Policies And Strategies

Based on the new economic policy, the government formulated a long-term economic development strategy Agriculture-Led-Industrialization (ADLI) which is geared towards the transformation of the backward economic structure. It is a two-pronged strategy, incorporating on one side the external sector (export-led part) and on the other the internal sector which shows the forward and the backward-linkages between agriculture and industry. In the connection,

  1. agriculture will supply commodities for exports, domestic food supply and industrial output; and
  2. expand market for domestic manufactures. The mining sector is expected to give an impetus to the development of the export sector.

The country's development strategy is supported by an economic reform programe developed in cooperation with the World Bank and the International Monetary Fund (IMF) and on a series of structural adjustment programes since 1992.

Major gains have been made from the reform program, particularly as a result of liberalization, low inflation, fiscal discipline and low government borrowing, infrastructure improvement and the growth of the private sector.

The government has initiated a privatization program since 1995/96. Three hundred seventy five  government owned firms were intended to be privatized in 1995/96 out of which so far 201 have been sold and brought over 33 billion Birr to the country. The rest 156 firms are at present under privatization process thus provide good entry for foreign investors.

Trade and Industry Policy

The Industry Development Strategy of the country has put in place the principles that primarily focus on the promotion of agricultural-led industrialization, exported development, and expansion of labor intensive industries.

These principles are inter-dependent and inter-linked one with another. The strategy has also set the other principles that clearly stated the pivotal contribution of the private sector, the leader ship role of the government, and the integrated and coordinated participation of the public at large in nurturing the strategy. This strategy refers to those industries which are primarily involved in the production of manufactured goods. It is also tried to include other industrial classified sectors in the document other than the manufacturing industries. 

Fundamental Principles of the Strategy

1.    Considering the Private Sector as an Engine of the Industrial Development Strategy

2.    Implementing Agricultural Development Led Industrialization Principle

3.    Implement Export-led industrialization principle since

4.    Focusing on the expansion of labor intensive industry direction.

5.    Implementing effective domestic-foreign investment partnership method

6.    Implementing the direction where, the government will play a leading managerial role.

7.    Implementing the principle that encourages the active participation of the public.

a.       Government-private sector forum

b.      Peasants and industrialists Integration

c.       Employer- Employee Relation

Ethiopian National Health Policy

Following the change of Government in 1991, a number of political and socio-economic reform measures were put in place. Two of these were the development and introduction of a new National Health Policy in 1993 and, in 1997, the formulation of a comprehensive rolling 20-year Health Sector Development Plan (HSDP). Both are the result of the critical assessment and analysis of the nature and causes of the country's health problems. The HSDP is now in its third phase (HSDP III). The major foci of the health policy are democratization and decentralization of the health care system, development of the preventive, promotional and curative components of health care, assurance of accessibility of health care for all segments of the population and the promotion of private sector and NGOs participation in the health sector. The national health policy focuses on a comprehensive health service delivery system to address mainly:

  • Communicable diseases
  • Malnutrition
  • Improving maternal and child health The health service delivery system is decentralized with responsibility for implementation being largely devolved to the districts which plan on the basis of block funding for the sector.

The Policy emphasizes inter-sectoral collaboration, particularly in ensuring family planning for optimal family health and population planning, in formulating and implementing an appropriate food and nutritional policy and in accelerating the provision of safe and adequate water for urban and rural populations.

The Education and Training Policy

The chief goal of the education and training policy is the cultivation of citizens with an all round education capable of playing conscious and active role in the economic, social, and political life of the country at various levels. To achieve this goal, it is imperative that the fundamental problems of the educational system are stage by stage corrected. To this effort, various strategies and methods have been devised to rectify the problems identified above and fully implement the new education policy. It is useful, however, to look at the strategy employed to correct each of the basic problems of the old educational system in order to better understand the new policy.

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