Ethiopia needs increased productivity.(World Bank report )(Brief article)

On May 7, 2007, the World Bank presented its most recent review of the Ethiopian economy to a large group of VIPs in Addis Ababa. The group consisted of various stakeholders, representatives of donor agencies, and senior government officials. The presentation was covered by The Daily Monitor (Addis Ababa), which published a revealing account of the reaction to the World Bank's views on May 11, 2007.

The presentation, which was based on a World Bank report titled, "Accelerating Equitable Growth," maintained that Ethiopia's overall weak economic performance was due to poor productivity on the part of the country's vast agricultural sector.

The sector is mostly made up of small farmers whose practices only allow subsistence farming. In other words, most of the sector does not produce for the market. The World Bank's proposed solution is for the government to introduce and promote agri-business, farming on an industrial scale, and allow the country to benefit from economies of scale.

The World Bank used as an example of sustainable agri-business, Ethiopia's recent success in the growing and export of roses.

In the Monitor's diplomatically worded reporting, the government, in the person of the Economic Advisor to the Prime Minister (PM), criticized the World Bank for being "prescriptive" and not realistic. Reading between the Monitor's measured lines, the World Bank's presentation was not received well by the government.

The government said that progress was possible with small scale farming. The government is in the process of upgrading the skills of farmers, and these farmers have begun to produce for market, according to the PM's Economic Advisor.

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