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Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).

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ETHIOPIA

	FY 1997	FY 1998	FY 1999
	Actuals	Estimate	Request
Child Survival and Disease..........	$19,200,000	$25,885,000	$23,635,000
Development Assistance..............	$18,089,775	$19,700,000	$13,950,000
P.L. 480 Title II...........................	$37,396,000	$56,812,000	$32,044,000
P.L. 480 Title III.........................	$10,000,000	$9,900,000	$ 8,900,000

Introduction

Events over the past year in the Horn of Africa and the Great Lakes reinforce Ethiopia's status as a critical player and an important U.S. ally in developing self-reliant stability in a region still plagued by natural and man-made crises. The Government of the Federal Democratic Republic of Ethiopia (GFDRE), particularly its top leadership, plays an increasingly active and influential role among the new leaders emerging in Africa, the Organization for African Unity (OAU), and the more regionally focused Intergovernmental Authority for Development (IGAD). In addition, negotiations are underway to bring Ethiopia into the African Crisis Response Initiative (ACRI) as a key participant. Recent visits by the Secretary of State and senior Congressional figures clearly signify the importance of Ethiopia to U.S. foreign policy interests in Africa. The country's promising economic growth over the past three years has been slowed by the return of erratic and untimely rains in 1997, which are expected to reduce annual gross domestic product growth to around 3%. In spite of the economic slowdown, Ethiopia continues to make strides to break out of almost two decades of economic and political doldrums, a process which is critical to both continued democratization of national politics and for supporting the key regional and continental role Ethiopia now plays in Africa.

The Development Challenge

Ethiopia remains among the poorest countries in the world. Steady and measurable progress in improving conditions in almost all economic and social sectors over the past three years has not yet made significant inroads in ameliorating desperate conditions inherited by the new government in 1991. The year 1997 saw a return to lower agricultural production levels because of poor rains, which will result in slowing the strong national economic growth achieved. Gross National Product is at a level of $110 per capita and only modest gains have been realized in improving social services. Social statistics are still among the lowest in the world, and in some cases such as malnutrition rates and primary school enrollment, Ethiopia ranks the lowest in the world, despite the fact that primary school enrollment is estimated to have increased from about 20% to over 30% in four years. The GFDRE confronts challenges in all sectors of the economy and is mounting a series of sector development programs based on carefully considered priorities. Major sector development programs are operating or being organized in key sectors -- transportation (particularly roads), education and health. A new program is also planned for the energy sector. GFDRE efforts to structure investments in the critical agriculture sector are being developed slowly, but are carefully crafted to respond to Ethiopia's unique challenges and potentials by utilizing a three-pronged approach which looks at: (1) the food security needs in high potential production areas; (2) the food security needs of lower production areas; and (3) strengthens the government's capacity to respond to emergencies and address needs in chronically vulnerable areas. An important, comprehensive regionally based food security program is being formulated in 1998 by regional and local governments. Important regional transportation, trade and communication constraints are proposed to be tackled under projects being prepared by IGAD for support under the Greater Horn of Africa Initiative.

Ethiopia's development efforts remain hampered by poor private sector participation, which is only now recovering from having been dismantled under the previous regime. While the GFDRE lacks both trust and experience in working with the private sector to achieve public good, progress has been made in

opening up most sectors to private sector investment in Ethiopia. The United States still has limited trade with Ethiopia, and a significant trade surplus. The number of U.S. companies represented in Ethiopia has grown over the last four years from around 40 to 185.

Other Donors

The donor community provided an estimated $850 million in grant and loan assistance to Ethiopia during 1996, against a three year pledge level for 1997 - 1999 of $3 billion at the 1996 Consultative Group (CG) Meeting. The United States was the third largest bilateral donor to Ethiopia in 1996 at a level of $56 million. In the last CG meeting, the United States led other bilateral donors with a pledge of $240 million for the period 1997 -- 1999. A new World Bank Country Assistance Program was negotiated and approved for Ethiopia at a maximum three year level of $1.65 billion and a base level of $1.2 billion. Negotiations with the International Monetary Fund on the second phase of an Enhanced Structural Adjustment Facility broke down over issues concerning pace and timing of key liberalization reforms, but renewed negotiations appear to be moving toward a resolution of issues. Donor coordination remains good. The development of the health and education sector investment plans is a crucial fora for inter-donor and donor-government collaboration. Collaboration and trust among the public and private sectors and non-government organizations (NGOs) needs to be improved. Both the OAU and the United Nations Economic Commission for Africa, with their headquarters in Addis Ababa, continue reformation and revitalization efforts begun in 1996.

FY 1999 Program

USAID's program of assistance in Ethiopia focuses on three of the GFDRE's five high priority sectors - education, health and food security - leaving the transportation and energy sectors for other donors USAID's support to the GFDRE priority in rebuilding the health and education sectors has been in line with GFDRE's policies since 1992, and provides direct benefits to citizens, particularly the large (85%) rural population. U.S. assistance to these sectors has provided important lessons for the GFDRE education and health sector development programs now under design. Both programs have demonstrated their ability to improve the quality and access to health services and primary education. USAID assistance has also encouraged the government to begin increasing critically low budget allocations at central and regional levels to these two sectors. USAID is currently involved in finalizing discussions on assistance to improve the critical food security sector through support to Ethiopia's regional government food security programs which are under design. This support will build on Ethiopia's success in recent years to increase cereal grain production and improve input and output marketing in a liberalized economy. These regional programs will also provide an opportunity to build better links between relief assistance and effective programs to move whole groups from vulnerable to self-sustaining. USAID is also supporting the development of institutional structures necessary for strengthening the democratic processes - (1) developing a vibrant civic society through the strengthening of indigenous NGOs; (2) strengthening judicial systems through badly needed judicial training; and (3) supporting the government's Civil Service Reform effort through assistance in budgeting, financial management and accounting to both federal and regional governments.

USAID's assistance strategy for Ethiopia supports the recently promulgated principles of the Greater Horn of Africa Initiative (GHAI), particularly in contributing to and working with African ownership of development programs, linking relief to development, and looking for opportunities to apply regional approaches. A key element of the GHAI is an emphasis on African ownership of the development process. The Ethiopians, in particular have embraced this concept. However, African ownership has challenged the international community to rethink its approaches. As a result, USAID must be willing to invest the significant time and patience that is necessary to enable our African partners to learn to manage their own development and work together as development professionals. As a result, measurable people level impact takes longer, but USAID hopes will be more sustainable as it fits into the priorities of the country. Consistent with the African Food Security Initiative and the GHAI goal of increased food security, USAID continues to work with the GFDRE in identifying areas in which USAID can contribute to the Ethiopians efforts to overcome their chronic food deficits.

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ETHIOPIA
FY 1999 PROGRAM SUMMARY
(in thousands of dollars)

USAID Strategic and Special Objectives	Economic Growth & Agriculture	Population & Health	Environment	Democracy	Human Capacity Development	Humanitarian Assistance	TOTALS
S.O. 1. Availability of Selected Domestically Produced Food Grain Crops - DA - P.L. 480/III	4,500 ---	--- ---	1,700 ---	--- ---	--- ---	--- 8,900	6,200 8,900
S.O. 2. Increased Use of Primary and Preventive Health Care Services - CSD - DA	--- ---	10,435 4,750	--- ---	--- ---	--- ---	--- ---	10,435 4,750
S.O. 3. Quality and Equity of Primary Education Improved - CSD	---	---	---	---	13,000	---	13,000
S.O. 4. Increased Access to and Participation in a Democratic System - DA	---	---	200	2,000	---	---	2,200
Sp.O. 1 Enhanced Household Food Security in Target Areas - CSD - DA - P.L. 480/II	--- 300 ---	200 --- ---	--- 500 ---	--- --- ---	--- --- ---	--- --- 32,044	200 800 32,044
Totals - CSD - DA - P.L. 480/II - P.L. 480/III	--- 4,800 --- ---	10,635 4,750 --- ---	--- 2,400 --- ---	--- 2,000 --- ---	13,000 --- --- ---	--- --- 32,044 8,900	23,635 13,950 32,044 8,900

USAID Mission Director: Keith E. Brown

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ACTIVITY DATA SHEET
PROGRAM: ETHIOPIA
TITLE & NUMBER: Increased Availability of Selected Domestically Produced Foodgrains, 663-SO01
STATUS: Continuing
PROPOSED OBLIGATION & FUNDING SOURCE: FY 1999: $6,200,000 DA; $8,900,000 P.L. 480, Title III
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2003

Purpose: Increase the availability of selected domestically produced food grain crops in Ethiopia through support to the Government of the Federal Democratic Republic of Ethiopia (GFDRE), the private sector and non-governmental organizations (NGOs).

USAID Role and Achievements to Date: Over the past 15 years, the average annual per capita grain consumption (excluding food aid) in Ethiopia has ranged from 172 kilograms (kgs) to 96 kgs, with per capita availability exceeding the 171 kgs minimum recommended level in only two of these years. Farmers have not been able to exploit Ethiopia's considerable potential because of negative policies and state intervention and a failure to utilize technological and cultural advances. Increasing production alone, however, does not solve the problem, as demonstrated during the 1996/97 bumper harvest. Many Ethiopians were still unable to afford to buy enough food, despite the abundance of grain in markets. Addressing food insecurity in Ethiopia requires a sound policy framework, increasing the amount of grain produced and increasing people's ability to purchase food through increasing incomes and decreasing food prices, without disrupting farmer's incentives to increasing their production.

The GFDRE has made great strides in recent years in increasing agricultural production, with consecutive 20% increases in 1995 and 1996. Although production in 1997/98 was an estimated 26% lower than the record production of last year (1996/1997) due to poor rainfall distribution, the GFDRE's agricultural extension program continues to expand and should show good results in the future. USAID's Development of Competitive Markets (DCM) activity, and Title III Food Security program, have complemented efforts to improve market efficiency and openness -- ensuring that inputs (e.g. fertilizer and credit) get to the farmer and the increased production gets to the consumer in a cost-efficient manner. USAID promotes policy changes by the GFDRE to liberalize the agricultural economy, reduce the role of the public sector and increase the role of the private sector. Results include:

-- reduced market share of the parastatal grain trading agency from 37% to 4%;
-- opened up fertilizer distribution and retailing to the private sector, with increased private sector imports from 41,649 metric tons (MT) in 1994/95 to 138,943 MT in 1996/97. Total fertilizer sales increased from 150,000 MT in 1992 to 210,891 MT in 1997;
-- foreign exchange is now available for both private and public sector fertilizer importers;
-- reduced the number of check points for taxing grain thereby reducing transport costs of grain movement. Regional grain price differentials have dropped significantly and prices in cereal surplus areas have risen by 12% to 48%, which benefits farmers, while prices in cereal deficit areas have declined by 6% to 36%, which benefits consumers;
-- micro-finance institutions now have a legal framework and can offer savings and loan services; and
-- reduced tariff on commercial grain imports from 30% to 5 % which encourages commercial imports.

Description: USAID continues to support the GFDRE's efforts to improve food security and increase production, working at the policy level as well as on the ground. USAID also supports key GFDRE analytical activities. Under the Development of Competitive Markets project, the GFDRE initiated a grain market research activity to understand and stabilize food price mechanisms in the emerging market economy. Based on the successful pilot program, this activity will help establish a functioning nation-wide market information system eventually covering cereals, pulses, oilseeds and livestock for farmers and traders. It has included research on fertilizer and grain market efficiencies, food aid impacts, and the structure and performance of grain markets. Support is also given to the Ethiopian

Central Statistical Authority (CSA) to improve agricultural production data collection techniques, analyses and timeliness of its annual Agricultural Survey. In 1997, for the first time under the new government, CSA was able to produce production estimates in time to use in the annual food aid needs appeal to donors.

An activity with the Volunteers in Overseas Cooperative Assistance (VOCA) works to improve the efficiency and safety of private and public sector input marketing. To date, some 240 retailers in two regions have received training and it is expected that the gross profits of each retailer will increase by at least $2,000 in the first year. Another VOCA project is strengthening agricultural cooperatives in the Oromiya region, helping them to form cooperative unions and take advantage of economies of scale in marketing agricultural inputs and grain. An activity with Winrock International will implement programs to alleviate social, economic and technical constraints faced by women in agricultural production, household level grain storage and processing, and marketing.

In support of the African Food Security Initiative and the Greater Horn of Africa Initiative, USAID is currently holding discussions with central and regional government officials on possible support for the new food security programs developed by the regions. USAID will refine our current strategy if necessary to respond to this new government priority program. USAID's support to this program, however, will likely continue to support increased participation of the private sector, while at the same time re-defining the role of government in the agriculture sector.

Host Country and Other Donors: USAID assistance complements aid from the European Union, the World Bank, and other bilateral donors to agricultural production, transportation and infrastructure development, and related policy reforms. The World Bank is the primary donor (with five other donors) on a fertilizer sector support program, and to seed market development and agriculture research. The fertilizer program aims to increase access to fertilizer through more competitive and efficient markets. Assistance from Sweden and Italy is enhancing grain production in the major growing areas. Canada will provide funds to build capacity for one region's small scale irrigation sector. A donor forum on agriculture and food security has been assisting the government in developing a national food security program. Based on this strategy, four regions have developed food security programs, targeting the most food deficit areas in each region and proposing interventions to address the major constraints to improving household level food security. Major elements include sustainable agricultural production, watershed management, small scale irrigation, livestock development, cash crop development, credit, rural road construction and capacity building at local levels.

Beneficiaries: The beneficiaries are the majority of Ethiopians (rural and urban, men and women) who must purchase food on the market. More immediate beneficiaries are the millions of small farmers and small agricultural businesses who will profit from the increase in demand for agricultural goods.

Principal Contractors, Grantees, or Agencies: U.S. Department of Agriculture, Volunteers in Overseas Cooperative Assistance, Michigan State University and Winrock International.

Major Results Indicators:			Baseline		Target 
						 (1992)		(2003)
Increased average production per hectare			
	Maize					1.1 MT/hectare (ha)	2.5 MT/ha
	Wheat					 .8 MT/ha		1.5 MT/ha
Sales of Fertilizer annually			150,000 MT		500,000 MT

Increased private sector involvement in 
  fertilizer:	Import				0 %		 	75 %
		Wholesale			0 %		 	100 %
		Retail				5 %		 	100

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ACTIVITY DATA SHEET
PROGRAM: ETHIOPIA
TITLE & NUMBER: Increased Use of Primary and Preventive Health Care Services, 663-SO02
STATUS: Continuing
PROPOSED OBLIGATION & FUNDING SOURCE: FY 1999: $10,435,000 CSD; $4,750,000 DA
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2003

Purpose: To increase the use of primary and preventive health care services in order to improve the health status of Ethiopians and to reduce population growth.

USAID Role and Achievements to Date: USAID is working with the Government of the Federal Democratic Republic of Ethiopia (GFDRE) to improve a desperate health care situation. With a population of about 57 million growing at over 3% per year and a per capita income of $110, Ethiopia is one of the poorest and most populated countries in Africa. At current rates, Ethiopia's population could exceed 145 million by the year 2025. It is currently estimated that fewer than 20% of Ethiopian citizens are within a two hour walk of any modern health care facility. The average Ethiopian woman bears on average eight children in her life time, and Ethiopia has one of the highest maternal mortality rates in the world. One fourth of Ethiopian children die before their fifth birthday. An estimated 1.7 million Ethiopians were infected with the AIDS virus in 1996. This could translate into 1.8 million AIDS orphans by the year 2010.

USAID's Essential Services for Health in Ethiopia (ESHE) program supports integrated rural child survival and general health care services to the more than 11 million people living in the Southern Nations and Nationalities Peoples Region (SNNPR) of Ethiopia; promotes the expansion of comprehensive reproductive health service delivery through both the public and non-government organization (NGO) sector nationwide; and supports the expansion of successful private sector social marketing of condoms and oral contraceptives throughout Ethiopia. At the national level, USAID supports policy reforms which focus on increasing the GFDRE budget resources dedicated to basic health, emphasizing child survival and integrated sustainable rural health service delivery.

USAID has supported baseline surveys of health facilities in targeted areas and community level surveys in the SNNPR. With USAID assistance, a Health Care Finance Strategy has been developed and is soon to be adopted by the GFDRE. The government has maintained a higher share of its national budget going to health, while improving allocations in favor of rural areas and preventive care. Training has promoted new and innovative methods of health care service delivery, especially at the community level, utilizing existing structures. Modern family planning services have been provided to over 80,000 women by USAID through Pathfinder, a U.S. private voluntary organization (PVO). Through USAID support for contraceptive social marketing, nearly 24 million condoms were sold in 1996 and it is anticipated that over 36 million condoms will be sold in 1998 to reduce HIV transmission. USAID HIV/AIDS activities have expanded sexually transmitted disease treatment to over 30,000 clients in urban areas. Furthermore, 24 million condoms and 200,000 cycles of oral contraceptive pills were sold with USAID support through private sector channels. Vaccination coverage in target rural areas rose from 0% to over 30% in the last year of project implementation. Primary health care facilities have been rehabilitated and strengthened (both in their systems and staff development) to increase the access and quality of care to rural communities.

Description: USAID assistance focuses on encouraging national and regional policy reforms to: (1) increase resources budgeted to population, health, and nutrition activities, and actual expenditures on primary health care; (2) re-orient services more toward prevention of infant and child mortality; (3) develop and implement a national health care financing strategy and implement cost recovery and local financing to promote a self-sustaining system; (4) focus resources on community delivery, particularly for child survival and reproductive health initiatives; and (5) reduce bureaucratic obstacles to the provision of reproductive health care service delivery.

Project assistance supports: (1) enhanced rural health care service delivery to improve maternal and child health (including the reduction of communicable parasitic and infectious diseases) in the SNNPR; (2) implementation of a national health care financing strategy and logistics management information system, which will move financial decision making closer to those providing care; (3) strengthening the national AIDS control program; (4) supporting indigenous NGO outreach programs in family planning; and (5) expanding the private sector marketing of contraceptives.

Rural health service delivery efforts in the SNNPR will initially reach about 1.6 million children under five years and almost two million women. Over the next five years, up to a total of eight million children and women nationally will have access to basic care. If implemented successfully, by the end of the project, over 150,000 child deaths could be saved annually. A reproductive health survey was completed in the SNNPR. This survey provides important information on causes of maternal and child illness and death, and presents options for improving maternal and child health which are directly suited to the specific needs of those communities. USAID is also supporting initiatives in the SNNPR to promote public and private sector cooperation to maximize health care delivery services. USAID will continue to support Ethiopia's Polio Eradication Program through funding to the World Health Organization for surveillance, social mobilization, national and district micro-planning, and support. USAID's efforts in building rural health care services in the SNNPR will also benefit the government's polio eradication efforts.

Host Country and Other Donors: The GFDRE has demonstrated its commitment to improving health care by maintaining national budget levels allocated to health, with emphasis on rural and preventive, services, and has adopted solid strategies and policies on improving health, family planning, and women's role in society. A regular donor group meets under USAID chairmanship, composed of representatives from 15 bilateral and multilateral donors. In addition to USAID, major donors in the sector include the World Bank, World Health Organization, the Netherlands, United Nations Fund for Population Activities (UNFPA), UNICEF and Germany. Donor coordination has been good and is improving as work progresses on a multi-year, coordinated Health Sector Development Plan (HSDP). The five year HSDP and USAID's ESHE activity have the same goals. USAID's contribution to the HSDP will be multi-dimensional. USAID will promote new national policies to strengthen health care financing, private sector involvement, and increased budget allocations to the sector. USAID will also support measures to aggressively curb AIDS transmission and population growth rates, particularly in urban areas through both public and non-governmental service provision of quality reproductive health services.

Beneficiaries: Beneficiaries will include 50% of the 16 million people in the SNNPR, and an estimated 10 million urban residents nationally who will benefit from family planning, AIDS prevention and control activities.

Principal Contractors, Grantees, or Agencies: Activities to achieve this strategic objective are being implemented by a wide range of international and local partners working in collaboration with the GFDRE and local governments. These partners include BASICS, Pathfinder, Family Health International, Population Services International, Partnership for Child Health, the Family Planning Consortium of NGOs in Ethiopia, UNFPA, and the World Health Organization.

Major Results Indicators:
			Baseline		Target 
			(1992)		(2002)
Health as a percent of national budget	5.8%	     	9.0% 
Number of condoms distributed annually	20 million		50 million  
Use of essential services in rural areas	20%  		40%    
 of SNNPR 
Proportion of children 12-23 months who have
 received full vaccination in target communities	38% (1996)		80% (2000)

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ACTIVITY DATA SHEET

PROGRAM: ETHIOPIA
TITLE & NUMBER: Quality and Equity of Primary Education Improved in an Expanded System, 663-SO03
STATUS: Continuing
PROPOSED OBLIGATION & FUNDING SOURCE: FY 1999: $13,000,000 CSD
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2002

Purpose: To improve the quality and equity of primary education in an expanding system by improving education sector policy, education financing, decentralizing administration, and improving the supply of critical educational inputs such as teachers, curricula, and books.

USAID Role and Achievements to Date: In 1991, the primary education system was a weakened and discredited shell, with an attendance rate of about 20% of the eligible students, inadequate facilities, poorly paid, undertrained and demoralized teachers, and a poor policy and strategy framework. Rapid improvement of this system required coordinated interventions which will improve the policy and procedural frameworks, improve and increase trained administrators and staff, and sustainably increase the resources flowing to schools and the local support they receive. To achieve this, USAID worked with the Government of the Federal Republic of Ethiopia (GFDRE) to develop a combination of policy oriented assistance with grass-roots oriented project assistance. Through the Basic Education Systems Overhaul (BESO) program, USAID is providing technical, financial and other assistance to the GFDRE to bring about policy change, improve education sector financing, and decentralize administration. USAID is also helping the government by working with teacher training institutes to improve teacher preparation, curricula, policies and facilities, and by assuring the sustainable availability of key inputs such as books and improved curricula.

Implementation is now in its third year, and gains are already evident. The Ministry of Education has drafted new minimum primary schooling standards to monitor progress on quality objectives. A new career and salary structure for teachers has now been in operation for two years. Teacher training methods and facilities are improving, with greater numbers of female trainees receiving increased attention. At the community level, over 400 schools have been improved with communities increasingly taking over management responsibilities. Curriculum development, for the first time involves direct input from teachers and, in one pilot effort, communities. BESO focus regions started to use desktop publishing mechanisms to reduce textbook publication costs and improve quality. Planning and policy analysis techniques are improving, linked to more efficient collection and production of educational data. Work on school mapping is complete in one focus region and is on track in the other to better understand access problems, and allow for monitoring quality improvements.

Gender related objectives are being met in part with the admission of 1,000 more female trainees annually into primary teacher training institutes and a public campaign initiated to encourage parents to send their daughters to school. GFDRE financing for education has also improved with an increase in the national budget share for education from 14.8% to 16.3% over the past two years. The financing of education is being diversified, with the opening up of private schools for the first time in over 20 years and cost-sharing measures being planned at secondary and tertiary levels. Finally, competition for textbook production contracts is expanding out of the public sector, resulting in private firms winning publishing contracts at the regional level.

Description: USAID assistance efforts are focused on using a combination of policy changes and project interventions to: (1) improve the quality and equity of the primary school environment; (2) improve the efficiency and effectiveness of key quality-related services, such as teacher utilization and textbook availability; (3) improve the quality of teacher training; (4) improve decentralized management and administration of primary education; and (5) increase and rationalize sectoral financing.

USAID interventions occur at the national level to promote system-wide gains and in the two focus regions (containing about 25% of the country's population) to improve the administration of the newly decentralized system. USAID assistance strengthens the skills of education administrators, school principals and newly recruited primary school teachers (with particular attention to females), development of more relevant curricula, and improvement in the supply of instructional materials to schools. Furthermore, within hundreds of rural settings, communities are identifying problems which have eroded performance of the education sector and are receiving direct support to redress these problems. Finally, USAID supports the spreading of gains and lessons from the target regions to other regions throughout the country.

Host Country and Other Donors: USAID assistance has been explicitly designed to conform to and promote the stated education policies and priorities of the GFDRE. While USAID is seen as the major donor in this area, others supporting primary education include the World Bank, UNICEF, Sweden, Germany, Finland and Ireland. Currently, Japan is developing a sector assistance program and is exploring ways to develop a coordinated approach with USAID.

The GFDRE is developing a five year Education Sector Development Plan (ESDP) with an overall investment target of $1.96 billion. This comprehensive plan is being developed jointly by the federal and regional governments and has received technical support from World Bank-led joint donor missions involving 12 agencies, including USAID. This plan will serve as a development framework for longer term government and donor efforts to fundamentally rebuild the education sector. Among the objectives of the ESDP is universal primary education by the year 2015.

Beneficiaries: The ultimate beneficiaries are the expanding pool of primary school pupils in the two target regions, expected to number over 2.4 million by the year 2000. In addition, about 1,600 primary school teacher trainees per year at the three teacher training institutes in the focus regions will benefit in the interim. Six hundred communities in Tigray and 800 communities in the Southern Nations and Nationalities Peoples Region are targeted for support under the School Community Grants Program which will enable them to develop and implement community- based strategic plans for their schools.

Principal Contractors, Grantees, or Agencies: Academy for Educational Development, World Learning, Inc. and Tigray Development Association (an Ethiopian non-government organization).

Major Results Indicators:

(Indicators apply to the two target regions:)		Baseline (1994-95)	Target (2002
Primary school graduation examination raw scores	Tigray SNNPR	51% 43%	56% 49%
Primary school female enrollment rates	Tigray SNNPR	40% 20%	48% 37%
Primary school rural enrollment rates	Tigray SNNPR	39% 25%	45% 35%
Share of females in grade 4	Tigray SNNPR	42.5% 30%	50% 46%
Note: Primary education refers to grades 1 - 8.

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ACTIVITY DATA SHEET

PROGRAM: ETHIOPIA
TITLE & NUMBER: Increased Access to and Participation in a Democratic System, 663-SO04
STATUS: Continuing
PROPOSED OBLIGATION & FUNDING SOURCE: FY 1999: $2,200,000 DA
INITIAL OBLIGATION: FY 1992 ESTIMATED COMPLETION DATE: FY 2002

Purpose: Increase access to and participation in a democratic system in Ethiopia by providing selected support and assistance to the Government of the Federal Democratic Republic of Ethiopia (GFDRE) and non-government organizations (NGOs).

USAID Role and Achievements to Date: USAID assistance began with the Democracy and Governance (DG) Support program in 1992. Support has been provided, as appropriate, for the development of critical institutions to facilitate basic democratic processes -- elections and improved election administration, the drafting of and deliberations on a new federal constitution, the investigation and prosecution of war crimes, the formation and structuring of a new Parliament, the strengthening and administration of national and regional courts, the decentralization process, and media capacity building. The last five years has witnessed a rapid political evolution, including the establishment of a transitional government, and the installation of a democratically elected government governed by a constitution that meets international standards.

Over the past year, USAID has concentrated most of its resources in three areas: the judiciary, decentralization, and civil society. In the judiciary, all 300 regional high court judges have been trained in an effort to increase their knowledge and judicial independence. In decentralization, efforts to improve and facilitate the efficient and equitable distribution of revenue in both the federal and regional government resulted in reformed budget processes. In civil society, USAID played a leading role in encouraging the establishment of a positive enabling environment by strengthening the institutional capacities of local NGOs and encouraging the improvement of the legislative and regulatory parameters under which they operate.

Description: USAID now focuses in three major areas of support -- the decentralization process, the judiciary and civil society. If opportunities arise, USAID will consider support to the legislature and future elections.

The emerging federal structure is strongly committed to the principles of fiscal federalism. Although regional administrative capacity remains uneven, there has been an increasing devolution of resources, authority and control over budgets to regional states. USAID supports this devolution of responsibility to local governments by building local capacity and policy-making skills related to fiscal management and economic policy coherence at the federal and regional levels. This assistance is being provided within the framework of the Government of the Federal Democratic Republic of Ethiopia's (GFDRE) Civil Service Reform Program. At the end of the project, there will be improved management of fiscal federalism and a rationalization and strengthening of the policy reform process.

USAID judicial training assistance provides judicial training at the regional level for high court judges, local woreda (district) judges and associated law enforcement personnel based on the specific needs of each region. Through a variety of activities, the project will also strengthen the working relationship between and among the federal and regional courts, enabling the Ethiopian judiciary to collectively and independently address common problems and consistently apply judicial procedures and principles. At the end of the project, there will be improved knowledge of regional court judges and improved judicial coordination.

Efforts to strengthen civil society continue to promote organized societal participation in the democratic process. Given the linkage between government and civil society, USAID will also work to improve the

capacity of NGOs and improve both the enabling environment and government understanding of the role of NGOs. By first building the service delivery capacity of NGOs, it is hoped that they will then be better positioned to expand their civic roles of interacting with government more effectively. USAID will also work on improving the dialogue between NGOs and government. At the end of the project, there will be an improved enabling environment for NGOs, improved NGO institutional capacity, and increased civil society participation in public policy formulation and review.

Legislative support will continue under the joint donor/United Nations Development Program (UNDP) grant to support training and capacity building for the Parliament, and as the next round of national and regional elections approaches in 2000, electoral assistance will also be provided.

Host Country and Other Donors: Considerable energy and funds have been devoted by the GFDRE to develop democratic institutions and procedures through special commissions and other ad hoc institutional mechanisms. Under the guidance of an ambassadorial subgroup, coordination and collaboration among key donors, including the United Kingdom, United Nations Development Program (UNDP), France, Italy, Germany, the United States, and international NGOs has been extremely good. Multi-donor support has been organized for a number of purposes, including support to elections, election monitoring and now, parliamentary support.

Beneficiaries: Direct beneficiaries include individuals and communities who have chosen to participate in the new political, judicial, and legislative systems as well as civic society groups. Ultimate beneficiaries will include all the people of Ethiopia.

Principal Contractors, Grantees, or Agencies: The Carter Center, National Democratic Institute, PACT, Fund for Peace, International Foundation for Election Systems, Inter-Africa Group, United States Information Services, UNDP, A-Bu-Gi-Da, and Harvard Institute for International Development.

Major Results Indicators:

	Baseline (1991)	Target (1999)
Strengthened and reformed budget process and accounting systems	Repetitive, fragmented budgeting accounting backlog inadequate budgeting procedures	Line item budgets established new procedures for budgeting & accounting in place public sector investment program in place
Increased legal knowledge of regional judges and ability to make independent decisions	Newly appointed judges with little or no legal training	Second round training targeting regional needs completed; 1,100 receive training judicial capacity improved
Increased number of NGOs with sound institutional capacity registered & functioning	Limited number of NGOs registered, none with sound capacity	75 indigenous NGOs with improved management and financial capacity

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ACTIVITY DATA SHEET

PROGRAM: ETHIOPIA
TITLE & NUMBER: Enhanced Household Food Security in Target Areas, 663- SPO1
STATUS: Continuing
PROPOSED OBLIGATION & FUNDING SOURCE: FY 1999: $200,000 CSD; $800,000 DA; $23,154,000 P.L. 480, Title II
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: P.L. 480 Title II, Continuing, DA FY 2000

Purpose: To enhance household food security in target areas where USAID cooperating partners have previously carried out food assisted interventions.

USAID Role and Achievements to Date: USAID seeks to increase agricultural crop production; increase household incomes; improve the use of primary and preventive health care; better maintain natural resources in chronically food deficit areas as well as ensure that emergency monitoring and response capacities are improved. These activities are primarily supported from Title II food-for-work. In 1997, Title II food commodities, provided through NGO partners, equalled 46,269 metric tons (MT) and benefitted 970,000 people.

Description: Title II partners are generally working in drought-prone rural areas where populations are heavily dependent on rainfed agriculture. The key to household food security in these marginal areas is to build up the resource base and range of income flows of families to allow them to withstand unpredictable rainfall cycles. Increasing agricultural production is one way to accomplish this. Non-government organizations (NGO) efforts to increase agricultural production include the construction of irrigation systems, farm to market roads, improving access of farmers to agricultural inputs (tools, seeds, extension services). The NGO partners are also assisting local farmers to increase their income directly through cash crop production, livestock husbandry, rural credit programs and vocational training. The areas where Title II NGO Cooperating Sponsors work are often without even rudimentary health services, and historically, the Ethiopian Government Health Service has focused on curative not preventative health. Expanding preventative (immunization, health, nutrition education) services to target groups will result in improved health and nutrition, especially for children. In addition, Title II partners are improving water supplies for communities by protecting springs, and developing wells and catchment systems. Title II partners will also continue to program considerable resources for protection and conservation efforts (afforestation, enclosure systems, soil bunding and terracing) to try to arrest further deterioration of the ecosystem.

Although the current focus of NGO Partners is on food assisted development programs, the vital role that NGOs have played in responding to past emergencies is recognized and this capacity will be maintained and, where possible, improved. The NGOs working in vulnerable areas provide the Government of the Federal Democratic Republic of Ethiopia (GFDRE) and donors with a quick response capability to food needs in times of emergencies. These activities also support the African Food Security Initiative and the Greater Horn of Africa Initiative.

Host Country and Other Donors: After years of relief activity by a large number of NGOs working with a sometimes hostile Ethiopian government under the previous regime, relations between the new government and NGOs in peacetime now have the possibility to become quite constructive and collaborative. The Disaster Prevention and Preparedness Commission (DPPC) has set up a number of working groups involving government ministries/NGO partners and donors to study issues and assist the GFDRE in policy formulation and implementation of various aspects of preparedness and prevention, e.g., food program targeting. The World Food Program hosts bi-weekly meetings that bring United Nations agencies, donors, NGOs, and the DPPC together to discuss all aspects of food assistance programming. In 1997, USAID invested considerable time in improving the capacity of the GFDRE to better target scarce food resources. Under the aegis of the Greater Horn of Africa Initiative, Ethiopia

will also be the first country in the region to attempt to standardize how food assessments are done and how vulnerable groups are defined. USAID has been the main supporter in this exercise which will hopefully allow prediction of levels of poverty for each woreda (district) in the country. USAID has also worked closely with the DPPC, other donors and NGOs to improve coordination of Early Warning Systems that monitor rainfall, crop and market conditions nationwide. USAID will support a number of special studies, workshops, and forums to improve food program design, implementation and targeting with the GFDRE and NGO partners. This integration of development assistance with the P.L. 480 Title II food program is providing needed and flexible support to enhance GFDRE and NGO capability to respond rapidly to food shortages and crises. In line with this, a total of 95,000 MT of food has been consigned to DPPC during 1997, to mitigate the current emergency situation.

Beneficiaries: Direct beneficiaries will be the most chronically vulnerable populations in Ethiopia, approximately 970,000 people.

Principal Contractors, Grantees, or Agencies: Developmentally oriented Title II programs are implemented by a group of NGO partners, including five international and two indigenous organizations: CARE, Catholic Relief Services, Save the Children Federation/USA, World Vision International, Food for the Hungry International, The Relief Society of Tigray and the Ethiopian Orthodox Church.

Major Results Indicators						
(indicators for target areas)	Baseline	Target
			(1996/97)	(2002)
Nutritional status of children:
  Decrease in proportion of children
    under 5 who are:
      -  stunted		61%	55%
      -  underweight	45%	35%
Decrease in the number of hungry		 
  months (# of months households 
  did not have sufficient food to eat)	5.6	3
Per cent increase in crop yield:
           Maize		0.55 MT/hectare (Ha)	30% gain 
           Teff		0.38 MT/Ha	15% gain 
           Wheat		0.68 MT/Ha	20% gain 
           Barley		0.77 MT/Ha	15% gain 
           Sorghum	0.53 MT/Ha	15% gain 
Per cent increase in number of	1.66 units/HH	15%-20% gain
  livestock units 

Approved disaster management plans	None	Approved plans for all
  in place			vulnerable areas in place

Access to local early warning (EW)	Few vulnerable areas	All Title II sponsors have 
  information for  all  target areas	have access to limited	EW information for all target    established		EW information from	areas and improved coordi-
			weak government EW	nation and flow of
			system.  Limited sharing	information from actors. 
			and flow of information.

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