| Sumario: | Ethiopia's notable advancements in poverty reduction over the past two decades have been reversed by recent shocks— including climate crises, conflict, inflation, and the COVID-19 pandemic—driving the national poverty rate to 32% and eroding living standards. High unemployment, particularly among youth and women, and a workforce predominantly engaged in informal employment reveal persistent vulnerabilities. This context underscores the urgent need for coherent, well coordinated, and sufficiently financed policies and programs to build resilient livelihoods and create decent jobs. This report provides a comprehensive analysis of Ethiopia's active national policies and institutional programs designed to address these challenges. The analysis reveals a robust policy environment, with 24 active policies that are strongly aligned with CGIAR's goals of increasing incomes, building resilience, and creating decent jobs within agrifood systems. Foundational plans like the Ten-Year Development Plan and the National Agricultural Investment Plan (NAIP) articulate ambitious visions for prosperity through agricultural transformation, industrialization, and resilience. However, key findings indicate that many policies lack deliberate mechanisms to ensure macroeconomic growth and agricultural innovation translate into equitable, pro-poor outcomes, particularly for the most vulnerable groups. A review of 57 institutional programs identified 17 core initiatives directly targeting poverty and livelihoods. While these programs demonstrate a significant institutional effort, their coordination is hampered by systemic challenges: overlapping systems, unclear roles, weak communication, and insufficient integration of disaster risk management into government institutions. These inefficiencies lead to duplicated efforts, service delivery gaps, and wasted resources. Furthermore, while political commitment is evident, a stark financing disparity threatens impact as large-scale, mixed-funded safety net programs like PSNP5 (USD 2.3 billion) are well-resourced, while targeted initiatives – especially those focused on job creation, youth employment, and disaster recovery- are severely underfunded. The heavy reliance on donor financing creates inherent vulnerability to shifting external priorities and leaves crucial, smaller-scale interventions without sustainable support. To translate policy ambitions into tangible outcomes, this report proposes the following actionable recommendations: 1. Strengthening Institutional Coordination: Establish a high-level inter-ministerial steering committee to harmonize efforts and enforce accountability. 2. Developing a Unified Data System: Create a centralized digital system to track budgets and outcomes for data driven decisions. 3. Rebalancing Financing: Increase domestic co-financing for targeted initiatives and establish a blended finance facility to reduce donor dependency. 4. Mainstreaming Inclusion: Revise key national plans to include mandatory targets for women, youth, and the landless. 5. Linking Safety Nets to Livelihoods: Design a clear graduation path from safety net programs to skills training and market access. 6. Prioritizing Off-Farm Jobs: Amend agricultural strategies to fund job creation in agro-processing and logistics. 7. Leveraging Technology and Evidence: Implement rigorous impact evaluations and co-design technologies with end users. While Ethiopia's strong policy foundation demonstrates clear commitment, fragmented coordination, financing, and inclusion gaps impede impact. Coherent, well-funded, and inclusive policies are crucial to reverse the rise in poverty. CGIAR is uniquely positioned to assist in bridging the gap between research, policy intent, and measurable outcomes by providing evidence based insights and innovations. With a resolute commitment to addressing these gaps, Ethiopia can overcome current vulnerabilities and become a regional model for poverty alleviation, livelihood resilience, and job creation.
|
|---|