Country Ownership and Aid Effectiveness in Ethiopia

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Addis Ababa University


Country Ownership in designing and managing development assistance is critical for achieving sustainable development and promoting effective development cooperation between recipient and donor countries. However, there is a widespread misconception and lack of comprehensive studies on country ownership in Ethiopia. The objective of the thesis is to examine the country ownership comprehensively including Government of Ethiopia (GOE)’s ability to exercise effective leadership over its development policies and strategies; aid coordination and negotiation practices in Ethiopia; donors’ use of country’s system in aid delivery; and GOE’s ability to mobilize finance for development. The Study uses primary and secondary data collected through interviews and document reviews. While there are strong and functional joint government-donors aid coordination structures in Ethiopia that support country leadership over its development policies and strategies, nearly half of the development assistance in 2013 was disbursed outside the country financial and procurement system, which undermines country ownership and sustainability of the development efforts. In a bid to increase donors’ use of host country system in Ethiopia, the joint government-donors Development Effectiveness Taskforce calls for the donors to set individual targets on use of host country systems. However, the Study found out that public sector capacity constraints are hindering more use of host country systems in Ethiopia. In this regard, the writer suggested for rolling-out the Global Alliance for Vaccines and Immunization (GAVI) - Civil Society (CSO) Support model for aid delivery across sectors. The GAVI - CSO Support model minimizes public sector burden by providing aid funds that were channeled through the government system to local and international None-Governmental Organizations (NGOs). As the model uses GOE’s financial and procurement systems in disbursing aid funds, the government remains in charge in designing and managing the development assistance, while the NGOs play a mere implementation roles. The Study also argued that some authors’ fear of western donors’ continued dominance in aid partnership and dialogue with recipient country is no longer the case because Western countries’ Official Development Assistance is no more the only source of development finance. Domestic revenue, south-south cooperation, foreign direct investment, non-concessional private lending, private foundations, and remittance became additional and increasingly important sources of finance for development in developing counties including Ethiopia. With this new development finance landscape, a vibrant country ownership is emerging that both developing countries and their development partners must embrace and uphold it



Effectivness in ethiopia