Socio-economic and politico-governance in Ethiopia for URELs

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Chapter Three: Socio-economic and politico-governance in Ethiopia for URELs


This chapter presents theoretical and empirical perspectives of urban-rural linkages (URLs) and urban-rural production linkages (URELs) of Ethiopia, mainly in the current government (since 1991). The main points of the chapter are reviewed empirical researches on URLs and URELs in Ethiopia, agriculture and its efficiency, agro-industries and their efficiencies, trends of development policies and plans since 1957, political economy and development, urbanization and development and trade and development. The discussion and argument have based on secondary data sources from different journal articles, proceedings, books, documents, magazines and other relevant published and unpublished materials that can be contextualized to the Ethiopian situation in a dynamic world.
Befekadu (2004) argues that Ethiopia is one of the oldest independent African nations and origin of humankind (such as the fossils of Lucy and Ardipithecus of about 4.4 million years ago). It is one of the founders and sit of African Unity (AU) for Pan-Africanism. He notes that the country was the origin and used to be pioneers of progresses and indigenous technological revolutions far ahead of many countries in development. During the agricultural revolution from gatherers and hunters into purposeful production of crops, it had made its own contributions in the domestication and purposeful production of different food crops (such as Teff, inset, nigerseed and barley) 10,000 years ago. The author argues that the Great Ethiopia had had wider empire territory of part of Yemen, Somalia with its Zeyla-Berbera ports, northern Kenya and part of Sudan and Egypt including all Red Sea to Gulf of Aden in 4thBefore Christ (B.C). He adds that the knowledge and firm initiatives capable of engineering the astonishing architectural application of Axum obelisk, Fassil castles, the rock-hewn churches of Lalibela (in the 11thcentury) and modernization works and attempts of emperor Tewodros-II2 (1885-1890) are the footprints and empirical evidences for some of the development contributions of the country. However, the author complains that why and how have people lost all these civilizations and developments in Ethiopia? Ethiopia is currently one of the poorest countries in world (Befekadu 2004:20). It is confirmed that Ethiopia is the poorest country next to Niger in the World by the parameters of three dimensions (OPHI 2015:5).
The current government (since 1991) has restructured Ethiopia in a new geo-political and administrative boundary and ethnic regions. In 1993, Eritrea became an independent country that led Ethiopia to become the largest East African landlocked country. The country is surrounded by fragile and volatile states (Somalia, Yemen, Sudan and Eritrea) which have threats for its cooperative and partnership in development (Figure 3.1).

Empirical studies on URELs in Ethiopia

Integrated development approach is recent phenomena and agriculture-industry production linkages have little attention from policy and institutional settings in most ABCs. However, recent development paradigm in integrating and reinforcing the different complementary economic sectors and spatial areas are recommended for using many advantages of regional and global development (Altenburg 2011:2; Assefa 2007:185; Dercon 2009:5 and Douglas 2006:140).
Different studies (most of macro level) were conducted on URLs in Ethiopia and all generally showed the presence of poor and distorted inter-sectoral linkages in URLs due to mainly policies and institutional failure (Alemayehu 2007:148; Aynalem and Assefa 2011:181; CSA 2011:27 and Tegegne 2005:157-158). Almost all the macro level research on URLs are working papers (Alemayehu 2007; Demese 2007; Gete 2007 and Tegegne 2007) which are either review research or very general policy implications for multidimensional URLs. However, macro level URLs researches are more general multi-dimensional and multidisciplinary such as economic (financial, production and consumption) linkages, socio-cultural (basic social services and gender) networks and linkages, population flow and migration, manufactured infrastructures (physical assets) and environmental (natural resources) linkages, spatial system linkages (Douglas 2006:139). The following empirical studies could make some clarity on the problems and gaps on URELs.
Bezabih (2007:140-149) studies URLs of Bonga town and its hinterland districts in Ethiopia, his findings indicate that there is poor and weak linkages between Bonga town and its rural hinterlands (districts) resulting in limited livelihood diversification of both urban and rural households. The hinterland districts have trade relations with many other urban centres including the capital Addis Ababa. In his study, the non-farm income and SHFs‟ total income have a highly significant positive correlation while SHFs‟ non-farm income and farm income have negative correlation. This implies that non-farm income sources have not used in farm investment and they are supplementing the subsistence livelihood of SHFs. His findings also show that there are dominant mixed agriculture in the hinterland and a few (8%) SHFs rely solely on non-farm activities. Some of the problems of URLs are: market failure, absence of financial institutions for credit, low administrative capacity, poor urban business operation; monopoly on some agriculture outputs and industrial goods and lack of processing plants. He adds that Bonga town that is dependent on micro and small-scale businesses has deep-rooted urban poverty (40%). Such economy has less contribution to improve the subsistence livelihood and higher urban unemployment. It has also served urban market for firewood and charcoal that depleted the environment. He concludes that URLs are dominantly negative with unfair trade system. He suggests that potential growth linkages of cross-sectors towards poverty reduction and structural transformation require a balanced growth strategy of agriculture and non-agricultural sectors.
The URLs study of Bezabih has some theoretical and methodological issues, which questions the validity and reliability of his findings. The main arguments are: first, the study was conducted on all multi-dimensional, multi-spatial and multi-stakeholders nature of URLs without any theme of focus such as population movements, flow of goods and commodities, infrastructure linkages, financial linkages, information and communication flows, service linkages, environment linkages and economic linkages. Secondly, the study lacks clear methodological application in that his mixed methods research lack clear process of data collection and proper integration or mixing of the qualitative and quantitative data. Therefore, this study will fill all these gaps of methodology and knowledge. This study has conducted on production linkages of agriculture and agro-industries by using sequential mixed methods research with integration in the discussion.
Tegegne has series of studies (2005, 2007, 2010 and 2011) on URLs. Most of his studies are macro level for macro policy and institutional settings. In his 2010, a comparative study on URLs at local level in two settings of Limu and Robe district capitals and their hinterlands based on primary survey data in Southern Ethiopia is important grounded study at local level. His findings argue that agricultural production in both districts are subsistence with weak URLs. The weak URLs were due to subsistence rural economy, limited basic urban services, poor administrative functional settings of the towns and their hinterlands, unfair competition and domination of some state-owned enterprises, influences of parastatal and cooperatives on urban functions, banks without financial linkages and services to farm households as well as lack of economic infrastructures to attract and foster investment. Moreover, his findings indicate that the district capitals have played only as collecting centres of agricultural products and providing some services to the hinterlands (Tegegne 2010:61-74). One of the gaps that this research did not address is identifying the type of agricultural crops and animals that can have better existing and potential production linkages with their corresponding agro-industries. This is because many types of food crops and cash crops, animals (livestock, sheep, goat and poultry) have been produced in these different districts. Moreover, districts often have no production linkages and economic infrastructures for agriculture-industry linkages in the current Ethiopian situation. Meanwhile, Tegegne (2005:156) confirmed that agriculture has strong consumptive linkages than production in URELs in Ethiopia.

Chapter One: Introduction and background
1.1 Introduction
1.2 Background of the study
1.3 Statement of the problem
1.4 Rationale for the study
1.5 Research questions
1.6 Research Objectives
1.7 The scope and delimitation of the study
1.8 The significance of the study
1.9 Clarification of terms
1.10 Organization of the study
1.11 Summary and concluding remarks of the chapter
2 Chapter Two: General literature and theoretical frameworks 
2.1 Introduction
2.2 Empirical researches on URELs
2.3 Politico-governance and URELs
2.4 Agriculture and its efficiencies
2.5 Agro-industries and their efficiencies
2.6 Conceptualizing region and regional development
2.7 Theoretical framework for URELs
2.8 Models for regional development
2.9 Analytical framework
2.10 Summary and concluding remarks of the chapter
3 Chapter Three: Socio-economic and politico-governance in Ethiopia for URELs
3.1 Introduction
3.2 Empirical studies on URELs in Ethiopia
3.3 Agriculture and its efficiencies
3.4 The scenarios of agro-industries and their efficiencies
3.5 Trends of development Policies and plans
3.6 Politico-governance and URELs
3.7 Urbanization, trade and URELs
3.8 Summary and concluding remarks of the chapter
4 Chapter Four: Methodology and description of the study region
4.1 Introduction
4.2 Research design
4.3 Research paradigm and philosophy
4.4 Research methods
4.5 Ways of addressing research questions
4.6 Multi-stage sampling and regionalization
4.7 Data sources
4.8 Process of data collection and analysis in MM
4.9 Research validity and reliability
4.10 Ethical consideration
4.11 Research report writing
4.12 Summary and concluding remarks of the chapter
5 Chapter Five: Analysis and discussion on Status and magnitude of URELs
5.1 Introduction
5.2 Backward and forward production linkages (BPLs and FPLs) of agriculture
5.3 Non-agricultural economic activities and URELs
5.4 BPLs and FPLs of agro-industries
5.5 Summary and concluding remarks of the chapter
6 Chapter Six: Agriculture and agro-industries efficiencies and opportunities for URELs 
6.1 Introduction
6.2 Efficiency of agriculture for URELs
6.3 Efficiency of agro-industries and URELs
6.4 Summary and concluding remarks of the chapter
7 Chapter Seven: Challenges and problems of urban-rural economic linkages (URELs) 
7.1 Introduction
7.2 Ethnic regionalism and URELs
7.3 Institutional implementation failure and URELs
7.4 Taxation system and URELs
7.5 Interventions and URELs
7.6 Resources mobilization-deconstruction and URELs
7.7 Government businesses and URELs
7.8 Public and private industrialization
7.9 Macro-micro conflicts and URELs
7.10 Research (R&D) and URELs
7.11 Regional values and socio-cultural capitals
7.12 Summary and concluding remarks of the chapter
8 Chapter Eight: The Empirical model
8.1 Introduction
8.2 Rationale for developing the empirical model
8.3 The process of theoretical model development
8.4 The empirical model and its explanation
8.5 Opportunities and threats of the theoretical model
8.6 Scope of the empirical model
8.7 Applicability and limitation of empirical model
8.8 Summary and concluding remarks of the chapter
9 Chapter Nine: General summary, conclusions and recommendations
9.1 Introduction
9.2 Summary of the main findings
9.3 Conclusions
9.4 Recommendations
9.5 Limitations of the study

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