Market Institutions, Transaction Costs, and Social Capital in the Ethiopian

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Market Institutions, Transaction Costs, and Social Capital in the Ethiopian

10 CHAPTER 2 Figure 2.1 Administrative regions and zones of Ethiopia Source: United Nations Emergencies Unit for Ethiopia, March 2000 (http://www.sas.epenn,edu/African_Studies/EUE/M_eue.html). Note: All boundaries are approximate and unofficial. and Shewa (25 percent). Maize is produced Seasonality in Production in Shewa (45 percent), Wollega (34 percent), and Marketing and Gojjam (15 percent).5 In terms of de- There is an important seasonal pattern to mand, Kuawab (1994) estimates that the the production and marketing of cereals in major deficit areas are concentrated in Addis Ethiopia. Due to the rain-fed nature of agri- Ababa, where demand is 32 percent of total culture, the grain market depends primarily marketable surplus, Hararghe (18 percent), on the major harvest season, the meher, which Sidamo (7 percent), Wollo (6 percent), and occurs from November through December. Tigray (4 percent). The dispersion of surplus In this period there is a flurry of buying on and deficit areas gives rise to significant inter- the part of traders, and prices are at their regional flows of grain, as the next chapter lowest given the large supply that floods the explores. market as farmers seek to sell in order to meet 5 Kuawab Business Consultants (1994); Lirenso (1993). These statistics are based on 1979–1988 time series by the Cen- tral Statistical Authority. Provincial boundaries were redrawn by the Transitional Government in 1992. Gojjam is now separated into Eastern and Western Gojjam in Amhara region; Shewa is separated into two Northern Shewa zones (in Oromiya and Amhara regions) as well as an Eastern and Western Shewa in Oromiya region; and Arsi zone is located in Oromiya region. Wollo is separated into North and South Wollo zones, both in Amhara region. Hararghe is separated into East and West Hararghe zones, both in Oromiya, while the main urban centers, Harar and Dire Dawa, are consid- ered a separate region. Sidamo is located in Oromiya region..

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