Assessment of Local Economic Development Practice in Addis Ababa, Ethiopia: The Case of Arada Sub City Administration

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Addis Ababa University


In Ethiopia Local economic development is adopted by the Federal Government and now applied in local areas with the intention of intensive participation of local communities. The objective of this study was to assess LED implementation practices of the Arada sub-city Administration. The study used descriptive survey design and the study relies on the data gathered from primary and secondary sources. The primary data collected for this study were from 156 sample respondents from 8 woredas of Arada sub city. The secondary data were obtained from existing literature and a review of relevant LED-related documents including policies, plans, and reports. The current status of the study area's LED practice is considered good and promising. The study shows that the benefits resulting from LED implementation include improve social, economic, and public infrastructure development, enhance business diversification, enhance better local resource mobilization, improve information flow between business developers, investors, and controllers, and to measure the performance results. The main identified challenges of LED practice in the study area include lack of good governance; high level of corruption, bureaucracy, and irregular practice, Lack of business enabling environments such as limited economic resource and unstable political and economic condition of the country. The study finding implies that a Local government should provide training to the identified potential local actors to accelerate LED implementation and maximize the benefit gained from the programs. Finally, it is suggested that to enhance LED implementation, both researchers and policymakers should target testing the performance of the implementers and controllers.



Local Economic Development, Practice, Benefit and Challenges