World Bank Documents & Reports

202 Pages·2001·14.79 MB·English

by  World Bank Group

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AA ReporNt o. 11306-ET
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DiDi TowardP overtyA lleviationa nd
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June2 8, 1993
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re re FOR OFFICIALU SEO NLY
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DiDi MICROGRAPHICS
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Report No: 11306 ET
Type: SEC
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Thisd ocume~hnats a restricteddi stributioann dm ayb eu sedb y!ecjple.rtosn ly
Pf e m~ncof tft~iroffil a dutiesi. tenowrtsmaiynototherWisebe
~ drs4edwthiWod 0a0k,authorization
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CURRENCYE QUIVALET
CurrencyU nit - Birr (Br.)
US$ L0 Br. 2.0 (unt Septeber 30, 992
US$ 1.0 m Br. S.00 (untilO ctober 1, 1992)
ABBREVLITIONS
AAM AddisA babaM unicipality
AAWSA AddisA babaW at and Swerge Authority
AMC AgricultualM arketingC orporatiom
CRAs CommuityH elth Agents
CllA Canadiann tentional DevelopmetA gency
CPPS CommunitPy articipatioPnr omotionS ervice
CSA Centrl Stics Authorit
EBSN EmploymenBt asedS afetyN et
EC Europe Community
EDDC EthiopianD ometic DistributioCn orpoation
EFC EthiopianF oodC orportion
EN EthiopianN utrit Istitut
ERRP EthiopiaR ecovey and R Project
EPRDF EthiopianP eople'sR evolutionarDy emocrac Front
EWWCA EthiopiaW aterW orksC onstructioAn uthority
FAO Fooda nd AgricultureO rgaization
F? FamilyP lnning
IRI?A FoodP rce Adjustment
GDP GtossD omesticP roduct
GNP GrossN ationalP roduct
HC HealthC enter
iS HealthS tation
IFAD IntenationaFlu nd for AgriculturDe evelopment
ILO Itnaiona Labo Organization
DM InfantM ortalityR ate
MC}I Matend and ChildH ealth
MUDHC Ministy of UrbanD evelopmenatn d Housing
NGO Non GovenmentaO razaton
ORs Orl RehydationS alts
PADEP PeasantA griculturaDl evelopmenPtr oject
PFP PolicyF rameworPk aper
RIBS RuralI ntgraed BasicS ervices
RDWSDF RuralD omesticW aer SupplyD evelopmenFtu nd
RF RelapsingF ever
RHICES RuralH ouseholdIc ome, Conumptiona ndE xpenditurSe urvey
RRC Relie andR ehabilittionC ommission
SAC Stucturl AdjustmenCt redit
SIDA SwedishI uternationaDl evelopmenAt gency
TBA TraditionaBl irthA ttendants
TGE Tramiona Govermento f Ethiopia
UNICEF UnitedN ationsC hildren'sF und
WDR WorldD evelopmenRt eport
WFP WorldF ood Programme
WRC WaterR esourcesC ommission
WSSA WaterS upplya nd SeweageA uthority
FORO FFICIALU U ONLY
E:wO
TOWARDP OVERTYA LLEVIATIOANN D A SOCIALA CTIONP ROGRAM
CONTENTS
Page No.
PREFACE ....... ,U
SUU tA,RYA ND CONCLUSIONS. . 11
IItRODUCTION 1
.
ODginso ftis Report ........... I
O ..b. ......je.v.s . 1
OveviewofRepott .. 2
Prvnius Studies... 3
SbumeauofReport . 3
THE DIMENSIONSO F POVERTYA ND SOCIALD EPRIVATION. 4
A HlsotyofDedine nPer Capita omes. 4
EconomicPerformance. 4
Dedine nGrowthR ates .................... 4
ChangesInt he PoldicaEoonomy ......................... 7
PopationGroi.h. 8
Deerlr&igSociaServces .9
bmidencofPovety .10
Data .10
Definitions.12
UrbanP ovey13
Historcalbnformation.1 3
WMionE smtiates.1 4
HouseholdExpndiwtSurveynI nI M.16
RuralPoverty .................................... .19
Hisorical hna.imo. .19 o
GovernmenEstimates.2 0
ChronkFoodInsecure. 23
TransitaoyFoodlshcure .24
MissionE stinates.24
Re ige.s .. 25
Displaced,RetumeesandE x-Soldier.25
RedundanCt ivl Swvn .25
Swumay .27
SOCLALSERVICE.S28
Stausofl ealth.28
Helth CareF mancng.3 1
PublicExnditiurforHeadth. . 32
PivaeExpendiwmfsor Hefth. 33
Stau,ofNutrition. .38
Thisd ocumnehnats a restficteddi stributioann d mayb e used by recipientso nlyi n the peformance
of thir officald utiesI.t s contentsm ayn ot otherwie be discosedw ithoutW oddB anka uthoration.
TOWARDP OVERTYA LLEVIATIONA NDA SOCIALA CTIONP ROGRAM
CONTENTS
Pap No.
I
PREPACE ....... ....... ......................
SUIMIARYA NDC ONCLUSIONS.. .... ........... ............. iii
IN,rODUCTION ..................... . I
0isins of thisR eport .. ....... .. .. .......... I
Objectve.s. .......... I
OvervewofRepo . ............ .. . . 2
PreviouSs tudies. ........... 3
StrucuireofRept .............. 3
THED MENSIONSO F POVERTYA NDS OCIALD EPRIVATION. ................ 4
A Historyo f Declinei n Per Capita nomes .............................4
EconomicPerortuance . ...........................4.........
DedineinGr.o.dR.i.a t.es. ......................... 4
Changesin thePoltcalEconomy .........................7
PopulaonG roiwth. .................................8.....
lNeteioratIngSociEsSer.v..i..c..e..s 9
IncidenceofPov. .........................................1.0.
Data ............................................. 10
Definitions ..........................................1.2.
Uban Poverty. .....................................1.3...
HistoricalnJr minaon ................................13
IvsionEstimate.s. . ............................1.4...
HouseholdE xpendtu Suveyi n 1992. . ...............1.6...
RuraPl overty ........................................1.9.
Hiswoicad bfoms¢h.K. ..................:.............. ....1 9
Govermene stimnas ................. ..............2 0
ChronicFoodls eur ........................... ...... ...... 23
TransitoFroyo d Isecure . ..................................2.4..t...
MissionE tes .............. ..................2.4..
Reifge ...........................................2.5.
DisplacedR, atlr neesa is Ex-Soldlers. ..........................2.S
Redundt Civil Servant .................................. 25
Sn_g ............ ......... 27
SOCLALS ERVICES. .............................................2.8
Statusofed ............................................2.8
HealthC ueFinancing .................................3.1....
Pulic Ex drsfr Heald .................... ........3.2
Privae ExpenditrmfeD rH ealth ........... .............33..
StatusofNutrk..i.o.. n .... ............. 38
Etn ofbbfanrtlon ... ........................ ......... 38
Casm ofdanutirlon ....... .........................39.....
Stauso fD omestiRcu ri WaW Supplie..s.. ......... ................. . 40
Issueasn dProblems
. ...................... .. .... ..........4.1
Genderssues ....... .............. ... ......... 42
Instutlonalamragen .......... ..... .................. 42
Cost Reovery ......._ ...... *....... 43
Govement andD onor Activies . ... ..... ... ........ 43
of
Stats Urba Santatlon. ............. .................. 43
iues andProblems
... . ......... 43
GenderIssues ..... ... . ... .. .. . .. .. .. .. .. .. . ... 44
JusftltdonalA.rrangemnents 44
.. . ........ ....... .. . ... .......
Gova enmannt dDonorActivies. ................. 45
PASTA NDC URRENTA CTIONST O REDUCEP OVERTY . . 48
ComuodhPtyr ograms ............. ... 48
Financa Ihnmplicatifoonrs C onsumerso f ReducedC ommodityP rograms . . 49
EDDC ... 49
AMC ... 52
Foodgralns.... . 5
EC Ptogra..... 54
EFC ......................... 54
Wheattlour................. 54
. .. ....
Keosme SubsidyP rogmm. ............................. 55
Sunary ......................................... 56
EconoImmilcic adonsofCommodityPrograms .........................5.7
Foodgman ............................. .... 58
SugpaandCooking.O...i..l. ............... .. 58
nocCossand Benefitsof theFoodgainPmgrogm .......... ...........6 0
costs ................................. 60
Benefis ...... ........................ 61
miciptSubsidyon Fertiie .......... 63
SummaryO ft w Cost-effectivenso f Curent Reistkwve Polices and Progmms ... 63
Do AssbtaeProgram ............................. 65
FoodA id .............................. 65
nvetmenat nd Technicd Assistance ............................ 65
Sumary ............................. 66
REDUCINGP OVERTYT HROUGHG ROWrH ............. ..............68...
Sourceso f Grwth ..........................................6.8
Policy Reforms ........................................ 69
: MacroeonoPaomliicci es .......... .... ................ 70
icentlveP olicies ................................... 70
Reguatory Reforns .................................. 70.
Strucurd Rigidities. ..................................... 71
Agicultual Developmenta nd its Impact onf the Poor ....................... 72
: enBfit and Costs of Stabilizationa nd Gowwth ........................... 72
lhe AggregateP icture . ................................ 72
Impacot nihePoor ................................. 73
PriceT rends ................... ........ 74
hIpac ofDevuationonRurad Houseolds.. . 74
impactofDevluationonUdranHousdwl.d...s.. .......... 75
Impa tDofv auadonaonUHnu "drbsa nHo.u................. 75
Impacto f Ecnomic Rdinno n Land, Labora nd Fetizer Market .............. 77
Markets 77
Lod ........................ .. .
Orgs
ofPoicy ............... ......... 77
Policy
Cuirret ...... ......................... , 77
JAbo
rlarts ....... . ... ...... ....... . 79
TheE conomoicf sF atftiz Use. . .............. .. 79
Prce Trends .......... .......... 79
BeuefltsandCoss of Fd Use ................ ....... 80
Fetir Use andF armersIn" comes ....... ... ........... 81
6-SOCIALSERVICES:AFRAMEWORKF C AAC tN ....... .4..... 84
Heldh ........................................ 84
Policy Framework ........................................ 84
miiediaeActions ....................................8..
Ministryo f Heath ..................................8.5
ConsolidaonofExs dnggPhysicandH umanC apita.l. .......... 85
RecurrentExenmditr . ....... 86
Fuher OperatiodResearchandStudie.s ................86...
HealthC aueFinanlg ...............................8.6
Epideiological nfomaion .........................8.7..
Nutrition ...... 87
PoliFcrya ork ....... 87
InmediateA ctions 88
DomesicR uralW aterS upplies .................................... 89
PolicyF ramework . 89
ImnediateA ction .... ................................... 89
TechnologicaOl ptions .... 89
Imp .ntatoonn.. lee. 90
PriorityA reasa nd Issues 90
44.444
Costa ndF inancing .... 90
UrbanS anitaton 91
.
PolicyF ramework. ... 91
Imediate Action 91
.
TechnologicaCl ow..ons 91
.
Implenientatlo4 . . . . 91
*.
PriorityA rem andl sues ... 92
CostandFinancing 92
.
TARGETEDP ROGRAMFSO RT HE POOR. ... . 93
BeyondG rowtha nd SocialS ervices...... 93
Overviewo fP roposals ..... 94
AnalyticaIl ues .............. . .9S.. . . . 95
DirectT argeting..... 9S
Self-Targeting . ..... 96
Rewardf or Timea nd Effort ..... 96
PublicW orlma s Eligibilityfo r TargetedA ssistance. .......... ... 96
Subsidizinga Self-Targetg Commodity.. ... 97
SocialF undsa s a Self-TargetinMg echanism ............. ..... 99
Optionsf or an UrbanS afetyN et .... . 100
*............................. *
Food/KerosinVe ouchersfo r Pooresta nd Vulnerable .............. .... 101
Implementatioonf a Food/KerosmVe oucherP rogram ........ .... 102
SafetyN otf orE mployeeso n Publc Payroll ........................ 104
Compensatlo&Rfoertr enched Stat Enaprs Employees ............... 106
UrbanPu blic Works .................... .. ............1.0.7
Opportwntesf or Gneating Employmentth rougbP ublicW orks ......1 07
Opdons fora R ur Safety Nt .... ..............................1 08
vdin aEnn ablWE nviroantno S mn Growth. ...............1 08
ProvidIng
Off-Frm Work ....... *...................... ... . 109
RuralPublicWorks
.................... ........... 109
Ruril Road ..... ............... 111
Other PubliWcor ksP ogr n.......................... . 113
IncresAiggr cltuP roduct.i...v...i...t...y... ............ . 113
CunstralatstoIncreasedFertilizerUse. ............ ..... .... 114
Agricultural/PastoraIl nputV ouche ... .......................1.1.5..
VouchersorMone.y. ................ . 116
l)enominaotfiV oounc hers ................1.1.6.....
ComplelmentaryAtcoAt sisoen sE ffedveneofs Vso uchers ........1 16
Pundingoft heVouchaeProgram . ....................1.1.7..
windcatveCostsoPfao ssibleTagetedP rogm .........................1.1 7
TOWARDA N ACTIONP ROGRAMT O ADDRESSP OVERTY. ..................1.2 0
Tbre ougedSteag . ......................................1.2.0
PopuationGrowt ................................. 120
StimulaEtc onmicG rowth. ................................. 120
,acroeconnPmbilci cy ...................... 120
ReviewofProspetshIenA griculurdSecto.r. ............. 121
LandP olicy ....................... 121
L .Policy ................................. 121
lmnprovenoifS eoncti Saelr vice..s. .............................. 121
Hodlh. .................... ............... 121
Nutrki.o.n. .................. .............. 121
Rua DomnesWca Supply. .............................1.2.1
UrbaSna ltation ......................................... 122
Pmde TageteAds sista.nce ...............................1.2.2
Prdcipl.e.s ................................ 122
UrbanF oodCerosVionuec he.r. .............................1.2 2
SafetNyo forEEmployeesonPublicPa.y.r.o.l.l. .......... 122
Compemtofno ReRtrenhedStateEnterpris.eWor.k.e.r.s. .......1.2.2.
UrbanPuWiWcor b ..................................... 122
RuraPlu bliWco rb .....................................1.2.3
Fertlize/nVpouutch e.r. .................................. 123
Dono Asssae Pogram.s. ...................................1.2.3
Dat CollectainodAn n alys.i.s. ................................... 123
Tables in Text
2.1 TotalG DP ad Growth ates fbr MainS ectors( 19W811p1ri ces) . .............. 6
2.2 Populatn gstmaesandProJectons (1910-2030) ...................... 9
2.3 Summaryo f MainD emographiCc haracteristls ......................... 10
2.4 Selected Welfare and Social Indicators ............................... I1
2.5 RecemE stimateso f UrbanI ncomeD istributionisn Ethiopia . ................ 12
2.6 Minimumn cometo PurcbaseF ooda nd Non-FoodB askets. .......... .... 13
2.7 Incidenceo f UrbanP overty ..................................... 14
2.8 ExpenditureR equirementfso r MinimumN utritionI n AddisA babaf or a Familyo f
Five In 1992a t Current Prices ........................ . 15
2.9 HouseholdE xpenditureIsn One Poor Kebelesin AddisA baba. 17
2.10 HouseholdE xpenditureisn One PoorK ebelei n Mekele .. 17
2.11 Summaryo f the Distributioonf Wageso f CivilS ervants( 1990). 19
2.12 EstimatedM inimumM onthlyE xpenditurefso r a TypicalH ouseholdin AddisA baba
Assuminga per CapitaF ood Consumptioonf 2100C alories. 20
2.13 Summaryo f EstimatedR uralP overtyb y Regions .. 21
2.14 aassflcatioro f TwelveR egionsb y SocioeconomSict atus . .23
2.15 EstimatedN umbero f Workerst o be Retrenchedin PublicS ectorE nterprise.s. 26
2.16 Es_m a Numbersin Chronica nd TransitoryP overty1 992 . .26
%.1 Public HealthExpenditi. 32
3.2 RecurrenBt udgetL evelo t dealth Care System ......................... 34
3.3 Shareo f RecurrenEt xpenditureAs llocatedto AddisA babaa nd RegionaHl ealth
CentersStations.. .............................................
3.4 HealthP rofessional-sS electedR egions,1 989 .......................... 36
3.5 Summaryo f Urbana nd RuralW aterS upplyS ituation ..................... 41
3.6 Summaryo f Urbant nd RuralS anitationS ituton ....................... 44
3.7 Summaryo f Recurrenat nd CapitalB udgetf orA AWSA .................... 46
4.1 Summaryo f Distributiono f Goodsb y EDDCt o MajorC lients( 1987-88t)o 1991-92) . 50
4.2 Summaryo f Distributiono f Goodsb y EDDCt o MajorP ublicO rganization(s1 987/88
to 1991/92) .......... ..................................... Sl
4.3 EDDC CommodityD istributionB y Cliets and CommodityC ategories( 1989/90). ... 52
4.4 Summuryo f EstimatedA nnualF oodgralnM arketingF lows( Late 1980st o Early 1990s)5 5
4.5 EstimatedIm pacto f SubsidyR eductiontso GrainC onsumerisn AddisA baba ...... S6
4.6 EstimatedV alueo f Benefitsto Individualfsr omE xistingC ommodityB asedP rogramsin
AddisA baba- May 1992......7.... S
4.7 EstmatedI mplicitS ubsidiesf or MajorF oodgrainsin AddisA babaa t an ExchangeR ateo f
Br 5.00 - US$1.00 ....... ................................... 59
4.8 EstimatedT otalE conomicC ost of FoodgrainS ubsidies( Late1 980st o Early 1990s) . . 61
4.9 EstimatedV alueo f Subsidyo n Foodgrainsto DifferenGt roups ..... .......... 62
4.10 EstmatedE conomicC ostso f SubsidyP rogramsa nd their Benefitsf or the Poorest.L ate
190s and Early 1990s ........................................ 64
4.11 EstimatedP overtyF ocusI n DonorF undedP rojects. 66
5.1 Food and FoodgrainE xpenditureass a Proportiono f Food Expenditure
and TotalE xpenditure- AddisA baba KebeleA ........................ 76
2
5.2 Trends in Cereal/FertilizerP rice Ratios and Fertilizer Distribution at Current Pri:es for
S.ected Yeas .. 82
5.3 Benefit-CosRt atioso f Ferie Us. by Crop,b y Region,
by Exchange Rate - 1991/92c rop year. ............................. 83
5.4 EstimatedA verageV alueA ddedA ccruingto Farmrs fromF oodgrainP roduction
FollowingIr eased fertlizerUs ................................. 83
7.1 ApproximateC ostso f Constructioonf IKm of RR30R ura Roadi n RollingT errainb y
Labor-Baseadn d Equipment-BaseMde thodsa t Two ExchangeR ates .... ....... 113
7.2 EstimatedC ost of ProposedS afetyN otP rogam and TargStP opulations. ... .... 118
Flgure
2.1 TrendsinGDPintheMainSector .................................. S
2.2 Trendsi n Per Capita GDP. 11
3.1 StaffUtilizationinHealthCenter.s 37
Text Boxes
4.1 SomeI mplicationosf Currenta nd DiscontinueCd ommodityP rograms. ... ....... 53
4.2 Marketa nd BorderP ricesf or Foodgalnsa t ShadowE xchangeR ate .... ........ 61
7.1 Cost-effectiveneosfs a Self-targetinCg ommodityS ubsidy. ..... ............ 99
7.2 Modalitiefso r an UrbanF ood/KerosinVe oucher ........ ............... 105
7.3 AP ood PriceA djustmenIt nsurancefo r Civil Servants.1 06
7.4 suggestedC ompensatioPnr ogran for RetrenchedS tateE nterpriseW orkers. ... ... 107
7.5 Illustrationo f ResourcesR equiredfo r LaborI ntensiveR oadW ork .... ........ 110
Annees
1 SocialI ndicatorso f Development1, 991/92
2 Datao n IncomeD istributionF, oodE xpenditureR equirementsE, mploymenatn d
Povertyi n RuralA reas
3 Datao n Healtha nd Services
4 Datao n CommodityP rogramsD, iet Costs,F oodP .iees, Food Aid and Donor
AssistanceP rograms
5 Impacto f Liberaliion and GrainP ricesi n AddisA baba
6 ProposedA ctionP lan for DomesticR uralW aterS upply
7 Assessmenot f TargetodP rograms
8 Impacto f the Transitionin EconomicP olicyo n the Poor
Biblography
map
Lst of WorkingP apers
Number I Results of HouseholdS urvey on Extent of Poverty in Selected Kebeles in Addis
Ababa and Mekele by AsmeromK idane
Number 2 Factors which Influencet he Price of Food and Fertilizer by J. H. Duloy and
GebremeskelD essaleng
Number 3 NutritionS iuation in Ethiopia by Hope Sukin
Number4 EmploymentG enertion through Public Works by DuncanM orris
Number 5 Labor-Intesive Public Works: Soil and Water Conservationi n the Ethiopian
Highlandsb y Addis Anteneh
Number 6 Degree of Poverty Targeting in Donor Projects by Kees Tuinenburg
Number 7 Copingw ith Poverty under Policy Reform by ShlomoR eutlinger
Number 8 The Contourso f Poverty and Deprivationi n Ethiopia by Satich Mishra
The mission aaichv isited Ethiopiat o prepare this report in April/May 1992 was led by
Jack van Holst Pellekaana nd Jill Armstrong (Bank)a nd includedM ichael Niebling (IMO),
Duncan Morris (ILO), Kees Tuinenburg (WFP), and Norab Gibson, Rilta Poutiainen,H ope
Sukin, Addis Antne, AsmeromK idane, GebremeskelD essaleng, ShlomoR eutlinger, John
Duloy, Jibril Adem, and Satish Mishra (Consultants). The mission was assisted at the end of its
field work by Peter Miovic (Bank). It also received assistancea nd advice from governmenta nd
donor officials. A draft of this report was discussed with the TransitionalG overnmento f Ethiopia
in April 1993 and the Bank is grtefu for the commentsa nd suggestionsr eived.
The missionw ishes to ackmowledgvea luable reviews and commentso n an earlier draft
from Martin Ravalion and Harry Walters (Bank)a nd Simon Maxwell (IDS) who were peer
reviewers for the report. Colleaguesw ithint he Bank who also provided valuable comments
includedF ayez Omar, Deepak Bhattasali,J ayasankar Shivakumar,C arlos Montes, Harold
AIderman, NicholasB urnett, VulimiriJ agdish, Abhay Deshpande,A majit Sodhi, Francis Lethem
and Tonia Marek. Commentsa nd assistancef rom outside the Bank were received from Joachim
von Braun, Patrick Webb and Tesfaye Teldu (IFPRI), and EtishamA bmad (M). Brenda Mudd
was responsible for documentp rocessing.