Federalism and Economic Empowerment of Indigenous People in Gambella

2.7.6. ENTREPRENEURSHIP DEVELOPMENT INSTITUTE

To enhance the economic empowerment of the citizen the Government established an Entrepre-neurship Development Institute (EDI) in order to enhance technical, marketing and trade devel-opment skills. The EDI will oversee all skills enhancement initiatives under the National Economic Empowerment Policy. However, this institute will not directly be involved in offering training but will develop curricula that will be used by various learning institutions. The institute will be under the management of one of the higher learning institutions such as the University Dares Salaam (UDSM), the Institute of Finance. (United Republic of Tanzania January, 2014 P.23)

2.7.7. ESTABLISHMENT OF SPECIAL ECONOMIC EMPOWERMENT FUNDS

The Government establish and make use of various Funds to bring about effective implementa-tion of the economic empowerment initiatives. These include the Mwananchi Empowerment Fund; the Credit Guarantee Fund; the Privatizations Trust Fund; and the Rural Electrification Fund; established after thorough studies and consultations, in order to support the implementation of economic empowerment initiatives. The Government contributes to the Funds not directly involved in their management the government appointed bank to manage the Funds. (United Re-public of Tanzania January, 2014 P: 24)

2.7.8. RAISING SKILLS AND KNOWLEDGE LEVELS

A low level of skills, education and lack of resources, limit the effective participation of many countries in economic activities. A low level of education is amongst the reasons why some citi-zens’ continue to embrace inhibitive customs and traditions that are inimical to development. The absence of an Economic Empowerment Policy was amongst the reasons for the stale met. In this regard, the Government has resolved to put in place an Economic Empowerment Policy that will serve as a roadmap for the participation of the majority of the citizens of in all sectors of the economy. Weaknesses that make most borrowers not creditworthy include lack of knowledge and experience in preparing bankable projects as well as lack of collateral and equity funds to start business (United Republic of Tanzania January, 2014 P:14)

2.8 ETHIOPIA EXPERIENCE

2.8.1 THE RELATIONSHIP BETWEEN ECONOMIC GROWTH, EMPLOYMENT AND POVERTY REDUCTION:

- Policy and reform measures introduced since then have led to an economic transformation and private sector participation. A privatization program embarked upon in 1994 has resulted in the privatization over 250 public enterprises. The government has committed itself to eradicating poverty. The strategies worked out and implemented by the government have already begun to bear fruit as evidenced by over 11% average economic growth in the last five years (women empowering humanity, 2000)

The economic progress has put the country among the top performing economies in sub-Saharan Africa, particularly among the non-oil producing country. The country has vision to attain a middle-income status within 20 years. Macroeconomic data indicate that Ethiopia is well placed to meet the Millennium Development Goals (MDGs) at the end of 2015.

One of the goals attached to the growth performance of the economy is achieving Goal 1 of the Millennium Development Goals (MDGs). One of the key channels through which this goal would be realized is through job creation that is remunerative. Pursuing broad based growth through focusing on agriculture and rural development has been at the centre of Ethiopia’s po-verty eradication agenda. (p.5)

2.8.2 THE ROLE OF AGRICULTURE IN ECONOMIC DEVELOPMENT

Agriculture plays many roles in the economic development of the country. The role of agriculture include providing additional food for rapidly expanding population, expanding the market for industrial product, providing additional foreign exchange for the country, mobilizing government revenue from the rural area and increase income of the rural people. (Teshome Adugna, 2012)

• Providing additional food- the first role of agriculture is to provide additional food for rapidly expanding population. When output expands with an increasing productivity, it increases the income of the farmers. Rise in per capital income leads to substantial rise in the demand for food.
• Providing employment opportunity– the role of agriculture is to provide employment opportunity to the labor force in the country. In Ethiopia agriculture provide 85% of em-ployment oppotchaptery. As agricultural productivity and farm income increase –nonfarm rural employments expand and diversify. Landless and marginal farmers are primary engage in non agriculture activities. Some activities in which they are engage in are manufacturing of textile, handcrafts, leather and mental working; construction of house and others building.
• Increasing income of the rural people- lastly, increase in rural income as a result of the agricultural surplus tends to improve rural welfare. Peasants start consuming more food especially of higher nutritional value in the form of superior quality cereal, eggs, ghee, milk, fruits etc. Thus an increase in agriculture surplus has an effect on raising the stan-dard living of the rural people

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