Federal Democratic Republic of Ethiopia
Ethiopia is a highly decentralized country. Presently, sub-national government taxes and revenues account for about 28 percent of general taxes and revenues, and sub-national expenditures amount to 51 percent of general government expenditures. The ensuing vertical mismatch is bridged by grants from the Federal government to the regions. Presently, these grants account for 57 percent of sub-national expenditures1. For many years, these grants consisted mostly of a block grant (the Federal General Purpose Grant) given without any strings attached, which means the regions could use it as they wished. The rest of the report is organized as follows. Section two provides the policy context that is the information, data, evolutions, etc. specific to Ethiopia, which are necessary to understand and interpret the MDGs grant policy. Section three present and discusses the policy content that is the components of the policy previously identified. Section four is a policy assessment, which utilizes the evaluation framework proposed above to analyze the relationships between the various components of the policy, and discuss its efficiency, its effectiveness and its success. Section five is a conclusion that summarizes the analysis, and attempts, prudently and modestly, to outline some potential avenues for future action.
Summary: | Ethiopia is a highly decentralized
country. Presently, sub-national government taxes and
revenues account for about 28 percent of general taxes and
revenues, and sub-national expenditures amount to 51 percent
of general government expenditures. The ensuing vertical
mismatch is bridged by grants from the Federal government to
the regions. Presently, these grants account for 57 percent
of sub-national expenditures1. For many years, these grants
consisted mostly of a block grant (the Federal General
Purpose Grant) given without any strings attached, which
means the regions could use it as they wished. The rest of
the report is organized as follows. Section two provides the
policy context that is the information, data, evolutions,
etc. specific to Ethiopia, which are necessary to understand
and interpret the MDGs grant policy. Section three present
and discusses the policy content that is the components of
the policy previously identified. Section four is a policy
assessment, which utilizes the evaluation framework proposed
above to analyze the relationships between the various
components of the policy, and discuss its efficiency, its
effectiveness and its success. Section five is a conclusion
that summarizes the analysis, and attempts, prudently and
modestly, to outline some potential avenues for future action. |
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