The Current Decentralization Process in Ethiopia the Case of Oromia Region

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Date

2001-05

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Addis Ababa University

Abstract

Decentralization is believed to improve development activities by allowing lower levels of government bodies and the people at large to participate in development planning and implementation. Of course, such participatory development through decentralization can be realized if important preconditions such as political commitment, availability of and access to resources, capacity of implementing agencies and the like are adequately met. The on-going decentralization process in Ethiopia has introduced a major change in the political, economic and social systems of the country. The new decentralization process, effected since 1991, is organized under federal form of government whereby the country has been divided into nine regional governments and one city administration under the umbrella of the Federal Government. The regions are delimited mainly based on historical, linguistic and ethnic considerations. This study is aimed at investigating the process of decentralization in the country. It is conducted mainly on a case study technique where one region, Oromia Region, is randomly selected from among the regions in the country. The research provides a brief description of the conceptual framework of decentralization, then the data collected and its analysis. Finally it presents conclusions arrived at. Both quantitative and qualitative data collection methods were used. Interviews were conducted with 25 key informants-individuals assumed to have particular knowledge on the issue of decentralization. Group discussions and survey questionnaires with 14 participants were also included in the research. Oromia Region is the largest of all in terms of territorial size and population. It has a relatively strong institutional and manpower situation as compared to other regions. However, close scrutiny of regional activities reveals that there is a lot to be done. Although authority and powers seem to be decentralized, the extent of decentralization below regional levels, to the zonal, woreda and kebele levels is limited. Moreover, the decentralization process in the Oromia region is challenged by many problems such as low revenue basis, very low administrative and manpower capacity and poor inter-organizational arrangements and relationships. There is a large vertical imbalance between the revenue raising powers and expenditure responsibilities of the Oromia Region. Therefore, every year, more than 70 percent of the budget of the region is granted by the Federal Government in the form of unconditional subsidy. This means that in Ethiopia, expenditure responsibilities have tended to be centralized in favor of the Federal Government There are, of course, improvements in the participation of the private sector in the economic activities of the region. The very reason for this is the market economic system that the country follows. There are a number of significant private investors with licenses operating in the region. In general, decentralization is a recommended system of governance for Ethiopia, for several reasons. Improving the balance between expenditure assigrunent and revenues of the region, empowering lower level administrative units with the required level of power and authority, and improving the organizational arrangements and relationships of various functional units of regions could pave the way for realizing the benefits of decentralization. Based on the findings of the research, it is recommended that the Federal and regional governments should make efforts to minimize the polarization effects, through infrastructural developments and incentives to private and other investments to peripheral areas. The Federal government should give equal emphasis as that of general purpose grants to specific type grant which aims at encouraging regions' efforts to expand their tax bases with the view of financing their own development programs. There should also be measures to be taken to attract and retain skilled manpower in lower level by providing attractive salaries, conducive living facilities etc. Particularly, in Oromia region, the lower levels should have more discretionary power to undertake activitics in their respectivt; areas. Zonal and woreda levels should operate not as totally appendages of regional goverrunents and should devise a system where they are not controlled bureaucratically and hierarchically by regional government bodies. Government functional units in regions have to be revised and established in their best form. Redundant and unnecessary offices should be removed and formed in line with the specific circumstances of the region.

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Keywords

Decentralization is believed, improve development activities

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