumulated capital due to lack of profitable investment (Harvey, 2003). Harvey (2006) also contends that accumulation by

dispossession is the enclosure of public assets and land from prior users to wealthy elites for profit which results greater social inequality. It involves the privatization of public resources into private domains through dispossessing private owners of resources by violent expropriation and delegitimizing claims through legislation (Fairhead et al, 2012). In accumulation by dispossession, privatization and financialization are systems and manipulation of capital accumulation (Addisu, 2016). However, the theory misses the important role of the state in redistributing land to different classes through dispossession. So, the theory is less important to analyze the Political-Economy of commercial farming in the current Ethiopian context. Currently, the state is an active player in development and expropriation to flower farms in Ethiopia. Besides, investment in land by emphasizing flower farms is not promoted as a response to over accumulation. It is aimed to speeded up economic growth and diversify the export item of the country for the public interest. Hence, the theory is less applicable to contextualize the Political-Economy of commercial farming in ANRS: a focus on flower farms.

2.2.3. Theory of Regime Dispossession

This theory argues that land expropriation is a current political process of state redistribution of land to a particular class for a variety of economic purposes (Levin, 2015). A state claims dispossession of land from peasants takes place for the public purpose by means of force, legitimacy and material concession to convince the local communities to comply with their dispossession. This argue that, the state tries to legitimatizing land dispossession for the sake of development and making poverty history to promote the wellbeing of the general population (Levin, 2011). A state tries to get compliance from the dispossessed peasants and the general population by providing compensation in a fair market value, resettlement and rehabilitation programs. In this study, the researcher used this theory as a litmus test to contextualize the way land expropriation made and its consequences in the study area. Because the way peasants dispossessed from their land is done in the name of public interest and promoting the wellbeing of the general population. Besides, the government tries to convince the public about land dispossession through compensation, resettlement and rehabilitation programs. To realize this, proclamations about payment of compensation for expropriation of land holdings for a public purpose in the federal proclamation No. 455/2005; Council of minister Regulation No. 135/2007 and ANRS Regulation No. 5/2010 have issued. The phrase ‘public use’ and ‘payment of

compensation’ justifies the reason land taken from prior users and the amount of money paid to a property taken respectively (Daniel, 2013). Again, flower farms are promoted for better utilization of land to the advantage of the public not as a solution to over accumulation.

2.2.4. Public Choice Theory

It is a new political economy theory that views government can do nothing correct and appropriate for the public (Todaro and Smith, 2012). It is often used to explain how political decision-making results in outcomes that conflict with the preferences of the general public. Governments are aggregates of individuals pursuing private interest through regulations and tax laws (Buchanan, 2003) in which everyone including policy makers, citizens, politicians and investors are solely acting from their individual interest (Todaro and Smith, 2012). Governments are taking policies and adopting developmental strategies as a means to consolidate their political power and to lengthen their political tenure.

This theory views that the policy formulated and enforced in a state should be in accordance with the preferences of the general population. However, the policy that favors commercial farming in Ethiopia is not designed in line with the interest of the public. Since Ethiopia is a developmental state in which legitimacy is earned through the level of development registered from the people. So, the preferences and opinion of the general population is not inculcated in the formulation and enforcement of developmental policies and strategies that favors flower farms. Due to this, flower farms entail economic, social and political consequences on local communities and the state. Although the government is claiming developmental policies that emphasize flower farms are adopted by consultation with people, the nature of consultation is façade (Amddissa, 2006). By supporting this, Buchanan (1967) noted that government is responsible to take collective decision making influenced by self interests that can never altruistically solve social problems. So, the Ethiopian government expropriates land from individuals by using its power to advance net benefits but the outcome of this action is in contradiction to public interest. This leads to misallocation of resources and general reduction in individual freedom. It is aspired to bring economic growth (MoFED, 2006) but it is in conflict to the preferences of the public. Hence, it is highly relevant to contextualize the economic and political consequences of flower farms in the study area. Generally, regime dispossession and public choice theories are best to analyze the

political economy of commercial farming in ANRS: a focus on flower farms in Bahir Dar Zuria Woreda.

2.3. The Role of Commercial Agriculture to Local Economic Development

There are diverse perspectives about agricultural investment among scholars, Mass Medias, international organizations and politicians (Mesfin, 2013; Shephered, 2013; Bereket, ND; Fielding et al, 2015; Glover and Jones, 2016). Some scholars claimed that commercial farming is focused on export driven markets which damage the total wellbeing of local communities (Deininger et al, 2011; Schoneveld, 2011; Allard, 2012; Aabo and Kringer, 2012; Shephered, 2013; Fonjong and Fokum, 2015) and made smallholders as an outmoded and marginalized class in the age of globalization (Tandon, 2010; Allard, 2012). It leads to food price rising and decline of domestic food supply which results increasing food imports (Rakotoaisoa, 2011) and loss of land for local communities (Pinder and Wood, 2003; Aabo and Kring, 2012). It does not create numerous job opportunities and bring rural transformation and poverty alleviation (Smalley, 2014). According to these scholars, small scale farms are essential in meeting the immediate household needs of the family and food security. Inversely, others argue that commercial agriculture is important in the provision of capital, infrastructural development, generation of rural employment, achieving and national food security as well as linking rural communities to export markets (Africa Development Bank (AfDB), 2010; Smalley, 2013; Collier and Dercon, 2014; Field et al, 2015; Fonjong and Fokum, 2015). It also provides potential spillover effects that affect the local population by introducing and diffusing new production techniques as well as enhanced access to inputs and commercial opportunities (Glover and Jones, 2016).

This debate is also hot among Ethiopian scholars and policy makers for a decade and it is an ongoing event. Some viewed that a shift to a market oriented commercial agriculture can heal the problems of the agricultural sector with a vision to attain the MDG’s (MoFED, 2006). In Ethiopia, the majority of farmers are engaged in subsistence farming in which intensification of small scale farming does not bring notable changes on the lives of peasants (Samuel, 2006). He argues that the efforts made so far in introducing agricultural technologies to smallholder farming and enhancing the rate of adopting technologies alone is not sufficient to deal the problems of the Ethiopian agriculture. According to him, the opportunity cost of intensification of small scale farming is higher than the expected outcomes (Samuel, 2006). Therefore, a shift to market oriented

commercial agriculture is a panacea for the problem of Ethiopian agriculture (MoFED, 2006) and central solution to the abject poverty in the country.

Others (Amdissa, 2006; Desalegn, 2011), on the other hand, argue that the problem in Ethiopian agriculture lies on technical and resource related problem than the subsistence mode of production itself (Samuel, 2006). These scholars perceive that expansion of commercial farming through dispossession is a return to feudalism which created the landed and landless groups in the country. Similarly, commercialization of agriculture contradicts the inverse relationship of farm size and productivity. They further acknowledge that commercialization cannot raise productivity as it was seen in state farms in 1980’s (Amdissa, 2006) which further marginalizes the local population by focusing for export and foreign currency earning (Desalegn, 2011). Therefore, the intensification of smallholder agriculture serves as a catalyst to enhance agricultural productivity than paradigm shift (Samuel, 2006). The researcher took a moderate stance about commercial farming and he argued that it is necessary to generate hard currency and to achieve balance of trade in the global market. But evictees should be sustainably promoted and be part of the development process. One time compensation is not adequate to develop a sense of belongingness to farms on evictees. An ambitious and emotional expansion of commercial farming without incorporating dislocated landholders in the development process is susceptible to failure as it has been observed in many farms in Ethiopia. The rehabilitative measures taken to promote expropriated peasants should be very strong; well attuned and installed proper food security at home. Failing to do so creates impediments to achieve the intended objectives of the farms. Besides, commercial farming should prioritized achieving food security at home. A one who is starving near to farms can never be the guardian of the projects rather he/she become an impediment to it. To generalize, the desire to achieve hard currency should go hand in hand with achieving food security.

2.4. Ethiopian Land Tenure and Agricultural Policy Framework

2.4.1. Land Tenure Policies of Ethiopia

As in most parts of Africa, land tenure in Ethiopia has been the subject of debate among farmers, policy makers, researchers and the public at large. Historically, in Ethiopia, land was viewed not only as a source of livelihood to the majority of the population but also a source of political and economic power to all groups who aspire to hold political power (Desalegn, 2004; Yigremew,

2002). Consequently, the land tenure reforms in the country had been designed and implemented in light of the political advantages.

2.4.1.1. Land Tenure during Imperial Regime

Prior to the 1975, land tenure was characterized by a complex system of ownership namely communal, church ownership, private and state holdings in Ethiopia (Desalegn, 1984; Yigremew, 2002). Its history was studied in dichotomy in both the north and the south; communal kinship/Rist system experienced in northern Ethiopia and Gult or privatization in the South (Bahru, 2002).

Communal ownership locally referred to as “Rist” and church holdings (Samon) was characterized in the northern highlands. It was a dominant landholding system in northern Ethiopia denoted by shared rights and land distribution based on the principle of Equality (Bezabih et al, 2011). It was a system in which land was divided in parcels and allocated equally based on lottery system (Di Falco et al, 2016). After division of land, individuals obtained usufruct rights on land through line of descendents from recognized original landholder. The communal system (Rist) was based on the principle that land is the collective property of the community that bestows access and transfer rights to each individual member who can trace his/her kinship ties to the founding ancestors. However, land could not be sold or mortgaged. The presence of a descent system that allows an individual to be a member of different kinship groups at the same time, often arising from intermarriages, entitles the individual to claim land from several kinship groups irrespective of residence of the individual or geographical locations of the contested land. Consequently, farmers end up in endless land related litigations which claimed valuable time and resources, led to land fragmentation and in certain cases to absentee landlordism (Bahru, 2002).

The gult system was most common in southern half of the country characterized by absentee owners and a system of privatization (Bezabih et al, 2011). It involves tributary right (gult) for northern settlers in the South, Maderya land for those serving the government and government grant for patriots, soldiers and civil servants (Bahru, 2002). In the south, private ownership of land was developed as a result of land grants by the government to loyalists of the imperial regime. As a result, land was concentrated in the hands of few individuals. Consequently, the land tenure system during the imperial regime did not provide enough incentives to cultivators to manage land in a

more sustainable manner. The cultivators of the land were subjected to arbitrary eviction and physically exploited in landlord-tenant relationship (Haimanot, 2009). State or government holdings were most prevalent in the less densely and pastoral areas of the lowlands irrespective of geographical location. Generally, the land tenure system of the imperial period was characterized by high tenure insecurity, arbitrary evictions and inefficient utilization (Haimanot, 2009).

2.4.1.2. Land Tenure Policy during the Derg Regime

Following the overthrow of the imperial regime of Haile Selassie (1974), the Provisional Military Administrative Council also known as the Derg (the council) announced an agrarian reform program known as Proclamation No. 31/1975 on 4 March 1975 (Nickola, 1998). It was a radical land reform that ended tenancy relations and land transfer of the imperial regime (Di Falco et al, 2016) and thereby declared all rural land to be the property of the state without any compensation to previous landholders and prohibited all tenancy relations. The Proclamation provided the legal basis for the distribution of land to a large number of rural families who had been working under exploitative tenancy contracts for a small group of landlords. However, farmers had only restricted usufruct rights. They were not allowed to transfer their usufruct rights by sale, mortgage, or lease, and bequeathing of allocated usufruct rights was limited to primary family members like spouse and children upon death of the rights holder (Di Falco, et al, 2016). The plot size per family was restricted to a maximum of 10 hectares. Peasant Associations were established as the central element of the state’s rural bureaucracy. The leadership of the Peasant Associations was entitled to expropriate land from the landholders and distribute it equally among its members (Fassil, 1993). The land reform was effectively abolished the remains of traditional institutions of rist and gult. Land was re-distributed frequently in order to reduce landlessness as well as to address land quality differences until 1991. Smallholder farmers were also evicted from their holdings to give way for state farms and producer cooperatives. Various studies indicated that the land tenure policy of the military governments has resulted in diminution of size of land holdings and tenure insecurity with all its adverse effects of unsustainable utilization of natural resources (Desalegn, 1994; Yigremew, 2002).

2.4.1.3. Land Tenure under Ethiopian People Revolutionary Democratic

Front (EPRDF) Government

After the fall of the Derg, the new government introduced a series of political and economic reforms. The transformation of land institutions towards privatization was expected by many international observers; however, it appeared to be similar to what prevailed during the socialist regime. The Transitional Government of Ethiopia, in its declaration on economic policy, announced the continuation of the land policy of the Derg regime. The Federal Democratic Republic of Ethiopian (FDRE) constitution (FDRE, 1995) approved the state ownership of land in Ethiopia. Article 40 of the 1995 FDRE constitution states that the right to ownership of rural land and urban land, as well as of all natural resources is exclusively vested in the state and all nations, nationalities and peoples of Ethiopia. Land is a common property of the nations, nationalities and peoples of Ethiopia (FDRE, 1995; Desalegn, 2011). The article further stipulates that any transfer of land is prohibited and shall not be subject to sale or other means of exchange. This clearly indicates that the peasants have only a right to plough with no right to sell, mortgage and exchange (Desalegn, 2011). It only allowed land leasing and inheritance subject to some restrictions. The state has the right to use its statutory power of land ownership to expropriate land from poor peasants and give land to investors without proper consultation and compensation (Desalegn, 2011). Landholders have only limited right which are subject to subrogation at any time for public purpose (ANRS, 2010). This implies that insecure land tenure has continued to be one of the most important factors responsible for the slow progress of improvement in agricultural productivity and the dire condition of natural resources in the country.

2.4.2. Agricultural Land Policies in Ethiopia

The Ethiopian agricultural land policies have been characterized by frequent change with different priorities at different times (Diao. 2010). The way land rights have been defined and developmental policies adopted influenced agricultural growth and rural transformation in Ethiopia (Getnet, 2010). The presence of strong state intervention has a long legacy in land tenure relations and put considerable influences in agricultural policies at different regimes (Haimanot, 2009). Policies have remained reflections of the ideology of the government in power without attuned investigation of the social, economic and political realms of the people and the country at large. By

hook and crook, agricultural land policies influence economic development and rural transformation in Ethiopia. In this section, the agricultural policies and development priorities of the three consecutive political regimes are clearly stated below.

2.4.2.1. Agricultural Policy during Imperial Regime

The feudal land tenure system of the imperial regime had imposed political, social, economic and moral burden on the Ethiopian tenant peasants (Tecle, 1975). The structural and operational defects of the imperial land tenure system which imposed high and exploitative tax burden on peasants spoiled the political system many times in different parts of the country (Pankhurst, 1966; Getahun, 1977). The peasants in the imperial feudal land tenure system were required to give services to feudal landlords, state and church at both peace and wartime which made the agricultural economy below subsistence level that worsened the situation of famine (Amare, 1979).

Various development policies and plans had adopted to accelerate economic growth in different periods (Desalegn, 2009), however; the development motto in Ethiopia in the 1960’s and early 70’s focused on shaping and reshaping the development policies in accordance with modernization theory (Elias, 2012). In this period, there was progress in modern agriculture where oil seed farming in commercial farms towards the Ziway road and Cotton farms in Awash valley were a case in point (Elias, 2012). The development plans adopted and implemented in 1957-1962 gave low priorities to agricultural investment due to the misconceived understanding that food production was slightly above population growth (Desalegn, 2009). Much emphasis had given to infrastructural development than agricultural investment in this period despite some attempts made to support coffee and livestock production to improve the country’s foreign exchange (Desalegn, 2009).The 2nd five year development plan of 1963-1967 witnessed a relative improvement in agricultural investment (Desalegn, 2009). In this time, a shift from smallholder agriculture to mechanized agriculture became its guiding doctrine. In this development plan, 53% and 10% budget was allocated to commercial agriculture and smallholder agriculture respectively (Desalegn, 2009). Despite its ineffectiveness, a positive move to commercial farming in the agricultural sector in Ethiopia was observed.

Lastly, the 3rd phases of development policies and plan (1968-1974) adopted in the imperial regime endorsed commercial agriculture enthusiastically due to the relative success in the plantation and

Agro-industrial schemes in the Awash valley (Desalegn, 2009). This development plan aimed to modernize the Ethiopian agriculture through a comprehensive package approach implemented on selected pilot areas and eventually to the rest of other farming communities (Birhanu et al, 2006). The government remained pessimistic on peasant agriculture to attained food security and overall economic development which leads to a focus on commercial agriculture (Desalegn, 2009). However, the effort taken did not bring their expected outcomes at the end of the day (Birhanu et al, 2006). . Due to this, a reversing approach was made to smallholder agriculture after three years in the 4th development plan (Desalegn, 2009).

2.4.2.2. Agricultural Policies during the Derg Period

After the 1974 revolution, the immediate action taken by the military government in relation to agricultural development was land reform. The land reform decree of 1975 led to the nationalization of rural lands with state ownership which dismantled the former feudal-capitalist exploitative tenure system of the imperial regime (Amare, 1979; Diao, 2010). The development approaches had designed based on non-capitalist road to development, self-reliance and the new economic order in the Derg regime (Elias, 2012). This took the East European and Soviet models of development strategies in accordance with dependency theory and import substitution model. All economic spheres had become under state control, tenancy relations were ended up and allowed equal access to cultivated land. The intensification of collectivization, state controlled economic instruments and the establishment of large scale state farms had been prioritized (Diao, 2010; Yihenew et al, 2013). However, the agrarian reform taken by Derg distorted the market mechanism of land allocation and did not bring agricultural productivity improvement at all (Diao, 2010; Elias, 2012). So, the policy directives failed to bring positive boom in economic development.

The Derg regime continued to implement Minimum Package Program-I (MMP-I) of the imperial regime after it assumed power for four years. But the program was constrained by political instability and changes in the government structure (Birhanu et al, 2006). The Derg regime recognized the establishment of large state controlled farms and peasant collectivization (Diao, 2010). MPP-II was issued in 1980 with funding from WB, International Fund for Agricultural Development (IFAD) and Swedish International Development Agency (SIDA) which aimed to improve agricultural productivity, increase the production of agricultural commodities for the

domestic and export market. Like its predecessor, MPP-II became ineffective due to shortage of personnel and overburden of Development Agents in tax collection and organization of Co- operatives. Hence, it phased out in 1985 and replaced by Peasant Association Development and Extension Program (PADEP) with a foreign funding aimed to develop and disseminate appropriate technologies at the zonal level, using a training and visit approach (Birhanu et al, 2006). The PADEP had also continued under EPRDF government for four years until it was replaced by Participatory Demonstration Extension Training System (PADETES) in 1995(Birhanu et al, 2006). However, the unrestricted government control and intervention of all aspects of the country distorted the economic system (Birhanu et al, 2006). The inappropriate policies and strategies designed made the agricultural sector undeveloped (Chala and Terefe, 2015). To sum up, political instability and economic sluggish by both manmade and natural hazardous constrained the desire to employed mechanized agriculture in Ethiopia (Nathan, 2013).

2.4.2.3. Agricultural Policies under EPRDF Regime

After the fall of Derg, change in policy orientation towards privatization and institutional restructuring took place (Elias, 2012). Since 1994, Agricultural Development Led Industrialization (ADLI) adopted as the main development strategy in the agricultural sector (Diao, 2010). The strategy recognized that the agriculture sector is characterized by low productivity, inadequate technology and high dependency on nature (Samuel, 2006). Owing to this fact, peasants are frequently faced persistent, pervasive and deep food insecurity and poverty. By recognizing the above scenarios, ADLI primarily focusing on the agricultural sector aimed to bring productivity improvements to the smallholder agriculture and expansion of private commercial farming. It was the basis for poverty reduction program of Sustainable Development Poverty Reduction Program (SDPRP) in 2002 focused on smallholder agriculture intensification (MoFED, 2002).

In SDPRP, emphasis was given for pro-poor growth to achieve food security than for market (Amdissa, 2006). Agricultural productivity can be realized via agricultural extension policies and provision of modern agricultural inputs. In turn improvements in the agricultural sector provide commodities for export; satisfy domestic food needs and supply industrial inputs. It acknowledged smallholder agricultural intensification to achieve food security and eradicate abject poverty experienced long in the country (Diao, 2010). Establishing an effective input delivery and

marketing system which can ensure adequate and sustained agricultural inputs such as fertilizers, improved seeds and crop protection chemicals to smallholder farmers in the required quantity, product mix, at the right time and at a reasonable price is considered key to the success of the development program (Demeke etal, 1997; MEDaC, 1999; Bayu, 2003). But intensification of smallholder agriculture with no agricultural investment could not bring food security and eradicate abject poverty (Samuel, 2006).

Meanwhile, the government recognized that focusing only on smallholder subsistence farming could not be effective to poverty reduction and sustainable economic development (Collier and Dercon, 2014). Evidences reported that in spite of various efforts made by the government, agricultural productivity and the intensity of adopting agricultural technologies remained low (Samuel, 2006). Food insecurity at both the national and household level continued despite a considerable attempt made to intensified smallholder agriculture (Amdissa, 2006). The predominance of subsistence agriculture and lack or absence of more business/ market oriented agriculture identified as major impediments to agricultural development (MoFED, 2006). Due to this poor peasants cannot be transformed in to non-poor population via subsistence farming (Collier and Dercon, 2014). But the agricultural extension services provided under PADETES is highly relevant in transforming subsistence agriculture to market oriented production (Birhanu et al, 2006). Generally, the development policies and strategies pursued under SDPRP are the basis for PASDEP (MoFED, 2006).

Based on the above aforementioned realities, a shift to commercial farming has been adopted and become a baseline of development policy and plan in PASDEP (MoFED, 2006; Birhanu et al, 2006; Getnet, 2010; Onoja, 2015; Nathan, 2013; Yihenew et al, 2013; Fana, 2016). Private sector engagement and commercial agriculture considered as imperative to eradicate the daunting poverty the country faced over the past years and to achieve overall economic development and industrialization (Amdissa, 2006; MoFED, 2006; Diao, 2010; Lefort, 2010). In PASDEP document, the government paid solid priority to commercial agriculture with a strong export driven of high value cash crops to address the problems of the Ethiopian agriculture (Birhanu et al, 2006; Amdissa, 2006; MoFED, 2006; Diao, 2010). But PASDEP did not ignore the role of small holder agriculture for poverty reduction and the country’s economic development. It rather highly prioritized on commercial agriculture and private engagement as a pillar to realize rapid and

sustained economic development. The intensification of agriculture envisaged by PASDEP focused on production of qualified and standardized marketable farm products to both the domestic and external market (Birhanu et al, 2006; MoFED, 2006; Amdissa, 2006).

The agricultural strategy will revolve around a major effort to support the intensification of marketable farm products both for domestic and export markets, and by both small and large farmers. Elements of the strategy include the shift to high valued crops; promoting niche high value export crop, a focus on selected high potential area, facilitating the commercialization of agriculture, supporting the development of large scale commercial agriculture where it is feasible; and better integrating farmers with markets both locally and globally (MoFED, 2006, pp. 47; Amdissa, 2006, pp. 8).

Poverty reduction and eradication utmost are the overriding development agenda of the government in PASDEP (MoFED, 2006). It endorsed the continuation of ADLI; however, it supports a shift to commercialization of agriculture and private sector engagement in the development arena (Amdissa, 2006; MoFED, 2006). In PASDEP, floriculture investment has been identified as potential area of investment to eradicate poverty and speeded up overall development. Following the document, the expansion of floriculture industry becomes promising in both unused land and by dislocating prior users. Amazingly, commercial farming used vast land which in turn breeds land expropriation of smallholders. The presence of land stress to urban redevelopment and commercial agriculture forced the state to use expropriation as an instrument to take away land from prior users through fair compensation (FAO, 2008; Daniel, 2014). To ensured the above priorities, a policy that legalizes expropriation adopted in the constitution article 40 (8), proclamation No.455/2005 expropriation of landholdings for public purpose and payment compensation and Council of ministries regulation No. 135/2007; ANRS state council regulation No. 5/2010 (Belachew, 2013; Daniel, 2013). At this time onwards, development strategies shifted their emphasis and resource allocation to commercial agriculture (Colier and Dercon, 2014). Expropriating and allocating land to investors is crucial to attained broad based economic development if its comparative advantage is highest (MoFED, 2006). Owing to this fact, dislocation of landholders for commercial farming is also continued and prioritized in the subsequent poverty reduction policy of GTP-I and II to attained rapid agricultural growth (Yihenew, et al, 2013; Desalegn, 2011).

The government’s investment friendly policies are critical in enhancing the scale and extent of commercial farming (EIC, 2016). Many investors are attracted by the advantages of the Ethiopian investment policy (Desalegn, 2011). The investment proclamation No. 270/2012 provides investors many advantages by their engagement in both agricultural and non-agricultural aspects (ANRSIC, 2014). For instance, the presence of a large area of unused or underutilized land and low cost of doing business increased investment engagements in agriculture. As per PASDEP document, the country has plenty of unutilized land that able to promote commercial farming without damaging the rural poor (FDRE, 2006). Pertinent to this, the government needed to boost export crops and increase foreign currency by promoting commercial agricultural investment in the country to address hard currency shortage and trade imbalance (Desalegn, 2011). Concomitantly, the presence of relative security and favorable climate conditions speeded up promotion of commercial agriculture. Investors engaged in agricultural investment and exporting more than 50% of its output are eligible to income tax exemption more than five years (Desalegn, 2011; ANRSIC, 2014; EIC, 2016). In the same vein, Ethiopia is a member of Multilateral Investment Guarantee Agency (MIGA) which can protect investors from any loss (EIC, 2016). Capital goods and construction materials are imported freely. To generalize, Ethiopia’s proximity to the outside world (Asefa and Gosa, 2017); the presence of guarantee to non-commercial risks (ANRSIC, 2014; EIC, 2016); an increasing return of rates in commercial agriculture (Onoja, 2010); friendly investment policies (EIC, 2016); vast unutilized land (Desalegn, 2011) and income and custom duty exemptions are driving forces behind commercialization of agriculture in Ethiopia.

2.5. The Performance and Problems of Commercial Farming in

Ethiopia: an Empirical Literature

Commercial farming was started in Ethiopia during the Imperial Regime (Desalegn, 2009). According to Desalegn (2011) the importance of commercial agriculture to achieve sustained economic growth and high foreign currency had been recognized in the imperial period. Although there were attempts and positive moves towards commercial agriculture during the imperial regime, it was remained ineffective and unsuccessful. The political instability; the adoption of policies without attuned investigation of the country’s reality and exploitative tenancy relations aggravated political turmoil in many parts of the country indirectly made it ineffective (Desalegn, 2009; Chala and Terefe, 2015). Similarly, the Derg regime had also paid solid priority to

commercial agriculture and established large scale state farms and agricultural producers’ cooperatives and allocated large proportion of agricultural budget. Like the imperial regime, commercial agriculture was remained ineffective and unsuccessful. The excessive state intervention, the unplanned production and marketing, foreign imposed development policy and political instability were impediments of commercial farming during the Derg period (Dejyitnu, 2012; Asefa and Gosa, 2017).

The scale and extent of commercial agriculture increased very radically in Ethiopia during the EPRDF regime as a result of policy priority since PASDEP (ANRSIC, 2016). Investors are attracted by the government subsidies in the form of tax holidays for larger scale agricultural investment (EIC, 2016). Cognizant to this fact, many investors have invested their capital in commercial agriculture under the EPRDF government (Schoneveld, 2011). In the process, more than 30 agricultural commodities have been identified in Ethiopia to promote commercialization of agriculture (Habtemariam, 2008). In this respect, the importance of floriculture investment in its creation of job opportunities, generation of hard currency and the desirability of the commodities in the outside market acknowledged and encouraged by the government to expand it (Elias, 2012). Due to this, floriculture is becoming the most rapidly developing business venture and export item in Ethiopia (Gebre, 2011). It has shown improvements in quality and quantity of exports to the international market in recent years (Asefa and Gosa, 2017). The rising of floriculture export earning encouraged the government to put solid priority on floriculture investment in Ethiopia at the present (Yihenew et al, 2013). The success of floriculture business in Ethiopia attracts investors following the issuance of investment proclamation (Desalegn, 2011). The expansion of this investment venture provides huge job opportunities for many people at temporal or permanent basis (Gebre, 2011; Asefa and Gosa, 2017; Mesay, 2017).

The expansion of commercial farming brings a mixed repercussion. In one way, it generates hard currency and job opportunities. Conversely, it leads to land dispossession which is a more acute and serious problem despite many of its people are food insecure (Belachew, 2013; Azeb, 2017). Besides, the government has faced a chronic problem to balance improvement of pro-poor under subsistence farming vis-à-vis with a shift to commercialization of agriculture (MoFED, 2006). Expropriation has an everlasting effect and put peasants at the worst situation of food insecurity (Belachew, 2013). Because the crops produced in commercial farming geared towards export by

disregarding home consumption. In the same vein, a policy tension and contradiction observed between commercialization and intensification of small holder agriculture (Amdissa, 2006). Land is served long as a traditional source of livelihood to local communities but now it is expropriated by investors for commercial agriculture (Fonjong and Fokum, 2015).

Land tenure and investment in land has a far reaching social, political and economic implication for small operated family farms in Ethiopia (Desalegn, 2011). A shift to commercial agriculture affected and marginalizes more subsistence farmers and local markets (Birhanu et al, 2006; Sawyer, 2010). The study made by Azeb (2017) on the effect of agricultural investment on local communities revealed that land taken from smallholder peasants for commercial farming marginalizes further small scale producers. Similarly, Desalegn, (2011) and Bereket (N.D) observed that the existing top down imposition of policy in Ethiopia undermines the freedom of peasants to choose their livelihood which indirectly reduced them into tenants. According to them, investors have strong bargaining power backed by the state and local elites in the land deal process. Smallholder farmers who are dispossessed from their land do not effectively negotiate in the land deal process. The acquisition of land for commercial agriculture has made women more vulnerable to hunger, poverty and poor working conditions (Fonjong, 2016). Besides, it exacerbates unemployment by displacing the farmers (Desalegn, 2009) and results the marginalization of the masses and enrichment of elites (Larsen, 2012).

The aforementioned evils of expropriation to commercial farming and unwillingness to dislocation catalyze conflict and violence. In relation to this, misunderstanding and conflict happened between officials of the federal and regional governments in Gambella region as the problem created by the commercial agriculture (Azeb, 2017). Massive dislocation and acquisition of vast land without the knowledge of regional officials created grievance, resistance and conflict in the specified region. Azeb (2017) further added that land investments in Ethiopia are controlled by both federal and regional governments. But the federal government controlled all land investments through its centralized Agency called Agricultural Investment Land Administration Agency (AILAA). This has created discontent and conflict between officials of the agency and regional governments (Azeb, 2017). Similarly, the top down imposition of policy in the land deal process has caused conflict between the government and the local people (Bereket, N.D.; Borrass and Franco, 2013).

There were peasant protest incidents occurring in many parts of Ethiopia when the land is expropriated and after the actual operations of investment projects (Desalegn, 2011). A typical violent conflict happened in Minjar Shenkora Woreda of North Shewa between expropriated farmers and investors in 2017(AMMA News, Nov. 12/2017). Concomitantly, similar incident occurred in Bakoo Tibee woreda when the land transferred to investors (Desalegn, 2011) but the opposition put down by federal police to maintain order and peace in the region. Hence, commercial farming in Ethiopia has been characterized by instability, change and unexpected outcomes (Smalley, 2014). But the above researchers and other scholars have overlooked to assess the linkage between politics and expansion of commercial farming when a demand to investment is unfolding. The context of this study is quite different from Gambella, Bakoo Tibee, Gura Ferda and Benishangul region because the farms are commenced by fully dislocating prior users. Besides, a comprehensive understanding about the Political-Economy of agricultural investment begins from land acquisition, compensation process and its accompanied consequences to thoroughly investigate the issue by taking some farms as an empirical appraisal.

In the same fashion, various studies have been conducted on the impacts and challenges of commercial agriculture in general and floriculture investment in particular. Addisu (2016) for example has investigated the impact of large scale agricultural investments on local communities in Gura Ferreda Woreda, SNNPRS. The findings of his study revealed that the investment plan failed to consider the specific context of the study area and absence of communities’ participation in the land deal process. The study employed a qualitative research approach. As Cresswell and Clark (2011) noted, the use of mixed research approach provides a more appropriate and better understanding to the research problem than either approach alone. Besides, he did not assess the political intricacies, the inter-linkage between politics and the move to commercial farming. Similarly, another study was also conducted by Gebre (2011) on the underlying causes for the failure of floriculture investment in Ethiopia. He employed mixed research approach and employed multiple tools of data collection. The finding of this study indicates the poor management of floriculture investment is a major cause for the failure of floriculture investment. He further found that poor business planning, poor marketing management, poor financial management and poor human resource management followed by economic and other related causes like lack of high quality packing, lack of efficient cargo freight and high transportation cost are causes of business failure in floriculture industry. Amazingly, his study revealed that political instability is not a

threat to the progress of floriculture industry in Ethiopia. This study, however, did not examine the effect of floriculture investment on the wellbeing of the poor agrarian expropriated peasants and the state, compensation process and the linkage between politics and an economy as well.

Elias (2012) has also conducted a study on the Ethiopian floriculture industry entitled with “investment promotion and environment protection balance in Ethiopia’s floriculture: the legal regime and global value chain”. His study is based on sociological and legal inquires and used a case study research design. The findings of the study show the contradiction of floriculture industry with economic, social and environmental aspects of the country. According to him, lack of regulation, low institutional capabilities and week governance results environmental risks. The flower export boom resulted from unprotected soil and water resources which are economically unsustainable and does not bring about social wellbeing and environmental sustainability. The economic impacts of the flower farm on the wellbeing of local communities and the inter-linkage between politics and a move to commercial farming are overlooked by this study.

Generally, the above empirical studies in one way or another overlooked to examine the nature of expropriation, compensation and its accompanied political and economic evils on both the locals and the country. There is a state of paradox and contradiction what the government reported and people claimed about agricultural investment. In one way, the government firmly prioritized commercial farming and reported the tremendous achievements attained by commercial agriculture without making anyone worse off. Inversely, discontents and grievances about development induced expropriation for commercial agriculture becomes the common agenda in the rural poor and academic spheres. Similarly, researchers are continuously conducted empirical investigation and forward recommendations about the impacts of expropriation for commercial agriculture. But destruction and popular protest against farms are continuing in many parts of the country. Besides, expropriation, compensation, political and economic consequences of commercial agriculture on the locals and the country are strongly inter-linked each other. Owing to this fact, the researcher aspired to critically investigate this paradox by conducting a study entitled as “the Political- Economy of agricultural investment in ANRS by taking Jovani Alphano and Tana Flora as a case study”.

2.6. Conceptual Framework of the Study

After reviewing empirical literatures, the researcher has developed a conceptual model that precisely indicates the relationship between dependent and independent variables in a linear relationship. In this study, the four specific objectives were dependent variables occurred as a result of the independent variable. Expropriation, compensation, Economic and political consequences are dependent variables aspired to be examined in this investigation. The commencement of flower farms resulted in expropriation followed by compensation, political and economic consequences on both the locals and the country. Generally, the conceptual framework was explained in the following diagram.

Nature of land expropriation No public discussion in land dealings Top-down approach of expropriation No popular consent to expropriation

Economic consequences Compensation Livelihood deprivation of locals Food insecurity Inadequate compensation Job opportunity Uncertainty of valuation Flower Technology transfer Dissatisfaction on investment Infrastructural development compensation issues Export diversification

Generation of hard currency

Political consequences Political violence & conflict Tenure insecurity Strained government-society relation

Distrust and loss of gov’t legitimacy Diagram 1. Own’s articulation based on literature

CHAPTER THREE

3. RESEARCH METHODS AND DESCRIPTION OF THE STUDY AREA SETTING

Introduction

This chapter mainly deals with study area settings, associated demographic characteristics and climatic weather conditions of the woreda and thereby study cases. It also pertinently deals with research methods employed to capture the essence of the study. The philosophical paradigm, research approach and design, data sources and instruments, sampling procedures and methods of data analysis, trustworthiness and ethical considerations and the rationales behind using each method to fully address the essence of the investigation have been clearly stated. Lastly, the field work experiences the researcher faced has stipulated from the outset to the end.

3.1. Description of the Study Area Setting

Bahir Dar Zuria is one of the woreda in West Gojjam where many flower farms are found. The woreda is bordered on the south by Yilmana Densa, on the South West by Mecha, on North West by the lesser Abay river which separates it from Semen Achefer, on North by Lake Tana and on the East by the Abay river which separates it from South Gonder. The land of the Woreda shows that 21% is arable or cultivable, 9% pasture, 8% forest or shrub land, 36% covered with water and the remaining 26% is considered as degraded. Teff, corn, Sorghum, cotton and Sesame are widely produced crops in the woreda. The altitude in meters ranges from 1,750 to 2,300 above sea level (Ayana, 2016). The climatic condition of the woreda is Woina Dega with a topography of hilly, mountainous, rolling and valley. According to the 2007 national census, the woreda has a total population of 182,730, of whom 93, 642 are men and 89, 088 are women. A total of 40, 893 households are found in the woreda. Orthodox Christianity and Amhara are the major religion and ethnic group respectively in the woreda. A large plot of land has been expropriated from smallholder peasants and transferred to investors beginning from 1999 E.C. Owing to this, a total of 15 flower farms exist in the woreda. The farms studied are found in Bahir Dar Zuria Woreda in different kebeles. Although the people are highly dependent on crop cultivation, expropriation is more intense compared with other woredas. The proximity of the woreda to the city of Bahir Dar and its relative infrastructural development make it a choice for many investors.

Workemla Achadir kebele is found in Bahir Dar Zuria Woreda which is far from the City of Bahir Dar in 16 km around Meshenti town. The kebele is highly fertile and conducive for farming. The local communities are highly dependent on small scale farming which is the main stay of the kebele for long. Livestock and honey production is also another economic activities mostly used in the kebele. Jovani Alphano flower farm is found in Workemla Achadir kebele and it is the earliest flower farm commenced in the region. A total of 144 hectares of land was expropriated from peasants and transferred to Italian investor with a hope of generating hard currency and job opportunities. But the investor has been reluctant to efficiently utilize the land for the targeted purpose. Due to this fact the land of the farm was reduced in to 68 hectares over the last 4 years. Tana Flora is the 2nd earliest flower farm established in the region as well as the woreda in Rose production (ANRSIC Office, 2017). It was established in 2007 and owned by Gafat Endowment. The farm found around 17 km far from the city of Bahir Dar city in Wonjeta kebele, North West of Ethiopia in South West edge of the historic Lake Tana. It has been operated in a land accounted approximately 125 hectares (Tana Flora Office, 2018). As it was observed in the field work, the agro-climatic zone of the kebele is Woina Dega with a very fertile land conducive for agriculture. The kebele has a minimum of 11.5 co and a maximum of 26.9 co temperature respectively. The average annual rainfall of the area is 1353mm/year. The studied farms are drawn in maps.

3.2. Research Methods

3.2.1. Philosophical Paradigm of the Study

Based on the nature of research questions, a pragmatist research approach was employed. It was important for mixed research to better understand the objective and subjective aspects of the problem. The research questions which were aimed to be addressed had both objective and subjective aspects that required pragmatist philosophical paradigm to better investigate the problem. On the basis of knowledge acquisition or epistemology, how reality can be known, this investigation combined both quantitative and qualitative tools of data collection. The objective aspects of the study could be known by consulting reports, figures and dispatching survey to respondents. Inversely, the subjective aspects of the problem could be known through qualitative tools of data collection by which knowledge was constructed. Migiro and Magangi (2011) noted

that pragmatism is the best philosophical basis of mixed research approach and justifies the combination of multiple methods in a single study. It was from this logic, the researcher adopted pragmatism as a philosophical lenses of this study.

3.2.2. Research Approach

The study employed mixed research approach to examine the Political-Economy of agricultural investment in ANRS: a focus on Flower farms in Bahir Dar Zuria Woreda. This approach enabled the researcher to capture the essence of the study where the problem itself required a mixed approach to assess the problem quantitatively and qualitatively. In this regard, the extent of land expropriated, the amount of compensation paid, property destroyed by violence, number of employees hired and wage paid could easily known and understood by consulting reports and dispatching survey. Conversely, peoples’ perception and feeling about land expropriation, compensation, economic and political consequences of farms and its implication on government- society relations as well as underlying causes of pandemonium addressed through qualitative approach. Besides, it was more appropriate to have had multiple chances to utilize different methods to better explain the political economy of flower farms in the study area. According to Cresswell and Clark (2011) and Ponce and Pagan-Maldonado (2015) the use of a mixed research approach provides a more complete information and broader understanding about the research problem which indirectly enables the researcher to make more informed decisions about how to solve the problem. Again, Creswell (2009) noted that using one research approach in a study has its own limitations but integrating two research approaches minimizes the limitations.

3.2.3. Research Design

Research design is a master plan of action that specifies the methods and procedures in which investigators followed in collecting, analyzing and interpreting research data (Kothari, 2004; Ponce and Pagan-Maldonado, 2015). This study employed concurrent mixed method design to assess the Political-Economy of flower farms in the Peripheries of Bahir Dar city. Onwuegbuzie and Collins (2007) and Fetters et al (2015) noted that concurrent mixed method design is selected when researchers demanded to conduct both quantitative and qualitative phases concurrently and independently. The investigator adopted this design because each research question has subjective and objective aspects of reality that should be studied in both research approaches concurrently. In

doing this, time order and purpose of mixing quantitative and qualitative approaches were the criteria used in selecting this research design. The purpose of mixing was for triangulation and complementarities to obtained data on overlapping aspects of a phenomenon and thereby the two data sets are compared if there is convergence, differences, or some combination. Cognizant to this fact, Cresswell (2003) stated that concurrent design is appropriate when the purpose of mixed method research is triangulation and complementarities. By doing so, the researcher captured the problem from its entirety and dimension to better inquiry the problem. It helps as a means to offset the weaknesses inherited within one method with the strengths of the other (Creswell, 2009).

The study aimed to describe and understand the existing state of affairs and the subjective feeling and experiences of participants about expropriation, compensation, economic and political consequences of flower farms with data collected at one point of time. The researcher dispatched survey questions to expropriated peasants and at the same time made an interview with evictees, rural land administration and use workers, land valuer committees, workers of ANRSIC and agents of farms simultaneously. The integration of both qualitative and quantitative data obtained from participants and respondents was made at analysis and interpretation part through joint display. According to Fetters et al (2015); Almlaki (2016) and Santos et al (2017) joint display is a way of integrating quantitative and qualitative data in the process of analysis and interpretation that produce information supported each other mutually. It used statistics –by-themes and side-by-side comparison methods of integration where both data integrated together through a visual means to draw out new insights beyond information gained from the quantitative and qualitative results. This way is increasingly seen as an innovative and advanced method of integration.

3.2.4. Sampling Techniques and Sample Size

In this study, purposive sampling technique was employed to choose participants engaged in semi- structured interview and FGD about the issue to be studied. A total of 19 individuals from evictees and 2 individuals each from land valuer committees, workers of ANRSIC and Bahir Dar Zuria Rural Land Administration and Use Office and 2 agents each in the two farms and 3 experts were interviewed. Two focused group discussions were conducted which involved expropriated peasants from each case study areas. The participants were selected by the perception of the researcher on the belief to obtained concrete information about the problem under study. The sample size of participants selected for interview was determined by saturation level. In addition, this study also

employed stratified sampling technique to choose respondents for survey based on the nature of land status whether expropriated /unexpropriated farmers as a criterion to identify strata groups. After identifying the grouped strata in accordance with a land status criterion, the final samples were selected based on stratified random sampling technique from dislocated landholders alone. However, for the quantitative data, the sample size was decided through representativeness of the samples proportional to the total population. To determine the sample size, the researcher used the formula of Yemane (1967) sample size determination formula.

= () Where, N= total population; Tana Flora=172 Jovani Alphano=96. Therefore, N=268 e= margin of error (0.05) n= sample size.

Therefore, = = = =160. In order to gather data from () (.) . the two flower farms, the total sample size was distributed proportionally based on number of households dispossessed from their land. If the sample size of the total population was 160, from 172 households expropriated in Tana flora 103 peasants were selected through stratified random sampling for questionnaire. For Jovani Alphano flower farm, 57 households were selected similarly for survey. The total sample size was 160 taken from expropriated peasants in the two case study areas. These households were taken proportionally from the two kebeles in accordance with the number of peasants expropriated and extent of land taken to flower farms. Atangusa Chicha kebele was the area where largest numbers of people were expropriated for Tana Flora in which 103 evictees were taken as a sample. Similarly, 57 survey households were taken in Workemla Achadir kebele. In the studied case areas, Chicha, Workemla, Atangusa and Tiratir were villages held the largest proportion of the sample with relative distribution of 77, 36, 26 and 21households respectively

3.2.5. Data Collection Instruments

This research employed semi-structured interview, FGD, observation, document analysis and questionnaire as tools of data collection. These instruments used to triangulate and enhance the

reliability and trustworthiness of the data obtained from participants and respondents who were selected as sources of information to the problem under investigation.

3.2.5.1. Focused Group Discussion (FGD)

In this study, the researcher used FGD on farmers who were expropriated from their land about land expropriation, compensation process, economic and political consequences of flower farms on both local communities and the country. It is a method that brings a small group of individuals that involves 6-10 at one place together in discussion on particular issues (Hancock, Ockleford and Windridge, 2007). According to Morgan (1996) FGD is an important instrument to cross check an individual interview by group response on the issues investigated. This method permitted the researcher to uncover aspects of understanding that often remain hidden in a more conventional in- depth interviewing method. Thus, two FGD’s were held with dispossessed peasants in the two flower farms. In the process, the investigator hired a note taker who was well equipped in taking notes while a discussion was ongoing. The use of FGD was aimed to understood meaning and interpretations of selected individuals about the problem in relation to the perspective of participants of the group because it allowed in-depth discussions on a specific area of interest in a greater detail.

3.2.5.2. Semi-Structured Interview

An interview was employed with expropriated farmers, ANRSIC workers, compensation valuation committees, Bahir Dar Zuria Woreda Rural Land Administration and Use offices as well as agents of Jovani Alphano and Tana Flora and Academics to collect relevant data about the issue under investigation. In research interview, thus, the interviewer asks specific questions pertaining to research objectives to the participants (Ahuja, 2010). A qualitative interview is a two-person conversation initiated by the interviewer to obtain research relevant information specified by the research objectives of the study (Creswell, 2009). The nature of the interview was in-depth and face-to-face purposively made to obtained adequate and concrete information. The questions of semi-structured interview were prepared before; however, probing questions were added for further clarification on issues not clear at the time of interview. A total of 30 interviews were made with evictees, government agents, land valuation committees, agents of farms and experts. Out of the total interviews, 19 evictees; 4 government officials and 2 land valuation committees and 2

agents of farms as well as 3 academics were interviewed. The place of an interview was determined by the interests of interviewees. In the process, audio recorder via mobile phones was utilized but most participants were involuntary to be recorded. Hence, the investigator chiefly takes a short note while an interview was held with each interviewee. In order to ensure the anonymity of participants and their safety, the researcher coded the ideas of interviewees and informants due to the political sensitivity of the issue under investigation.

3.2.5.3. Secondary Data

In addition to data obtained from the field; different documents, journal articles, books, working papers, academic thesis and dissertations, FDRE constitution and land deal proclamations, ANRS land deal proclamations and reports of concerned regional and woreda offices were analyzed and consulted to generate data about the issue under investigation. Different reports regarding to land expropriation, compensation process, economic and political consequences of flower farms was accessed and analyzed in accordance with major themes of the study.

3.2.5.4. Observation

It was practically employed to capture data by observing the existing issues of farms. It aims to obtain events and facts of incidents in their natural settings without intrusion (Bruce, 2001). The investigator observed the existing status of farms and individuals working there. The remnants of machines, cars, ware houses and green house demolished by the violence were observed. The observation was simple in nature without having well prepared checklists.

3.2.5.5. Questionnaire

In this study, survey was administered and dispatched to expropriated farmers about the nature of land expropriation, compensation process, economic and political consequences of flower farms. This was made to gather the objective aspect of the problem to supplement and triangulate data obtained from participants. The survey items were both open and close ended questions which were translated into Amharic version. Besides, the researcher was made contract with enumerators familiar with the environment who easily adapted the researcher to the studied area. By doing so, the researcher dispatched and collected relevant data with the support of individuals who made contract with careful control.

3.2.6. Data Analysis Method

This study employed thematic and simple descriptive analysis in an integrative manner. The data collected through interview, focus group discussion and document analysis were coded and condensed to specific patterns and themes. It was transcribed, coded, presented, processed and analyzed by identifying themes together with quantitative data. In the process of data analysis, the researcher arranged what the general concept of investment policy of Ethiopia says at one hand and its Political-Economy on the other hand. Regarding to quantitative data, the researcher also presented and analyzed through simple descriptive statistics using frequency distribution, chi- square test analysis, measure of central tendency and variation. The data was presented in tables and graphs. Chi-square test was also employed to see the association between categorical variables. The sample information was described and explained without forecasting to the general population. Because the nature and mode of production, extent of land and its utilization, compensation paid and valued, job created and technology transfer, violence happened and its consequence to local communities and the state by flower farms was different. Besides, the data was collected in cross sectional ways; hence, generalization might be mistaken. Therefore, similar studies should be done to make generalization on land expropriation, compensation process, economic and political consequences of flower farms on locals and the state in Bahir Dar Zuria Woreda. Hence, generalization is impossible due to the context based nature of reality. Data analysis takes place whenever theory and data are compared (Singleton, 1999).

3.2.7. Ethical Consideration

The researcher abided by the ethical standards and rules of research from the outset to the end. The researcher respected and asked the informed consent of participants and respondents when he selected his samples to the study. As an investigator, the researcher detached himself emotionally and uninvolved in bias and fabrication of facts. In addition, the investigator also kept the anonymity of participants and respondents throughout the whole work of the research and organized the paper in accordance with data obtained from participants and respondents without trimming of data. Moreover, interviewees and informants were coded to kept anonymity.

3.2.8. Reliability and Trustworthiness of the Study

In order to increase the credibility and validity of the research, the investigator employed triangulation method. At the very beginning, the researcher adopted a mixed research method to understand both the objective and subjective aspect of the study which enhanced the credibility and reliability of the finding. In addition, the researcher gathered data from different sources by using different tools of data collection to cross check the data obtained from different sources. In addition, the researcher also detached himself from subjective interpretation of the data obtained from participants and respondents. Finally, the researcher also used peer reviewed journal articles, books as well as other published and unpublished materials produced by academics and reports of international organizations to minimize the chance of subjectivity by duly acknowledging the source used in the study.

3.2.9. Selection of Field Assistants

Having field assistants played a paramount role in accessing relevant data on issues to be investigated and adapting the investigator to the study area. They were credential to meet with individuals having more information on the problem. Two field assistants were purposively selected one in each farms based on their level of education and exposure to the area in voluntary basis. The assistants were very decisive to the researcher to be trusted by participants and respondents. Surprisingly, both have completed their education. One of the field assistance in Atangusa Chicha was graduated in vocational training and served more than two years in Tana Flora. They were very cooperative and socially acceptable in the eyes of participants and respondents who made scenarios very easy despite some problems we faced together. The field assistants helped and suggested individuals to be interviewed and engaged in FGD’s on issues to be studied.

3.2.10. Field Work Experiences

Initially, all necessary equipments were prepared prior to go the field works. The sample frame of respondents was accessed after passing various obstacles and challenges in compensation payment document in the woreda finance in Atangusa Chicha. But landholders dislocated for Jovani Alphano were identified by the field assistant despite the number of hectares and people evicted were known in the woreda land administration office. The offices supposed to access payment of

compensation document were not cooperative. They repeatedly responded the absence of the document in their offices; however, through various rapport mechanisms, the document was handover in the hands of the investigator. Then, prior information about the farms and their destination was gathered from Bahir Dar Zuria Woreda Land Administration and use office workers. The kebele land administration workers phone number was taken from woreda office and then introduced them through calling. After doing all these preconditions, then the researcher visited the area and identified the village of peasants expropriated from their land. After identifying the villages that more evictees were found, enumerators in each kebele was chosen after long time discussion. However, enumerators were initially reluctant and suspected me as a politician and remained involuntary due to fear. The researcher created awareness to enumerators about the purpose of the investigation where the researcher had no hidden agenda except for academic motive. Then trust and agreement earned from enumerators and became dedicated to support me until all necessary data was collected. The enumerators were chosen based on their educational level and proximity to the study population.

After a week initial survey, a field work was started in February 03, 2018 to gather information from evictees with enumerators. Peasants could be easily found near to the farms while they were harvesting their crops. From the onset, dispossessed peasants had no willingness to fill the survey questions due to fear of politics. But when enumerators explained the insularity of the researcher from politics with the letter that he had, peasants became voluntary, very happy and cooperative. It was 10 years in which peasants expropriated from their land and considered me as a government agent studied to paid compensation again. This was very challenging but the researcher told the truth about the academic nature which aimed to examine the Political-Economy of expropriation on local communities and the state as a thesis to earn his MA degree.

During my field work; survey was administered to evictees by stratified random sampling after strata groups were identified based on land status criterion. This was made vis-à-vis with interview and FGD’s concurrently. Interview was made with peasants who lost more land in comparison with others through the compensation document and field assistants. Besides, individuals from ANRSIC, Bahir Dar Zuria land Administration office, Land valuation committees and agents of investment sites were interviewed simultaneously. Two FGD’s were conducted with evictees in each studied site; one in Workemla Achadir and the other in Atangusa Chicha. The place to made

interview and FGD was selected through the interest of participants. The investigator used mobile phone as a recorder when participants were willing to be recorded; however, the majority of interviewees were not allowed me to use recorder. Hence, the investigator chiefly used note taking by him and the note taker. The researcher also recorded images by using photo copying the pictures observed in the area.

After the researcher completed data collection in the studied area, the challenge was emanated by local kebele administrations. They mixed the research process with politics due to its topical nature where locals were mobilized for violence. Kebele administrators conceived me as infiltrator deliberately mobilized the society for violence. Due to this fact they excluded an enumerator helped me not to be represented as a candidate to be chairman of kebele youths in Atangusa Chicha. They reasoned that enumerators were cooperated with infiltrators but the researcher verified his interest in conducting the study. This became a threat for the researcher to freely move the studied areas to gather data on overlapping issues after data analysis and interpretation particularly following the declaration of state of emergency. To the extreme, the former kebele administrator asked me where you accessed the compensation document in mobile phone and we deal in detail about the works that the investigator was aspired to accomplish.

CHAPTER FOUR

4. DATA PRESENTATION, ANALYSIS AND DISCUSSION

Introduction

This chapter mainly deals with data presentation, analysis and discussion based on data accessed through various instruments and consulting secondary sources. The data obtained from participants was kept in verbatim and thereby analyzed and interpreted accordingly. Besides, quantitative data also gathered in specified themes and presented using Statistical Package for Social Sciences soft ware. Then after, the data obtained through qualitative and quantitative tools of data collection have been jointly analyzed and interpreted in an integrative manner through joint display mechanisms in accordance with specified themes. In this chapter, the major finding of the study was breaking down in to four major themes and many other specific sub themes. The issue of landholdings, expropriation, compensation, economic and political consequences of flower farms on local communities and the country were thoroughly analyzed and interpreted based on data obtained through the aforementioned instruments.

4.1. The Nature of Land Holdings and Expropriation

It is obvious that land is the most important livelihood asset throughout rural Ethiopia. On similar token, land has been a source of crop production and means of income generation for peasants long (KI1, March 19/2018). The informant further added that access to land is a critical issue for millions of farming households. But the rapid population growth coupled with shortage of land makes it a centerpiece in Ethiopian government-society relation today than before (KI1, March 19/2018). In the same manner, evictees unanimously asserted that they had adequate size of land to meet the demand for farming purpose before expropriation. The opportunities to get additional farming land through share cropping and renting was also high preceding the expropriation phases. They further added that the reduction of farmland holding size due to apparent expropriation for investment become a hot agenda of the locals today. In relation to landholdings, about 86.9 percent of sample households have possessed agricultural land and the rest 13.1 percent did not possess farmlands. Although the majority hold a farm land, its size was too small and inadequate for crop cultivation. In the same phraseology, from 86.9 percent of sample households who possessed a farmland, 81.3 percent of survey households have a farmland below one hectare currently which

sustains an average household family size of 7.04 (see annex1). This connotes the mean land holding size of surveyed households is below one hectare, which is lower than the national average (1.22 hectare) (Sosina and Holden, 2014).

The farmland size of most surveyed households today has diminished compared with the last ten years mainly as a result of expropriation to flower farms and sharing to children’s. The land expropriated was a farmland used for cultivation by households. This in turn reduced crop production. In this regard, evictees unveiled that the shrinkage of farmland holding size reduced the extent of crop production per households. Seemingly, an interviewee stated that “the extent of crop production has declined in the area following expropriation” (GO-2, Feb. 15/2018). Likewise, about 86.3 percent of sample respondents revealed that crop yields reduced after land usurpation (see table 4.6). An investigation carried out by Desalegn (2013) found that peasants’ production of crops was proportionally linked with landholding size. He further illuminated that the total output of crops produced increased with greater landholding size manageable at family level. Chala and Terefe (2015) also noted that small landholding by the farmers is not providing anticipated growth and food security. This study revealed that dispossession was carried out in a land stressed society with no alternative land use arrangement. Therefore, shortage of farmland is one of the severe constraints of farming surveyed households to produce enough agricultural production and sustain the basic needs of their family.

Table 4.1: Distribution of sample respondents based on response about nature of landholdings No Items Response Frequency Percent 1 Does your household possessed Yes 139 86.9 a land for crop production No 21 13.1 and other purposes? Total 160 100 2 If yes, Size of land you hold? Below 1 hectare 130 81.5 1-2 hectare 9 5.6 Total 139 86.9 3 How the current land size Decreasing 139 86.9 compared before 10 years? Nothing 21 13.1 Total 160 100 4 If decreasing, reason? flower farm 150 93.8 2, 3 10 6.3 Total 160 100 5 Type of land taken farmland 160 100  (2, 3) stands to show expropriation to flower farms and sharing to children’s

Gragh-1 The size of farmland expropriated from evictee farmers 34.4% 31.9%

11.9% 10% 8.1% 3.7%

< 0.25 0.25-0.50 0.51-1.0 1.01-1.50 1.51-2.0 >2.0 hectare hectare hectare hectare hectare hectare

As highlighted in the above graph, 34.4 percent of the sample households were expropriated a land size in between 0.51 hectare up to 1 hectare. Similarly, 40 percent of the respondents had lost a half and below half hectares of land to flower farms. Besides, 21.9 and 3.7 percent of surveyed households were expropriated a land size above one hectare. As highlighted above, the majority (60) percent of households lost a land size above ½ hectares of land by the government to flower farms. The average size of land taken from peasants accounted 0.84 hectare which was minimally less than the mean of national land holding size (see table 4.2 below). This clearly connotes the majority were losing much of their land in the process. The maximum and minimum amount of land expropriated from peasants in the study area was 2.45 and 0.09 hectares respectively (see table 4.2).

Table 4.2: Measure of central tendency about land expropriated to flower farms

Land size taken N Minimum Maximum Mean Std. Deviation to flower farms 160 0.09 2.5 0.84 0.56

4.1.1. Land Dealings, Participation and Consent of Peasants

Table 4.3: Distribution of Sample households response about the nature of land dealings and expropriation No Items Response Frequency Percent 1 Government consults me before strongly disagree 55 34.4 Land taken Disagree 52 32.5 Agree 53 33.1 Total 160 100 2 Government asked my consent before strongly disagree 52 32.5 land transfer to investors Disagree 52 32.5 Agree 56 35.0 Total 160 100 3 The land taken without my consent Agree 55 34.4 strongly agree 105 65.6 Total 160 100

Evictees revealed that genuine public consultation about land deal issues was not adhered when the land was proposed for investment by the government. In the same breath, about 34.4 & 32.5 percent of sample respondents replied ‘strongly disagree’ and ‘disagree’ respectively concerning the consultation of the public before the conduct of expropriation. Inversely, 33.1% of the sample households recognized that government consulted them when the land was transferred to investors. But the consultation was an imposition of a decision made from above; after it was determined at governmental level. In connection to this, GO-2 and 3 embodied that woreda officials are implementers of a decision determined at Zonal or Regional level about expropriation. In this regard, a decision to free land from third bodies was raised by the Regional Environmental Conservation; Land Administration and Use Bureau with no detailed procedures about peasants’ participation and consultation (see annex-2). In the same breath, VCI2 also asserted that peasants were invited to engage in consultation but they brought nothing once the authority decided on the issue. An interviewee further added that consultation was made with local communities to justify public and academic criticisms about the expected merits of farms in exaggerated terms. Concomitantly, dislocated interviewees and focused group discussants stated that there was no fertile ground to overturn the decision of expropriators due to a big power asymmetry between evictees and the government.

In this regard, conducting public consultation about land dealings is helpful to the government to appreciate the concern of landholders and create smooth environment to the success of farms

commenced (Daniel, 2015). But Fonjong and Fokum (2015) noted that land deal negotiations in developing countries neglected communities’ right on land. Similarly, Tanner and Baleira (2006) noted that a bundle of promises are waved to local communities at different meetings and conferences on the desired outcomes of projects in most consultations related to land transfer without allowing them to bargain over land. This study also found that genuine and open public consultation was not made with evictees about land dealings in the study area. The decision to expropriate land was determined at regional level without involving peasants at the grass root level in land dealings. Hence, expropriation was carried out without genuine public consultation and participation of landholders in land dealings.

Concerning the issue of ascertaining the consent of peasants, GO-1 and 4 revealed that the peasants were asked about expropriation of land. But the consent was ascertained after the government decided to take the land for investment. Concomitantly, one third (35 percent) of sample respondents agreed that government asked their consent after decisions once decided at top level officials. Cognizant to this fact, they strongly opposed land expropriation and subsequently identified as anti-development (Tsere limat) and warned individually. At the very beginning, the way peasants consent asked was not genuine. Due to this, the peasants brought grievances and complaints in to the office of the regional chief administrator by opposing land appropriation. Inversely, nearly two third of sample respondents articulated that they were not asked about their consent before land acquisition. They further claimed that the government was very less receptive to the demand of the poor because peasants were not genuinely consulted and asked about their consent to expropriation. In this regard, Addisu (2016) opined that community consultation should earn approval from the affected communities before expropriation. But this study witnessed that the government could not get approval to expropriation. Hence, the land was appropriated without the consent of peasants by the unilateral decision of the government without arriving at consensus with previous landholders.

The next step after public consultation and asking the consent of peasants’ on land expropriation is the provision of written notification. “The provision of written notification help evictees to have knowledge about the extent of land taken and amount of compensation paid”(KI1, March 19/2018). In this regard, evictees embodied that notice was not made by indicating the time when the land was vacated and compensation was paid. They further articulated that the amount of

compensation was only posted on notice board in Meshenti and Wonjeta towns for Workemla Achadir and Atnagusa Chicha peasants respectively after everything was completed. In connection to this, VCI2 also asserted that evictees were not noticed in written forms prior to dislocation. It is evidenced that peasants were orally told not to plough the land without making appropriate written notification by indicating the extent of land taken, the time frame an evictee expected to be removed and amount of compensation paid with implementing agency. This was in contradiction to proclamation No. 455/2005 article 4(1), which states that when a woreda or an urban administration decides to expropriate a landholding shall notify the landholder in writing. Although the legal framework ensures notification in writing to evictees, they were not noticed about the extent of land to be taken, the time frame a land holder expected to move and amount of compensation to be paid with implementing agency. The absence of written notification indirectly made evictees confused in the overall process. Therefore, notification was not delivered to each evictee in written forms prior to expropriation.

Table 4.4: Distribution of sample respondents by quintal produced per expropriated land and the amount of money paid for compensation N Range Minimum Maximum Mean Std. Deviation Quintal produced /year 160 76 4 80 30.64 17.657 Compensation/hectare 160 272636 7800 280436 68405.54 53998.38

As indicated in the above figure, the variation of each respondent data from the sample mean was 17.657 for the quantity of crops produced on land taken to flower farms. The average quintal of crops produced on expropriated land accounted 30.64 whereas the maximum quintal of crops produced on expropriated land was 80 and the minimum was 4. This means that the range was 76 quintals which was calculated by subtracting the minimum from the maximum. The sample mean of compensation paid to peasants accounted 68,405.54. The variation of compensation paid to each respondent far apart from the sample mean by 53,998.38 birr. The minimum amount of compensation paid to peasants was 7800 whereas the maximum compensation was 280,436.

From the aforementioned findings, the researcher deduced that the issue of land has remained unanswered and contentious in Ethiopian politics. The absence of land ownership and sovereignty created fear and insecurity on peasants which in turn enhanced the hegemonic power of the government. Peasants’ confidence in possessing their land was strongly degraded because they

have only usufruct rights over it. This right could easily be overtaken by the government at any time in the name of public purpose and best utilization of the land itself. But the justifications of expropriation are too bold and debateable. The questions of what constitutes public purpose and best utilization are ongoing public and academic agendas in Ethiopian politics. Desalegn (2011) claimed that land sovereignty empowers peasants and allowing them to be active agents in all matters affecting their lives. But small landholders were mere receivers of a decision made by the government. Land expropriation is common to undertake development projects and public use works but it should not be done arbitrarily. The feasibility of the farms and its short, medium and long term impacts to the locals and the country must thoroughly investigated prior to dislocation. A mere provision of compensation could not be a rational reason of land usurpation. In this study, an emotional and ambitious expansion of commercial farming has been observed by dislocating landholders. The absence of careful assessment about the local contexts and its impacts on the locals and the state awfully gobbled up land and properties of investors by violence as it was briefly explained in theme four. A mutual consensus about expropriation by both the locals and the government must be reached for the sustainability of farms but not in study area.

Generally, the government adopted different proclamations, rules and regulations that allowed expropriation for public interest and to the optimum utilization of the land itself. This was the rational justification of expropriation which strongly linked with the theory of Levin’s regime dispossession. Land is the major sources of livelihood to smallholder peasants to produce crops for consumption and generating income. Although land expropriation was carried out for public good, it indirectly affected local communities in different aspects. The farms affected the livelihood sources; food security and land use arrangements of local communities. Similarly, the farms gobbled up land and created tenure insecurity on local communities and mobilized peasants to violence against the state. Hence, the way expropriation made and its consequential effects on local communities and the state could be explained in accordance with state dispossession and public choice theories.

4.2. The Nature of Compensation Payment

Table 4.5: Distribution of sample respondents’ response about compensation issues No Items Response Frequency Percent 1 Was compensation paid to evictees? Yes 160 100 2 Was there Choice of compensation to evictees? No 160 100 3 In which kind Compensation was paid? Money 160 100 4 Compensation was below expectation Agree 24 15.0 strongly agree 136 85 Total 160 100 5 Compensation paid was enough for many strongly 151 94.4 years disagree Disagree 9 5.6 Total 160 100 6 Compensation paid was not equal with land Agree 27 16.9 strongly agree 133 83.1 Total 160 100 8 Compensation paid for natural tree was strongly 38 23.8 adequate disagree Disagree 58 36.2 no idea 64 40.0 Total 160 100

As shown in the above table, all sample respondents replied that the government provided compensation to evictees. It was paid to each peasant whose land taken to flower farms with no choice of compensation. There was no compensation in kind and resettlement in other places in both Workemla Achadir and Atangusa Chicha kebeles. According to regulation No.135/2007 article 14, when a peasant dispossessed from his/her land that is used for growing crops or protected or pastoral land shall be provided with a plot of land capable of serving a similar purpose as much as possible. But GO-2 and 3 articulated that the peasants were compensated in cash due to lack of alternative free land. The survey data show that 85& 15 percent of the sample respondents responded that they ‘strongly agree’ and ‘agree’ respectively in payment of compensation which was below their expectation.

Concerning the adequacy of the compensation, about 94.4 and 5.6 percent of survey households rated ‘strongly agree’ and ‘agree’ respectively that the compensation payment was not enough for many years. The land used for life time span but compensation was given in cash which could be consumed with in a short period of time because evictees had no good habit and exposure in

consuming money wisely by expecting tomorrow. About 83.1 and 16.9 percents of respondents responded respectively ‘strongly disagree’ and ‘disagree’ where the amount of compensation was equivalent with the land taken to flower farms. “The land taken and compensation paid was incomparable. Land is a major asset for agrarian communities serving for life. Inversely, compensation was perishable and consumable within a short time particularly for peasants having no habit to use it wisely”(EI009, Feb.12/2018). All interviewees and focused group discussants revealed that land size was considered when compensation amount was estimated. About 23.8 and 36.2 percent of sample households replied ‘strongly disagree’ and ‘disagree’ respectively on the adequacy of compensation paid to natural tree. Concomitantly, 40 percent of the respondents have no idea and know how whether the compensation paid to natural tree adequate or not. But secondary reports witnessed that the properties situated on the land, byproducts of crops, natural and manmade trees, the loss of the land itself and labor force employed to plough the land were considered and estimated in the compensation process (see annex 3). According to Desalegn (2011) peasants alienated from their land have complained that payment of compensation is unfair and inadequate. A similar observation made by Dejyitnu (2012) shows that previous landholders evicted from their farm lands were evidently paid inadequate compensation. This connotes that peasants expected more amount of compensation; however, it was very low and under their expectation.

4.2.1. Property Valuation Committees and their Organization

Compensation was estimated by committees consists of four individuals from different sectors and professions (see annex 3).“The committee organized to estimate compensation excluded local elders”(EI007, Feb. 12/2018).“Initially, the members of the committee were informed to estimate compensation in accordance with compensation proclamations”(VCI2, Feb. 22/2018). But the committee was influenced by administrators because of absence of detail working procedures of compensation valuation. As highlighted clearly in Proclamation No.455/2005 article 10 (4), the working procedures of property valuation committees shall be determined by directives. However, the details of property valuation procedures are not enacted and enforced at the time of property valuation undertakings at both the national and regional level. This created fertile ground for woreda administrators to intervene in the process. Intermittently, members of the committee were ordered to do their activities in line with directions brought by administrators. In such a case, the

provisions of the proclamation might not be considered and institutionalized. In a nutshell, the absence of detail working procedures made the valuation process complex.

4.2.2. Valuation of Compensation

Interviewed valuation committees recognized that the committee ordered by woreda administration to complete the estimation within a very short period of time. To accomplish valuation on time, additional estimators were added and assigned in valuation of compensation (see annex5). This was due to the time in which summer season was approaching to enter. Owing to this fact, the valuation of properties situated on the land was very rush accompanied with full of uncertainty and jumping. There was an incident of jumping as well as measuring a land twice and more than twice (see annex 6).“Valuation committees were not discreetly measured land and estimated compensation”(EI011, Feb. 13/2018). The valuation committees are expected to have information about the full name and address of landholders before compensation valuation. But all evictees were not registered in their full name and address (see annex 7). An interviewee explained and recalled the situation of compensation estimation as follows:

The measurement of land was very uneven, quick and arbitrary. I had one brother that we inherited relatively equal size of land from our parents. The size of the land was divided equally by court of elders using traditional measurement tools called ‘mechagna3’. This land was taken to flower farm including the land of my brother. The amazing event was the amount of compensation paid to my brother and for me became different. The compensation paid to me was less than almost by half compared with my brother. I brought grievance and complaint to the committee and woreda administrator. They recognized the mistake and the problem; however, no change taken on the measurement made before. The land in hectare was equal but the compensation was too different. Therefore, measurement of land and estimation of compensation was arbitrary to me (EI013, Chicha, Feb. 18/2018).

As a result of the mistake happened in the total valuation of compensation; two valuation committees were arrested until it was audited and checked (VCI2, Feb. 22/2018). Besides, VCI1 further asserted that the problem was highly exacerbated due to the absence of independent

3 Mechagna is an agricultural input used to squash donkeys and harvesting crop residue by peasants. It is made up of hides.

compensation grievance hearing committee. The compensation grievance hearing committee was not self-governed and autonomous in dealing the grievances of evictees. This made dispossessed peasants not to appeal in courts due to the absence of clear response on their claim as a result of losing hope. Thus, the study found that the grievances and complaints of peasants remained unsolved. According to ANRS regulation No. 5/2010 article 11(1), land valuation committees should registered the full name of landholders with their address to estimate compensation carefully. In connection to this, Belachew (2013) noted that a careful consideration of ownership details and valuation must be adhered in payment of compensation. Conversely, this study accentuated that land measurement was arbitrary and dictatorial in nature due to the rush nature of valuation process accompanied with absence of autonomous compensation valuation and grievance hearing committees. This infringed the rights of landholders dispossessed from their possession and clearly reflected the discrepancy of the theory and actual implementation in the study area.

Concerning the crops used to estimate compensation, all interviewees and focused group discussants revealed that the compensation was estimated based on maize and finger millet in Workemla Achadir and by Teff and Maize in Atangusa Chicha(Wonjeta) kebeles respectively. Surveyed households have produced other crops like Teff, Pepper, finger millet and Nug in both kebeles. But they were grieved on estimation of compensation based on the above aforementioned crops because these crops are relatively cheap compared to other crops. Surprisingly, an interviewee claimed that “the valuation of compensation was deliberately made based on these crops to reduced compensation amount” (EI003, Feb. 06/2018). In similar fashion, EI014 added that the government played gambling on evictees in valuation of compensation based on Maize and finger millet which are relatively cheap in Workemla Achadir. Contrastingly, interviewed valuation committees unanimously asserted that information was gathered from kebele agriculture worker about the dominant crops produced in the area and then compensation was estimated in accordance with these crops. They further added that compensation valued on these crops to benefit evictees because the yield of these crops was better than other crops produced in the area. According to Proclamation No. 455/2005 article 8(1), when a rural landholder whose landholding has been permanently expropriated, displacement compensation paid equivalent to ten times to the average annual income he/she secured over the last five years before expropriation. But the proclamation did not specify the crops used to estimate compensation. It stipulated only the

annual average income a landholder gained over the last five years as compensation to permanent displacement. However, peasants had still grievance on the calculation of compensation based on these crops. Therefore, for peasants, estimation of compensation in such a way was misleading and mistaken.

4.2.3. Satisfaction and Orientation of Peasants on Payment of Compensation and Usage

All sample respondents asserted that compensation payment was under their expectation. The peasants in both kebele administrations were dissatisfied on the amount of compensation paid to them. “Peasants were not oriented to use compensation wisely, thus, it was consumed within a two-year time interval. This created economic inconveniency on the whole family members”(EI008, Feb.12/2018). In similar tone, GO-1 added that evictees were not trained to use compensation wisely and engaged in alternative income earning activities. Moreover, compensation was not paid by involving both wife and husband. The household head conventionally husband took the money and used it unwisely which eventually became risky to the whole family. The repercussion exacerbated food insecurity, migration, conflict, an attempt to divorce and other social disorder within the family and neighboring villagers. The process violated the land rights of women but the government took lesson from this weakness and currently compensation paid after alternative opportunities have been identified and the money put in block account in the names of both husband and wife. But it was still challenging and tiresome (GO-2, 15/ 2018). To sum up, the inappropriate usage of compensation and land expropriation strongly affected women because they were the breadwinners of their families.

4.3. Economic Consequences of Flower Farms on Local Communities and the State

Table.4.6: Distribution of sample respondents’ response about crop production after expropriation

No Items Response Frequency percent The Land taken to Reduced overall crop production 138 86.3 1 flower farm No change in crop production 22 13.7 Total 160 100 2 Albeit land taken, strongly disagree 96 60.0 family food system Disagree 38 23.7 improved no idea 11 6.9 Agree 15 9.4 Total 160 100 Food system not strongly disagree 86 53.1 3 changed after land taken Disagree 47 29.4 Agree 25 16.2 strongly agree 2 1.3 Total 160 100 4 Family life becomes strongly disagree 5 3.1 bad after land taken Disagree 7 4.4 no idea 5 3.1 Agree 51 31.9 strongly agree 92 57.6 Total 160 100

4.3.1. Livelihood Deprivation and Food Insecurity

Land is considered as an asset of the natural capital and contributes a pivotal role in improving the livelihood of local community (Ellis, 1998). But the acquisition of peasants’ land to flower farms affected the livelihood sources and food security of local communities (KI2, March 22/2018). Small scale farming is the main economic activity to produce crops for home consumption and revenue generation for survey households. Although land has been served as an important asset to ameliorate the livelihood sources of survey households, expropriation for flower farms worsened the life of locals. Peasants’ livelihood option was undermined and getting deteriorated after land commandeering. KI1 further added that expropriation crop up economic hardship, shortage of land and poor nutritional status on the lives of expropriated households if it is emotional and not well attuned. Generally, expropriation to flower farms impacted the livelihood options of evictees in the following areas:

4.3.1.1. Reduction of Crop Production

Most dislocated peasants elaborated that dispossession created land shortage and thereby waned crop production. Concomitantly, about 86.3 percent of the respondents replied that expropriation reduced crop production. Seemingly, GO-3 witnessed that shortage of farmland is acute problem which reduced extent of crop yields and thereby affected the food security of local communities. The rest 13.7 percent of sample respondents stated that crop production is not changed despite expropriation because the land taken was very small in size. Amazingly, many survey households unveiled that crop production was highly reduced after expropriation. Dislocation results in the deterioration of crop production and impedes alternative land use arrangement.“Previously peasants were suppliers of crops in the market but now they become buyers” (EI013, Feb.18/2018). This exacerbated imbalance of supply and demand as well as price inflation in the local market.“The volatile price increase of crops strongly undermined peasants who purchased cereals for consumption”(EI018, Feb. 19/2018). Thus, the reduction of crop production made peasants vulnerable to increasing price inflation of crops thereby exacerbated the problems of food insecurity.

Concerning the food system of surveyed households, nearly 85 percent of sample households revealed that food and nutritional status was awfully deteriorated. In this regard, EI014 explained that food improvement and nutritional status in rural area is positively linked with crops produced. But crop production was reduced after expropriation. It was the surplus of crops that enabled peasants to purchase essential commodities from the market to improve their food prior to expropriation; however, no surplus of crops after land acquisition. Inversely, about 6.9 percent of sample households did not know whether food improvement happened or not after expropriation. The remaining 9.4 percent of respondents witnessed that their family achieved food improvement and nutritional status as a result of high cash crops particularly Khat planted on their remaining land. By hook and crook, usurpation of land reduced crop production which directly affected the food availability and nutritional status of most sample households. In connection to this, nearly 90 percent of sample households revealed that expropriation made life worse and full of pessimism. It was heart breaking to hear the lives of households. Inversely, 3.1 and 4.4 percent of survey households responded ‘strongly disagree’ and ‘disagree’ respectively about their life being bad

after expropriation. They faced no problems albeit their land expropriated. But most of the sample households have faced rotten, horrible and nasty life due to dislocation.

According to Dr. Aklog Birara, investment expansion by dislocating prior users must focus on food security (VOA, May 13/2018). He further added that investment is good but evictees must be sustainably promoted and be part of the development process to the success of the farms as well. But Getnet (2012) noted that the acquisition of land by investors ultimately threatens the long term viability of smallholder agriculture which indirectly harms local livelihoods. By the same token, Aabo and Kring(2012) and Desalegn (2011) opined that investors are profit driven aspired to maximize their export with poor coordination to local economic development and food security. Amazingly, the agricultural policies that emphasized commercial agriculture has faced impediments as a result of local communities’ exclusion in the development process (VOA, May 13/2018). This study found that the production in commercial farming was destined to the external market without careful assessment to the best interest of evictees, national development and food security priorities. Poor economic coordination between evictees and farms is prioritized by investors to maximize their production. This over emphasis to export has discarded home consumption. Hence, food improvement and nutritional status was deteriorated in many evictees as a result of local communities’ exclusion in the development process.

Table 4.7: Land size owned today and family life bad after expropriation -cross tabulation Family life bad after land taken Total strongly disagree no idea agree strongly agree disagree Size of land below 1 hectare 1 4 4 48 73 130 1-2_1hectare 4 3 1 0 1 9 Total 5 7 5 48 74 139

As indicated in the above figure, the land size peasants possessed currently was strongly associated with their life pattern. From the total 130 sample households who owned a land below 1 hectare, 73 and 48 revealed ‘strongly agree’ and ‘agree’ respectively where their family life became very worse and bad after expropriation. It was only 1 and 4 sample households responded ‘strongly disagree’ and ‘disagree’ respectively in which family life became bad after land appropriation. Conversely, from the total 9 sample households who possessed a land in between 1-2 hectare; 4

and 3 households vindicated ‘strongly disagree’ and ‘disagree’ respectively where family life became full of misery and worse after expropriation. It was only 1 individual having a land in between 1-2 hectares revealed ‘strongly agree’ in which expropriation made family life too become worse. Hence, there was considerable positive association between land size possessed and family life status in surveyed households.

4.3.1.2. Shortage of Land to Share Cropping/Renting and Fire Wood

GO-2 articulated that flower farms have created land stress on local communities for rent and share cropping. In the same vein, “the number of people engaged in land renting increased very radically after expropriation. This made the price of land very costly which strongly undermines the renters”(EI005, Feb. 08/2018). Evictees were forced to search cultivated land elsewhere with increasing competition to access land. Concomitantly, GO-3 added that shortage of land is the day to day claims and question of residents in meetings and conferences. Related to this, an evicted interviewee added that “the value of share cropping was 1/3 or 1/4 before the emergence of flower farms but after expropriation the value of a shared land became equal with some form of graft”(EI001, Feb. 05/2018). It indirectly exacerbated unnecessary competition among peasants to acquire land for share cropping. The total output of crops produced from a rented land was less than the costs of the land including its agricultural inputs. Peasants engaged in share cropping and renting have never been calculated the gains and losses. In a nutshell, evictees were economically exploited and physically fall in servitude. Therefore, engagement in stiff competition to takeover land for share cropping and renting considered as a means of survival for most households.

Nathan (2013) noted that commercial farming is expanded to efficiently utilize a plenty of unused land in the country without making the rural poor worse off. But the study found that the land expropriated from peasants was a farmland in which dislocation made peasants socially hopeless and economically lived under abject poverty. The land is not a bare land rather utilized for long at family level. Expansion of agricultural investment via dislocation made evictees worse off. According to Desalegn (2013) land acquisition by investors exposed peasants to engage in stiff competition over scarce resources. This study witnessed that local communities in general and evictees in particular involved in warm competition over scarce land for renting and share cropping. Addisu (2016) noted that a household head who owned a pair of oxen can secure more land in share cropping in Gura Ferda woreda in his investigation. But this study propound that the

introduction of flower farms created shortage of farmland on peasants. The context of the study area was quite different from Gura Ferda. The benefit a peasant gained from a shared and rented land was by far less than the total cost he/she incurred throughout the year. Therefore, dislocation to flower farms exacerbated land shortage and invited peasants into stiff competition for share cropping and renting.

Evictees used crop residue as the major source of fire wood. They prepared daily foods and beverages using the byproducts of crops. In the same token, VCI2 also asserted that local communities were highly dependent on crop residue to accomplish their day to day lives. Maize was the most dominantly cultivated crop having multidimensional purposes in the area. The fruits served as an important source of food for households and its byproduct has also used as a source of firewood and animal food. But expropriation created firewood shortage and stress on many peasants. This forced evictees to purchased wood and byproducts of maize from other areas and unexpropriated peasants. This exposed evictees to additional economic expenses which indirectly costs the entire family. In the process, children were mandated by their fathers and mothers to absent from school in order to collect wood and animal muck. The expenditure that evictees lost in firewood purchasing is the unexpected economic consequences that flower farms inflicted on local communities.

4.3.1.3. Reduction of Honey Production

Previously, peasants had diversified sources of livelihood in generating income and achieving food security. In this regard, honey production was one means of securing livelihood for a considerable number of peasants. However, the establishment of flower farms affected local communities not to engage in honey production. Flower farms used chemicals and other poisonous pesticides which killed bees when they were in the flower farms to collect flower schemes for their honey. Even if it was not scientifically studied, the majority of participants argued that the reduction of honey production and bee honeying is the result of flower farms. In similar fashion, an interviewee explained as “I had 15 traditional beehives before the opening of flower farms but now all of the bees were strewed” (EI006, Feb. 12/2018). The farms put unnecessary pressures on local communities’ economic activities. It marginalizes the locals’ alternative income generation businesses. An empirical investigation undertaken by Gebre (2017) revealed that the expansion of investment increased pressure and incompatibility of livelihood. In connection to this, Elias (2012)

indicated that adequately unprotected working conditions and pesticides in flower growing can cause disease and affects other livelihood sources of local communities. The study also found that locals were unable to engage in honey production because the chemicals and pesticides frequently used in the nearby farms killed bees. Thus, the commencement of flower farms created incompatibility of livelihood in the study area.

4.3.1.4. Waning of Livestock Production

According to Addisu (2016) livestock production contributes to local livelihoods in different ways by generating income and being sources of food for many peasants. Evictees explained that livestock production is made through the byproducts of crops produced in farmlands. Prior to dislocation, livestock production was contributed a lot in generating income and household consumption at family level. But after expropriation, the byproducts of Teff, finger millet and Maize is reduced in greater extent which in turn created inconveniency to livestock production. The area of forage was inadequate for cattle rearing because it was redistributed to unemployed youths. In this regard, GO2 and 3 propounded that peasants are oriented to reduce animals they have and advised to have only few oxen’s than many animals. They further added that the previous communal land used for forage is now given to unemployed youths. So, a cattle rearing is not advised in traditional ways due to absence of enough forage in the area. In the same manner, evictees embodied that animals have been frequently controlled and jail-bird around homestead. Peasants were unable to engage in livestock production after expropriation because crop residue was highly reduced and gets inflation. Owing to this fact, evictees were forced to reduce the number of domestic animals they had. An investigation undertaken by Desalegn (2013) found that livestock rearing contributes for household food consumption and income generation as a coping strategy to escape from economic misery in Bako Tibee Woreda following expropriation. But this study found that evictees were incapable to engage in livestock production as a coping mechanism of land usurpation. The context of the area was quite different from Bako Tibee woreda. The studied area was so stressed in forage in which crop residue used for livestock production. Therefore, expropriation shadowed local communities’ alternative sources of livelihood.

4.3.2. Employment Generation

Table 4.8: Distribution of sample households’ response about employment generation in flower farms No Items Response Frequency Percent 1 Flower farm created employment to me strongly disagree 95 59.4 Disagree 51 31.9 Agree 14 8.7 Total 160 100 2 The farms give priority to unemployed strongly disagree 65 40.6 and evictees Disagree 36 22.5 no idea 57 35.6 Agree 2 1.3 Total 160 100 3 At least 1 family member employed in strongly disagree 97 60.6 flower farms Disagree 49 30.6 Agree 14 8.8 Total 160 100 4 Wages paid to employees is strongly disagree 94 58.8 enough in farms Disagree 37 23.1 no idea 29 18.1 Total 160 100 5 Salary paid to employees in the farms is no idea 24 15.0 less than daily laborers in community Agree 57 35.6 strongly agree 79 49.4 Total 160 100 6 Alternative jobs created to evictees by strongly disagree 158 98.8 the government Disagree 2 1.2 Total 160 100 7 Family member benefited by jobs created strongly disagree 152 95.0 by Disagree 8 5.0 the government Total 160 100 8 No practice to promised jobs to evictees Agree 16 10.0 by strongly agree 144 90.0 the government and investors Total 160 100

4.3.2.1. Job Opportunities and Expropriatees

According to Field et al (2015), commercial farming contributed in the creation of rural employment and achieving national food security. But about 59.4 & 31.9 percent of the sample households responded ‘strongly disagree’ and ‘disagree’ respectively that flower farms generated job opportunities to them. Most evictees are not beneficiaries of job opportunities in farms. The farms created job opportunities only for 8.7 percent of sample households. Related to this, an

interviewee explained that “evictees employed in the farms are worked as daily laborer where as better jobs were allocated to individuals came from town. No one in the community engaged in technical works because of lack of training”(EI012, Feb. 14/2018). Even though the farms created job opportunities for many individuals, most evictees were not employed. Evidently, about 60.6 & 30.6 percent of the respondents witnessed ‘strongly disagree’ and ‘disagree’ respectively that any family member was employed in the farms. The farms only employed at least one family member for 8.8 percent of the respondents. The number of individuals hired from evictees was too low and insignificant compared with the promises given by the government. It was conceived as highly labor intensive business but the wage was too low and inadequate to cover the monthly expenses of employees. The increasing price inflation of living and wages paid to employees is unbalanced. In this regard, the inadequate wages of employees caused violence; thereby destruction of the farm in Gojeb kebele around Bonga Town (VOA, May 13/2018). Hence, evictees were unhappy and dissatisfied to work in the farms.

Concerning priority of jobs to evictees and unemployed, about 40.6 and 22.5 percent survey households witnessed ‘strongly disagree’ and ‘disagree’ respectively that priority has given to dislocated peasants. Concomitantly, focused group discussants unveiled that the absence of strong coordination in expanding commercial farming vis-à-vis with rehabilitating evictees adversely affected the locals not to be given priority in employment. The rest 35.6 percent of the sample households have no idea about whether priority given to unemployed sections of local communities or not because they have never been employed in the farms. Inversely, 1.3 percent of the respondents agreed that priority was given to unemployed and evicted one. EI016 elaborated that investors hired individuals with a relative skill working at a low salary or wage to maximize their profit. They have no contractual duty to provide priority to evictees. Amazingly, EI007 explained that “I have an interest to be hired as a guard in the farm. But I cannot employed because a gun is required, thus, local militias are beneficiaries of jobs in the farm. This forced me to be a guard in Bahir Dar city by going a far distance, thus, no priority to evictees” (EI007, Feb. 12/2018). It was the market force and need of farms that determines the nature of employment generation. Therefore, there is no precondition put to give priority to dislocated landholders and unemployed sections of the society in the farms.

4.3.2.2. The Nature of Job Opportunities; Salary and Beneficiaries

Most evictees articulated that jobs in the farms are precarious and causal which did not brought stable working conditions for employees. Employees have been dismissed from jobs with no remedies due to their unpredictable nature. About 58.8 & 23.1 percent of sample households also revealed ‘strongly disagree’ and ‘disagree’ respectively where the wage paid to employees is adequate. The remaining 18.1 percent of the respondents had no idea whether the wage paid to employees was adequate or not. In the same vein, about 49.4 & 35.6 percent of the respondents responded ‘strongly agree’ and ‘agree’ about the wage paid to employees was less than daily laborers in the community. The net value of daily labor is more attractive in the community than the farms. GO-1 also asserted that the absence of a minimum threshold of wage to daily laborers in the farms made employees exploited physically and waned economically. The interviewee further embodied that the wages of employees is determined by market force where the commission had no power to determine. Poor treatment of workers, strict working conditions and absence of grievance hearing mechanisms exacerbated high employee turnover and exploitation of workers. According to Elias (2012) flower farms optimize flexible methods of production and generation of employment; however, the number of labor forces is subject to demand from the supermarkets. Besides, the nature of jobs created in farms are exploitative which never attuned the current living conditions (VOA, May 13/2018). To conclude, due to the inadequate wage paid for employees, the flower farms ensured neither food security nor job opportunities to evictees.

It was puzzling that individuals employed are come from other places and adjacent kebeles. Most evictees were not hired in the farms due to inadequate wage. The wage is not enough to cover household expenses. This forced evictees to search better paid jobs in towns for daily labor having relatively better payment compared with the wage of farms. A study conducted by Gebre (2017) witnessed that the local people have little chance to daily laboring in turn the farms added societal ills and increase pressure in different ways. This study also found that more than 90% of the respondents are not beneficiaries of job opportunities in the farms. Due to this fact; those who work in the farm are individuals of adjacent kebeles having alternative source of revenue. II1 witnessed that Jovani Alphano flower farm had created job opportunities for many individuals until it was destroyed by violence. Around 150-250 workers had been employed before the demolishment of the farm. The interviewee further unveiled that today there are only 4 guards and

4 administrative workers. Regarding to Tana Flora farm, the people employed accounted 935; out which 907 are permanent and 28 are causal at the present (see annex 8). II2 further elaborated that the number of employees in the farm varies from season to season. But most evictees are not employed. The wage is too low which ranges from 20 up to 35 birr per day. The wage of employees in commercial farms is not equivalent to the rising living inflations of the market (VOA, May 13/2018). Thus, due to the inadequate wage and strict working conditions; the job opportunities have been characterized by high employee turnover and employment insecurity.

4.3.3. Inefficient Utilization of Land

All interviewees revealed that the land appropriated to farms has been unutilized for many years. A large hectare of land has been inefficiently utilized in both farms. They further articulated that the land appropriated by Jovani Alphano became unproductive for the last 11 years. II1 and GO-4 also revealed that the farm utilized only 12 hectares of land for its intended objectives before two years ago. Currently, all the land is unproductive which costs local communities and the country (see annex 9). Owing to this fact, nearly 75 hectares of land was reduced and transferred to other investors. But still the investor did not efficiently utilize the remaining land. Similarly, GO-4 witnessed that Tana Flora farm used only 38 hectares in flower production and around 40 hectares in horticulture investment. Despite the good moves; the farm is not still efficiently utilized the land allocated to it (see annex 10). Although expropriation was carried out to the best utilization of land and the interest of the society, a huge land remained idle over the last 10 years in the two farms.

Concerning the factors to the inefficient utilization of appropriated land, II1 and 2 opined that a concerted effort of locals, investors and the government is required for the success of investment. The interviewees further added that investment is complex demanding time, capital and marketing knowhow. Concomitantly, GO-1 and 4 added that the rent seeking behavior of investors played undeniable role for the land to be idle for many years. Sometimes investors used their engagement in investment as a tool to advance selfish interests by engaging in illegal trade on capital goods allowed to import without custom duty. Inversely, II1 accentuated that workers in ANRSIC were rent seekers. They assessed the progress of projects each year and thereby provided feedbacks either warning letters or rewards to investors. The puzzle is the workers informed investors the ways they would escape from that warning secretly. Besides, II1 and 2 revealed that absence of international air flight constrained efficient use of land. They further added that flower stems were

t travelled to the global market on the planned days before. This made investors to become reluctant and buying time to expand their production. Nevertheless, international flight in Bahir Dar City is started very recently. Besides, local communities are not convenient and have no belongingness to the farms. In one way or another, they destroyed fences, stole machines and other equipments when they got appropriate time. Expropriation and its inefficient use grieved dislocated farmers to engage in pandemonium.

According to Udombana (2005) violence has led to economic devastation and gobbled up scarce resources, driving poverty and undermines growth and development. This study also found that the farms did not utilize the land efficiently in both farms. The inefficient use of land adversely affected economic growth and overall development. Paradoxically, many households have no a piece of land to produce crops for home consumption. Hence, it is the result of misguided policy and misappropriation of resources that made the land unutilized for local communities and the country. Amazingly, Dr. Aklog Birara argued that structural shift to smallholder agricultural intensification is required by accompanied it with expansion of industry to achieve food security (VOA, May 13/2018). According to Gebre (2017) investment projects are planned and commenced with the aim to solve societal problems and comply with all round development. The failure of agricultural investments to achieve their intended objectives necessitated the preparation of nationwide supportive framework to ensure productivity (Walta News, May 27/2018). This study also revealed that investment projects add societal ills and negative spillover effects on the livelihood security of the locals and the country. Hence, commercial farms are encountered failure and impediments practically.

Generally, the inefficient utilization of land brought economic crisis to local communities, the region and the country at large. Local communities were dislocated from their possession to use the land for its relative highest advantage to the society. The justifications of expropriation to the best utilization and public purpose have failed because large hectare of land is becoming unutilized in both farms. A bundle of promises were waved by administrators about the benefits of the projects to the locals. But the expectations of evictees and actual jobs generated in the farms have not been met. This indirectly made peasants to be food insecure and destitute with pessimistic futurity. The inefficient use of appropriated land strained state-society relation, created distrust and deterioration of government legitimacy which eventually caused violent conflict, destruction of

wealth and loss of life. The country paid huge money for insurance to investors for destructed assets due to popular violence. The consequence of flower farms is in conflict with the interest of the society. Hence, public choice and regime dispossession theories are used as a litmus test to contextualize the impacts of farms on local communities, the region and the country.

4.3.4. Technology Transfer and Infrastructural Development to Local Communities

Table 4.9: Distribution of sample respondents’ response about infrastructural development by farms No Items Response Frequency percent 1 Roads are constructed to strongly disagree 160 100 communities 2 Electricity provided to communities strongly disagree 160 100 3 Clean water availed to residents strongly disagree 160 100 4 Economic-linkage created strongly disagree 160 100 5 Technology transfer made strongly disagree 160 100

As indicated in the above table, all sample respondents’ revealed that infrastructure has not been constructed to local communities by flower farms. The farms are engaged in flower production where economic linkage and technology transfer to local communities remained utopian and impossible. Technology could be transferred if the farms engaged in production of crops and fruits produced in the area. However, technology transfer and economic linkage between peasants and the investor was remained a mere talk by the government. Focused group discussants unveiled that investors did not train communities and construct infrastructure to the society. The participants added that government agents motivated evictees economically to get consent without having rational legal ground. To the extreme, the peasants faced a chronic problem of road after the establishment of farms. The road used by local communities for long was blocked by investors. This forced peasants to involve in demonstration and opposition to the problem they have encountered. The road the peasants used for market and harvesting crops was allowed after opposition reflected in demonstration. Investors have no legal and contractual obligation to provide social services to local communities and meeting the food security needs of the country (Desalegn, 2011). According to Dr. Aklog Birara, technology transfer and economic linkage cannot be ascertained in Ethiopia by investors due to absence of legal contractual obligation (VOA, May 13/2018). Hence, the farms brought neither infrastructural development nor economic linkage and technology transfer to local communities.

In addition to the above aforementioned consequences, flower farms are expanded from the economic domain. Ethiopia is a country which has chronic trade deficit in the global market. So, the flower farms brought the following economic consequences to the country.

4.3.5. Generation of Hard Currency and Export Diversification

According to EIC (2016) investment on agriculture and manufacturing industries has been prioritized in Ethiopia to make the country a middle income earning by the year 2025. The study found that the farms generated dollar to the country on a limited scale. Needless to say, much was expected from these investments; however, the farms did not bring significant achievements equivalent to the land appropriated by investors. The EHPEA in its statement to House People Representative’s (HPR) agricultural regular committee announced that the performance of floriculture and horticulture investment in generation of hard currency is below the planned level in its annual investigation (Kana news, May 11/2018). It further noticed that the inefficient utilization of land by investors is identified as one impediment for the farms low achievement.

GO-4 articulated that Tana flora has better achievements in flower production and generation of dollar to the country. The initial capital of the farm increased almost by half over the last 10 years (see annex 11). This is a witness for the farm’s pressing contribution in generation of hard currency. Seemingly, II2 disclosed that in the year 2017/18, the farm planned to export 65,000,000 flower stems. Surprisingly, 7.2 million flower stems were exported to Europe during the valentine days only. This clearly indicated that the export status of the farm improved from time to time. Desalegn (2011) opined that agricultural investment boosts the export of crops and increased foreign currency earning of the country. The introduction of international cargo flight in Bahir Dar city promoted the success of the farm. Within a single cargo flight, 30 tone flower stems are destined to the external market. GO-4 also revealed that the farms export status indirectly enabled the region to get advantage in budget allocation by house of federation. The interviewee further added that revenue generation of regions to the country is one parameter to allocate budget to regions at the federal level. However, the popular protest against investment sites in 2016 slow down the production of flowers. This was vividly witnessed in Jovani Alphano farm which totally stopped production following its destruction.

Concerning export diversification, GO-1 embodied that flower investment contributed in export item diversification of the country. Trade imbalance is the greatest challenge that the country faced persistently for many years. The farms produced many flower stems and contributed its own part in increasing the export items of the country. The flower stems are demanded in different countries. This made farms to contribute their own part in handling dollar stress. According to Dejyitnu (2012) flower stems contributed in export diversification which becomes a key means of linking the world’s nations to global product markets. This investigation had also witnessed flower farms contributed their own part in diversifying the export item of the country. Besides, the farms have been early established investment sites in flower production in the peripheries of Bahir Dar city and Amhara region. The early success motivated other domestic and foreign investors. The generation of dollar and employment created strong commitment for the region to expand other farms. Since the farms are beginners in flower production, they had motivational force for other investors to engage on it. Therefore, investor attraction was also the other economic importance of the farms. However, the failure to fully utilize their appropriated land created criticism to the expansion of flower farm in the region.

In addition to the above benefits of flower farms to the country, the farms have also resulted in unnecessary cost to the country. The desire to achieve economic development forced the state to give guarantee for investors in non-commercial risks. This contract exposed the country to insured investors in millions for destructed assets by violence as it was clearly elaborated in theme 4. This connotes the commencement of farms obliged the country to pay unnecessary cost. Secondly, investors used their engagement in investment as a means to involve in illegal trade and made the land unutilized for many years. The farms have also put pressure on the environment which is an international agenda today.

Generally, the policy of the government facilitated the expansion of flower farms to achieve economic development and solve societal problems. It is from this ground that the Ethiopian government made a shift to commercial farming under PASDEP document. In this policy framework, strong emphasis is given to high value cash crops driven for export which generate hard currency. This emphasis for export made home consumption of local communities risky and vulnerable to hunger and misery. Although flower farms brought hard currency to the state and job opportunity for adults; it made the mass landless, food insecure and hopeless. It brought

multifaceted economic evils and human suffering on locals, engendered hate and hostility to the government and gobbled up scarce resources. Public choice theory viewed that government can do nothing appropriate to the interest and aspirations of the public. The policy and poverty reduction strategy that favors flower farms adopted and enforced by the government contradict with the general wellbeing of the society. Therefore, public choice and regime dispossession theories best explained the consequences of expropriation on local communities, the region and the country.

4.4. The Political Consequences of Flower Farms on Local Communities and the State

Table 4.10: Distribution of sample households by their responses on the political consequences of farms No Item Response frequency Percent 1 Flower farms are painful Yes 159 99.4 to local communities No 1 .6 Total 160 100 2 Conflict due to flower farm Yes 160 100 3 Time of conflict occurred During land transfer 3 1.9 After land transfer and 23 14.4 Operation of farms Both 134 83.7 4 People participated during Evictees 136 85 land transfer 5 People participated after land transfer Both 160 100 6 People take on the flower farm Destroy flower farm fence 103 64.4 All 57 35.6 Total 160 100 7 Reason people take such measures It created food shortage 2 1.3 on farms It created economic crisis 9 5.6 All 149 93.1 8 Consequence of the farm All 45 28.1 3,4 & 5 115 71.9 Total 160 100 9 Measures taken if similar Yes 53 instability occurs 33.1 No 3 1.9 Unknown 104 65 Total 160 100 NB. All, (3,4,5) see what they denotes at appendix 1in their respective order

“Land is the basis of life for poor agrarian communities, which is critical for economic growth and poverty reduction. It is the source of power and property for both the government and the

people”(KI1, March 19/ 2018). The key informant further added that the rights of landholders and the use of land itself have been influenced by the way land rights are defined. Cognizant to this fact, expropriation of land to flower farms brought various political consequences on local communities and the state. KI2 also explained that expropriation of land is politically sensitive and economically exploitative if evictees are not part of the development process. The key informant further elaborated that expropriation is uncommon and considered as anti-people in the eyes of residents. Thus, it demanded wider public consultation and reached on consensus unless it failed to meet its intended objectives. In the same vein, KI1 also briefly explained that a mere imposition of development policy without wider public consultation is exposed to failure and susceptible to violence. The informant further added that dislocated landholders must be part of the development process and a consensus should be reached on possible ways unless resistance, grievance and destruction continued as impediments of agricultural investment. In similar fashion, KI3 revealed that the short, medium and long term outcomes of expropriation for commercial farming on the locals and the country should be carefully attuned to the sustainability of the farms. An emotional expansion of agricultural investment by dislocating prior users is prone to violence and thereby gobbled up scarce resources.

According to Dr. Aklog Birara, evictees should be part of development and continuously rehabilitated when investments are expanded by dislocation (VOA, May 13/2018). Similarly, Belachew (2012) noted that any development project commenced by dislocating prior users should ensure benefits to everyone including evictees. But the unfair distribution of resources accompanied with economic vulnerability and exclusion grieved excluded sections of a society (Collier and Hoeffer, 2002). In this regard, evictees explained that expropriation was unfair in terms of land allocation. The allocation of land and its transfer was unfair which manifested the government’s low concern to agrarian poor communities. They further added that evictees were numerous where as the individual appropriated the land was single which was against the wellbeing of the many. To sum up, the government expropriated land without making open public discussion in land dealings and reaching consensus with peasants. Generally, the political consequences of flower farms are explained as follows:

4.4.1. Political Violence and Conflict

All respondents unveiled that flower farms engendered conflict and violence. It was happened between peasants and the government during and after land acquisition. Evicted and government interviewees as well as focused group discussants also added that opposition to the expansion of flower farms was started at the time of land appropriation in 1999 and 2000 E.C in Workemla Achadir and Wonjeta kebeles respectively. About 83.7 percent of sample households disclosed that conflict rouse both during and after land taken to flower farms. On the other hand, about 14.4 and 1.9 percent of respondents revealed that violence occurred after the commencement of farms and during land acquisitions respectively. Evictees made an oath to pay any cost when their land was proposed for investment. They further embodied that the benefits of farms and valuation of compensation highly confused them. Cognizant of this fact, evictees resisted the government albeit they were arrested and warned separately by local militias and the kebele police force. There was strong resistance and opposition to land transfer without violent engagement. About 85 percent of sample households confirmed that evictees were participated in the conflict at the time of land acquisition.

On the other hand, the political violence happened after farms began actual operation was violent and destructive. It galvanized political instability, opposition and destruction (GO-4, Feb. 23/2018). II1 further explained that exchange of attack in bullet practically seen between the locals and soldiers’. Contradictory ideas have been forwarded about the people participated in the violence. GO-1 disclosed that the rebels were residents of Meshenti town who were not part of local communities. Inversely, evictees revealed that the youths were children’s’ of local communities living in the town for education and other works. Concomitantly, II1 asserted that residents were major participants of the violence and destruction. Thus, all residents were participants of the violence after the commencement of farms because the farms added multifaceted evils on the locals. Surprisingly, about 1.9 percent of sample households responded that local communities did not take similar destructions on investment sites again. Inversely, about 33.1 percent of survey households would take measures against investment sites if similar instability occurred. The rest 65 percents were not sure whether the society took measures or not against the farms. Related to this, KI3 articulated that as long as evictees are not part of the development process, similar attacks would avail. The key informant further added that societies

feeling marginalized and excluded are buying fertile conditions to sabotage investment sites. II1 also unveiled that unrest and unpredictability of security became far reminders in the area after farms commenced. This connotes that the future sustainability of the farms was unpredictable and full of uncertainty.

Smalley (2014) noted that a land expropriated from smallholder farmers without their consent and engagement in the land deal process exacerbates potential local resistance and political opposition. In this regard, Belachew (2012) opined that the success of development induced farms requires voluntary cooperation and heartfelt welcome by dislocated people. But the confusion of the public about the merits of farms and compensation package aggravated violence and conflict (Daniel, 2015). According to Anyanwu (2004) people engaged and participated in conflict and violence in seeking justice when they are mistreated and discriminated. Cognizant of such fact, Desalegn (2011) found that peasant protest has occurred when a land is appropriated and after projects have been commenced in Bako Tibee Woreda. A similar incident happened in Adolla town by opposing Legedembi Gold Mining’s environmental pollution and devastative impacts but the violence ended in death of dozens, disability and social disorder (VOA, May 10/ 2018). Besides, Inadequate wages of employees and dislocation caused a pandemonium to occur against investment farms in Gojeb kebele around Bonga (VOA, May 13/2018). The study has also witnessed that conflict and violence was demonstrated during land acquisition and after the commencement of farms.

Concerning the causes of the violence, evictees revealed that the violence was transplanted by continued deep grievance, feeling of neglect and unequal level of development. Concomitantly, VCI2 also asserted that peasants have deep rooted grievance and resistance against investment projects from the outset. Thus, dislocated peasants unveiled that unplanned promises and their subsequent breaking, top down imposition of expropriation, absence of rehabilitative measures, inadequate compensation, inefficient utilization of appropriated land and the failure of the farms to benefit the society are the root causes that aggravated violence. Amazingly, EI005 explained that “War is better than famine in which problem of bitterness, hopelessness and economic waning caused the violence”(EI005, Feb. 08/2018). Concomitantly, KI3 witnessed that poor economic coordination, exclusion of evictees from development and top down imposition of expropriation are root causes in most development induced violence. Contrastingly, GO-4 argued that the violence was the result of friction and resistance to change between reactionaries and radicals. But

GO-1 and KI3 embodied that the political instability happened here and there was a proximate factor for the violence to break out in august 2016. In this regard, Aabo and Kring (2012) noted that vague promises of benefits and employment as well as closed land deal negotiation are underlying causes of conflict and instability in agricultural investments. Again, Guo (2001) claimed that the negative economic impact of expropriation exacerbates tension and political violence. Similarly, McCandless and Karbo (2011) noted that inequitable sharing of resources and benefits of developmental projects creates resentment and discontent which breeds violence. Evidently, the absence of balanced development between evictees and investors caused violence against large scale farms in Oromia and SNNPRS (VOA, May 13/2018). Hence, it is fair to say that the violence was galvanized by the devastative economic evils of farms, dissatisfaction of evictees on expropriation and compensation process.

4.4.1.2. Consequences of the Popular Violence

KI3 asserted that the Political-Economy of conflict has a major debilitating effect which made countries impoverished and unstable in all spheres. The key informant added that development and conflict are interacting each other. Failure in development induced conflict and conflict in turn impedes development. The violence devastated economic resources, facilitated poverty and undermined economic change and growth. In the same token, GO-1 and 4 unveiled that the area was ravaged by destructive violence which irreplaceably sabotage huge wealth within a short period of time. Evictees also asserted that the repercussion of the violence was horrific in terms of material destruction, physical violence and loss of human life. According to Collier (2004) failure in development is prone to conflict and violence; in turn violence powerfully retards development. The failure to incorporate evictees in the development process caused conflict thereby violence (VOA, May 13/2018). To conclude, the violence impeded development as a result of failure to incorporate evictees in the development process and building consensus on them. Generally, the crisis includes:

A. Human Death, Physical Violence and Disability of People

About 71.9 percent of survey households responded that the violence brought human death, physical violence and disability of the few on local communities (see table 4.10). Besides, evictees exposed that the violence created social insecurity. They further added that two individuals were

died, more than ten were injured by bullet and few remained disabled and many others were arrested. II1 also explained that soldiers killed few individuals and damaged many others physically. An interviewee who becomes disabled in the violence explained the scene as follows:

Before the violence happened in our locality, there was information that Jovani Alphano flower farm in Workmla Achadir kebele was totally burnt and destructed. Then in the next day at the morning, destruction of fences in Tana flora flower farm was began. But we were unable to continue the sabotage. Because the military camp is very near to our kebele where military forces were reached very soon when the destruction had started. It is unknown whether they might be oriented and prepared before or not but they reached immediately and stopped the destruction. Then relative peace maintained in the village. In the afternoon, when I was playing with villagers in meadow living in my community, soldiers were suddenly coming and ordered as to leave the place. In the process, conflict happened and then soldiers shoot me by bullet. The amazing incident was the peasants were not allowed to take me into hospital unless they return back the gun they used in the morning. However, through begging I was taken in to Felege Hiwot Hospital. This was cruel act unexpected from humanity and now I remained disabled (EI019, Chicha, Feb. 19/2018).

Dislocated peasants also added that many peasants were arrested without concrete evidence by mere haver and fabricated information of people working as intelligence. Similarly, 28.1 percent of the respondents responded that the conflict resulted in reduction of investment flow, economic crisis, loss of human life, physical violence and disability on local communities and the state (see table 4.10). In this regard, the violence happened by opposing investment in Adolla town ended in death of dozens, disability of many and social disorder (VOA, May 10/2018). To conclude, the pandemonium ended in death of human life, disability and sense of insecurity on the locals.

B. Destruction of Wealth

The survey result disclosed that the people burnt machines, ware houses, fences and robbed the properties and materials of the farm in Workemla Achadir kebele (see table 4.10). Conversely, II2 responded that the people destroyed only the fences of Tana Flora farm. Concomitantly, evictees in Atangusa Chicha embodied that the destruction was not effectively undertaken except the fence due to the immediate arrival of soldiers. Inversely, II1 explained that the violence strongly

undermined the progress of the farm which destroyed the green house; sabotage water pumps, burnt generator and 3 warehouses and flower cargo car. The interviewee further added that machines are burnt and employees were strewed and made the land unutilized. In the same breath, GO-4 also backed that the violence brought reduction of investment flow, unnecessary cost to the country and material destruction. KI3 also evidenced that conflict and violence gobbled up resources quickly which takes long time to be produced and reconstructed. About 93.1 percent of survey households accentuated that the failure of the farms to benefit the society, economic crisis and food insecurity after land usurpation and breaking of promises were the reasons that motivated residents to take such measures (see table 4.10).

Unlikely, a study conducted by Gebre (2011) found that political instability was not a factor that affected the progress of floriculture industry in Ethiopia. But this study found that fear of political instability has been a threat to the progress of farms which was practically observed in action by demolishing the farms. In this regard, Hagere and Nome (2010) noted that violence is development inverse which destroys production and sabotage wealth that hinders economic exchange and increase unnecessary costs. The violence made against farms in Gojeb destructed a huge property estimated around 20 million birr (VOA, May 13/2018). According to Daniel (2015) woreda and urban administration has the duty to try their best in providing rehabilitation support to evictees. Cognizant to this fact, the Amhara region adopted a rehabilitation of evictee regulation No. 26/2016 in which article 13-14 states that evictees should be rehabilitated to the extent possible in alternative job opportunities and other benefits. But GO-1 and 4 illustrated that the regulation developed after long time grievance, criticism and violence. The interviewees added that prior rehabilitation of evictees was very difficult and non-existent due to absence of state level policy. Evictees were alienated from their land before the enactment of this regulation. In the same breath, evicted participants witnessed that rehabilitative measures and alternative job opportunities were not identified and implemented. Seemingly, VCI1 also disclosed that promises have been unplanned and their practicality was far from the ground. The farms are exclusively motivated for profit by disregarding the economic improvement and food security of evictees. Poor economic coordination between farms and residents has been observed. Displaced people were not restored to their former way of life and capacity. These factors angered and galvanized both evictees and residents to demolish investment sites. To generalize, the violence destroyed huge wealth and

undermined economic development. As the researcher photographed, the destruction is typically witnessed in the following picture.

Figure1, Picture taken from field observation

GO-1 and 4 unveiled that Ethiopia has been the member of MIGA agreed to pay compensation for investors in non-commercial risks. But citizens were burnt and sabotage the property of investors in the study area. Concomitantly, II1 mentioned that the Ethiopian government paid insurance in millions to investors for destructed investment sites. This was loss to the people, the region and the country. According to ANRSIC (2014) and EIC (2016) investors are strongly encouraged and protected from any risk and damage committed in their business transactions in Ethiopia. It was from this ground investors whose projects demolished are insured. Collier (2004) also noted that violence is destructive to socio-economic wealth of nations which digs a deep hole in the economy that required a long time to rebuild the destruction. The violence destructed huge assets and caponize the entire economy.

C. Creation of Bad Image to the Country

GO-1 and 4 pinpointed that the destruction of investment sites in 2016 summer created bad image to the region in particular and the country at large. The sabotage of farms like Jovani Alfano Fiori, Esmeralda Farms, Indian firm Fontana Flowers PLC and others weaken the investment interest of many foreigners in the region. II1 also intended that the violence created divergence of interest between the wife and husband of Jovani Alphano. The wife was less interested to continue

investment in Ethiopia because the violence made her hesitant. Conversely, the husband demanded to invest more in the area. But the fear of political instability and similar destruction constrained the investor not to fully exercise its capacity in production of flower stems. This implied that the violence brought a feeling of bad image to the region and the country. It killed the interest of existing investors and others. In the same fashion, GO-4 stated that the violence hampered the development efforts of the country by stealing the morality and mind of employees, investors and the government. The interviewee further added that investors become insecure and hesitant to fully utilize their capacity in production. The violence also diverted the attention of the work force not to be productive. It also made the land idle and employees strewed.

From the destruction onwards, the issue of security became a common claims and question of investors. The Medias reported the demolishment of both foreign and domestic owned farms in Ethiopia by popular protest. Destruction was happened here and there. This created bad image to the country. Investment attraction becomes challenging, tiresome and unfruitful. Many had an interest to engage in floriculture investment; however, they repeatedly raised the issue of insecurity. Investment expansion in flower farm has strongly weakened after the destruction of these farms by popular protest in august 2016. Cognizant of such fact, foreign investors become reluctant to engage in investment due to fear of destruction (GO-4, Bahir Dar, Feb. 23/2018).

In similar fashion, KI1 elaborated that a country, unstable internally and externally, is unable to attract other investors and motivated existing ones. Related to this, II1 to the extreme revealed that the investor planned to ask the regional state to have ‘soldier camp’ near to the farm to safeguard future destruction. It precisely indicated that investors who are already engaged in investment developed a bad image to the locals and the country. Contrastingly, an investigation administered by Gebre (2011) found that political instability was not a threat to investors in Ethiopia in the Floriculture industry. But this study found that the feeling of bad image after destruction and fear of similar political pandemonium has been a great threat on existing investors and become a bottleneck to attract other investors. The presence of relative security and favorable climate conditions are important driving forces of land acquisitions for agricultural investment in Ethiopia (EIC, 2016). To sum up, the destruction of investment sites by popular violence killed the interest of investors to undertake investment in the region.

4.4.2. Tenure Insecurity

Evicted interviewees and focused group discussants accentuated that the expropriation of land to flower farms created a sense of distrust and frustration on peasants. In similar breath, GO-2 elaborated that land usurpation degraded the confidence of peasants about their land. GO-3 also asserted that the government provided landholding certification for peasants to utilize the land for production of wealth and asset. It could be a guarantee for peasants from arbitrary expropriation. The declaration of the constitution and its operating proclamations, rules and decrees about expropriation of land for better investment and public purpose created a sense of fear and insecurity on peasants. Vividly, the expropriation of their land to flower farm made them to lost confidence on their remaining land. Insecure property right over land was linked with conflict and violence. Desalegn (2011) argued that land certification and registration has not prevented public authorities from expropriating land when a demand in floriculture business is booming. To conclude, inadequate land security affected the way peasants managed and allocated their resources.

According to Mesfin (2013) tenure security provides an incentive to smallholder peasants to develop more efficient land use management and productivity. However, peasants in Ethiopia had conditional right subject to subrogation at any time. This study confirmed that the fear forced peasants to plant eucalyptus on their remaining farmland on the belief to increase compensation by suspecting future expropriation. However, the expansion of eucalyptus on farmlands was spontaneous and unplanned which was costly on the food security of peasants. According to evicted interviewees and focused group discussants the incident of land expropriation made peasants at the cross roads of living or not living in which the planting of eucalyptus inflicted food insecurity on the whole families until it was reached for sell. A study conducted by USAID (2004) vindicated that efficient land policy and administration encourage peasants to produce more and improve their land management without reducing their livelihood security. But this investigation found that peasants were planted Eucalyptus on their remaining land due to fear of expropriation by disregarding their current means of subsistence. Lack of tenure security constrained agricultural growth and livelihood resources. Tenure insecurity impacted negatively on the economic outcomes and livelihood sources of local communities and the state. Besides, Eucalyptus had also a spillover

effect on contiguous/ adjacent farmlands. Generally, it was lack of sense of land tenure security which results the expansion of eucalyptus over the remaining farmlands.

4.4.3. Strained Government -Society Relations

Table 4.11: Distribution of sample respondents by their sources information about state-society relation, attitude and legitimacy of the government No Items Response Frequency percent 1 Is government-society Yes 118 73.7 relation strained No 6 3.8 no idea 36 22.5 Total 160 100 2 If yes, why? land expropriation 76 47.4 All 42 26.3 Total 118 73.8 Attitude change to the Yes 128 80 3 government No 8 5.0 Unknown 24 15.0 Total 160 100 4 If yes, attitude to government Good 6 3.8 now? Bad 125 78.1 no idea 29 18.1 Total 160 100 5 If bad, why? family life becomes 72 45 worse after land taken All 53 33.1 Total 125 78.1 6 Is government legitimacy Yes 116 72.5 degraded after expropriation? No 5 3.1 No idea 39 24.4 Total 160 100

NB. See appendix1 what “All” denotes in their respective order As the data observed from the above figure, 73.7 percent of sample respondents revealed that government-society relations have been strained after expropriation. Inversely, about 3.8 percent of the sample respondents affirmed that a government-society relation is not strained going still good and friendly.The remaining 22.5 percent of sample respondents have no idea about government-society relations. Concerning the causes that strained government society relation, about 47.4 percent of sample households said that expropriation strained government-society relations. The rest 26.3 percent of surveyed households embodied that government-society relation has been strained due to land expropriation, lack of job opportunities and rehabilitative measures,

breaking of promises and inefficient utilization of land. Expropriation and its multifaceted evils strained the relation between government and the society. The exclusion of evictees from development and land expropriation eroded the relations of the society and the government. In the same fashion, EI012 elaborated that evictees have developed a feeling of hostility and hatred against the government and investors. The top-down imposition of expropriation makes government-society relations hostile and unfriendly. Expropriation and its accompanied economic crisis changed the amicable relations in to suspicion and mistrust. Local administrators imposed and executed what they were ordered from higher officials without safeguarding the rights of their people. They never struggled for their people. They are demagogy who wrongly oriented evictees to get appreciation to stay in their position (EI019, Chicha, Feb. 19/2018). . Hence, most survey households and interviewed evictees exposed that government-society relations have been strained and worsened. An investigation administered by Addisu (2016) also revealed the presence of antagonistic relations between local community and the government in Gura Ferda Woreda as a result of competition over land resources covered by forest among resettler communities, aboriginal locals and the government. But the hostile relation happened in Gura Ferda was different in context with the violence happened in the peripheries of Bahir Dar city. In Gura Ferda, land was accessible and evictees could also acquired land through clearing of forests easily. Inversely, in this study, the local communities were unable to accessed food and other sources of livelihood from forests in which land was highly stressed and limited. Concomitantly, Borrass and Franco (2013) noted that top-down approach of expropriation policy and insignificant engagement of landholders in land deal negotiation caused conflict and spoiled government-society relations. Hence, land appropriation without popular consent and genuine consultation has made government-society relations unfriendly and bad-mannered.

Concerning the attitude of the people, about 80 percent of sample households witnessed that attitudinal change to the government was occurred. Inversely, 5 percent revealed that attitudinal change was not happened to the government and the rest 15 percent have no idea whether attitudinal change occurred to the government or not. In this regard, about 78.1 percent of survey households witnessed that the people developed hostile attitude to the government. In similar breath, EI019 revealed that evictees have developed hostile attitude to the government after expropriation. A sense of animosity and averse is experienced in the minds of the locals against the

government. The improper consultation and participation of peasants about their land made them to feel anxiety, neglected and outmoded section of the society. Conversely, about 3.8 percent of sample households revealed that the presence of good and positive attitude to the government. The rest 18.1 percent did not know their attitude to the government. Concerning the reasons that makes the attitude of the people hostile, about 45 percent of sample respondents accentuated that the worse nature of life after expropriation made the attitude of the people hostile to the government. Pertinent to this, the rest 33.1 percent of survey households assured that expropriation, environmental pollution and the restriction of animals’ movement caused locals attitude hostile and unfriendly to the government. Desalegn (2011) argued that a land expropriated and give to investors without proper consultation and compensation is vulnerable to criticism and violence. A land transferred to investors with the aim to accelerate agricultural productivity and increase food availability (Shephered, 2013). But the farms strongly undermined the food availability of the locals. Therefore, a feeling of neglect and living deterioration caused hostility and terrible attitude to the government.

4.4.4. Distrust and Deterioration of Government Legitimacy

Evicted interviewees and focused group discussants witnessed that the people had no trust on the government due to breaking of promises and cheating committed at the time of orientation. Contradictory responses are forwarded between evictees and government agents about compensation orientation. Evictees claimed that the government oriented them that compensation was paid only for 10 years. The land valuer committees, workers of ANRSIC and Bahir Dar Zuria woreda rural land administration and use offices responded that peasants’ might wrongly understood the orientation. They further added that no one in the government side did in contradictory to the provisions of the proclamation. The government vaguely promised local communities about the benefits of farms and wrongly oriented us about the compensation paid for 10 years. Evictees were deliberately made confused without having rational and legal justifications. After 10 years peasants expected another compensation for their lost land to flower farms. Evictees were deliberately made to be confused to accept dislocation (EI005, Meshenti, Feb. 08/2018).

However, it might be lack of understanding of proclamations about expropriation of landholdings and payment of compensation for public purpose. It was unknown whether the peasants or the

committees assigned to estimate compensation amount might wrongly interpreted the provisions. The study found that peasants were not oriented about compensation in a transparent and accountable manner. Evictees unanimously asserted that the jobs created could not meet the expectation of evictees. Due to this fact, they were hesitant and less confident to the government whatever they were promised at the present. Unclear land deal issues and vague promises caused suspicion and distrust between the government and the society. The proclamation No.455/2005 article 8 (1) states that, when a landholder dispossessed from his/her land permanently, displacement compensation is paid equivalent to ten times to the average annual income secured over last five years. Dislocation was permanent and no more compensation again in the proclamation. Seemingly, Desalegn (2011) noted that a closed land deal which lacks transparency and accountability erodes the confidence and trust of local communities. A similar observation made by Di Falco et al (2016) found that expropriation generates mistrust between peasants, government and investors. Consequently, mistrust and suspicion between evictees and the government has been developed.

Concerning the popularity of the government, about 72.5 percent of sample households revealed that the evils of flower plantation and expropriation eroded the legitimacy of the government. Expropriation for flower farms waned evictees economically, deteriorated socially and made them politically unstable. Local communities are not convinced on the level of development and improvement brought by the government. Evictees were forgotten and considered as aliens not sustainably promoted to liberate from economic hardship.

Land expropriation, inefficient utilization of land, absence of public discussion and rehabilitative measures, failure to registered development on the people, less receptive nature of the regime and breaking of promises caused deterioration of government acceptance from the people. Mistrust, the devastative economic crisis of dislocation and absence of rehabilitative measures of evictees created hostility against the government (EI007, Workemla, Feb. 12/2018).

Conversely, about 3.1 percent of survey households embodied that the popularity and acceptance of the government is going well. The rest 24.4 percent of sample households have no idea whether the government’s acceptance has deteriorated or unchanged. According to Desalegn (2011) a developmental state is a state aspired to get legitimacy from the people based on the level of

progress and development registered. However, Lipset (1959) opined that constitutional legitimacy involves the capacity of a government to engender and maintain political institutions and policies to the most appropriate advantages of a society. He further argued that a political system that effectively implement popular will and address societal cleavages gained legitimacy from the governed. But most survey households and participants recognized that the legitimacy of the government has been eroded after expropriation due to the exclusion of evictees in the development process. Displaced people remained sufferers of development projects which lead to impoverishment and deteriorating life. To conclude, the adoption of expropriation policy for commercial farming by the mere authority of government agents and its subsequent evils strongly undermined popular will and degraded government legitimacy from time to time in the study area.

Analysis of the consequences of expropriation for commercial farming from the theoretical stand point highly connected with regime dispossession and public choice theories. The demand to expand flower farms brought dislocation of prior users. In the process of land acquisition, resistance and opposition were integral parts which created quarreler between evictees and government agents. From the expropriation phase onwards, grievance, mistrust and strained government- society relations as well as deterioration of government legitimacy have been developed. Besides, massive appropriation of land in a land stressed society for flower farms eroded the confidence of peasants over their remaining farmland. This in turn breeds tenure insecurity and unplanned management and utilization of land. These lead to the road to the most violent pandemonium against farms in august 2016. The violence resulted in destruction of huge wealth, death and disability. In this regard, the country insured investors in millions. The targeted objectives of expropriation for public purpose and best utilization have failed in practice. Surprisingly, the consequences of expropriation policy for commercial farming contradict to the demand of the masses. Therefore, regime dispossession and public choice theories are used as a litmus test to examine the political and economic consequences of expropriation on both local communities and the country.

CHAPTER FIVE

5. SUMMARY, CONCLUSION AND RECOMMENDATION

Introduction

This chapter mainly deals with the gist of the preceding chapter’s major finding related to landholdings and expropriation, compensation, economic and political consequences of flower farms on local communities and the country in a short and precise manner. It pertinently summarized the major findings of the study, conclusions drawn and recommendations forwarded to different stakeholders. Indeed, conclusion is made in each research question following a brief analysis and interpretation in accordance with themes identified in the study. But the major findings have been discussed, interpreted and concluded in objective wise in the following sections.

5.1. Summary

The major objective of the study was to examine the Political Economy of agricultural investment in ANRS: a focus on flower farms in Bahir Dar Zuria Woreda. It specifically attempted to deal the nature of land expropriation, compensation; economic and political consequences of flower farms on local communities and the state by employing a mixed research approach.

Land is the major source of asset and income generation to survey households for long. Cognizant to this fact, survey households had adequate farmland size for crop cultivation and other purposes previously. But the farmland holding size is diminished as a result of expropriation to flower farms currently. So, the shrinkage of farmland holding size and its subsequent expropriation becomes a hot agenda in the locals because expropriation is undertaken in a society with high land shortage. Owing to this fact, the farmland holding size of the studied kebeles is less than the national average. An open public discussion and concern of the people must be appreciated to create friendly environment for the success of farms commenced. But the study found that evictees were not genuinely consulted about land dealings prior to expropriation. The participation of peasants was minimal and non-existent in land dealings whereby the land was appropriated without arriving at consensus and consent of landholders. Moreover, evictees were only consulted and oriented about the expected merits emanated via farms in exaggerated terms by lowering its associated

negative impacts. So, the nature of deliberation was façade and titular undertaken to justify academic and public criticisms of expropriation. Due to this, the government was unable to submit approval and consent from peasants. This connotes that the decisions of land acquisition was imposed by top level officials without involving the locals at the grass root level. To sum up, expropriation was top down and carried out without genuine public deliberation, consensus and notification of prior users.

Compensation was paid to each evictee in cash without choice of compensation as a result of lack of available land in the area. But all survey households have grieved on the amount which was under their expectation. They further claimed that compensation was inadequate and unequal with the land taken to flower farms. It was estimated in accordance with land taken by committees organized from different sectors and professions. But the valuation committee was not autonomous and independent in the process due to absence of detail working procedures of valuation. The valuation of compensation was rushed accompanied with uncertainty and mistake. The process highly confused and still angered evictees. Intermittently, valuation was arbitrary without having detail considerations of land and properties situated on it. Besides, the complaint of land holders is unresolved due to the absence independent compensation grievance hearing committee. To conclude, the issue of compensation and its overall nature is the claim that all evictees raised at the present.

Thirdly, flower farms on a limited scale contributed in export diversification, generation of hard currency and job opportunities. Surprisingly, the current status and performance of Tana Flora farm is promising and heartwarming in its contribution of export diversification; generation of Dollar and employment to the country. Concomitantly, Jovani Alphano farm had also limited success but the political pandemonium impeded its progress over the last two years. The farms created employment opportunities for many individuals albeit most evictees were not employed due to the exploitative nature of jobs. Employment insecurity and high employee turnover has been common incidents as a consequence of strict working conditions and poor wage. Seemingly, priority is not given to evictees and unemployed sections of the society. Contrastingly, the local contexts of expropriation and its consequences was not genuinely assessed and investigated beforehand. Owing to this fact, most survey households vindicated that the appropriation of a farmland reduced crop production and brings incompatibility of livelihoods. It makes the life of

most sample households very worse and gloomy. The promises provided to evictees about technology transfer, economic linkage and infrastructural development have not been kept. Inversely, the farms brought livelihood deprivation by reducing crop production; waning of honey and livestock production; inefficient utilization of land and other spillover economic effects. To sum up, evictees are economically waned, socially deteriorated and excluded from the development process.

Finally, expropriation to farms resulted in political violence, tenure insecurity, strained government-society relations and created distrust and deterioration of government legitimacy. Conflict and resistance to land usurpation was an integral part during and after land acquisition. The pandemonium was caused by deep rooted grievance of economic crisis, top-down approach of expropriation, inadequate compensation; breaking of promises and absence of rehabilitative measures of dislocated landholders. The evictees had been participated in conflict at the time of land appropriation but it was mostly peaceful resistance. Unlikely, all residents were participants of the strife after the commencement of farms which was very violent and destructive in terms of human life and material wellbeing. From the outset, evictees were buying appropriate time to manifest their deep rooted discontent and grievance. But the political turmoil occurred throughout the country in 2016 become a triggering factor for the violence to broke out in 2016 summer. The violence in turn brought bad image to the country, depredation of wealth, disability and death of human beings. The bad image in turn slowdown investment attraction and made existing investors hesitant to fully utilize their capacity in production as a result of fear and insecurity. Amazingly, most survey households revealed that peace is unpredictable and a chance to similar destruction against investment sites would happen if similar instability occurred.

5.2. Conclusion

Commercial farming is emphasized to accelerate economic growth and eradicate abject poverty experienced in the country long. A shift from small scale agricultural intensification to commercial farming has been made under PASDEP document. To realize this objective, expropriating landholders with a commensurate advanced compensation proclamation and regulations are adopted and came in to force. In line with this, peasants in both Workemla Achadir and Atangusa Chicha kebles were dislocated from their land in 1999 and 2000 E.C respectively. The farms have commenced in a community with high problem of land stress. But land usurpation imposed from

above with no genuine public consultation. Façade deliberation was only made to avert popular and academic criticisms. To this end, peasants’ engagement in land deal negotiation was very weak and non-existent. Expropriation has carried out without genuine public discussion, proper notification and consent of local communities. Hence, the issue of land ownership is remained unanswered in Ethiopian politics and expropriation become top-down imposition. Commensurate compensation was at the heart of expropriation. It demanded careful estimation of compensable assets of evictees. But the valuation of compensation was arbitrary and improper which grieved dislocated landholders. The absence of sovereign valuation and compensation grievance hearing committees made the complaints of peasants’ unresolved. Related to this, the absence of detail working procedures of compensation valuation created fertile ground for the intervention of administrators. To conclude, compensation valuation and payment was uncareful and inadequate.

Flower farms contributed in export diversification, generation of employment and hard currency albeit it added devastative economic evils on local communities and the country. Unbalanced and emotional expansion of farms was observed without adequately rehabilitating evictees. Despite the glorious rationales of expropriation, dislocated landholders have faced economic evils, for instance, food shortage, shortage of land and other spillover economic effects such as reduction of honey, crop and livestock production. Flower farms gobbled up the land; waned evictees economically and made them unstable politically. Discontent and a feeling of neglect agglutinated in the minds of dislocated landholders. Generally, evictees were not made as part of development inter-alia with expansion of flower farms and the rational objectives of expropriation for public purpose and best utilization of land have been failed. Cognizant to this fact, development induced expropriation was prone to conflict and violence. The exclusion of dislocated landholders in the developmental process has galvanized investment driven political violence. As a matter of these accompanied problems, the violence caponized the entire economy which exposed the country to unnecessary cost to insured investors whose farms have been sabotaged by violence. In spite of achieving economic development, expropriation strained government-society relations and created distrust and deterioration of government legitimacy. To sum up, the violence was the result of misallocation of land and failure to rehabilitate evictees.

An analysis of the consequences of commercial farming from theoretical lenses highly linked with regime dispossession and public choice theories. Ethiopia, as a country, has reshaped in a

developmental state ideology aimed to submit legitimacy based on the level of development brought to people whatever the action taken at the beginning. In this regard, public purpose and best utilization of land are justifications of expropriation. Apparently, opposition against appropriation of land labeled as anti-development and anti-peace. Proclamations and regulations are formulated and enforced as a stepping stone to commercial farming on both arable and used lands of peasants. In spite of such noblest rationales of expropriation; it practically added economic evils on both evictees and the country. It was puzzling that most of the land appropriated was remained unutilized and the justifications of expropriation have never been realized. Contrastingly, the ongoing outcomes are in contradiction to the interest of the masses. The justifications of expropriation and its apparent consequences, therefore, analyzed using regime dispossession and public choice theories as a litmus test.

Suggestion for aspects of further investigation

The final result of this inquiry was only focused on the political economy of flower farms on local communities and the state. An aggregate of examination is needed to draw generalization about floriculture industry. Due to this fact an assessment about the issue of political ecology, working conditions of employees and policy priority of rehabilitative measures and their actual implementation requires further investigation to draw generalization. Therefore, the investigator suggested educators to consider these issues as a problem to be studied.

5.3. Recommendation

Based on the major findings of this study, the following recommendations are forwarded as possible ways to balance expansion of agricultural investment and the wellbeing of evictees. Recommendation was made to different stakeholders who directly or indirectly affected and affect the sustainability of projects about expropriation, compensation and over all functioning of farms.

Government

The government should undertake expropriation after carefully investigating the local contexts and its aggregate politico-economic effects on local communities and the state. Projects launched without proper assessment about local contexts and existing fertile conditions to rehabilitate the local communities are susceptible to failure. Hence, the government must carefully see the sites

and alternative rehabilitative measures before the commencement of projects. Now it was already happened but the government should make peasants to be part of the development projects and share the benefit to the extent possible.

Rehabilitative job opportunities should be identified and allocated to evictees to the extent possible for their sustainable total wellbeing. For the sake of development, expropriatees should not be sacrificed in the process. The peasants in this study were evicted prior to the formulation of regulation No. 26/2008 E.C on rehabilitation of rural landholders evicted from their land for public purpose and administration of landholdings. Hence, the government should facilitate conditions for these evictees to the extent possible to be benefited in accordance with this regulation. The peasants had consumed their compensation before but the government should create conducive environment of borrowing to them. Peasants have no knowledge and exposure in wise use of money. Effective and continuous orientation and follow up of peasants should be ensured. In relation to this, the compensation valuation committees should be independent and free from unwanted intervention from administrators while they estimated compensation. A detail working conditions for valuation committees must be formulated first unlike the studied area. Compensation grievance investigation committee should be strong and autonomous in dealing the complaints of compensatees.

The government should also bargain on the salary of employees working in private farms. Making the market let alone determine wages of employees violates their rights which indirectly created employment insecurity and high employee turnover. The bargaining should also include with investors in ways where evictees shall be benefited and be part of the development. Therefore, a regulation that specified minimum wage for daily laborers in private farms should be formulated and enforced to safeguard the unlawful exploitation of the poor. This indirectly contributed employment security and reduced employee turnover and rehabilitating the evictees to be an employee in farms. The government should follow up investors to efficiently utilize the land appropriated for investment. A large plot of land was remained idle and unutilized. In doing so, the government particularly the investment commission should warn heartily investors in both oral and written forms so as to make the land to be beneficiary to local communities, the region and the country. After doing these, the office should take away the land from the investor and transferred

to others. Rent seekers from the government and investor side should be punished and act in line with the ethical conduct of workers accordingly.

Investors

Investors should be committed in efficient utilization of the land they appropriated from smallholder peasants for production of flowers. In doing so, evictees should be rehabilitated and promoted in various ways to the extent possible by the farms. A grass burnt in unutilized land should be given to local communities to engage in livestock production. Besides, the spillover economic effects of farms on the locals should be controlled and minimized in the best possible ways. Investors should maximize profit by considering the peasants evicted from their land. Because a mere enhancement of production and maximization of profit can be sustainable when the peasants have also rehabilitated and benefited. Hence, investors should balance investment expansion and made locals part of the development, and develop a sense of belongingness to farms on local communities. Investors should make the working conditions of farms to be conducive and attractive to local communities. A fair payment in accordance with labor allotted to work should be adhered in the farms to ensure employment security and reduce employee turnover. Investors should provide technology transfer, continuous training and economic inter-linkage with the locals particularly Tana Flora in Mango and Avocado production. Doing this might promote and increase the income of the people and overall economic wellbeing. Similarly, investors should create an environment that provides emphasis to evictees in employment.

Expropriatees

Expropriatees should peacefully organize and ask the government to give concern to the locals evicted from their landholding. They should demonstrate the economic evils they have faced due to expropriation peacefully. They must coordinate and request the government to have alternative job opportunities and rehabilitative measures. The regulation No.26/2008E.C should be adhered and include them through lobbying. They should ask the government to provide attention to them in various ways.

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Ahuja, R. (2010). Social Research Methods (4th ed.). Prentice-Hall, Inc. University of California, Irvine Bahru, Z. (2002). A history of modern Ethiopia 1855-1991.Addis Ababa University press, Addis Ababa. Bruce, L. (2001). Qualitative Research Methods in Social Sciences (4th ed.). USA, California University Press. Buchanan, James M. (1967). Public Finance in Democratic Process: Fiscal Institutions and Individual Choice. New York, UNC Press. Creswell, J, W.(2003). Research Design; qualitative, quantitative and mixed approaches (2nd ed.). New Delhi, International educational and professional publishers. Creswell, J.W.(2009). Research Design: Qualitative, Quantitative and Mixed Approaches (3rd ed.). Los Angeles, London, SAGE Publication Press. Creswell, J. W., & Plano Clark, V. L. (2011). Designing and conducting mixed methods research (2nd ed.). Thousand Oaks, CA: Sage Publications, Inc. Creswell, J. W., Plano Clark, V.L., Guttmann, M.L., and Hanson, E.E (2003). Advanced mixed methods research design. In A. Tashakkori and Teddlie (eds), handbook of mixed methods in Social and behavioral research (pp.209-240). Thousand Oaks, CA: Sage.

Desalegn, R.(1984). Agrarian Reform in Ethiopia. Uppsala, SIAS ______(2009). Peasant and the state: studies in agrarian change in Ethiopia 1950’s- 2000’s. Addis Ababa, Addis Ababa University press. Deininger, K. and Bayrlee (2010). Rising global interest in Farmland. Can it yield sustainable and equitable benefits? Washington D.C. World Bank Publications Hancock, B., Ockleford , E. and Windridge, K.(2007). An introduction to qualitative Research. The NIHR RDS EM/YH. Harvey, D.(2003). The new Imperialism. Oxford, Oxford University Press Harvey, T. (2006). Approaches, levels and methods of analysis Karbo, T. and MacCandless (2011). Peace, conflict and Development in Africa: a reader. Switzerland, University for peace publisher. Kothari, R,C. (2004). Research methodology: methods and Techniques (2nd ed.). New Delhi, New Age International publishers. Marx, K. (1977). Capital, Volume I. New York, Vintage. Pallant, J. (2001). SPSS SURVIVAL MANUAL: A step by step guide to data Analysis using SPSS for windows (version10 and 11). Maidhead, Philadelphia, Open University Press. Singleton, R. (1999). Approach to Social Research (3rd ed.). New York: Oxford University Press Todaro and Smith (2012). Economic Development. USA, Pearson Education Inc. Yamane Taro. (1967). Statistics: An Introductory Analysis (2nd Ed). New York: Harper and Row.

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Adbib, R.(2012). Large scale foreign land acquisitions; neo-liberal opportunities or neocolonial challenges? A multiple case study on three sub Saharan African countries; Ethiopia, Tanzania and Uganda. (MA thesis, Ghotenburg University, 2012). Retrieved from https://gupea.ub.gu.se/bitstream/2077/29419/1/gupea_2077_29419_1.pdf Adissu, G.(2016). Large scale agricultural investment and its impact on local communities: the case of Gura Ferda Woreda. (MA Theses, Addiss Ababa University, Ethiopia). Retrieved from https://www.duo.uio.no/handle/10852/35697 Allard, A.L.(2012). The contribution of small farm and commercial large farms to the food security of Trindad and Tobago. College of liberal arts and social sciences thesis and dissertations. Paper129. Retrieved

from http://via.library.depaul.edu/cgi/viewcontent.cgi?article=1127&context=etd Amdissa, T.(2006). Agriculture, Growth and poverty reduction in Ethiopia: policy processes around the new PRSP (PASDEP). Research paper 004/2006. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.386.8131&rep=rep1&type=pdf Asnake, K. (2009). Ethnic federalism and inter ethnic conflict: comparative regional study on Somali regional state and Benishangul regional state. (PhD dissertation, Addis Ababa, Addis Ababa University). Retrieved from https://www.researchgaion/_Federalism_and_ethnic_conflict_in_Ethiopia_a_com Belachew, Y.(2013). Expropriation, valuation and compensation in Ethiopia. (Doctoral Theses, Royal Institute of Technology, Stockholm, Sweeden).Retrieved from https://www.kth.se/polopoly_fs/1/generantent/attachment/Fil%201%2 0Alemu% Berger, E.(2014). Access to land in Ethiopia: the impact of land laws, Industrial Development, Villagization and land grab in rural areas. (Bachlor thesis in Development Studies, Lund University). Buchanan (2003). Public Choice: The Origins and Development of a Research Program," Center for Study of Public Choice at George Mason University, Fairfax: Virginia, USA. Retrieved from https://publicchoicesociety.org/content/general/PublicChoiceBooklet.pdf Cotula, L.and Blackmore, E.(2014). Understanding agricultural investment chains: lessons to improve governance. Rome and London: FAO and IFID. Retrieved from http://pubs.iied.org/pdfs/12574IIED.pdf Daniel, W. (2015). Land rights and expropriation in Ethiopia. (Doctoral theses, Royal Institute of Technology,Stockholm,Sweden).Retrievedfrom https://www.springer.com/gp/book/9783319146386 Dejyitnu, G.(2012). Socio-economic and environmental impacts of floriculture industry in Ethiopia. (MA Theses, Joint Universities in Rural Development). Retrived from https://lib.ugent.be/fulltxt/RUG01/001/894/550/RUG01-001894550_2012_0001_AC.pdf Deininger, K., Bayrlee, D., Lindasy, J., Norton, A., Selod, H., and Strickler, M.(2011). Rising Global Interest in Farmland: can it yield sustainable and equitable benefits? The world Bank, Washington, DC. Retrieved from http://hd1.handle.net/10986/2263 Desalegn, R.(2011). Land to investors: large scale land transfers in Ethiopia. Forum for social studies, Addis Ababa, Ethiopia. Retrieved from http://www.landgovernance.org/system/files/Ethiopia_Rahmato_FSS_0.pdf

Desalegn, K.(2013). The socio-economic and environmental impacts of large scale (agricultural) land acquisitions on local livelihoods: a case study of Bako Tibee Woreda. (MA Theses, University of Oslo. Blindern, Norway).Retrieved from https://www.duo.uio.no/bam/handle/10852/35697/Dheressa MasterThesis.pdf?sequence=1 Elias, N.(2012). The investment promotion and Environment protection balance in Ethiopia’s floriculture: the legal regime and global value chain. (Doctoral dissertation, University of Warwick school of law, 2012). Retrieved from http://wrap.warwick.ac.uk/56244/ FAO (2008). Compulsory purchase in Tanzania building property rights. (PhD thesis, Kungl TekniskaHogskolan).Retrievedfromhttp://www.ijstr.org/finalprint/dec2015/Compulsory- Land-Acquisitions-In-Tanganyika-Revisiting-The-British Fielding, M., Davies,M., Wetz,N., Cummings John, Hickey, A., Johnson, F., Senyagwa,J. Martnez, L., and Sun, M. (2015). Agricultural Investment and Rural Transformation: A Case study of the Mekeni Bioenergy project in Sieraleone. Stockholm Environment Institute Stockholm, Sweden. Retrieved from https://www.sei.org/projects-and- tools/projects/agricultural-investment-and-rural-transformation/

Gebre, S.(2011). Underlying causes of business failure of floriculture investment in Ethiopia. (MBA Thesis in Finance, Addis Ababa University, 2011). Retrieved from http://etd.aau.edu.et/bitstream/123456789/2399/3/GEBRE%20SORSA.pdf Gebre, T. (2017). Ethnic federalism and non-indigenous people eviction in Ethiopia: the case of Bullen Woreda. (MA Theses, Bahir Dar University, Ethiopia). Accessed from the Author. Habtemariam,. (2008). Historical development and current challenges of agricultural extension with particular emphasis on Ethiopia. Ethiopian Economic Association, Addis Ababa. Retrieved from https://www.eeaecon.org/node/5694 Larsen (2012). Foreign Land Acquisitions in Tanzania: Global Ideology and Local perspectives. (MA Thesis University of OSLO, 2012). Retrieved from https://www.duo.uio.no/bitstream/handle/10852/34180/Larsen.pdf?sequence=3 Levin, M.(2015). From primitive accumulation to regime dispossession; six theses on India’s land question. Johns Hopkins University. Retrieved from http://krieger.jhu.edu/arrighi/wp- 29//03/Theses-on-Indias-Land-Question-3.4.pd Mesay, G.(2015). The socio-economic and environmental impacts of large scale land transfers on local livelihoods: a case study from Itang woreda of Gambella region, South West Ethiopia. (MA theses, Addis Ababa University, Ethiopia). Retrieved from

http://www.davidpublisher.org/index.php/Home/Article/index?id=32652.html Mesfin, A.(2013). Effects of large scale agricultural investments on smallholder farming in Sub Saharan Africa: case study Ethiopia. (MA theses, Lund University, School of Economics and Management). Retrieved from http://www.dtic.mil/dtic/tr/fulltext/u2/a602726.pdf Nathan, T.(2013). Land grab or development planning strategy: an analysis of Agricultural development led industrialization planning in Ethiopia. (MA Thesis, Virginia common wealth University, 2013). Retrieved from https://scholarscompass.vcu.edu/cgi/viewcontent.cgi?article=4102&context=etd Nickola, T.(1988). The agricultural sector in Ethiopia; organization, policies and prospects in Penorse, A.(ed). Beyond the famine: an examination of issues behind the famine in Ethiopia. Geneva: international institute for relief and development, food for hungry international. Tecle, T.(1975). The evolution of alternative rural development strategies in Ethiopia. implications for employment and income distribution. African employment paper NO. 12(African rural employment research network) pp, 113. CIRS, Georgetown University school of foreign service in Quatar. Retrieved from https://files.eric.ed.gov/fulltext/ED116842.pdf Thernsjo, T.(2015). Land Grabbing: at what price? (Bachlor Thesis, Linneuniversittet, 2015). Retrieved from http://www.dw.com/en/land-grabbing-the-real-cost-of-buying-che17151695 Yihenew, Z., Amdissa, T., and Kassahun, B.(2013). Drivers of success for CAADP implementation: Ethiopia a case study. Retrieved from http://www.aline.org.uk/urces/caadp

Conference and Working papers

Aabo, E,. and Kring, T.(2012). The political economy of large scale agricultural land acquisitions: implications for food security and livelihoods (employment creation inrural Mozambique. UNDP working paper 2012-004.New York; UNDP. Retrieved fromhttp://www.undp.org/content/Papers/Agr%20Rural%20Mozambique.pdf Anyanwu, J.C.(2004). Economic and political causes of civil wars in Africa: some Economic results. Retrieved from https://www.afdb.org/filea/uploads/afdb/Docume/Publications/00157680-EN-ERP-73.PD Azeb, W,D.(2017). The Intricacies of large scale Agricultural Investment in Gambella Region, Ethiopia. Paper presented at the Annual World land conference on land and poverty, Washington DC, March 20-24, 2017. Retrieved from

https://www.conftool.com/landandpoverty2017/index.php/06-12-Degife Bereket, A,K. (ND). Appraising large scale land deals in Ethiopia: food security perspective. Retrieved from https://edu.uhk.cz/africa/index.php/ModAfr/article/download/136/112 Birhanu, G., Hoekstra, D. and Azage, T.(2006). Commercialization of Ethiopian agriculture extension service from input supplier to knowledge broker and facilitator. IPMS (Improving productivity and Market Success) of Ethiopian farmers project working paper. Retrieved from https://cgspace.cgiar.org/handle/10568/564 Bruntrup, M., Absmayr, T., Dylla, J., Eckhard, F., Remke, K. and Sternisko, K.(2013). Large scale agricultural investments and rural development in Tanzania: lessons learned, steering requirements and policy responses. Paper presented at the “2016 World Bank. Retrieved from https://www.die-gdi.de/uploads/media/Bruentrup-230-230_paper.pdf Collier, P. and Dercon, S.(2014). African Agriculture in 50 years: smallholders in a rapidly changing world. Paper presented at the expert meeting on how to feed the world in 2050. Rome;food and agricultural Organization of United Nations. Retrieved from http://www.fao.org/3/a-ak983e.pdf Collier, P. and Hoeffler, A.(2002). Greed and Grievance in civil war. Centre for the study of African Economies. Retrieved from elibrary.worldbank.org>policy research working paper Daniel, W.(2009). Land valuation for expropriation in Ethiopia: valuation methods and adequacy of compensation. a paper presented at 7th FIG regional conference Hanoi, Vietnam, 19-22 October 2009. Retrieved from https://chilot.me/2011/04/journal-articles-and-materials-on- ethiopian-land-law-and-land-tenure-system/?do Daniel, W.(2014). Compensation for expropriation in Ethiopia and the UK: a comparative analysis. Paper presented at FIG congress 2014, Kuala Lumpur, Malaysia 16-21 June 2014. Retrieved from http://www.fig.net/pub/fig2014/papers/ts01f/TS01F_ambaye_6821.pdf Demeke, M., Said, A., and Jaine. T.(1997). Promoting fertilizer use in Ethiopia: the implications of grain market performance, input market efficiency and farm management. Food security research project working paper5. Michigan University. Retrieved from M Demeke, A Said, TS Jayne - 1997 - ideas.repec.org Diao, X.(2010). Economic importance of agriculture for sustainable development and poverty reduction: the case study of Ethiopia. Paper presented to the working party of agricultural policy and markets, 17-20 May 2010. Retrieved from https://www.slideshare.net/essp2/the-

economic-importance-of-agriculture-for-sustainable-development-an Di Falco, S., Laurent-Lucchetti, J., Veronesi, M., and Kohlin, G. (2016). Property rights and land disputes: theory and Evidence from Ethiopia. working paper series WPS 16-03-2. Retrieved from http://www.unige.ch/ses/dsec/repec/files/16032.pdf Getnet, A.(2010).Implications of land policies for rural-urban linkages and rural transformation in Ethiopia. ESSPII working paper No.15 October 2010. Glover, S. and Jones, S.(2016). Can commercial farming promote rural dynamism in sub Saharan Africa? Evidence from Mozambique. Wider working paper 2016/120, United Nations University. Retrieved from https://www.wider.unu.edu/sites/default/files/wp2016-120.pdf Hagere, H. and Nome, M. A.(2010). Democracy, development and armed conflict. University of OSLO. Centre for the study of civil war, PRIO. Paper presented to the 2010 annual meeting of the American political Science Association Washington DC. Retrieved from https://havardhegre.files.wordpress.com/2013/09/hegre_nome_apsa2010.pdf Pinder, C.and Wood, D.(2003). The socio-economic impact of commercial agriculture on rural poor and other vulnerable groups. A working document DFID,Zambia, February 2003. Retrieved from https://www.odi.org.uk/sites/odi.org.uk/files/odi-assets/publications-opinio files/8206.pdf Rakotorisoa,A.M. (2011). A contribution to the analyses of the effects of foreign agricultural investment on the food sector and trade in Sub Saharan Africa. A paper presented at the 4th annual conference on global economic analysis, Veince, Italy June 16-18, 2011. Retrievedfromhttp://www.fao.org/Comm_Working_Papers/Working_paper_33.pdf Samuel, G.(2006). Intensification of smallholder agriculture in Ethiopia: options and scenarios. Discussion paper 007. Retrieved from http://www.future-agricultures.org/wp-content/uploads/pdf archive/FAC Schoneveld, G.(2011). The Anatomy of large scale farmland acquisitions in Sub Saharan Africa. Working paper 85.CIFOR, Bogor, Indonesia. Retrieved from https://www.cifor.org/publications/pdf_files/WPapers/WP85Schoneveld.pd f Shete, M. (2011). Implications of land deals to livelihood security and natural resource management in Benshanguel Gumuz Regional State, Ethiopia. A paper presented at the international conference on “Global Land Grabbing”, University of Sussex. April 6-8, 2011.Brighten,UK.

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Shimelis,T., Zahidul, I., and Pervianen, T.(2009). Effects of land tenure and property rights on Agricultural productivity in Ethiopia, Nambia and Bangladesh. A working paper no.33. University of Helinski. Retrieved from http://www.fao.org/fileadmin/user_upload/fsn/docs/HLPE/Discussion_Paper_33.pdf Smalley, R.(2013). Plantations, contract farming and commercial farming areas in Africa: A comparative review. A working paper 055. Institute for poverty, land and agrarian studies. Retrieved from http://www.fao.org/uploads/media/FAC_Working_Paper_055.pdf Taner, C. and Baliera, S.(2006). Mozambique’s legal framework for access to natural resources: the impact of new legal rights and community consultations on local livelihoods. FAO: livelihood Support Program (LSP) working paper No.28. Rome: food and Agricultural Organizations of United Nations. Retrieved from http://www.offnews.info/downloads/ah248e00.pdf Yigremew, A.(2002). Review of landholding systems and policies in Ethiopia. Organization for social research in Eastern Africa: Addis Ababa. Ethiopian Economic Policy Research Institute Working paper No.5/2002. Retrieved from

Policy documents, proclamations, regulations and reports

AfDB (2011). Agriculture sector strategy 2010-2014. African Development Bank Group. http:// www.afdb.org/fileadmin/uploads/afdb/documents/policydocuments/agriculture%20sector %20strategy 2010-2014pdf ANRS State Council (2010). Expropriation of Rural landholdings for public purpose and payment of compensation Regulation No. 5/2010. Bahir Dar, Ethiopia. ANRS State Council (2015). Expropriation of rural landholdings for public purpose and Rehabilitation of Evictees Regulation No. 26/2015. Bahir Dar, Ethiopia. ANRSIC(2015). Federal and regional investment incentives formulated to promote investment projects. Mega printing P.LC., Bahir Dar. ______(2015). Alternative investment projects profile in Amhara region. Mega printing P.LC., Bahir Dar. ______(2016). The basics of the region treasures and investment alternatives. Gish Abay Publishing, Bahir Dar. Bayu, A.(2003). Food security in Ethiopia review of policy, strategy and program. Retrieved from

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ABayu-2003-agris.fao.org EIC (2016). Pulses sector investment profile: Ethiopia. Addiss Ababa, Ethiopia. Retrieved from http://www.fao.org/3/a-at305e.pdf FDRE (2005). Expropriation of landholdings for public purposes and payment of compensation Proclamation No. 455/2005. Addis Ababa, Ethiopia. FDRE (2007). Payment of compensation for property situated on landholdings expropriated for public Purposes council of minister regulation No. 135/2007. Addis Ababa, Ethiopia. FDRE (2015). The second Growth and Transformation Plan (GTP II) (2015/16-2019/20) draft.

Addis Ababa, Ethiopia. Retrieved from https://europa.eu/capacity4dev/resilience_ethiopia/document/growth-and-transforation-plan-ii- gtp-ii-201516 Getnet, A.(2012). Rural land policy, rural transformation and recent trends in large scale rural land acquisitions in Ethiopia. European Report on development. Retrieved from https://ec.europa.eu/europeaid/sites/devco/files/erd-consca-dev-researchpapers-alemu- 20110101_en.pdf Horne, F.(2011). Understanding land investment deals in Africa country report: Ethiopia. Oakland: Oakland Institute. Retrieved from https://www.oaklandinstitute.org/understanding-land-investment-deals-africa-ethiopia MEDaC (1999). Survey of the Ethiopian Economy. Review of Post reform developments (1992/93-1997/98).Retrieved from https://ageconsearch.umn.edu/bitstream/246011/2/42ian%20growth%20linkages.pdf MoFED (2006). Ethiopia: building on progress a plan for accelerated and sustained development to end poverty (PASDEP) (2005/06-2009/10). Volume I: main text, Addis Ababa, Ethiopia. Retrieved from https://www.sida.se/globalassets/global/countries-and- regions/africa/ethiopia/publications_key_pasdep_fin MoFED (2010). Growth and Transformation Plan (GTP) 2010/2011-2014/2015, Addis Ababa, Ethiopia. Retrieved from http://www.ethiopians.com/Ethiopia_GTP_2015.pdf MoRAD (2009a). List of investment projects in agriculture sector from July 1992-february 6, 2009.(compiled from regional investment data), Addis Ababa. Shephered, B. (2013). GCC states land investments abroad: the case of Ethiopia, summary report. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2839272

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Smalley, R.(2014). Large Scale commercial Agriculture in Africa: Lessons from the past. A policy brief 65 in Future Agriculture Consortium. Retrieved from https://www.africaportal.org/documents/11995/Policy__Brief_065.pdf World Bank (2006). Understanding socio-economic and developmental factors to impact policy change. IBRD, Washington, D.C, Report NO.36442-GLB. Retrieved from https://www.researchgLaurens_Klerkx/publication/283_Understanding_socio- ______(2008). The political Economy of policy reforms: issues and implications for policy dialogue and development operations. Report No. 44288-GLB, Washington. Retrieved from https://openknowledge.worldbank.org/handle/10986/7782

News and magazines

AMMA (2017, 02, December). Problems of small scale farming and a shift to commercial farming: challenges and Opportunities AMMA (2017, 12, November). Destruction of industry parks in Minjar Shenkora Reuters (2016, 10, August). Foreign-owned flower farms attacked in Ethiopia unrest

ANRSIC (August, 2016). Annual magazines No. 1 issue No.1

VOA (2018, 10, March). Legedembi gold mining and its environmental pollution and devastative impacts. VOA (2018, 13, May). Violence against large scale farms happened in Oromia and SNNPRS. Walta News(2018, 27, May). A nationwide supportive framework is prepared to ensure productivity in large scale farms.

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APPENDICES

Appendix-1- Survey Questions, Interview and FGD Guides BAHIR DAR UNIVERSITY COLLEGE OF SOCIAL SCIENCE AND HUMANITIES DEPARTMENT OF POLITICAL SCIENCE AND INTERNATIONAL STUDIES Dear respondents: This questionnaire is prepared to examine the Political Economy of agricultural investment in ANRS: a focus on flower farms in Bahir Dar Zuria Woreda. You are kindly requested to read questions carefully and give appropriate answer based on concrete information you have. It is designed to collect relevant data regarding to the political economy of flower farms only where the researcher has no other implicit objective while he is preparing these checklists except for academic purpose alone. Your participation is based on your consent with no forcing. I am trying to assure you that the data you provide used for the purpose of this study only and your engagement is kept confidential. You have full freedom to withdraw from participation at any time based on your consent.

Researcher’s contact address Asabu Sewnet, email address:[email protected] phone no. 0912704666/0927683142 Thank you in advance

1. Identification 1.1. Name of Kebele Administration

1.2. Name of Village

1.3. Family size

1.4. Age

2. Land Holdings and Expropriation 2.1.Does your household possess land for crop cultivation and other purposes? Yes [ 1] No [2] 2.2.If yes, how many timads/gemed /kadas of land do your household hold now? Below 1 hectare [ 1] 1-2 hectare [ 2] above 2 hectare [ 3] 2.3.How is the current landholding size compared with 10 years ago? Increased [ 1] Declined [2] Remained the same [ 3 ] nothing had [ 4] 2.4.If declined, what is the reason for the decline of your landholding? Leased/rent out some sort of land [1] Lost because of land re-distribution [ 2 ] expropriated for the purpose of flower plant [ 3 ] Shared to adult children [4] 2,3 [5] Other specify 2.5.If your answer for question No. 3.4 is for “the purpose of flower plant”, how many timads/gemed /kadas of land are expropriated? 2.6.The type of land expropriated [ 1] farm land [ 2] Pasture land [ 3] Built up area (compound) 2.7.When did your land expropriated?______2.8.What was the average yearly production you got from the land per hectare?______

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2.9. Did the government offer compensation for your expropriated land and other assets? Yes [1] No [ 2] 2.10. If yes, the provided compensation is/ are (you can choose more than one response) Money [1] Land for house construction [3] Other land for crops production [2] Credit [4] 2.11. If your response is money, how much money the government paid per timad?______2.12. If your response is other land for crops production, did the kebele administration acquire the same size? Yes [1] No [2] 2.13. Have you been given a chance to make choice for the mode of compensation? Yes [1] No [2] 2.14. Please rate your opinion on the compensation for expropriated land by ticking strongly disagree, disagree, no opinion, agree and strongly agree

S. Strongly No Strongly No Items Disagree Disagree opinion Agree agree The amount of money paid for expropriated 1 farmland is far below my expectation The farmland that is allocated for compensation of expropriated land is equivalent with former 2 land in terms of fertility and size The amount of money paid for other 3 assets (eucalyptus and others) is adequate The money paid for compensation to expropriated farmland and other assets can cover 4 all expenditure for many years the family The compensation value is not enough compared with the value of the productive asset and feeding 5 our family

2.15. Please rate your opinion on your engagement in the compensation process by ticking strongly disagree, disagree, no opinion, agree and strongly agree S. Strongly Strongly No agree No Items Disagree Disagree opinion Agree 1 The government was consulted me before the land deal was made with flower farm investors 2 The government has requested my willingness to transfer the land to investors 3 The land is given to flower farm investors by the government without our consent 3. Questions related to economic impacts of flower farms 3.1.The expropriation of farmland for flower farm

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[1] Decreased the households’ total crop production [2] increased the production despite loss of land [3] No difference in terms of production 3.2. Please rate your opinion on the effect of flower farm on the overall living situation of your household by ticking strongly disagree, disagree, no opinion, agree and strongly agree S. Strongly Strongly No agree No Items Disagree Disagree opinion Agree 1 The quantity of crops produced by our household has highly declined after the land is expropriated 2 Even though the farmland has expropriated, our household food security status has improved 3 The current food security status of my household is the same compared with the periods before flower farm investment 4 My family life is getting worst after our farm land has expropriated by flower farm investor 3.1.Please rate your opinion on the effect of the employment opportunities of the local people S. Strongly Strongly No agree No Items Disagree Disagree opinion Agree 1 The flower farm investment has created job opportunity 2 The flower farm has given priority to the unemployed people of our locality 3 At least one of my family members has employed in the flower farm 4 The salary paid to the employees is adequate

5 The salary paid for the employees is far below the local wage labor 6 The government has provided different livelihood opportunities to evictees 7 My household has engaged in alternative livelihood strategies provided by the government No alternative strategy has provided to evictees despite the government promised 3.2. Please rate your opinion on the role of flower farm in the infrastructural development in your locality Strongly No S. Items Disagree Disagree opinion Agree Strongly

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No agree

flower farms constructed road in our locality Our locality is connected by electricity by farms

The investors have provided pure drinking water to our locality Economic inter-linkage created to local communities by flower farms Technology transferred to local communities by flower farms

4. Farmers response to the flower farm investment 4.1.Do you think that the flower farm investment in your locality is disadvantageous to local residents? [1] Yes [2] No 4.2. If your response for Q 4.1 is “yes”, is there violence because of the negative effect of flower farm? [ 1] Yes [ 2] No 4.3 .If yes, when the violent protest was happened? During land acquisition [1] After actual operation of farms [2] 4.4. Who were participated in the violence during land acquisition? [ 1] Only farmers whose land expropriated for flower farm [ 2] unexpropriated residents [3] both 4.5. Who were participated in the violence after projects have been commenced? [ 1] Only farmers whose land expropriated for flower farm [ 2] unexpropriated residents [3] both 4.6. What measures did the people take on the flower farms? [ 1] Burning the flower farm [ 2] destroying of the greenhouse gas [ 3] Burning of farm tools and machines [ 4] Burning warehouses and offices [ 5] Stealing of the properties of flower farm [6] destroy flower farm fences [ 7] all [ 8] others (if any, specify) 4.7. Why the local community took such measures on flower farms?[ 1] failure to benefit the society [ 2] inefficient utilization [ 3] it does not create satisfactory job opportunities [ 4] breaking of promises [ 5] it created food insecurity [ 6] it brought economic crisis [ 7] all [ 8] specify if any other 4.8. What are the consequences of the violence? [ 1] it slow down investment flow [ 2] it brought economic crisis [ 3] human death [ 4] physical violence and insecurity [ 5] disability [ 6] all [ 7] specify if any other 4.9. Is there any difference in attitude to the government before and after flower farm investment? [ 1] Yes [ 2] No 4.10. If yes, what is your current attitude towards the existing government? [ 1] Positive [ 2] Negative 4.11. If your response is “Negative”, why? [ 1] our family life is getting worse than before because of farmland expropriation for the purpose of flower farm [ 2] the flower farm pollutes

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environment [ 3] the flower farm controls our livestock movement [ 4] Others (specify, if any) 4.12. If there is similar instability, do you think that the people will take similar measures on flower farms? [ 1] Yes [ 2] No 4.13. Is government-society relation strained after expropriation? [ 1] yes [ 2] No [ 3] no idea 4.14. If yes to question No.4.13, what are the reasons? [ 1] it failed to create job opportunities [ 2] land expropriation [ 3] it does not provide concern to local communities [ 4] inefficient utilization [ 5] all [ 6] specify if any other 4.15. Is government legitimacy degraded after expropriation? [ 1] Yes [ 2] No 4.16. If yes to question No. 4.15, what are the reasons?

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Interview Guides

Interview guiding questions to expropriated farmers

I. Questions about the nature of landholdings and expropriation

How do you explain your participation in land dealings? How you describe the transparent and accountable nature of expropriation? How do you explain the nature of orientation about expropriation and compensation issues? Would you tell me the consent of evictees to expropriation?

II. Questions related to compensation process

Would do you tell me your participation in the compensation process? How and by whom compensation valuation was estimated? Would you tell me the fairness about payment of compensation? How do you present complaints about compensation? How it was addressed? What do you feel about the nature of compensation? What type of compensation paid to evictees? Land to land or monetary, partial/full? For how many years you are compensated? For limited years/ life time/

III. Economic consequences on expropriatees

Would you tell me the economic advantages of flower farms to you and your family? How do you explain the nature of job opportunities created in flower farms? Explain the infrastructural development brought by flower farms? How do you explain the economic impacts you faced by flower farms?

IV. Questions related to the political consequences of flower farms

How do you explain the issue of expropriation to flower farms? Would you tell me the implications of flower farms in Government-society relation? How do you explain the rehabilitative measures taken to promote evictees by the government? What are the political consequences of flower farms?

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To investors What are the benefits of flower farms to the local communities? Would you tell me the farms relation with local communities? How do you explain the progress and performance of the farm since its establishment? What are the causes of the violence and its consequence in 2016 summer? To ANRSIC officials and workers Why the commission promotes commercial farming? How do you explain the consequence of flower farms on the locals and the state? What are the rehabilitation measures the commission provides to evictees? What are the political consequences of flower farms? To Bahir Dar Zuria Woreda rural land administration and use workers and valuation committees Would you explain the involvement of peasants in land dealings? How do you explain the nature of compensation? What type of compensation delivered to peasants? Kind/monetary? If monetary partial/full? What are the parameters to be used in land and property valuation? How the complaints of peasants handled in relation to compensation? What are the economic consequences of flower farms? What are the rehabilitative measures taken to promote dislocated landholders? What are the political consequences of flower farms? Experts /academics What are role of commercial agriculture to local economic development? Would you tell me the impacts of commercial farming on local communities and the state? How do you explain the impacts of commercial agriculture in government-society relation? What are the root and immediate causes that aggravate political violence on development induced investment sites? Possible consequences?

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FGD Guides Would you explain the nature of land expropriation and your engagement in land dealings? How do you elucidate the overall process of compensation valuation and payment? Would you tell me the economic consequences that expropriation to flower farms brought to local communities? Do you think that flower farms are painful to the locals? If yes, any conflict happened due to this? If yes? Explain the causes and consequences of the violence?

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Appendix-2: List of interviewees, key informants and focused group discussants A. Evictee Interviewees

No Code Sex Age Education Place of Date of Remark Level Interview Interview

1 EI001 M 64 Illiterate Workemla 05/02/2018 Evictee&conflict participant

2 EI002 M 59 lliterate Workemla 05/02/2018 Localmilitia and evictee

3 EI003 M 59 Religious ed. Workemla 06/02/2018 Priest & evictee

4 EI004 M 53 Illiterate Meshenti 06/02/18 Evictee&conflict participant

5 EI005 M 52 4th Meshenti 08/02/2018 Expropriate & guard

6 EI006 M 56 Illiterate Workemla 12/02/2018 Evictee,Conflict participant, arrested

7 EI007 M 53 Illiterate Workemla 12/02/2018 Evictee&Conflict participant

8 EI008 M 60 Illiterate Workemla 12/02/2018 Evictee&Conflict participant

9 EI009 M 62 Illiterate Meshenti 12/02/2018 Kebele administrator

10 EI010 M 62 4th Teratir 12/02/2018 Local elders

11 EI011 M 59 Illiterate Workemla 13/02/2018 Evicteeandconflict participant

12 EI012 M 62 Illiterate Workemla 14/02/2018 Evictee&conflict participant

13 EI013 M 52 Illiterate Chicha 18/02/2018 Local elders, evictee, conflict participant

14 EI014 F 50 Illiterate Chicha 18/02/2018 Female Widow, evictee

15 EI015 M 48 4th Wogelsa 18/02/2018 Evictee&conflict participant

16 EI016 M 48 Illiterate Atangusa 18/02/2018 Evictee&Conflict Participant

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17 EI017 M 58 Illiterate Atangusa 19/02/2018 Evictee & conflict participant 18 EI018 M 64 Illiterate Wogelsa 19/02/2018 Evictee&conflict participant

19 EI019 M 40 Illiterate Chicha 19/02/2018 Disabled

EI=Evcited Interviewees

B. Government Interviewees

No Codeof Sex Age Education Place of Date Remark interviewee Level Interview of Interview

1 GO-1 M 30 BA Degree Bahir Dar 13/02/2018 Regional Official

2 GO-2 M 29 BA Degree Bahir Dar 15/02/2018 Woreda Official

3 GO-3 M 32 BA Degree Bahir Dar 16/02/2018 Woreda Official

4 GO-4 M 38 BA Degree Bahir Dar 23/02/2018 Regional Official

Key: Government Official

C. Investor and valuation committee interviewees No Code Sex Educational Place Dateof ofInterview Interview level

1 VCI1 M Masters Bahir Dar 19/02/2018 Retired

2 VCI2 M Degree Bahir Dar 22/02/2018 On duty

3 II-1 M Degree Bahir Dar 16/02/2018 Agent

4 II-2 M Masters Bahir Dar 24/02/2018 Marketing worker

Key: VCI= Valuation committee interviewees II= Investor interviewees

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D. Key informants Interviewees No Code Sex Educational level Placeof Date of Remark Interview Interview 1 KI1 M PhD candidate Debre Markos 19/03/2018 Developmental economist

2 KI2 M PhD Debre Markos 22/03/2018 Agricultural Economist

3 KI3 M Senior lecturer Debre Markos 16/03/2018 Peace and security studies

E. Focus Group Discussants-(FGD-1)

No Code Sex Age Education Placeof Date of Remark Level Discussion Interview

1 FGD-1 M 51 Illiterate Land committee

2 FGD-2 M 62 Reli. Priest, Evictee education

3 FGD-3 M 50 Illiterate Evictee&participant

4 FGD-4 M 53 Illiterate Workemla 07/02/2018 Evictee&participant

5 FGD-5 M 48 Illiterate Militia & evictee

6 FGD-6 M 52 Illiterate Evictee&participant

7 FGD-7 M 45 4th Evictee & partipant 8 FGD-8 M 58 Illitrate Evictee&participant

Key: FGD= Focus Group Discussion

No Code Sex Age Education Placeof Date of Remark Level Discussion Interview

1 FGD-1 M 51 Illiterate Evictee&participant

2 FGD-2 M 62 4th Militia

3 FGD-3 M 50 Illiterate Evictee&participant

4 FGD-4 M 53 Illiterate Chicha 21/02/2018 Evictee&participant

5 FGD-5 M 48 Illiterate Militia & evictee

6 FGD-6 M 52 Illiterate Evictee&participant

7 FGD-7 M 45 Illiterate Evictee & partipant

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ANNEXS

Annex 1 Measure of central tendency of surveyed households family size and age N Minimum Maximum Mean Std. Deviation Family size 160 1 11 7.04 1.6 age 160 30 80 54.3 10.6

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Annex-2

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Annex-3

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Annex-4

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Annex-5

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Annex-6

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Annex-7

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Annex-8 and 11

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Annex-9

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Annex-10

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