Industrialization Policy In Ethiopia

943 Words4 Pages
In post 1991, unlike the predecessors‟ regimes of Hailesellasie and the Derg, Ethiopia exercised decentralization policy and entered into the market economy. In addition, the country developed different policies towards poverty reduction. The Agriculture Development Led Industrialization (ADLI) was developed to increase the productivity of the agricultural sector and thereby forming both backward and forward linkages to the industrial sector. It was intended to achieve rapid growth in the agricultural sector and finally to promote and develop the manufacturing sector. After ADLI, a Five-Year Development Strategy 2005/06 - 2009/10 named PASDEP developed, which was focusing mainly on poverty reduction both in rural and urban Ethiopia was developed.…show more content…
As a result, different strategies were developed towards the promotion of MSEs. The 1997 Development strategy document and the report of industrial development strategy of Ethiopia were some of the outcomes of policies towards MSEs. In the document, great emphasis was given to MSEs and enabling institutional and policy environments were made easier and supportive to promote and expand the sector. Now a day in Ethiopia, great attention is given for the development of MSEs, as they are believed they can achieve rapid development through reducing unemployment and income inequalities and improving the living standards of the people at large (MoTI…show more content…
The implementation of the strategy is planned to follow five stages. These are awareness creations, needs identification and implementation planning, resource identification, training of support agency staff and strengthening the business and entrepreneurial culture. The strategy indicated criteria for prioritizing MSEs for support. MSES which are based on local raw materials and labor intensive having greater inertia and inter-sect oral linkages (particularly with agriculture), import substitution and export capacity, MSEs engaged in activities that facilitate and promote tourism (MOTI, 1997).
In general, Micro Financing Institutions, Technical and Vocational Training Centers, productivity empowerment units, different NGOS, MSEs Councils, the project support units etc are made to work for the promotion of MSEs in Ethiopia. As a result, it is possible to understand from the above discussed policies that the current government is giving great attention for the sector to alleviate the abject poverty, unemployment and to achieve better income distributions (Ephrem,

More about Industrialization Policy In Ethiopia

Open Document