This document discusses the Ethiopia Strategy Support Program Phase 2 (ESSP-2). ESSP-2 conducts policy-oriented research, capacity building, and knowledge sharing to support Ethiopia's development strategy from 2008-2012. Key activities include analyzing agricultural productivity, government spending efficiency, rural non-farm employment, and other topics. ESSP-2 also builds capacity of the Ethiopian Development Research Institute, Central Statistics Agency, Ministry of Agriculture, and other partners.

1. Ethiopia Strategy Support Program
ESSP-2
Paul Dorosh
Program Leader ESSP-2
Senior Research Fellow IFPRI
p.dorosh@cgiar.org
USAID Addis
April 14, 2009

2. Ethiopia Strategy Support Program (ESSP)
Bridging Knowledge and Policy
• Research and outreach to address knowledge
gaps, capacity building and policy dialogues to
support country’s development strategy
• Provide analytical support for setting up the
first commodity exchange in Ethiopia
• Draw lessons that can be shared
with other countries in a similar
context

3. IFPRI in Ethiopia: ESSP and ESSP-2
 ESSP: Ethiopian Strategy Support Program 2004-07
 Ethiopian Commodity Exchange (ECX)
 Research
 Agricultural market analysis
 Atlas of Ethiopian Agriculture / GIS Database
 Agricultural growth strategy / Efficiency of public expenditures
 Rural poverty dynamics (Ethiopian Rural Household Survey)
 Safety nets (PSNP)
 ESSP-2: 2008-2012 (Capacity Strengthening;
Policy-Oriented Research)

4. The Ethiopian Commodity Exchange (ECX)
 ESSP research investigated the need for and feasibility of a
commodity exchange
 The ECX was successfully launched in April 2008
 As of June 2008, ECX activities were no longer financially linked to
IFPRI-ESSP.
 The ECX involves three related market institutions
 A commodity exchange linking buyers and sellers
 A warehouse receipts system (commodities sold on the exchange
are physically stored in ECX warehouses throughout Ethiopia)
 A payments settlement system enabling almost immediate transfer
of funds from the buyer to seller
 In late 2008, the ECX began trading coffee, greatly adding
to ECX transactions and revenues.

5. Ethiopia Strategy Support Program (ESSP-2)
Work Plan 2008-9
 Determinants of agricultural productivity
 Analysis of farm-level data from Central Statistical Agency
(CSA) annual surveys
 Extension of Ethiopian Rural Household Survey (ERHS) panel
data in 18 localities
 Will include analysis of agricultural input use, gender
issues, household response to high food prices
 Government agricultural spending efficiency
 Review of past government projects
 Institutional analysis at local level (public service
delivery/governance)
 Rural non-farm clusters (hand-looms)

6. Ethiopia Strategy Support Program (ESSP-2)
Work Plan 2008-9 (cont.)
 Land tenure and watershed management
 Determinants of market prices of cereals
 Operational multi-market model for analysis and training
 Book on Ethiopian food and agricultural policy
 Rural-urban transformation
 Rural-urban migration
 Structural changes in the economy
 Implications of infrastructure investments

7. Ethiopia Strategy Support Program (ESSP-2)
Capacity Building
 Ethiopian Development Research Institute
(EDRI)
 Joint research on rural non-farm clusters
 Support to EDRI SAM/CGE Analysis
 Support to short-term policy analysis on cereal
markets, inflation and economic growth
 Joint seminar series
 International PhD (5) training (planned)

8. Ethiopia Strategy Support Program (ESSP-2)
Capacity Building (2)
 Central Statistics Agency (CSA)
 Support to GIS analysis (population census…)
 Creation of operational GIS data base with initial
basic maps and analysis
 Federal and regional GIS training
 Strengthening of dissemination of data through
REKSS

9. Current Road Conditions
Increasing access to cities of
50,000 population in Ethiopia
Regional, primary road upgrades
equivalent to 80km/hour does not create
major improvements to rural access
Less than 1% of the population of any
region would improve their access to
less than 1 hour
An extra 530,000 people (3.7% of
regional population) in SNNP would be Regional Road Improvements
within 3 hours travel time of a city after
regional road improvement.
Other regions (outside of the four main
regions – Amhara, Tigray, Oromia, and
SNNP) would experience a 4.9%
increase in access within 3 hours of a
city of 50,000 population.
Given regional road upgrades, the
largest improvement in access is in
the North and Southwest of the
country.

10. Ethiopia Strategy Support Program (ESSP-2)
Capacity Building (3)
 Ministry of Agriculture
 Support to agricultural and food security policy
analysis
 Creation of operational agricultural policy data
base
 Training on agricultural policy analysis
 Strengthening of dissemination of data through
REKSS