Part 2: Follow the debate on the "Growth and Transformation Plan of Ethiopia", this time with the Development Partners

29/09/2010

Ministry discusses Growth and Transformation Plan with Development Partners

Officials of the Ministry of Finance and Economic Development (MoFED) have held a consultative meeting with international development partners on the draft Growth and Transformation Plan of the government. The partners in their initial reflections have welcomed the plan and its focus areas. Briefing international development partners on the new five-year Growth and Transformation Plan (GTP) of the Ethiopian Government in Addis Ababa on Wednesday, MoFED State Minister, Mekonnen Manyazewal said the plan is based on the performance of the economy in the last five years. He said the plan focuses on seven strategies, called pillars of the plan, which include the rapid growth of the agriculture sector and the industry, improvement of social services, and huge investment on infrastructure. It also eyes at building the capacity of government institutions to ensure transparency and combat rent seeking tendencies. The plan also slates to invest on institutions of democracy. In their initial reflections on the document, international development partners welcomed the plan and its focus areas. The UN country team in Ethiopia said it would support the government in effectively implementing the plan. Irish Ambassador to Ethiopia appreciated the plan’s priority on industry. Head of the European Commission Delegation to Ethiopia is critical of the plan’s focus on environment, population and external financing. He however said Ethiopia is taking charge of its destiny.

Source: Ethiopian Radio and Television Agency, September 29, 2010

http://www.erta.gov.et/news/morenews.php?category=news&type=new...

30/09/2010

Prime Minister Meles Zenawi has called on international development partners to support Ethiopia’s growth and transformation over the coming five years thorough releasing budget aid. He said Ethiopia expects increased aid from traditional and new donors. The Premier on Thursday held a consultative meeting with the donors on his government’s new five-year Growth and Transformation Plan (GTP). Having scrutinized the plan, representatives of the international development partners welcomed the plan and its focus areas but were analytic on certain things. They raised questions related to market signals, risk of overheating, financing gap, social welfare, private sector involvement, aid effectiveness and transaction cost, among others. Responding to the queries, Prime Minister Meles Zenawi said the private sector would play a decisive role in stepping up agricultural production. It would also have a vital role in industrialization. As regards marketing, Meles said priority would be given to specialization and export oriented production as well as expansion of the Ethiopian Commodity Exchange. He said the government is well aware of the challenge of financing but will try to manage it. “There will be an increase in government revenues as well as in overseas development assistance (ODA) from both traditional and new donors,” he said. In addition to domestic sources of funding, Meles said, the Ethiopian Diaspora and international development partners should put in enormous contributions for the success of the plan, which he labeled “doable”. According to the Premier, achieving the Millennium Development Goals (MDGs) in health sector and ensuring universal access to potable water service would get prime attention of the government in the coming five years. Creating one economic and political community, improving the informal justice system, and fighting rent-seeking tendencies would also be given precedence. The Premier promised to hold continued engagement with the development partners in the years to come.

Source: Ethiopian Radio and Television Agency, September 30, 2010

http://www.erta.gov.et/news/morenews.php?category=news&type=news&morenewsid=3708