1. Towards a New Paradigm for
Development: Strategies,
Policies, and
Processes(Joseph E, 1998):
its implication to Ethiopia
Summarized By: Mhrtey A.

2. Introduction
The main theme of this article is:
To look on what development
strategies should be followed by LDCs
so as to bring societal transformation?
Especially, the author criticizes boldly
the prescription of Washington
Consensus by the West which badly
failed to achieve its goals in most of
the least developed countries.

3. Development as Transformation of
Society
 Needless to say ,development is not
merely economic growth it is beyond it
 It is the movement of the society from
traditional thinking &classic way of dealing
with productions and mode of productions
to a modern way of thinking and acting.
 All-in all ,development is a societal
transformation where people reach in
the stage of thinking where change is
possible in contrast to the pessimistic
view of the classical society where
change is inconceivable .

4. Why do we need a development strategy?
 Not surprisingly ,history has shown us
that a glaring gap between the
advanced /western and their
counterparts .
 Most of the past recommended
policies didn’t bring success
 The successful counties are those
that followed their own policy taking in
to account the real situation of their
country.
 So ,the need of development strategy

5. Four events of the past which shaped
the views of the new development
strategies:
 Collapse of the socialist/communist
economies and the end of the Cold
War
 The limitations of the Washington
consensus
 The East Asian miracle
 The East Asian crises

6. The East Asia crisis
 This was the worst and short lived
crises in the East Asian countries.
 Thus ,among the major reasons that
triggered the crises ,albeit no
consensus among different
researchers were :
 structural weaknesses
 policy distortions,
 lack of transparency
 self fulfilling panics.

7. Hence, the important lessons to be
learned from this crisis are by :
 Regulating and building up strong
financial institutions
 Keeping apart from the guilty of crony
of capitalism
 Enhancing transparency
 Strong devotion of the government for
reform

8. The Principles of the New
Development Strategies
The core objective of
development strategy is
transformation of society. Not
solely by increasing GDP per
capita ,but also by bringing
genuine and sustainable
development in all
aspects(health, education,
environment )etc.

9. The Concept of Development
Strategies
 Development strategies are not a
detailed documents, but general
guidelines in which their substantial
goal is transformation of society,
which is transformation in institutions
,creation of new capital, and
development of new capacities
 The development strategy fulfills
several functions as it sets forth its
vision for the future:

10. • Development strategies and priorities:
Deciding soundly on what must be
done first and then next ………
 Development strategies and
coordination:
Solidarity among different actors (i.e.
government ,private sectors ,civil
society and the society at large) is
vividly needed to realize the broad
vision of development strategies .

11. Con’t
 Development strategies as
consensus builders: Development
strategies have a leading role in
integrating a society to have one
vision promote political, social
stability and avoiding economic
disruptions and there by create ever
lasting responsible and committed
society for success.

12. I. Catalyzing Society for Wide Change;
Making transformation of society as
nucleus of its the government takes
the role of a catalyst by identifying the
best alternatives and opportunities for
success .
II. Transforming whole societies;
By and large ,any development strategy
effort should embrace ambitious goals
motivating the public towards wide
range transformations.
Development projects must with high
return and benefit the whole society.
The roles of new development strategies

13. Participation, Ownership, and the
Role of Outsiders
Why imposing change from the outside
cannot work?
Needles to say, effective change can’t
be thought without hugging the people
from with in.
Hence, so as to attain sound
development ,it should be with full and
wide participation of the people from
within than enforcement from the
outsiders

14. Ownership and participation
• Development is not a negotiation
between the advanced world and their
counter parts
• Development strategies should be
home- based and with comprehensive
participation of the concerned bodies.
Eventually, participation must be in a
way that constructs institutional
arrangements including institutions,
incentives and ownership

15. The Components of a New
Development Strategy
Not surprisingly ,development strategies
can differ from country to country ,but at
least it must include all component of the
society Basically:
Private sector development: creating
strong, competitive, stable and efficient
private sector by legal infrastructure,
regulatory framework, sound social
infrastructure , stable macroeconomic
frameworks, and stable and effective
financial systems

16. Public Sector Development:
Central ingredients to the public sector
strategy:
focusing on the public sector as in
creating the enabling environment
strengthening of the capabilities of the
public sector
matching both of responsibilities and
modes of operation to the capabilities
of the State

17. Community development
strategies and projects must
established as per the community real
situations, preferences and full
participations
Family development
working on female education
.Because, educating women is
educating family
Individual development
Transforming of the way individuals
think and behave .hence ,to achieve
individual development, countries
must work on education and health

18. Resources, knowledge, and
institutions
In addition to the levels that operates
,development strategies must provide
the following building blocks. Among
other things resources, economic
management, sector and sub national
strategies and social and
organizational capital .
For the realization of the development
strategies vision , the building blocks
can’t be seen partly ,they must fit each
other. Because , their sum is greater

19. Moreover, to be meaningful, the vision and
actions must be set within a coherent
framework, which requires setting
priorities, encouraging partnership, and
taking into account the global and
regional environment.
Partnership and country assistance
strategies
Development strategies of countries
should create strong partnership with
different actors like WB and others
development partners so as to obtain not
only capital but also knowledge and
capacity building programmes.

20. Consistency with the global and regional
environments
One of the essential part of
development strategy is not only its
components of must complement
each other
But, also they must fit with realities of
global and regional environments.

21. Learning from Openness: Trade, Foreign
Capital, and the New Development Strategy
As the author argues ,countries can be
advantageous in the area of open
trade if they focuses on goods that
they have both absolute and
comparative advantages.
The role of trade is not merely this but
also it apparently enhances
improvement in technology
production

22. Con’t
On the other hand , like to the role of
trade ,FDI also has a substantial role
in transforming society.
when investors enter to one country
,they come with packages of
management expertise, technical and
human capital, product and process
technologies and overseas of
marketing channels all in which the
LDCs lacks

23. Implications for the international
architecture and financial flows
Not surprisingly, the developing countries
should integrate with world via trade
and via attracting FDI, but this must be
as per their interest i.e. based on give
and take strategies.
Implications for the developed countries
The developing countries are suffering
from the prescriptive trade policy of the
West

24. Con’t
Therefore, to curb these and related
challenges not only good policies are
needed ,but also the process in
which polices are created and
implemented must also fair and open.
Besides, solidarity among the LDCs is
soundly recommended to avoid this
unfair international trade which
undermine the transformation of the
LDCs.

25. Its implication for Ethiopia
Ethiopia has achieved one of the
fastest growing economies in the
world for the last consecutive years
by adopting East Asian countries
model of development.
The Ethiopian government has
achieved these results by adopting a
development model based on a strong
developmental state, driving and
dominating the national
economy(Asayehegn,2012)

26.  The establishment of developmental
state of Ethiopia happened to be a
reaction to a failed ideology of neo
liberalism and their extensions,
international organizations, to instill
in African countries(Befkadu,2013).
 In the 1990s the EPRDF strategy
opposing structural adjustments and
economic liberalization policies had
been perceived as enemy by
International Financial Institutions.

27. Con’t
Nowadays, however, Ethiopia is
presented as a “success story” and
praised by international organizations
and donors as a model for the whole
continent(Emanuele ,2013).
The developmental state growth
paradigm which has been proven to
be effective in East Asian countries
has become a promising alternative to
African countries including Ethiopia to
enhance development and
transformation.

28. Con’t
 Based on developmental state
paradigm, the Ethiopian gov’t has
been able to design a pragmatic
developmental strategy which is
tailored and adjusted to the
country's unique socio- economic
structure inspired by the lessons of
Asian industrialization.
 The development strategy has been
aimed to bring a structural change
and transformation of the economy
through rapid industrialization and
modernization of agriculture.

29. Agriculture as a Motor of Economic
Growth in Ethiopia
 Not surprisingly ,agriculture is the main
stay for more than 84%of the
Ethiopians.
• According Meles(2007) cited in
Tsehai(2009) sustained development in
Ethiopia is inconceivable without
development of agriculture.

30. Con’t
o Supporting this,
considering that agriculture domin
ate
the economy, rapid growth of en
tire economy would not be possibl
e without agricultural growth(Keijiro
,2008)
 It is for this reason that the
government of Ethiopia has been
pursuing ADLI as an alternative
development strategy .

31. Government as an agent of systemic
change
 Ethiopian government is acting as a
primary driver to install
developmentalism (i.e., to replace rent
seeking with value creation)
(Teshome,2012).
 A government led by a strong leader
gives carrots &sticks to economic actors
such as farmers, workers, merchants,
entrepreneurs, and foreign investors to
adopt behavioral patterns based on
value creation rather than rent seeking.

32. Con’t
The rationale behind this large
public involvement in the
economy, because
context of a country with a market
economy is still at an infant stage
,and addressing “market failures”
and contrasting the “rent seeking
tendencies of private investors is
feasible .

33. A revolutionary approach to people
participation & economic transformation
• In order to sustain the agenda of
development and transformation, the
EPRDF strategy aims at building a
national consensus relying on
administrative decentralization and
different channels to ensure people
participation, and mobilization.
• Since 2005, the strategy based on the
“model farmers” has been instrumental
in reorienting the rural development
policies of the government and redefining
the social basis that sustain these
policies(Emanuele ,2013)

34. The practice of mobilizing people has
been under way by several
“development armies”, in the field of
maternal health, education and youth
micro-small entrepreneurship
The economic transformations
promoted by EPRDF development
strategies have positive impact in
terms of increasing diversification and
stratification of Ethiopian
society(Abate,2009).

35. Approaches to policy priorities ,Consistency and
alternative development strategies
 After the demise of the Dergue ,policy
shifted to market orientation with
removal of restrictions on private
sector, reforms in sectoral, investment,
and public enterprise laws.
 The idea of ADLI took concrete shape
as an overarching economic strategy
between 1992 and 1994, and An
Economic Development Strategy for
Ethiopia in February 1994 highlighted
the concept of ADLI to define its
strategic direction.

36.  Beginning in 1995, the concept of ADLI was
incorporated in the 1st and 2nd national
development plans .
 Sustainable Development and Poverty
Reduction Program (SDPRP) 2002/03–
2004/05 to promote agricultural development
and poverty reduction.
 PASDEP) 2005/06–2009/10,to tackle the
challenges in the former plan and to achieve
the MDGs.
 Despite a lot of successes in the different
developmental plans, the government has
formulated other new plan the GTP by
considering the drawbacks of the then plans
and current global and domestic realities with
a long vision of making Ethiopia a middle
income achiever by the end of 2020-2023

37. Regarding trade, the Ethiopian
government has been adopted a policy
and strategies that deals with
registration, licensing from the national
up to local levels(Deresa,2011).
 During the implementation of the
PASDEP a lot has been done in
relation to trade partnership
,negotiations ,market opportunities and
the increment of FDI , for example with
trade partnership agreements with
COMESA,IGAD, Sana’a forum , EPA
and EU.

38. Con’t
Besides ,there are about least 18 global
companies that are heavily invested in
the Ethiopian economy ……. .
(Access Capital Research, 2012).
 So, there is no hesitation to say the
private sector in Ethiopia is an engine
of development .And the government
is using carrot and stick policy to
tackle problems related with this
(Teshome ,2012)

39. Partnership and country assistance
strategies
 Ethiopia has both a bilateral and
multilateral relation with different
countries ,development partners and
international financial institutions
 For example, Ethiopia has received a
total 50606.9 US dollar of 2011/12
both as grant and loan to assist the
various development programs and
projects (Elias ,2012).

40. Conclusion
 Nowadays ,Ethiopia has been using
alternative development paradigms
which are home made .By so doing,
11.5% annual economic growth
achieved for the last seven years .
 Apparently, the Ethiopian development
strategies are based on the
development of individual, family,
community and the public and the
private sector in compatible with what
(Stiglitiz,1998) recommended to what
development strategies must be
followed by the developing/LDCs.

41. Con’t
 In line with this ,the main objectives of
GTP are accelerating the economic
growth in order to achieve the MDGs
 And towards the achievements of the
objectives, Ethiopia pursues a public
sector-led growth strategy that
focuses on promoting growth through
high public investment supported
partly by low nominal interest
rates(IMF,2012)

42. Con’t
Furthermore, the country is undertaking
different projects that have a high return
like ‘The renaissance Dam’ in promoting
consensus building and developing sense
of ownership overall the citizens of the
country.
 Generally, although with short comings
,Ethiopian now is on the right track in
following the alternative development
paradigms to bring transformation on her
society .
 Indeed ,the partial transformation
achieved now are the result of these
alternative development paradigms .

43. Recommendations
 As aforementioned ,despite there is
good progress, there have been multi
problems that challenging the
different development policies
,strategies and packages
 As stated in the 11 conference of
EPRDF,
lack of committed leadership, rent
seeking ,and mind set of the people in
adopting technology were few among
the many bottlenecks

44. con’t
 Hence ,on the rent seeking part
crusade on rent seeking must be
seen as part of socio economic
development strategy, inculcating a
religious dimension value system
 Besides ,Ethiopia should follow the
Botswana’s policy of “naming and
shaming “the rent seekers in front of
the public

45. Con’t
 On the other hand , government
should recognize the role of social
capital and social institutions which still
get no or little attention in its policies
and strategies
 Eventually, authorized and
standardized courses and textbooks
must be available for training
movement leaders and instructors as
well as a large number of
entrepreneurs, engineers, workers,
farmers, etc. in different sectors and

46. I THANK YOU