. I' 3 : DOCUMENT RESUME ED 116 842 'Bp 008 912 ) AUTHOR Tecle, Tesfai e TITLE The Evolution of Alternativb Rural Development Strategies in Ethiopia; Implications for Employment 1 and. Income Distribution. African Rural Employment Paper No. 12. INSTITUTION Michigan State Univ., East Lansing. Dept. of Agricultural Economics. - SPONS AGENCY Agency for International Development (Dept. of State), Washington, D.C. REPORT NO ARE-12 PUB, DATE 75 Y /.-- NOTE 121p. AVAILABLE FROM African Rural Employment Research Network, Department of Agricultural Economics, Michigan State University, East Lansing, Michigan 4884 (single copy free) EDRS PRICE MF-$0.76 HC-$5.70 Plus Postage . DESCRIPTORS Agricultural Production; Community Involvement; Credit (Finance); *Employment; *Evaluation; *Income; Information Dissemination; Land Use; Manpower Development; Marketing; Organization; Policy Formation; *Program Descriptions; *Rural Development; Technology; Transportation IDENTIFIERS *Ethiopia ABSTRACT . As Ethiopia has dsignedand implemented numerous intensive (geographically concentrated) and minimum-package rural development programs between 1967-75, the purpose of this monograph is to:(1) trace the evolution of the package projects;(2) analyze 'package performances; and (3)identifyhe implications for Ethiopian, planners and policy makers. The monograh's 7 sections are identified I* I as follows:(1) Introduction;(2) Three major Integrated Rural Development Projects (discussion of intensive packages ..focusing on organizational 'frameworks and major components which include: development of an improved technological package; dissemination of new practices; farm credit; lending policies; performance of the credit program; output marketing; and other compdtents);(3) The Minimum Packagp Project (MPP's organization apd major components); (4) Overall Assessment of the Ethiopian Package Projects (agricultural output and income; income distribution; employment; and ' local participation);(5) the Extension and Project Implementation Department of the 1975-80 Period (role of the intensive package projects and MPP's proposed rate of expansion) ;(6) Some Current Rural Devel8pment Issues (land tenure, reform, trained manpower, transportation, marketing,.new technology, peasant associations, dissemination of innovations, and administrative organization); (7) Summary. "(JC) Document; acquired by ERIC include many informal unpublished materials not available from other sources. ERIC makes every effort to obtain the best copy available, Nevertheless, items of marginal reproducibility are often encountered and this affects the quali4 of the microfiche and hardcopy reproductions ERIC makes available via the ERIC Document Reproduction Service kEDRS). EDRS is not responsible for the quality of the original document. Reproductions supplied by EDRS are the best that can be made from _ the original. AFRfCAN RqR RESEARCH NE -Airicaltural EmploymentPaper Ilk 12 THE EVOLUTION OFALTEHNRTIY RURAL DEVELOPMENT ;TUTEESIN ETHIOPIA: IMPLICATIONS FOREMPLQYMENi AND INCOME DISTRIBUTION L-F PA G M E 4 :c mE m F-- .( f4OE 44' '7NA 4S. 'E _ 4 Tecle 7A-institute of Development Research Depatment.of Agricultural Economics coIddis Ababa University .Michigan State university , Addis Ababa, Ethiopia 2 fait Lansing,Michigan t9t e-71.L5-01u THE AFRICAN RURAL EMPLOYMENT RESEARCH NETWORK! The ariFan Rural Employment Research Network wasinititated in 1971 by a group of scholars interested in comparativeanalysis of thd,d elop- ment process in selected Africancountries with emphasis-on,rura ploy- by scholars meat problems. The research program has been jointly designed in African countries, at Michigan State' Universityand at'other universi- ties in North America. Research emphasis is being directed to Sierra Leone, Nigeria and Ethiopia. In addition,' individual scholars inother countries, such aGhana, Zaire and Tanzania, are carrying outresearch on rural emplaymgat problems and aremeipers of the Network`; The research program.emphaiiizes joint andindividual studies of rural employment such as the demand for labor in alternativeproduction systems. and in the rural nonfarm sector, the migration process as alink between rural and urban labor markets and the impactof macro- economic polities on labor absqrption inagriculture. Attention will be directed to develop- of ing cy models to tracethe consequences-Of alterfiative strategies agricv tural development on farm output,employment, income distribution gration and to incorporating the employmentobjective into project, sub-sector and sectoral analysis in developingcountries. The 'Network maintains links with similar researchnetworks in Latin America (ECIEL) and Asia (CAMS and with organizationssuch as the FAO, ILO and the World Bank. African Rural Employmeht Papers are distributed withoutcharge to libtaries, government officers and scholars. Carl K. Eicher : Professor of Agricultural Economics Michigan State Unitrersity" East Lansing, Michigan 48824' r AV THE EVOLUTION OF ALTERNATIVE RURAL DEVELOPMENT STRATEGIES, IN ETHIOPIA: IMPLICATIONS FOR EMPLOYMENT AND INCOME DISTRIBUTION*,* 0 by Tesfai Tecl *Research Fellow, Institute of Development Research, Addis Ababa University, Addis Ababa, Ethiop a. **The constructive comm is on earlier drafts of this paper by Fesseha Ezaz of the Extensio and Project Implementation Department (EPID), Ministry of Agriculture, Govrnment of Ethiopia, and Bengt Nekby and Carl K. Eicher are appreciated. e World Bank's contribution in financing the initial field researchor this paper is gratefully acknowledged. This paper has been publied as part of a study of rural employment pro- blems in Ethiopia which ws initially financed under an Agency for Inter- national Development conract (AID/csd 3625) and subsequently financed by theU.S.A.I.D. Missi to Ethiopia contract with the Institute of Development Research ( R), Addis Ababa University, and an IDR sub- contract with Michiga State University. 1975 '1 TABLE OF CONTENTS PREFACE Chapter 4 I. INTRODUCTION 1 II. THE THREE MAJOR INTEGRATED RURAL DEVELOPMENT PROJECTS - 6 The Chilalo Agridultural DevelopmentUnit'(CADU) 6 Organizationgl Framework 7 Major Components of the CADU Package 11 Development ofan Improved Technological Package 11 Dissemination of New Practices t 14 Farm Credit 16 Lending Policies and Procedures 18 Performance of theCreditProgram 19 Output Marketing 22 Other Components'of the CADU Program 24 The Wolamo Agricultural DevelopmentUnit '(WADU) 24 Organizational Framework , - 25 Major Components of theWADU Package 26 Development of an Improved Technological Package 26 ff Dissemination of New Practices 27 Farm Credit - 29r Output Marketing 30 The Settlement Scheme 12 . Other Components of the WAN Program 34 r TheAda District Development Project (ADDP) 37 Major Components of, the Package 38 1 Farm Credit - 39 Output Marketing . 40. Other Components of the ADDP Program 40 Some Lessons from the "Intensille" Packages 41 III. MINIMUM PACKAGE PROJECT 44 Organizational Framework of EPID and the MPP 45. Major Components ofthe Package 47 pissemination of'New Practices 47 Farm Credit 51 1 Other Development Components of the MPP 53 Some Lessons from the MPP 54 . ' IV. OVERALL ASSESSMENT OF THE ETHIOPIAN PACKAGE PROJECTS 55, , Agricultural Output and Income . t 56 Income DistribUtion , 7 . Employments . 59 l Local Participation 60 V. EPID'S RURAL DEVELOPMENT PROGRAM OF THE 1975-80 PERIOD . 63, The Role of,the Intensive package Projectt 63 .) The MPP During the 1975-80 Period . 64 Prozosed Rate of Expansion of the MPP 66 Problems That Could Affect MPP's Phase II Plagned Rate of Expansion 66 VI. SOME CURRENT RURAL DEVELOPMENT ISSUES ; 70 Land Tenure Reform ' 70 Trained Manpower 72 . Transportation 74 ./) Marketing 7.5 t Market Information 1 76 Grades and Standards 76- Storage 77 .Price Control , . I 78 New Technology 80 0 Dissemination of Innovations 82 Peasant Associatiqns lit4 Administrative Organization , 87 v / VII. SVMMARY i90 , APPENDICES -. 93 BIBLIOGRAPHY l 1 109 PREFACE, . As one analyzes rural development,programs,inEthiopia and in other Afrian countries, it is' immediatelyobvious that rural development' is an ,extraodinarily complicated process inwhich social, political, cultural, historical and ecological factorsall shape the potentialities,of any single program,as well as overall rural development efforts. As a re- sult, rural development should be viewedas 4. leafning process and each country should carefully document itssuccesses as well as its failures. It is extremely important fOr local scAolarsin local research institutes such as the Institute of Development Researchto document Ethiopia's rural development experience to date. The objective of this paper is to docu- 1 ment the evolution and performance of Ethiopia'srural-developmentpro- grams to date and to draw, lessons for future rurcl develdpmentprograms . , ; as.Ethiopia's provisional militarygovernment pushes forward with dual equity/production programs whichare designed to improve the lives of the masses in the countryside. I. INTRODUCTION Ethiopia has gained considerable experiencein designing and carry- ing out rural development programs over the 1967-1975 period. Over this period a number of alternativeapproaches to rural development have been tried in Ethiopia--rangingfrom "intensive" package programs in limited geographical areas to "minimum"package programs serving farmers located along major highways throughoutthe country. The purpose of this mono- graph is to trace the evolution ofthese package projects,