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USAID Information:
External Links:
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Ethiopia
Please note: All linked documents are in PDF format
| Objective |
SO Number |
FY 2004 |
FY 2005 |
FY 2006 |
| Food Security |
663-007 |
2,817 |
0 |
0 |
| Essential Services for Health |
663-008 | 16,150 |
0 |
0 |
| Basic Education |
663-009 | 707 |
0 |
0 |
| Democracy and Governance |
663-010 |
150 |
0 |
0 |
| Mitigate the Effects of Disaster |
663-011 | 1,035 |
0 |
0 |
| Anticipate and Manage Shocks |
663-013 | 1,093 |
1,500 |
1,500 |
| Human Capacity |
663-014 | 26,000 |
30,357 |
27,750 |
| Governance Capacity |
663-015 | 2,871 |
5,460 |
5,500 |
| Economic Growth |
663-016 | 24,556 |
18,133 |
15,340 |
| Knowledge Management |
663-017 | 500 |
500 |
500 |
| Total (in thousands of dollars) |
75,879 |
55,950 |
50,590 |
Excludes P.L. 480. See Program Annex.
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The Development Challenge: Ethiopia remains one of the poorest countries in the world - it ranks 170 out of 177 countries on the 2004 Human Development Index. Ethiopia has an annual per capita income of around $100 (less than one-fourth of the sub-Saharan average). Ethiopia has the poorest human development indicators in the world with more than three-quarters of the population living on less than $1 per day. Despite the 2004 recovery year from the serious drought of 2002-2003, by the end of the calendar year another food emergency began, the Government of Ethiopia (GOE) has requested emergency assistance for 7.2 million people in 2005. Although above the population growth rate, the average 4.5% increase in gross domestic product over the last five years remains below the rate required to achieve the Millennium Development Goal to halve the number of Ethiopians living in poverty by the year 2015. The poverty and vulnerability of Ethiopia's people is also reflected in the inadequate health and education systems and poor access to basic services. Family planning services are under-utilized and under-developed, and the population growth rate of 2.67% is high. HIV/AIDS remains a growing problem. USAID contributes directly to the achievement of U.S. Government (USG) objectives in Ethiopia, as outlined in the State Department/USAID Joint Strategic Plan. U.S. national interests in Ethiopia include counterterrorism, economic prosperity and security, democracy and human rights, and regional stability. Ethiopia is of strategic importance to the United States because of its geographic position, and therefore acts as the linchpin to stability in the Horn of Africa and the Global War on Terrorism. As one of the Highly Indebted Poor Countries (HIPC), Ethiopia is benefiting from the HIPC Initiative. An agreement has been signed to forgive all debt ($71.4 million) owed to the US Government.
The USAID Program: USAID revised its current strategy in mid-FY 2004 in response to the shortening cycle of crises, the HIV/AIDS pandemic, and the need to invest more in economic growth and policy reform. The Program Data Sheets describe the four strategic objectives and the program support objective in the current portfolio for which USAID requests funds in FY 2005 and FY 2006. These will help the GOE to develop the capacity to manage through shocks, such as the recent food emergency; increase human capacity and social resiliency (e.g., through improved family health, reducing and mitigating the impact of HIV/AIDS, and enhancing quality and equity in education); increase the capacity for good governance, including mechanisms to reduce local level conflict; increase market-led economic growth and resiliency; and better coordinate knowledge and analysis to inform the foregoing programs. USAID has increased the focus on decentralization by providing support to community development in the areas of health and education. An expenditure management and control reform program has helped the GOE devolve sound budget planning, budgeting, and accounting. Fiscal year 2005 funds will support ongoing interventions and implement new community activities with the private sector and policy reform partners at both the national and regional levels. Funding will enhance support to the largely pastoralist and Muslim-populated border regions. For FY 2006, Ethiopia will receive Transition Initiative (TI) funding, which will continue or expand efforts in more of these areas. The primary objective for the use of TI resources is to increase stability and improve performance through reform and capacity development. In addition to TI funds, Ethiopia also will receive funds from Child Survival and Health (CSH) and Economic Support Fund (ESF).
Other Program Elements: In addition to the resources requested in the Program Data Sheets, USAID provides centrally managed support for activities related to health service planning, training, delivery, and reporting; and an expanded program of immunization (EPI), HIV/AIDS, and the control of diarrheal disease. Central funds also support increased family planning services, and the Primary Providers in Reproductive Health (PRIME II) Initiative for activities related to post-partum hemorrhage, safe motherhood, and the abandonment of harmful traditional practices. USAID's Bureau for Africa's Conflict Fund ($1.34 million in FY 2003) and USAID's Office of Conflict Management and Mitigation funds ($250,000 in FY 2004) support local and federal level conflict mitigation and management activities. P.L. 480 funds were used to strengthen rural extension services, improve watershed management, and diversify household income. Through its Global Development Alliance, USAID supports the Millennium Water Alliance, a public-private partnership to expand access to clean water and sanitation in rural Ethiopia, and to establish alternative learning centers. In addition, USAID is participating in information and communications technology (ICT) development by facilitating interaction between the U.S.-based National Telecommunications Cooperatives Association and relevant Ethiopian agencies on how to proceed with the development of ICT cooperatives.
Ethiopia is a focus country under the President's Emergency Plan for AIDS Relief. FY 2005 funding will be provided from the Global HIV/AIDS Initiative under the policy direction of the U.S. Global AIDS coordinator. The FY 2006 HIV/AIDS request for this country is contained in the Global HIV/AIDS Initiative account justification. For further details please see the Department of State FY 2006 Congressional Budget Justification.
Other Donors: Most donors in Ethiopia are engaged in growth activities, human development and reducing vulnerability, in line with the GOE's Sustainable Development and Poverty Reduction Program (SDPRP). In order of levels of assistance, the leading bilateral donors for the last five years have been the United States, Japan, Italy, Germany, the United Kingdom, Canada, Netherlands, Norway, and Sweden. The leading multilateral donors are the World Bank, the European Union (EU), the African Development Bank Group, International Monetary Fund (IMF) and United Nations (UN) agencies. Lending institutions are combining grants and soft loans, as Ethiopia has reached the completion point of the HIPC Initiative. Multinational lenders continue to invest heavily in infrastructure development, such as roads. The U.S. Government remains the leading humanitarian assistance donor, followed by the EU, and participates actively in almost all thematic donor working groups. USAID chairs the health sector working group and serves on the executive committee of the Development Assistance Group. USAID actively collaborates with other donors on activities that facilitate monitoring and implementation of the SDPRP and poverty analysis. USAID also mobilized other donors to join in funding the Ethiopia Strategy Support Program, guided by the International Food Policy Research Institute, to improve the information and analyses for policy dialogue and reforms.
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