Ethiopia SOCODEP CE - main report - IFAD

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II. COUNTRY BACKGROUND 2. Ethiopia is a large (1.1m km 2 ), very diverse and extremely poor country and both its population density and growth rate are higher than the average for east Africa (Table 1). Ethiopia was rated 170 out of 177 in the Human Development rankings in 2006. There is little incentive for farmers to produce surpluses for distant markets where they will receive very low prices, even in areas where this is possible. Coffee is Ethiopia’s main export, securing the livelihood of 700-800,000 households. In the rural areas, over 32m people live on less than US$0.50 per day. Subsistence agriculture is the main source of income for 87 per cent of rural households. Agricultural productivity and income levels are low and fluctuate due to periodic climatic shocks. Livestock (72 per cent of households own livestock) is the primary asset to cushion weather shocks. Other than climatic variability, the main direct causes of rural poverty are an ineffective and inefficient agricultural marketing system, underdeveloped transport and communication networks, very basic manual production technologies, limited access of rural households to support services, and environmental degradation (soil erosion and deforestation). 3. The fundamental causes of poverty however are political, social and cultural. The political basis of poverty relates to the ways in which power has been exercised by successive Governments – particularly over land and resources, and in relation to individual freedoms, and the consequent failure to empower rural households and communities. The social and cultural aspects of poverty concern the disadvantages which some occupations and most rural women experience in terms of marginalisation and lack of ready access to health care, education and employment opportunities. Female-headed households are more likely to be food insecure than male-headed households. Furthermore, the political and social elements have combined to discourage participation by rural poor people in decisions that affect their livelihoods. A. Project Background 4. SOCODEP’s origins. SOCODEP was one of the first significant internationally funded interventions in Ethiopia following the fall of the former Marxist-Leninist regime (the Derg) in May 1991. The Project aimed to respond to the then new legislation (Proclamation 85/1994) concerning Cooperatives, which ostensibly set out a means of turning the former Government-imposed and politically-dominated Producer Cooperatives of the Derg into farmer-owned viable business entities serving their members’ interests. In particular, it aimed to make rural finance (specifically microcredit) available to so-called Service Cooperatives and their members. 5. The Principal Objective of the Project was to “increase agricultural productivity and raise income levels of the rural poor through support to Service Cooperatives’ development in order to facilitate efficient provision of sustainable services to members”. The Project had 7 specific objectives which are set out in Table 2 and further elaborated in the reconstructed logframe in Appendix 4. 6. Together these objectives were designed not only to turn Service Cooperatives (SCs) into effective vehicles for the service of their members, but also to deliver some specific services (road construction, veterinary drug supply, health facility up-grading, and provision of water supply and sanitation services) directly through the relevant Government organs. The Water Supply, Health and Basic Sanitation Component (WSHBS) was separately financed by the Belgian Survival Fund as a later addition to the Project. 2
Table 1. Statistical Data Area and Population Total area 1,127,127 km 2 Population Approx. 74 million Population density 65 inhabitants/km 2 Average population density for East Africa 43 inhabitants/km 2 Population growth 2.36 per cent per year Average population growth for East Africa 2.18 per cent per year Number of ethnic groups > 80 Number of dialects Economy and Agriculture Approx. 200 Per cent of population living in rural areas (2003) 84 Contribution of agriculture to GDP 42 per cent Contribution of agriculture to exports 75 per cent Per cent total labour force employed in agriculture 81 per cent Average GDP growth 1993-2003 4.7 per cent GDP growth in 2005 9 per cent per cent total land area arable 45 per cent IFAD per cent total land area cultivated 9 per cent per cent cultivated land irrigated
Page 1: PROJECT EVALUATION Federal Democrat
Page 4 and 5: Overall Responsibility Lead Evaluat
Page 6 and 7: TABLES 1. Statistical Data 3 2. SOC
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Page 12 and 13: into farmer-owned viable business e
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57 SO4 Provide credit to meet finan
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59 A6.3.2 Supervision of rehabilita
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61 A7.3.1 Provide Training - Number
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64 IFAD implementation workshops PC
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Evaluation Mission Itinerary, 18 th
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Eazo Multi-purpose service cooperat
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Bibliography 73 Appendix VIII Assoc
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Via Paolo di Dono 44 - 00142 Rome,
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Ethiopia SOCODEP CE - main report - IFAD

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