Agricultural development in Ethiopia: Government budgeting and development assistance in the pre and post 1975 periods

An analysis of rural development programmes in pre‐ and post‐1975 Ethiopia demonstrates the importance of international donor agencies in rural development activities. Since pre‐1975 Development Plans largely neglected agriculture, current and capital expenditure budgets allocated few financial resources to agriculture. While acknowledging the importance of agriculture in promoting economic growth in its Third Five Year Plan, the Imperial Government recognised its lack of resources and absence of an articulated rural development plan and turned to donor agencies for both programme formulation and financing. The post‐1975 government, while continuing to utilise donor agency assistance, is not only allocating a greater proportion of capital expenditure to agriculture, but has also articulated specific rural development objectives within which it has outlined the role of donor agency assistance.