1. Briefing on Ethiopia’s Contribution to the 2007 Annual Ministerial Review (AMR) of the Economic and Social Council (ECOSOC) of the UN Held in Geneva, July 3-5, 2007 Getachew Adem Head, Development Planning and Research Department (DPRD) Ministry of Finance and Economic Development (MOFED) Federal Democratic Republic of Ethiopia March 27, 2008 Addis Ababa

2. Outline  The Support from ECA and UNDP for AMR;  Background to the Annual Ministerial Review (AMR);  Ethiopia’s Contribution to the 2007 AMR;  On the Pillar Strategies of the PASDEP: Road Out of Poverty;  Report on Highlights of Progress to Date in Achieving Sustainable Development (MDGs);  Overview of Challenges & Opportunities;  About What we Expect from the AMR?

3. The Support from ECA and UNDP for AMR  The ECA provided analytical support to Ethiopia shared its innovative instrument, the MDG mapper, and assisted us in the process of preparing our Report and Presentation at the AMR;  The Government of Ethiopia acknowledged the technical support of the United Nations Economic Commission (ECA) - provided through its MDGs/Poverty Analysis & Monitoring Section - to the preparation of the Report;  The Government also acknowledged the financial support of the Ethiopian country office of the United Nations Development Program (UNDP) for the country’s participation in the 2007 UN ECOSOC Annual Ministerial Review.

4. The Annual Ministerial Review(AMR)  The 2005 World Summit entrusted the United Nations Economic and Social Council (ECOSOC), one of the principal organs of the United Nations Organization (UNO), with the function of assessing progress in the implementation of the outcomes of the major United Nations conferences and summits through a series of Annual Ministerial Reviews (AMR);  In its follow-up resolution to the Summit outcome, the General Assembly further recommended that AMRs should provide an opportunity for countries to make voluntary presentations pertaining to their development experiences;  The First AMR was convened from 3-5, July 2007 in Geneva with in a context of a newly strengthened Economic and Social Council;  Six Countries among which three African Countries: Ethiopia, Ghana, and Cape Verde, made voluntary presentation on the assessment of their National development programs;

5. Ethiopia’s Contribution to the 2007 AMR  Poverty Reduction Strategy needs to be home grown ;  The need to take longer-term view and holistic approach in addressing the Poverty Agenda; The Formulation of Ethiopia’s MDGs Based Long-term Plan Aligned with the MDGs Time Table (2005/06-2014/15) based on the MDGs Needs Assessment Exercises; The Formulation of Ethiopia’s MDGs Based Long-term Plan Aligned with the MDGs Time Table (2005/06-2014/15) based on the MDGs Needs Assessment Exercises;  Ethiopia’s MDGs-Based Five Year Development Plan entitled “A Plan for Accelerated and Sustained Development to End Poverty (PASDEP)” which is currently in its third year of Implementation;  Broad Based Pro-poor Growth is Central for Poverty Reduction and its ultimate eradication;  Meeting MDGs should not be judged by past trends, rather by the agenda we have set out to accelerate progress towards the goals in the remaining eight years;  Ethiopia’s Achievement in Integrating the MDGs in to the National Development Planning and Policy Framework;  An M&E System which is built on Existig Structures and is Forward Looking to Meet the Information Requirement of Monitoring Progress towards the MDGs

6. The Pillar Strategies of the PASDEP: Road Out of Poverty  Building Capacity(with particularly with focus at sub-national levels(to create capable state & private sector actors);  Massive Push to Accelerate Growth & create jobs (Private Sector Development and Commercialization of Agriculture, Industry & Exports, Urban Development)  Addressing the Population Challenge;  Unleashing the Potentials of Ethiopian Women;  Strengthen the Infrastructure Backbone of the Country;  Improve Human Development;  Managing Risks; These Pillars re-enforce each other and help us to optimize synergy-hence strong outcome These Pillars re-enforce each other and help us to optimize synergy-hence strong outcome

7. Report on Highlights of Progress to Date in Achieving Sustainable Development (MDGs)

8. Selected PASDEP Targets and Progress to Date(2006/07) Sector/Indicator Baseline (2004/05) 2005/062006/07 PASDEP Target (2009/10) Income Poverty Poverty Head Count Index (%) 38.736.6(TE)34.6(TE)29 Food Poverty Head Count Index(%) 37.835.6(TE)33.5(TE)28 Increase in Per Capita Income (GDP) 8.47.78.4 4% Per Annum On Average Public Finance Domestic Revenue as % of GDP 16%16.917.318.7% Tax Revenue as % of GDP 12.5%12.212.517.0% Total Expenditure as % of GDP 25.2%25.227.627% Capital Expenditure as % of GDP 11.8%12.114.915.8% Total Poverty-oriented Expenditure as % of GDP 14.2%15.817.022.3%

9. Selected PASDEP Targets and Progress to Date(2006/07) Sector/Indicator Base Line (2004/05)2005/062006/07 Target (2009/10) Education Gross Primary Scholl Enrollment(%) 79.8%91.391.6100% Grade 5 Completion Rate(%) 576365.2 Grade 8 Completion Rate(%) 3441.742.9 Pupil/Text Book Ratio 2:11.5:11.25:1 Girls: Boys Ratio: First Cycle Primary (Grade 1 to 4) (%) 0.870.890.93 Second Cycle Primary (Grade 5 to 8) (%) 0.690.740.78 Secondary Level Grade 9 to 12(%) 0.570.590.78 Education Spending as percent of Total Public Spending(%0 16.717.819.3 Health Child Mortality Rate (per 1000) 140(2004)123?45/1000 Maternal Mortality Rate (per 100000) 871673?600/100000

10. ---PASDEP Targets and Progress to Date Indicator Baseline (2004/05) 2005/062006/07Target(2009/10) Proportion of Households in Malaria Prone areas with ITN Coverage(%) 1%43%91%100% Health Extension Workers to Population 1:250001:78001:4369 Access to Potable Water in Rural Areas (%) 35%47.3%52.5%84.5% Infrastructure Development Road Density (per 1000 sq km) 32.335.938.654.1 Roads in Good Condition (%) 64%68%?84% Access to Electricity (% of Population) 16%17%22%50% Number of Towns with Access to Electricity (Additional every year) 6489007586648 Access to Telephone ( Number of kebeles to be reached) (Additional Every Year) 30004706268915000 Fixed Telephone Users (Density per 100) 0.852.142.683.87

11. Trends in Spending on Pro-poor Sectors as %of Total Public Spending(%) Sector2001/022002/0322003/042004/052005/06(Estimate)2006/07(Budget) Agriculture & Rural Development, Food Security 9.28.113.416.316.816.4 Education14.216.120.419.721.816.5 Health5.94.94.34.84.66.1 Roads10.79.99.611.314.812.7 Water & Sanitation 2.82.92.04.54.46.9 Total434250576260

12. Challenges  Limited Implementation capacity particularly at sub- national levels;  Limited Private Sector Capacity;  Vulnerability to Shocks both External and Domestic;  Low Productivity;  Financing Development has become a critical constraint on implementation at a scale that is required.  Despite debt relief and debt cancellation, per capita official development assistance to Ethiopia (US$14.8 in 2005/06) is considerably lower than that of other low-income countries, including many with higher average per capita incomes and with better indicators of human development.

13. Opportunities  Ongoing National Capacity Building Programs;  Existence of successful on-going sector development programs;  The success of the domestic resource mobilization effort which is currently underway including social Mobilization (NGOs/CSOs and grass root communities taking advantage of the ongoing devolution process);  Momentum effects of past investments on human development and physical infrastructure;  The deepening of the environment for private investment and business activity;  Global initiatives for scaling up aid to LDCs and debt relief ;  The Development potential of the country in terms of natural resource endowments, the large untapped domestic market and labor force all of which are under exploited;  The potential impact of agricultural transformation agenda, the rural-urban linkages, and on-going industry-export developments which have already started to pay-off ;

14. What do we Expect from the AMR?  The national Report would enable other African and participating countries learn the practical actions the Government of Ethiopia has taken to improve the human conditions of its citizens;  That our development partners would strengthen their support to the development process by ensuring committed foreign resources are obtained in a predictable manner as well as the need to scale up external finance for full-scale implementation of the PASDEP and hence the MDGs;  Although additional assistance has increased in recent years (particularly up until 2005), Per capita Official Development Assistance (ODA) still stood at half the SSA level currently.

15. Thank You