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130 Diagnosing Corruption in Ethiopia
MDGs but also to achieve universal access to basic services in rural and
urban areas. Current funding for rural water supply has, at least in nominal
terms, reached the annual volumes required to meet either the
MDG or UAP target, although aggregate expenditure in the subsector
is only 60 percent of budget (World Bank 2009).
• Agriculture and livestock. Agriculture accounts for a dominant share of
the Ethiopian economy (almost half of gross domestic product). Yet per
capita food production has declined significantly, with roughly half the
population classified as food insecure. The government’s Participatory
Small-Scale Irrigation Development Program plans to invest
US$1.68 billion over 15 years (2002–16), substantially increasing the
percentage allocated for irrigated areas. Twelve projects (adding about
259,000 hectares) are scheduled for completion by 2010, and Ethiopia’s
National Action Plan for Adaptation has a core focus on smallscale
irrigation development to reduce dependence on rainfed
agriculture. Ethiopia also has the largest livestock herd in Africa, and
livestock is integral to livelihoods in highland and pastoral farming systems.
Livestock use is a major driver of rural water development, especially
in drought-prone regions.
• Energy and hydropower. Roughly 95 percent of Ethiopia’s electricity
generation is from hydropower. The country’s economically feasible
hydroelectric potential is estimated to be 100 times more than current
production. With demand for energy growing rapidly, the MOWR has
embarked upon an ambitious five-year development plan, with seven
projects under implementation or in design, involving billions of dollars
of investment. 5
• Emergency relief. Water provision forms a part of the emergency response
to national drought or relief programs, although drought planning continues
to be dominated by food rather than broader public health or
livelihood needs (Calow et al. 2010). The United Nations Children’s
Fund (UNICEF), supported by many NGOs, provides ongoing support
to the recurring problem of drought—helping to repair critical rural
supplies or trucking water to protect lives and livelihoods.
Rural Water Supply in Ethiopia
Although corruption amounts may be larger in other water domains that
involve higher-value contracts, rural water supply directly affects the
well-being of most of the population. In short, a corrupt transaction