Source: Addis Tribune (Addis Ababa)

http://allafrica.com/stories/printable/200207190612.html

The United Nations Economic Commission for Africa's (UNECA's) 2002 economic report on Africa stated that land tenure and governance are among "the most pressing areas requiring institutional reforms in Ethiopia."

With regard to land utilization in the rural areas, the report stated that as regional governments have been given the right to lease plots of lands at rates determined by the market or by public auction, farmers could not sell or mortgage their land.

High lease rates, bureaucratic procedures and lack of qualified personnel and uneven distribution of land due to hindrances in administrative practices among others made urban land utilization more complicated and inaccessible, the report further said.

Speaking at the report briefing, Patrick Asea, Director, Economic and Social Policy Division, ECA, said the government should look into the national land reform program thoroughly to bring about the promised development goal through upgrading agricultural and industrial infrastructure. "The current land tenure policy could not bring a progress towards a market-based system," he said.

"Land policy has not yielded the expected results. Moreover, it has been heavily criticized for not being participatory. The policy was the result of a centralized, top-down approach rather than being developed through consultations with all concerned parties (farmers, civil society, businesses)." The report suggests that though the land issue is politically difficult, it needs to be resolved quickly "since it impedes the development of several key sectors."

The report, however, stated that real GDP growth during the years 1992-2001 averaged 6% a year, despite considerable volatility across years, exports grew by about 5% a year, annual inflation averaged about 4% and investment had risen to 16% of GDP by the year 2000-2001.