Ethiopia Needs Long-Term National Development Plan (Part Twenty-Four, Governance Environment)

Tsegaye Tegenu, PhD
2024-08-04

We will continue our discussion on the practical challenges we face in implementing and managing the long-term national development plan. (For the previous discussions, see parts twenty-one through twenty-three.) This section focuses on challenges related to creating a favorable political context, as well as the institutions and governance framework.

The political context establishes a conducive environment for development, setting the tone and providing legitimacy for the implementation of the development plan. It influences the priorities and the level of commitment to long-term goals.

Institutions operate within the parameters set by the political context and governance frameworks. They are the key actors that bring the development plan to life by implementing policies, managing resources, and delivering services.

Governance provides the structure within which both the political context and institutions operate. It ensures that the actions taken by institutions are in line with the overarching vision set by political leaders and adhere to established rules and ethical standards. Governance mechanisms also provide checks and balances, ensuring that institutions are accountable and responsive to the public.

I have given an overarching name called “Governance Environment” that encompasses the political context, institutions, and governance systems in the context of long-term national development plans. The Governance Environment for managing and implementing a long-term development plan shape how development strategies are formulated, executed, and monitored. It influences the design, implementation, and success of national development strategies. It plays a critical role in determining the success or failure of long-term development initiatives.

Signs of poorly functioning governance environment

A poorly functioning governance environment can manifest in several ways, often leading to inefficiencies, corruption, and poor outcomes in both public administration and socio-economic development. Some key signs of a dysfunctional governance environment include: lack of transparency and accountability, pervasive corruption, inefficient and ineffective institutions, political instability and frequent policy changes, weak rule of law and enforcement, limited public participation and civic engagement, poor economic management, and social inequities and inefficiencies.

In the case of Ethiopia, these issues are often documented and analyzed by a variety of credible sources including International Organizations (World Bank, United Nations and International Monetary Fund (IMF); Non-Governmental Organizations (NGOs) such as Amnesty International and Human Rights Watch; academic research (scholarly articles and books often analyze governance and institutional quality); media and journalism; government and independent audits (the parliament sometimes release reports on governance and economic management) and public opinion surveys.

These sources collectively offer a wealth of data and analyses that provide evidence of governance challenges and institutional weaknesses. They are used by researchers, policymakers, and civil society organizations to understand and address the governance environment issues. It is beyond the scope of this piece of article to list all the evidence.

Some signs of a poorly functioning governance environment of Ethiopia:

• Opaque Decision-Making:There has often been limited transparency in government decision-making processes. Key decisions, especially those related to economic policies and security, are often made without adequate public consultation or explanation.
• Weak Accountability Mechanisms:Despite some reforms, mechanisms to hold officials accountable remain weak. Corruption allegations are often not thoroughly investigated, and public officials can act with impunity.
• Bribery and Embezzlement:Reports indicate that corruption, including bribery and embezzlement, is prevalent in public procurement, customs, and other areas.
• Misallocation of Resources:There have been instances where public funds were misallocated or used inefficiently, hampering development projects and service delivery.
• Bureaucratic Inefficiency:The public administration is often characterized by bureaucratic inefficiency, with slow processes and a lack of responsiveness to citizens’ needs. This is exacerbated by frequent changes in policies and regulations.
• Inadequate Service Delivery:Access to quality public services, such as healthcare, education, and water supply is inconsistent. Institutional capacity limitations often hinder the effective delivery of these services.
• Unstable Government Leadership:Ethiopia has experienced considerable political unrest, ethnic tensions, and changes in leadership. These factors contribute to an unstable political environment, impacting long-term planning and policy consistency.
• Politicization of Public Administration:Public sector appointments and decisions are often influenced by political considerations (ethnicity factors), which can undermine meritocracy and efficiency.
• Inconsistent Legal Framework:The legal and regulatory environment is inconsistent, with laws not always applied uniformly. This inconsistency has led to a lack of confidence in the legal system.
• Judicial Inefficiency:The judiciary faces issues such as backlog cases, limited independence, and resource constraints, which has hindered timely and fair legal processes.
• Weak Enforcement:Enforcement of laws and regulations is often weak, particularly in areas such as environmental protection, labor laws, and anti-corruption measures.
• Restricted Civic Space:The government has often restricted the activities of civil society organizations and the media, limiting public discourse and dissent. This restricts the ability of citizens to engage in governance.
• Lack of Consultation:Policy decisions have occasionally been made without sufficient public consultation, leading to public discontent and protests.
• Low Public Trust:There is a significant trust deficit between the public and the government, fueled by perceptions of corruption, inefficiency, and political repression.
• Fiscal Mismanagement:While Ethiopia has made incremental changes in economic growth, it has also faced issues like inflation, foreign exchange shortages, and debt management challenges.
• Inadequate Economic Policies:There have been criticisms of economic policies, particularly concerning land rights, business regulations, and state control of key sectors, which can stifle private sector growth and innovation.
• Exclusion and Inequality:Ethnic and regional disparities are prominent, with some groups feeling marginalized or excluded from economic and political opportunities.
• Neglect of Vulnerable Populations:While efforts have been made to improve social services, vulnerable populations, including the rural poor and certain ethnic groups, often have limited access to quality education, healthcare, and economic opportunities.

Impacts on management and implementation of long-term development plan

The governance challenges in Ethiopia are intertwined with its socio-political and economic dynamics. With a poorly functioning governance environment, the management and implementation of long-term development plans face numerous challenges and risks.

Due to inconsistent policy direction and vision (lack of stability and policy discontinuity), development plans lacked clear and consistent goals, leading to confusion and ineffective implementation. Inconsistent policies have deterred both domestic and international investors, affecting economic growth and development.

Due to weak institutional capacity and effectiveness, development plans were and are poorly executed due to lack of capacity and resources, leading to delays, cost overruns, and subpar results. Essential services and projects could not reach intended beneficiaries effectively, hampering overall development.

Due to erosion of accountability and transparency (corruption and weak oversight), funds allocated for development projects were diverted for personal gain, reducing the effectiveness of development initiatives. Erosion of trust in government institutions has led to reduced public support for development plans and hinder community engagement.

Due to limited public participation and stakeholder engagement (exclusion and lack of feedback), development plans were misaligned with actual needs and priorities, leading to ineffective or irrelevant interventions. Excluded groups resisted development initiatives, leading to conflicts and implementation challenges.

Due to inefficient resource management and allocation (budget misallocation and ineffective monitoring), development projects have experienced delays and inefficiencies, affecting the overall timeline and outcomes of long-term plans. Inefficient management has led to wasted resources and reduced impact of development initiatives.

Due to difficulty in adapting to changes (path dependency in policy making experience, see part twenty-three), development plans could not effectively address emerging challenges or opportunities, reducing their relevance and effectiveness. Inability to adapt has led to missed opportunities for growth and improvement.

Addressing governance challenges: Need for short and long-term solutions

Addressing the governance challenges in Ethiopia, as in any other country facing similar issues, requires a combination of short-term and long-term solutions.

Short-Term Solutions:

• Establish Independent Anti-Corruption Agencies:Strengthen or establish independent bodies to investigate and prosecute corruption cases.
• Public Access to Information:Implement laws and regulations that mandate the public disclosure of government activities, decisions, and spending.
• Immediate Enforcement Actions:Prosecute high-profile corruption cases to demonstrate commitment to combating corruption.
• Whistleblower Protections:Implement and enforce strong protections for whistleblowers to encourage the reporting of corrupt practices.
• Training and Capacity Building:Provide immediate training and capacity-building programs for public servants to improve efficiency.
• Process Streamlining:Simplify bureaucratic processes to reduce delays and inefficiencies in public service delivery.
• Political Dialogue:Facilitate inclusive political dialogues to resolve conflicts and build consensus on key issues.
• Strengthen Security:Ensure law and order to prevent and manage political unrest.
• Judicial Reforms:Immediate measures to enhance the independence and efficiency of the judiciary, such as clearing case backlogs and increasing funding.
• Strengthen Law Enforcement:Enhance the capacity and professionalism of law enforcement agencies to ensure laws are applied fairly and consistently.
• Enhance Civic Space:Remove restrictions on civil society organizations and the media to encourage free expression and participation.
• Public Consultation Mechanisms:Implement immediate measures to involve the public in policy-making processes, such as public hearings and consultations.
• Economic Stabilization Measures:Implement measures to stabilize the economy, such as controlling inflation and managing public debt.
• Immediate Policy Adjustments:Make necessary policy adjustments to encourage investment and economic growth.
• Targeted Programs:Implement targeted programs to address immediate needs of marginalized and vulnerable populations, such as food security and access to healthcare.
• Social Safety Nets:Establish or strengthen social safety nets to protect the most vulnerable groups.

Long-Term Solutions:

• Strengthen Institutional Checks and Balances:Develop robust legal and institutional frameworks that ensure oversight over executive actions by independent bodies like the judiciary and legislature.
• Build a Culture of Transparency:Encourage transparency at all levels of government through education, civil society engagement, and public sector reforms.
• Institutional Reforms:Reform institutions to reduce opportunities for corruption, such as streamlining processes and reducing bureaucratic red tape.
• Cultural Change:Promote ethical behavior and integrity in public service through education and public awareness campaigns.
• Public Sector Reforms:Comprehensive reforms to modernize public institutions, including adopting new technologies and management practices.
• Decentralization:Decentralize services and decision-making to regional and local governments to improve responsiveness and efficiency.
• Institutionalizing Democracy:Strengthen democratic institutions and processes, including fair and transparent elections, to ensure stable governance.
• Policy Continuity Mechanisms:Establish mechanisms for maintaining policy continuity regardless of political changes, such as legal frameworks or independent commissions.
• Legal Framework Development:Develop a comprehensive and consistent legal framework that covers all aspects of governance and societal needs.
• Judicial Independence:Strengthen judicial independence by insulating the judiciary from political interference.
• Institutionalize Public Participation:Establish formal mechanisms for public participation in governance, such as participatory budgeting and citizen advisory councils.
• Civic Education:Promote civic education to empower citizens to participate effectively in governance.
• Economic Reforms:Implement comprehensive economic reforms to create a more open and competitive economic environment, including reforms in land ownership, business regulations, state-owned enterprises, diversification and development, etc. (see my strategy and policy suggestions on vision of “Creating a Post-Scarcity Economy, Thriving Middle Class, and Self-Reliant Society”).

Addressing these governance challenges requires a holistic and sustained effort. Short-term solutions are crucial for immediate stabilization and addressing urgent issues, while long-term solutions are necessary for building a resilient and sustainable governance environment. The success of these efforts depends on strong political will, broad-based participation, and consistent commitment to reform from all sectors of society.