Government Expenditure Management and Control in Ethiopia

In some developing countries because of weak expenditure management process that have room for an exaggerated request, the spending is likely to be for less priority. In these circumstances, the best reaction would be to improve expenditure budget preparation. Since expenditure management is easy at budget preparation than later during the execution of the budget. This article discussed Public expenditure management and control in Ethiopia. The management and controlling of public financial resources is crucial because society’s needs and demands are unlimited whereas resources are limited in nature. The problems and controversial issue related to public expenditure management and controlling are reflected in the budget preparation, approval, execution, and Audit phase of expenditure management cycle. Owing to these problems, this study used non parametric chi- square goodness-of-fit techniques for testing the hypotheses. Therefore, the result showed that there is a problem of linking the work plan with expenditure budget preparation. It is also revealed that purchasing of goods and services is not based on the annual action plan by sectors. In other word, this indicated that there is a problem of budget preparation and execution. On the other hand, In relation to budget approval, the result indicated that Legislature has effective systems of check and balance on public expenditure.  The test was also undertaken to check auditor’s satisfaction in relation to the support they get to conduct their task. The test result indicated that auditors have a problem of motivation with the financial and material support to carry out audit work to achieve their objectives.. Finally, this paper forwarded the following recommendations: first, there should be further strengthened the program budgeting system introduced by MOFED in 2004. Second, to minimize rush spending, especially, yearend purchasing, it is good to take the experiences of Australia that carries over up to 10% of the remain expenditure to the next fiscal year. Third, the national anti corruption institution should further strengthened in relation to expenditure management and control. Finally it is better for the legislature to reconcile what is reported and what is actually happened at the grass root level. In addition, the auditors should be properly encouraged to do their job effectively and efficiently. Keywords: Public Expenditure management, Growth and transformation plan, legislature, Executives and Auditor

A Critical and Comparative Analysis of Political Empowerment/Representation/ in Promoting Gender Equality in Gambella Regional State

Despite the limited improvements made by very few countries, gender inequalities are on the increase in the developing countries, including Ethiopia. On the other hand, representation of women and inclusion of their perspectives and experiences into the decision-making processes can have social benefits, better and more appropriate social, political, legal, and economic solutions for their problems. Economic and social empowerment of women is greatly reliable on their integration into the political decision-making process through their involvement in the political and public offices. Women can enjoy their political and civil rights through political representation and/or participation in the public life, as ensuring women’s political participation can bring legitimacy to the government and, validity and trustworthiness of democracy and democratic process by the public and stakeholders. The purpose of this study is to assess the status of women’s political empowerment/ representation in the public and political decision-making positions in the Gambella regional state of Ethiopia so as to suggest appropriate policy options towards the achievement of effective gender equality in the region. The study showed that women had never been represented in the national legislative and executive branches of the Ethiopian federal government. Cumulatively, this research had found that the political empowerment, representation or participation of men and women in the legislative, executive, and judiciary as well as in the justice and political system was comparatively better and showed a progress in the descending order of the administrative levels and the reverse is true for men.  Though there had been a very remarkable and significant progress in the legislative representation of women in 4th election term of 2010, a “wider gender inequality” existed in the representation of women in the executive at all administrative levels in the Gambella regional state. The study had discovered a wider gender inequality in the representation of both men and women as the presiding higher officials in the parliament offices at all administrative levels in the region. However, the representation of women as speakers of the house, commonly as vice speakers, showed a promising representation at similar administrative levels regardless of the regional administrative level where women had been given no chance to be one of the speakers in the regional parliament. The study had also found that there had been a satisfactory representation of women in the parliamentary standing committees’ at all administrative levels. However, the representation lacks proportionality from within the standing committees. There had also been a bit wider gender inequality in the representation of women as the chairpersons of the various parliamentary standing committees’ at all administrative levels in the legislative branch of the government.   Although women had been given satisfactory political gender quota in the political party’s central and executive committees, their representation in the official positions of the political party at all administrative levels in the region was very insignificant. Finally, the study had shown the existence of a wider gender inequality in the judicial and justice systems in the region at all administrative levels

The Implementation of Civil Service Reforms in Ethiopia: The Promise for Civil Service De-Politicization of Tigray National Regional State

The origin of the ‘modern’ civil service in Ethiopia dates back to the Menelik II Era 1907. Yet, it was few years after the downfall of the military government that the civil service system was drastically transformed. The current Ethiopian government has conducted a continuous reform since the early 1990s to restructure the civil service system with the intention of instituting multi-party democracy and market driven economy. It was with this intention that autonomous civil service institutions were established and the civil servant was begun to serve with merit principles. It is believed that successful merit based Human Resource Management (HRM) is the cornerstone in building government institutions to implement public policies and strategies, which in turn can have a direct impact on the development performance of the country. However, some empirical studies indicate that the promise to have a neutral policy implementer civil service is inhibited by politicization of the civil service among other things. Therefore, the objective of this article was to examine the promise for practicingcivil service de-politicization during the implementation of the Civil Service Reform (CSR) in Tigray. To describe the level of de-politicization in practice based on the promised merit principles, relevant data was collected both from primary and secondary sources. Survey instrument was used to collect primary source data. The researcher utilizes Chi-square to analyze the data and identify the factors that impede de-politicization of the civil service. The research found out that regardless of the institutional framework in place, the promise to make the civil service a neutral policy implementer in Tigray region was highly inhibited by unnecessary political interference, poor separation of power, poor accountability system, ill networking in the civil service and poor over sighting from above. Key Words: Civil Service Reforms, De-Politicization, Transformatio

The Contribution of Rural Resettlement to the Livelihoods of Settlers in Ethiopia: A Case of Essera District Resettlement Schemes in SNNPR

This study examines the contribution of resettlement program to the livelihoods of settlers in resettlement areas of Essera Districtin Dawuro Zone, SNNPR. One hundred thirty eight (13%) sample participants were selected for survey by using simple random sampling techniques from three kebeles of resettlement area. In addition, focus group discussion with representatives of settlers; key informant interviews and personal observations have been employed to collect data in this study. The study results show that the consultation about the resettlement program was made with majority of settlers before the implementation of program. It was also noticed that the movement of settlers to the new area was voluntarily based. The study also asserts that the occurrence of conflict among settlers and the host community is very minimal. Regarding the livelihood status of settlers, the study tells us that the resettlement program is positively contributing to the social, financial and physical capitals of settlers’ livelihood assets. However, the current human and natural capitals of livelihood assets are not at pleasing status due to less infrastructure and social service facilities like schools, health services, safe drinking water, veterinary services, and land holdings in the resettlement areas. Furthermore, the resettlement program has not equally reduced the vulnerability of all settlers to food insecurity. In this regard, the study reveals that 14.5 percent of settlers were food insecure during the survey period. The agricultural activities and all income sources to participants are entirely relied on rainfall which is highly susceptible due to seasonal variations. The off-farm and non-farm activities such as petty trade, handicrafts, engagement in agricultural labor work and food-for work programs can generate additional income to household heads to promote their livelihood assets and to cope with adverse circumstances. However, the study found that these activities are hardly carried out by settlers. Thus, the integrated intervention of all concerned bodies is indispensable to reverse the problems related with resettlement and to enhance the diversification of income sources to settlers to build their livelihood assets in sustainable manner. Keywords: Resettlement, settlers, livelihoods, livelihood assets, off-farm activities, non-farm activities.

Government Spending for Economic Growth in Ethiopia

This study is designed to address the relationship that can be revealed between real gross domestic product and various composition of government expenditure like:  agriculture, education, health, transport and communication, urban development and housing, total capital expenditure and total recurrent expenditure in Ethiopia. In doing so, it answers the research question: which composition of government expenditure promotes economic growth in Ethiopia? The sources of data being used in this study are purely of secondary data for the period between 1975-2011G. C as obtained from Ministry of Finance and Economic Development (MOFED) and various Federal and Regional Bureaus. The methodology used in this research is a Co-integration error correction model. The output of this research showed that expenditure on health and total capital expenditure are both positive and statistically significant in explain the growth of Ethiopian economy. However, Expenditure on agriculture, education, health, transport and communication, urban development and housing, and total recurrent expenditure are statically insignificant. Keywords: public expenditure, economic growth, co-integration, unit root test

The Implementation of Civil Service Reforms in Ethiopia: The Woreda-Net as a Sole Promoter to Implement Civil Service Reform of Tigray National Regional State

The initiative to reform the Ethiopian civil service accounts more than a century old which dates back to the Menelik II Era 1907. However, it was consolidated after the end of the Socialist Era since the early 1990s. The current Ethiopian government has conducted a continuous reform to restructure the civil service system objectively to introduce the multi-party democracy and market-driven economy. In contemporary CSR, like the other African governments, the Ethiopian government is trying to link the dynamics of ICT as a sole promoter to implement the CSRs and to provide quality service. However, it is evidenced that the implementation of CSR in Ethiopia in general and that of Tigray’s in particular has poorly supported by ICT. Therefore, the objective of this article was to ascertain the implementation of CSR in Tigray national regional state with particular reference to the Woreda-Net as a sole promoter to implement CSR. To ascertain how the Woreda-Net was used as a sole promoter to implement the CSR and the provision of quality service in Tigray, pertinent data was gathered both from primary and secondary sources. Finally, the problems that inhibit the Woreda-Net to function as a sole promoter of CSR implementation were recognized and the discussion was concluded with, though, the regional government tried to narrow the gap between the urban and the remote rural areas by using ICT expansion, the ICT centers /Woreda-Nets were not centers of civil servants training to scale-up the civil servants skill to utilize computer technology which helps them to implement the CSR

Financial Regulation and Supervision in Ethiopia

The Ethiopian financial sector is characterized by low level of development and relatively closed in nature than its east African neighbors. When we see the main financial development indicators in Ethiopia: branch to population ratio is 62,063[1]; percentage of adult population which has access to formal credit is 1.197% [2]and ranked 104[3] in the world in getting credit. Consequently the country’s financial system is distinguished by its negative real interest rate (-22.5 for saving rate and -21.80 for lending rate)[4], 85.4% [5]of total loans required collateral and the required collateral as percentage of loan is 234%[6] which is the highest in the sub Saharan Africa.  Regarding financial regulation there are two opposing theories; the financial repression school where taken financial regulation in the form interest rate control as important policy tool for developing countries and the liberalization school where considered privatization of the government owned financial institutions and financial liberalization as important policy tool for the sake of efficiency, soundness and to increase competition in the financial sector. In this regard even though the government Ethiopia acknowledges the importance of financial liberalization for the country financial development it follows gradualism approach to liberalization.  For those reasons government intervention rate in the Ethiopian financial system is one of the highest (425.03%)[7]. In line with this the paper tries to analyze the trends of financial development, the mode of liberalization and type of regulation and supervision in Ethiopia financial sector. Keywords: finical development, regulation, supervision, liberalization, Ethiopia [1] NBE annual report 2011/12 [2] ADI [3] ADI [4] NBE annual report 2011/12 [5] ADI [6] ADI [7] AD

Trends and Factors Affecting the Use of Non-Motorized Modes of Transportation in Hawassa City, Ethiopia

Initial modes of transportation for human beings were non-motorized. However, due to development in transport technology and requirement, these modes have been partly or fully replaced by motorized vehicles depending on the development level of the given country. Invention in motorization contributed for further advancements. Motorization has multifaceted benefits. However, individual risks ranging from property damages, health problems, injuries and deaths from traffic accidents and environmental problems due to construction of infrastructure and gas emissions are also the serious threats. Consequently, many nations of the world have started to incorporate non-motorized modes in their transportation systems in order to tackle such negative effects of motorization. Acceptance in non-motorized transport is getting a wide horizon at the world scale because it is economically feasible, environmentally less damaging and socially inclusive. As true for many developing countries, dominant mode of transportation in both urban and rural areas of Ethiopia is still non-motorized. Hawassa with a population of 183,027 (2010 projection) is one of the emerging cities in Ethiopia, had been greatly experiencing the use of non-motorized transportation. However, currently this situation is practically changing since motorization is slowly becoming the main mode of transportation in the city. The dominant public mode of current transportation is Bajaj (auto rickshaws/three wheelers) which have low occupancy in their nature showing the need of numerous fleets to transport relatively few people. The exhaust from these fleets, road congestions, noise pollutions and so on is becoming motorization-related problems in the city. In view of this, the paper has focused on trends in non-motorized modes of transportation and associated factors. Data sources were respondents from a household survey in Hawassa city. Descriptive and inferential statistics are used for analyses. The result has shown that modes of transportation and reasons for walking and bicycling are not independent. Keywords: Non-motorized modes of transport, Environment, Walking and bicyclin

Perceptions on Impacts of Decentralization on Local Governance in Ethiopia: Insights from DLDP Implementation in Guraghe Zone and its Districts

The rationale for the District level decentralization in Ethiopia has been reducing central and regional government control, increasing community and civil society participation, making government bodies more accountable, responsive and transparent to the constituents at the ground. This article explores and discusses how district level decentralization affected its potential for effective local public governance in Guraghe Zone and its Districts from local government bodies’ view.  The study employed concurrent mixed methodes research design. The,data were collected through survey questionnaires,focus group discussions, and key informant interviews, simultaneosly. The Guraghe zone’s districts were taken purposively. The data were integrated with analysis and interpretation of the results. The researcher employs cross tabulations, percentages, and graphs to discuss and analyze the data. The results show that that the decentralization affects accountability, responsiveness and transparency of local governments to the public positively and negatively in the study area. While, the finding also revealed that effectiveness decentralization reform on local governance effectiveness has been constrained due to misuses of transferred public resources.  Furthermore, the prevailing ethnic based political patrons and kinship networks are installing and implementing government policies and projects for their own interest than the ordinary citizen. The findings also revealed that local administrators are appointed and removed from their position without constituents’ knowledge. Even though both FDRE Constitution and SNNPRS Constitution clearly publicized how lower level government units are accountable to the higher government tiers, both fail state on  how upper level tiers of government units are being accountable to the lower level government units. This might affect the down ward accountability of governance actors to their constituents. Obviously, this determines effectiveness of local governance. Keywords:  decentralization, local public governance, accountability, responsiveness, transparenc

Causes and Remedy of Squatting in Burayu Town, Ethiopia

The first dilemma that millions of poor in urban areas of the developing world face and which is likely to persist for a long period is the question of adequate housing. In this regard, 70 per cent of the urban population of Ethiopia is living in slums and squatter settlements. This article is on accessibility of land for residential purpose and existing squatter settlements in Burayu town in Oromia National Regional State, Ethiopia. The population of Burayu town is 100,200 (2010) and the town is located about 15 kilo meters from the city limits of Addis Ababa metropolis, the capital of Ethiopia. The town is characterized by many land related problems like proliferation of squatter settlements, expansion of slums and other illegal land developments. This article tries to identify the root causes for squatting and assess the major local government responses in Burayu town. By the combination of random and purposive sampling method, 246 squatter households were selected from different sections of the town and quantitative data and qualitative information were collected from primary as well as secondary sources to analyze. The result shows that on the contrary to many studies conducted on similar areas, the root cause for development and expansion of squatter settlements in Burayu town is not economic poverty of the squatter households. Rather, the main reason found is cumbersome procedures and very poor performance of Land Development and Management Agency to deliver the land to the aspirants. Inability of the local government to cope up with the fast urbanization and increasing demand of land for housing is obvious. Keywords: Squatter, Accessibility and Squatter Settlement