ADLI

A World Bank presentation on “Agricultural Development Led Industrialization”: ADLI.

From the presentation:

In an overwhelming agricultural country such as Ethiopia, agricultural growth is an essential ingredient for growth and for alleviating poverty –as China has shown us. Agricultural growth will depend on the country’s ability to promote growth through one or more of the factors that decisively influence productivity: research, extension, rural infrastructure, education, institutional changes (market liberalization, availability of rural finance, improving the working of input and output markets), structural changes, such as improving land property rights or land distribution.

The first burst of growth has to be broad based and affect a large number of the rural population. It also has to lead to an increase in the consumption of the now larger volume of agricultural commodities and the increase in income has to be spent mostly in the rural areas themselves so it can generate induced non-farm employment. This will generate increases in income as well as an
increase in the assets that the rural population has or the form in which they are held. And this is essentially the only way one can sustainably reduce poverty.

According to ECOSOC:

In addition to implement policies addressing poverty, most notably the Sustainable Development and Poverty Reduction Programme (SDPRP) and the Plan for Accelerated and Sustained Development to End Poverty (PASDEP), the Government of Ethiopia has adopted a policy response specific to Ethiopia’s food security and agricultural productivity challenge, including the Agricultural Development Led Industrialization (ADLI) strategy. The Agricultural Development Led Industrialization (ADLI) strategy is the Government’s overarching policy response to Ethiopia’s food security and agricultural productivity challenge.

The ADLI’s distinctive features include:

  • commercialization of smallholder agriculture through product diversification;
  • a shift to higher-valued crops;
  • promotion of niche high-value export crops;
  • support for the development of large-scale commercial agriculture;
  • effective integration of farmers with domestic and external markets;
  • and tailoring interventions to address the specific needs of the country’s varied agro-ecological zones.
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