SER3 DE'fELCP1'1E~l'f PHGGRA:~3 IN E-?lECPIA: A 'F.fJ.lIEM OF 1,}[':;; CHlLALO AGRIGULTUR.~\L DZJF,LOP~fENl' IJ?II~, HINIMlfH PACKAGE PROGRA:1 by T. Teele Series Studies in E);1ployment ond Rural Development No.3 Division S:nployment and Rural Development J:Bpartmer.t: iJe'relopment Economics De'lelopment Policy Staff Interniititmal Bank for %construction and Developr:Jem:. TI-:e au t~~r prepared this bt;ckgrounri paper in ,!is cnpaci ty 2S consaltan~ to the Bank. The views expressed rep~esent t~ose of the 2utho, and n~t n~cessa,ily those of the Bank. rnis repo~t m27 ~ot be ~ublished nor may i I~ be quoted as ,epr~senti:1r; the 'news of the and it,s B.,ek affil~atei organizations. n '.J" j A 1f.;~;?TS>: ,;:;' ~'::~ . ~:~~.~~;:: ,~> .,.,/'J~l. ",L:t r;_·~..,·~:",,,)?·,:S~~~' .. _ ... .1 ---~~.--~--- "~---'~""--'~----~'--'---' '-'--'~"-----'~-"---~'-'--"--~---'- -----_..... it I. r: !lHO J'JCnO!i II. :;'OLU :IC1 OF f!"":J7 J. · · · J 2 '()lution of CADiJ ., . ? .., '0 lu ti 'In 0: ',.,r,,, o:r , . 3 :;:,olu~ion of" the :'fF'? 4 III. S'.~'A~T~':=,·._)~.~~___ _F TH~,_.~E__ O __ S P_R_O_J_"'~~_C_T__ 5 '1":le :.13. in Goals of CADiJ arld ~he :'iPP . . . . 5,J T:le :·!ain Goals of :tlADU ~ rI. ?::OG~A~-G AND ,\~'\"T'''''' · .. ;,,:ut':'·~ ...J OF DE'IBWP:£iIT IN GADU 6 Th~velopment of Innovations 6 'S:'~tens ionAc ti vit ie s · . 13 ?'lr~. Credit . . . , . . . . 9 ?~r : Jr:nance of the Credit ?rogra.::t · 1i J'.ltI=U:' Xarketins; · · · · 20 C,\DU t s?u:r;chasin~ Policy 23 Local Par tic ipa tion . 25 Staf:'ir. ; ; and 'I7ainin;; 27 O:her Programs 28 29 .. D,~velopment &(tension ~c:ivi:ie5 01.' Imlovations 29 30 · )1 iJ. ',,~on::}:::r·l"\.--,:':;;:"" 32 :\'"3~(:pr 11o{id :., 32 ';; nf'r Suppl:, 3J :T lr:-:~ ,~~redi ~ 33 311 '"t,;AGr f s ~'i~r:::;' ?)Ucy 39 I/JG:~l Par 1:, i '::: 39 S:,].ffing ~-!nd r~'_;·~=-n.Lng _ he -t:1e S9t·~:.lc~:;,:!n~ ~'" 'j~~r1.!n ho n. } ANI) :t~\?rS ,:J? DEVEW?:~S'~;~ I:~ -------~.""',-----,--------------.----.----"'.--- --~ 'r:-l~ >£?? ... L~ / [ ~v( lopmen t 'JI !',l1.l1ova tiol1s !t7 E d(l1sion Ac ~i .,Eies Fl!";:~ l:;redi t 49 F ::r formal1ce of :02 C;,: ndi t ?rogr:3.m 51 Clt1,ut Yarketing 58 1,)c;:,.1 ?3.rticipatton . 60 :: ~?,rfing and Tr 3.i:1ing · 60 Cthe!' Progr::uns 61 ,. · j) · 62 [~velopment of :::nnovatiQl1s 62 2x:tel1Sion Acti 'Ii tie s 62 S-nallholder Credit 63 P'?r formance 0:' t1!e Ciredi t PrograJl1S 6h O'ltP-llt M:1rketi.ru; ······ 70 'IIII. 3' f.1:,1A::tY OF T:'i~ PROJESTS' COSTS ..... . . . . . ... 71 C,\DU 71 ':iADU 7h Th~ :1PP ··· 77 ~o~arison of the Projects' :osts 79 u. BE18FITS GENERATED 37 THE ?RGJ'"'ECTS AHD 7'rfEIR DIS'T::tI3UTIOl; · · · · · · · · . . . .. . 82 ! E3ti~ation of ~Anefits .··. 82 :<,;,) tir:t:1tion of -::'he Econo;nic 113. t.P. D~str ibutio:1 :>! ?1encfi ts (Jf Return 82 Bh , L:ldi.Y'ec: 3en~:~:~; :U1d 'Sf~~~:-$s of t"hA ?rOI.~~c:' ~. 91 , :j·~;:i :-2:con():'~ic 1~r\LJTiI3 Dev~?lJ~~,n~::.~-. ]~~::~.r:'I~~:":: ~')p'J~:r ~~~:~::' ·~r~'.~ ~Ll 1:1 f:lll ,. ~ . L'ln~i Di.stri~~Jt.1.:_;~. ~C11'1 L:~~1..d :1~3~:l J 'J , 3()~:!i'-)-~~C0Y1r)~i·.~ ·~:)!ld:' ::i.on3 0 f ~:~·ol~~r7·lo :\~"Ir~tj~l 7 'I~'le ~lishl.'1.nc.'3 :;,~.d :.ne Se::ler.e!1ts: -:~opO~~Y'1.P!::J an:l ;1.'lin:" 1.1 · L·I.nd US'J o..nd 1J.nri r:~!1·8.r~ · 12 Agricul tural Tenancy 0 Coverr:lllent Lands · Size of Holdings · · II. Or:GMJIZATIONAL ,HiD AO:rr?·:ISTii.ATITE STIWCTlm.S OF THE PROJ"SCTS I:1terr:al Orgrtniza tion 2:lc1 Adrn::'nis tr:1. t ion of CADU 1 I!1ternal IJr g3.niz2.. t:'on and f"ci.'":linis tr :1tion of -,'iAD:r . h I:1ternal On;anizrl.~io;1 2.nd ,',d:ninistr ~tion 0:" thp, :.!?? . 6 III. AJO?TIO~; OF rrrr·;OVATIOHS AT CADi} rio S ·{;LL:-IOLDEH. CREDIT 0 0 · 0 , o · · The Credit Sitt:-'ltion in Areas' ;~ver9j by :he ?ro.je·:;-:'::; ~1. 'J~GANlZATION OF THE ?1A..:tlG'I'I:IG SYST~\! r;[ miIO::::"'; -! Types of i-!arkets 0 Price Deter:nin!ltion at Di:~':er~nt :·srl.:~ts 0 0 :'hrket L"1for:-rn9icn on 5upp:'ies, Stocks l.n:i ':-r"lse:J Transportation" . Grac:ps and :)t'lr](~?..rds St\)~1 ~t~;e ~'re~cs 'r:):.r ?··~!·~t:r s :_~'~''-'1.~'on,'11 ~t.;r~rag~~ "-J:.' TT·-\.d~~"s EOU1'c:e of ;;",?ci~."-_. ~')r l'r:'.ci('f::' 'J -'e~"~p()r;ll ,?y ~_'2'~ -~~:1:1.'/ior. 1 l. ~8-1970/71. · " ···· , 7 H:1UO of Down Pa~'ment, to tho 1/alue of Inputs fot· DJffor-ent. Cla.:Js83 of Fa::;nIJrn, CADU, 1967/68-1969/70 8 C rouit Outs~anding al Due Date, CADU, 1968,,70 · · 9 ?ercentage Distribution of Crodit Outstanding at Due Date Among Differ-ent of Farn:er:3 J CAIXJ, 1 -70 10 ?at",erns of Outstanding Loans at Due Date, CADl!~ 'i968-70 20 11 ;'!on'Jlly Milk Purchase by CADU, 1969·,7e. · " · ~ · · " · · 21 12 Hill: PU..rchaaed by CADU Hilk Collection Station':l} 1967/68 - 1971/72 ·················· 22 Grains Purchased C',l\LU I S Marl.eating Div:L~ion aJl:.c l1d;:; Benefits Generated by Harketing Act,:!.vitie:,!, 196, /63 1970/71 ..,.. 0- ~ t> ., 18 It IS ~ I!t · .. · Q " ". 14 CO~)adBOn of 1966 I.uld '1971 Crop Production in Chil;llo 23 15 Pre,l.kdown of Field Sta.f1~ Trained at CADU IS TrninlnE Cent8l', 1969-70 ······ ~ · Q ···· 0 · · · · · 27 16 A CCI!1parison of Pre-Project, YeRr 2 and Year 9 (Maturity) Crop Yields, WADU, in Q/EA. . . . . " . " . . . . " 29 17 Fla.nned and Actual Farmer Coverage by the Highland Extension Program, WAnU, 1970/71-1973/74 ··· ... 31 18 :'arrMr/Extension Staff Ratio in WAnU by the End of 1972. 32 19 Number and Amount of Loans, WADU, 1969/70-1972/73 · · ·· 35 , , 20 Dls"jribution of Inputs on Crolit, Among Different Classes of Farmers jn the Highlands of WAnU, 1970/71-1971/72 37 21 Products Handled by the M::!C Division, WAOO j During the 1971/72 Season · · · · .'. · 'f · · · · · · · · · · · . 3d Estimated Costs of Settling 1,750 ~armers over a Six-Year ... 22 · Period · ~ .. ... · · · ttt. · · ~ · · · ,,~ <..) ::jreakdmm of Costo for PrGparin~ Ona SettleMent ?lot 24 :';stimated Costs of ,settlinG t!,250 Farm Families Mai:>:8 and Cotton) oyer a Six-'(ear ?erlcd .. RHHL1.ts of iiati,:n.a2 :Cort.ili:::or :wd 'la.risty 1';1.a1tl of t:":e Haj or Crops, aID, 1970-'('2. · · · . · · ~ 1.7 26 B lild-up of &:rten3:.i.Cn1 :\ctivUi(Js par MPP Area '. · · · · · 49 27 28 11 ~~.b{ r :md Amount o.f Loans, :'!PP, 1970/71-197lin 52 29 JO Jist· -i'o .ltion of Inpl tn on Cn:'ldit in SL-c HI:. Areas in tho SOJ.thorn ?rovinGes, 1971-72 · ,. ·· q · 0 · · · 5t~ 31 Ilist -il:ut:lon of t.he 1971··72 Crod.:i.t in of Area GuJ.t:hated , · Nil:l~ }IT ArDaa by GiL',':! .. 32 ('onrpu:1son o.! I.llPllt D:l~J'::'rlbution with D:lJ~t.ri'r.}utlo:(l of Cultivated Lc nd .MPP, '! 97l - '7 2 . . . " ~ ~ ~ · · " ~ ~. ~.J 0 ., · Q "', v JJ ClalJ8f'lo or' Ii'';'::''!c'::''l'9 in tho :;:t.lpa fro.:: nt Pel"i'Qrrr:RZlCtl ol n-lJ:fsriQnt Sia8.i'i.mooue Hark-at:l.tl.g C::mtar, ShaDhenllme MPP, 19'{1-1 .. 0 u 57 J4 tOPE yFl.'nt of.' 19'(1-72 C!,DdJ.t Distributed Thl'fJUghout A.n ;.IP aLd Demorrotl"'nt.ioll Areaa . . . . . . ~ · · " · " · .. · " 58 35 J6 :)ro~~r'!'.lU6 in Cooperative Promot:i.on under the HPP) 1971-72 . . " 60 37 'l.!OOllnt of Credit and Number of Loans Extended in 'rhroe Projncts J 1 ,c(~ -72. .. . . . t} 9 It · · · · 41; · · · · · (It · · " " .. · .. J8 :~ualltit.ies of Seed md l"ertilizer Distributed on Credit, 1968-72 .................... . . . " 67 39 c.ompariacm of Shares to Tenant. and LandJ.ard Re3ulting from Application of Improved Seed and Fertilizer · · 40 Breakdown of CAnUta Actual Costa, 1967-70 . .. . . . eo. 0 .. ,. 72 . ! 41 Budge~~ Costs for CADU Phase II, 1970/71-1974/75 . . . . . . . . - 42 Comparison of Original Provi~ions and Actual Phase I Costs eo of '\tlA"IlIJ. · · 3 · · · ~ · · 0 · ... · . . III _ · 0 ·· , · 75 43 Actual \iADU Phase I Costs, 1969-7h · · · · 0 · · · · $ ~ · 76 4h Firw.ncing of viADU Phase 1 Costs, 1969/70-1973/74 77 - 7 31"'e':cdc ,Tn of the ~st~uated Costs, Fi~cal Years 1 $71 " ,j · · ., .. To 79 A!"J.111aJ. Brnakdo',rn of tbe ~otal Praj,',ct. GO:':Jta ?I')r Eectare for' CAW, ~L;'DU 1mi the ,.:r'P · · 81 E,3t tmata3 of Incremental '[ield8 due to IlnprGved Sf)od and Fortllizer, CADU J 1967-70 · · · · · · 0 ······ 0 ·· 49 Dis !~l'iLuttCll of C:.. DU IS Gr038 He:c.efHs, 1967/6El .. 1 ~:.69l70 · ., . 86 50 GrOS3 Den:'7±'its due to l~~:::·tj.J,izE)l' and Improved 0eeds 87 51 })ist.rll:utlon of "fea:c 2 (',:::033 I3Emei'itB :Lll the Highlands by 88 EsUm:'i:t:1oil of 1971/72 G!'os~ )3.:mefits in N:'.n3 }-fPP A:rna3 · Q · · · · · · c1ll3 .. 53 Dist.:x--r'U';;'Lon ot 1971/72 Gross Bonefits in Nine ~fPP Areas by T, I'.1l.:lcy a.ud ..l raa Cul·J..tva:t0Q ~ ·· , · · · · ~ ~ · · · · · 90 92 1 ,. rni s rc~port ~,a5 p::--c~;Lll"ed 2.S a backgro'lnd p'?lpe.r~ fOl·· "t,he Ai"::-ic:a 11ural C ' ;e n r Stud)' (A?1.J::l) cct:ch.let;:i by t;:8 2e',"elo;:,men:. Economics , ]}2partll1er,t, 0: til; ;'I,,):'ld l3aM. ':';1C ARD:3 was pro~r;ptt'!d b7 ~he 'le:::r s'Ucst::'l1'· tial intort~st in the ~~,tlst a!:i l,.b~st Afric3 He Of:':,_ccs of t::.e 3,;'-:11\: j,n finding '';;:1/3 of ':lesign5_n~ rur:ll develo;:ment p::o~eGts ".hich, spite tne liMited f3n.J.ncial anri r:1J.npo'"er rescurces available fo:' r'..;ral de'lBlopr:r::::t .l.n Africa, Hil~ effecti'!cl:r "reach H la:-ge cUJ,lbers of lcrw incone rural people. lhlrt:ze:1 rural developmem; p!';)jeci'i ;mJ D::Og::i.l1'";lS from ~mb-5<1r,:-:.2;:;,n Africa, i'E?resenting c':bers:U:y in location, (:esi(,;n Cl11d i.r:;ple.Teutatior:., Hore ted I'cr ana.lysis (see attached. lis t). 'l'h/.! ::e\"ie',,,s r::\ised 2. consistent set cf qU8:3t'i.ons regarding design, b:pler:~entc;.tion ar.c! YfH'!'or::~al~cc of the~e !Irajocts ;;.r,d. pr-ogr2..'1ls to. pro7ide the basis for a cor.:?,J.::2,t.i·;2 evaluatiOl:. '~he r:1ain report on the Af:'ica ,1Ural Develof;n,3rrt. study b~t Urr:a wle ::u::rr:m Ir:i.zes the lesson" that can, be lecccned f:r:)1;'1 these pro.ject reTrie-..rs. ;2. Eac:'1 "f th~ backg:::':),Llr~d pHpat"s is based on er-i3tiilf, informat.::.o:i., supplc;non-ed )y fieJ.d investig::.t.ions. With X'tirlJ C'xceptior;:" nn :.cc.i:_ qnanti tat :.VrJ h',a Here collected. Because the avai1nbility of data v<3.ried -,;idel)~ be:~..!efn !,ro,jects, th8:'c are sllbstantial dlffe:!:"ences in Uh} SCOF) J1' the ir:.div:_di.l< 1 pro ct re'rle,w. 3. S:i.I'CB most 01' the data He;:-e coJli:-,ct.ed by otb:~r .3.gencies, t,~e TERD en;} .1Ot at;cst to the aCGll:racy of the statistical ini'ormatj,on '\,;h5.ch appe;Jrs 1,1 U,is report. The vi,e'.ls expn:!3sed in this report are U.Qse of tho autl:.o;.'( s' a 1d do not necessarily repre~;ent the Yie~;::; of the ranD. ~~o. 2. in DevelciJ1I2ftt C:1i..t, 1::.z:::: ~,"'ol2.::!o Pack~Ge Progra~, by 7. Teele. t ~nd ~ural ~2velcp2ent ,. l.d). ). fu1nge I:,":eIupl!,ent in A ?evie'~· of COl;:n:ercicl1, Co::::?a:1::, lrl::iividual and Gro\:p R;lnc~les, by II . Jahn~:e, H. Ru~hcnbeTg, H.. 7:o-."i::--:..;). .. S~uc:iC5 i:1 lOYJ::(nt "UG R'ut";11 De"v"'elo?I~t::nt ~:o. "l . Sa:,111 T:';:r:::2." C-edit i:1 A EQvieu of'~~~or Cre~it Schcces, J. D. n P3r.'1ke. S::t:dies in Ecplo:~~·17c:n t tlnr:i P.\2:i.".21 Dev"e, lOF=e.C!.t ~:o. Si::"'.allhoHer Te.1 Proj ec, in Keaya: A Revie~ of Kenya ~ea Develo;::::ent Authority, 'y J. Sullivan. 'To. 5. P,~lral /'\. T:E:vie of SpecLt~l Ft:I"al 1Je.velopT:>:~nt: t"rogra:2, f ...... by }l. Be!L Studies i'l lOY:;:r2nt <'e Land T "'; , by B. H.. ¥..i.nsC!y.. Studies i.~ I::'-::.ploy!;,:el:..t 2..!:d Rural No.9. French 1ech~~ic,11 ,\ssistzmce in i~~ Revi0\v" of Grcl11;.cnut Operation 2.::-:u ~':':lli: Cottor;, ~ che:'lc, by G. Anderson. Stedies in ::::?lo:lEcnt a:::d Rural Developr::2nt tio. 10 . S=11 Selle Ru ral Incas tries 1'1 Cet'ter~', by H. J.U!T.er. A Review of IndustriaL Developcent Studies in =ployrr.ent and 'Rural L'eve1op:::ent :;-0. 11. ''.. Sm":1.1lhol ct.;c T003CCO Dev"elo?::cent in Tc..nz.::lnia: A Re\"ieT..l of rraiT~bo and 7u~bi Sdlemes, H. end D. IILinsenr:1eY2r. Stt:diC!s in 1o:-:I:er:t and RurG.1 Deve1oIJ::ent ~:o. 12. CottOIl leve in :'anz3.nia: A Rev~ew of Co~ton in SUkUIT."1Ia.:ld, by ~:. Cc lLi.aso:l. Studi.es Rural De\elo~~ent 13. .m:t;~L J~.y~t(?l':E.~:T ??CJ~RAi~S ::r ::I;TzrrO;':__~~ . -.---------~-~-'~.- ">---------~~---~' --- 1. l:1 an 8''[ort to in:' tia:'c and acce~erete ecccor.;ic f,:'owr,h D..'1d c!.eveloprr.cnt whure skilled ma.npolier ond capi tn1 are the Iii'li C!'I.C tor:3) ~Lhiopia h[5 a,lopted "_Il trintegrated !'Ural develc!ne.!1t" strategy in ·"n.:Lcn scarce rese '..ITC C!S9.re to be conc·.;n.t.rated '"i thin cl'.3arly dc:'illed geograph · '''~ ,-,~ .. ~ i")r'" of' It''''artr''£plf .Dro~"c~"0 . :;10:: '-.""\'17 1 Cc1....l., areas l'n -;,:> ....:..~ .It - ..;~ 0 ""h"~e ')""':<')'~~ nrOl"'ct" .:. ... '-'" ~.i.-"_, :;:~Gc,,;,.. u .... ,,-=>, of ',.;hich C;.DU, Hl';DU ane. the l·T?:...~ are the first 'Jr,es established, a.::-e gi ven suff:.cie:lt resources and s1.L:.'f:Lcient :1.utonony to: (1) increase incomes of sma ',1 farmers, (2) elicit their pe.rticipation in the develop ment effor, a..'11 (3) create possibilities for repli:p..t.ing thA .<::'fo.::-t::; ::" '" large seaL! by t.l·ain.ll1g Ethiopians. Tile revieH of CADU, '>:IAJJU and. the 11PP has bel;n c mcucted on the basis of these stat.ed ai:ns and ob.i~cti..ves. 2 . i e v c r a =.. factors made a thorough com,lJurative evaluation of t::e tr.ree ;)roj;ct!" ~l,-;ffi~ult.. First, the projects did not state their assumption;, limitations and progress indicntGrs clearly and nnambig01.. ~y, partly due to lack of sufficient information at the planning and prepara t.ion stage" ~:eccnd, bl'ring been in opera.tion for different rnnhers of years, the:r vr..r]' considerably in the amount or ini.'orl1ation they hl1.ve docu-· f.1ented. Tirird,'~he quaJ.ity and reJiability 0.:' a'railable L1ior;'lation cLiffe:>'s, reflecting the q'.lali ty of their planning and evaluation UI1.i ts c.r:d thp. importance they 'lttach to docuf;1(~ntation of inl'ormation (HADU is "T8rJ poor in this re.spect). F01.1rth, the:1 differ in ter:as of certain characteristics (geogrfl.phic, :,ocio-econ()mic, etc.) of the areas they cover and in -;;:'18 number ane in,ensities of their (:olllponents. In spite of these problens, however, j t WllS possible to dra,,' SOlile lessons that cculd be useful in suggestiq impro'lements in the projects themsel'le~; a..'1d in the preparation of sinilal' pl")jects elscHhel'e · J. hensive pj'ojects having a large number of components, are pilot projects because OllO ct' their Najor fun;:ticns is to develop iI".novations adapted to their resrecti7e project areas;(and hopefu1ly to other areas as weI;.,) through e:<:perimentation. The }WP, on the other hand, ained at a ,fideI' tarGet gr'mp and, const rained h:r shortages in trained ma.."1pmler Emd finCl.I1 cial reSOlTces J cor:centrates 0ll the propar,:ation of 11 f",w proven innovations tested by the comprehensive prQjects. r<.ach ;·fP area is planned to srad;.;,ally becowe mO'8 cOr:1rrehensive as more components are added i.nto its package. Jmother (ii.stingnishing feature bet~feen the proj ects is that only HADU under takes a s3ttle~cnt scheme . .:hI Chilal()·.. gr iC~ll LUI' cl,~ fJevc; lop:nent 11:1i t. 't,'Ob,:;lO Agr icul tur 8,1 Develcpm'2n t Dni t, and the :1inimuI:J. Packa<:;8 Frogr8..t"1. t8.~get pO},1l.l).ti0n in ;nt;;~ing dc(;iDiG:-i::i in t~(? cit: .~ u.cti~,rities !:;:::":. .... ~8.1·il:{ by PI" :,r.8 !.. . o~at.:.G!l l):'~ coop'=?!'ati ~le SOCi~3tj~es. T~1 crdt~r to )r:o~:.~nf3 ~ne·.k'3 c )mp; -I~i 30n (){ :.:~e pra,jects' ac~. io7e~~e!1ts ea3i~~!"~ ce~c':1 oC :jht~ ccmpor :::nt, 1-1:_l1 'ce anal:rzed separa~~o-21:ril technc ------- Rese?.rch :::-osu l:.::; of the 5earch: es are practically non-'3xistent in 'larious ontput -in(~ rr.!as:'n~~ 3.. Ther~..core, :. t. ',{as nCl.:eS2 ary LO r CADU and ;'i,\iJlj to incc:>.-porate research as a :Tla,j or cO::1pcner. t · · In 1-' l r :?C {ages ~ C,A.DU is ',.;e11 equ::.pped, both in st?-:"'r 2I1J ~ac:'li ties, ,,11' and a~ a 'cs .lit has had si 2.Dt achicllements. It ha3 developed hiGh yidd5 ng p.ei -rarieties (nrin2.nly "heat) adaDtabl,~ to the 'larj.,'Jus CCiJ' .. ~, , lo,;ictl z ,nes of Chilalo. In add::..tion, it r.;:..; ,l,,:'.relcped ,L9.b~n···:'.Jl";;;'i..",;': ''';' f a:c':1. ,~~ t S ,,>,;:;1 .,,,,r,.OI'S, pl 0:1.:>, +\,,,p~h.:,,~._ (h""" ,-e ~.~_':>ll-.,[;J, Cv,.;, o.l(U hi "h ,.; ,". \ ';, 1 '-G" ' ..... bred air,' c:ms. :'1ADU, on the cthe:- hand, h~~~· ;,,;~dl !;i;;:;"", i,<:,l-{ sone j mpr1ve:i maize varieties developed in ar.d has just s Garten rnai-::i:1g sone rrogl'ess in its li'fC3tocK breeding program. It.::; me.jor s!'.c!" has b{!en i~he shor~ase of staff and research :aciltties" 6. ;:::X,tension: 2xtension a.cti'lit.i\':;s of s8 ! ds, l'ErtiTizers, pesticides, .farm CL'1d various cul:'ur2.1 pn".ct: cos (~uch a:; raw planting, planting dates, etc.). CADU i3.nd tr.e :I?P use "r:.odeL far1ners" a'1d "demonstration plots'! as the ;,~a,jo't' ;:01'...'1'3 oC intr'J duciT'u th~ir iImovations. The idea is to let the [a:':'1e1':, el,~ct 0:'" :,l1oir nernbe:'s i-/lO, vii th constant advice from the ext,ension agent, ,.;ill tr-y the inno'l;,tic 15 on his :"!PP, in ...nish aS3ist?Jl':: e:c:'ensicn are sOl'1eti:1es 2.ssigned to areas \-Ihose lahguage they don 1 t even ,3pe;:;k. ~ " I · the oa3is of the nunber of Ca!7.ers· tha::' ():l to !"e leh, it r3., the nurflbel~ of ;~a.r:~e~s that ha7e oee:J, enabled to us:! t::e new t.)chr:ologies int::oduC8d by the p:'o,~ecL3 thensel-;es, ClwU 2..nci 'iA';:; ~ / '311e~eSS :~~l::".-l~AJ~ rGac~ed about 7,200 0:""i:s ;)'~cC)r.d .rear e"r~:1 , ~7J~) ta:"get h'as :'0 !e8.C:~ 6 J CCt) :'2..r;:eI·~) ~... n CO"'J: 'len:-'5. C ~03Cfl,.:~d aCc'lr...~~~.l\~I··JO Cr"tt;ner!.3 ~:,t ) wr:ic!1 :~) nbct:e ~)~c~ :3 (;t ~.·I)r that :le 2:. "l'::c >~l)P ~.;a~) a~ lc to reach about ~IOGO ~3r- ~ers in 1 ts se ~ond :rear aJ.tl':oUctl th7~ :ar~'2t wns about 1::,000 t'nr:'lers. l'he Si:lce it has ~;l ~,:,e fLttu:'e. ine nU:.J.cer of :';l.~";:-~t::rs reached per field sta~f is Bbo~~ tte ;3(?";1e :'01:' C.i.LTJlnd \'iADU, ['.!id L'O, 1:(~1:r, ar.d, abouc. "or :':-:e :':?F. 8~ g!~~J.:~~.t: The gene::"al s~~t\~P of t:'leir credit rOb~a:~0 is sir~l3-r. 311t ~~l\DL D..nd 't:1C ~·fPP shc~ir c.::'ecii:' only in :::5r.d t~rJ :"'or"fl 0;'-- ir;:pro-v"ed fa~ -.il1I:ut3) while ~~Ji.uU p:"o~ride~3 c3.sn 10;:..[15 for con~'-~:--:ption pU.r!)OSf;~S i:1 ac:cii tior, .. Cred.::' t ty in CA.l~\J i~ r'es tric ted ~o la.."1do\.;::ers cu: :L'C:SS tr.;;'!. 20 h.1.· and tenants cnlti'lating less than 25 n3.., '.;.."'1d in :'l:e ~1PP to all £. ?rmcrs cultivating less til811 20 ha.. Any farner ~ri thin it,s project are3. is eli,~ib Le for credit fro::l t.I.ADU. 30th CADU9..!lr!: t;'.8. ).q:~p down papen t (25:: ()L' the v'alue of inputs take!" on credit), t~,o g'J.::li·Str:tors Ul.· ;';:-ion cnc has ta .:e the landlord if ::'he borrm>ier is Ii ter:aIlt, and a ~)i lease agree:ner t b :tw::;en the landlord ami the tenp"t L~ t:he bo1'1'o\-;e;:' is <" .. ;1ADC recuir·~s that a borro·.rer pres6nt any two Guarantors acceptable to the credit ~cre'm.i:1g comnittee (H. far~lerl3 CO!lurittee). To further ensure repa,yrr.er.ts, ~'i!~ DU holds all far:ners i!1 (1 ::;1. 'len aI'ea responsible for aU ot' the c~~e( it. j:,st1'ibuted in the area. CADG and the }{PP ha'r~ adopted th.is pol.:.cy l·cccltlj'. o / . 2,)tr. in absolute t8r:i1S a.."1d on a per farmer casis, ;nore of tr.e 1'a,";1 inputs ha 1re been distributed in CADU because :'lore t'a:::r:..ers atei, the average cuJ.ti'lated area per participa'1':. is 8.nd cal'p':'ul L:r sel,,:cted and t.ested :::ieed varieties suitable to the are8 Her~ 3,v:.ila;l(;, "i th respect to the distribution of tl:e i:nproved farel input:5J"10l":o; l~ifferent income classes, CADU Has able to i:~lprove the sr:',a~l cul:.iva:.ors' ~.hare by excluding the Inrger ones after its first, t .... o years e;lce :';lcicated that most of tile ~':1puts were taken by a s:nall rHwlber of ~ig L2ndlol~s. ~evel~hcless, the relatively cultivators 3till accou.l1t:. for d::'sproportionat,ely l:u-ger quunti tit::s of the input,;, in all tln'c;c pro~ect) cec,'\l'sC are cii:3trlbu::;ed in din::ct proportion ~o area cul t,i'rateti (for , 11 20-·hL cultivator L5 eL.gib1e .for ;?O 'luir:tals each 01 :~erti,li7,er and impr()'Jed seeds Bad .'l l·-ha. t~'lator for 1 ("!l:i::.tnl of '=ac::). Furthermore, the lar.ger O':mer--culti vatat's we~'e i'01ll1e to ha':c '1 ,1lI :'ate oc~' pa1't:i.cipation in the ct'ecii t prog!~am, primar:'..ly (J8CaUSe hllv~ a u,gher rate of adoption of t:-:e ne r,,' s (see Appendi:{ I I I for dctdls on the adoption process). S ~nce the u.l.t i nate t.,; see '~hat t;::c nm.. )fj 1 C. had £l!"1G ¥ rcpe.y:1ent !'at~~0 ir i::s f'irst two :1-ears., :\lt~:oLl..t~~. ::"l1e d'Jt: ,; date rC'Jn:n"':;nl rates aT'e dc'clir'!.ing :.11 Ci\LU, C!.tl\'~ to :'ts ~--R.il·.l::'c ~t) enforc,": 1'81= 1j"Lents 'oJ- "ie:'aul:'ers to :::o'11't., it :;as [lchiev,::j an 01/');' all rep:1JTt~:1t rate of a.bout .;\J,~. I:~ its first. year, 'the >fFP had ~bouL d:)',: of it/s ,~oar s ~'epaid within s·j.x :lOnti13 after the d'llt: date. ;\:-: ru1t~ fir~din~~ frc:n -Jhc 01.' ~"he rep,r1.j""2ent ;~i6J..:"'es ,,")f the :'hree ec r..~~ is ::'hat 8m!,ll fa..."":1lers are by no weans Horse defaulte:-s :ha" larce fa:r.:;crs. In fact, a l£cger praportiDI1 of the defau~;..ters in ce!":!... :.111'e,) pr:)j ~:<;u') Has found::) b( t;.e larger far:::ers tecause they :'ee1 that t:ley CNl at,;of ,..-: th unsettled debt;;; t:..'1har:~2J,1:r. r 72/:3 .3eason ~:, decid8(: t'J let th.e ~a:r.::e!·s p3.T-:.=-cipate ~:1 DC2..:-,:i:'1'" so:ne cf t~le :-1arketinr; ris~.: ~'\,/ of -:hCTIl 90:; of exis .local ::1Hrk(~t, CAD~ a~ th!y ~elt t:":.3.: ~:~~~~r ~'ltn;'~~ Le~::.g trt:ate(i \,l:-:.:"a'/or'3.b ,~~O::~:_:H;::' to revert to ~~3 ori '1 st J :-'~~ : :· · ~ ~~," I 0 _~.. :iJJO:t pa:t77':e:1t at :r.e :'~;ne o:~ :)lJl~ c!>B.se Ind ',0 :)ea:' wi tr: :et.1 price dr r)p0. 1 3. s~~cces:,t"c.l:_I'" tr"cir pro:~:.'ah~" ::irs1,:," :~ct!:dle sue:1 an i~:S:s:l:' pre:)')! tion c"' :,h'2 total :-:lar;;>3:~ablc Sill,? 1.'J.!:; :::. their ~e:)~ecti ~;-e :!.re~lS fiC£'-l'l.t thet t~~.e:r lrE n0:' a~le to ~_:u"'lt:crlce e::.; (':\J:' , C... wU hChJ.rlles abol~t i;'~ c~ t::e total :-:1arketablt: 'tlhe~t us ~~ Ch~lalo). Second, ~late traJer:-~ :)f;ca:l!j'! tr..e.i r sr:lling costs at aC~I:,t ~~h~6 per qui.ntal O~· norc, a:re ~llCh hi{~!:er t::811 the cos of an,v':!r :tgE rJradel-} at about :;,:th$3 :per quintal or less.J! lL.. __Pr",-O_£.2."1,s..: :';i th respect to the ad1',r~.ties t!lat 3.re n;)t, direct :.'./ to raisi::g :1.gric"'.ll tural output, CAD1] h:-J"s been prot;r,,~,:::i.:;t; sat~sr'~ctc::,i=y. 3;{ Cctober 1972, it had trained 200 e.ssista.~t extensio:; [teen ~s! 35 "tlC r:len extension agents and 85 trade c~r:ter forener!: One 0:" the WOClen utE 1Sj on age~lts ~-ias trained for the ~lPP. P~"1 e".ralua ;;i0H' Ul." t,i:e qntire '"O;-len':) e~, cer sion pro;;ran Has being planned in Octobr;r . 3ut in tr:c v:.c,; of the heE"::! ( ) f the 2..':-~erlsion lL'1d Tr~in:i!le Depa.rt:.1erlt, it is di:"'fi.cult ~o a~s ro Hr.at tlC i npr.ct of the 8r.tire Honen IS prOf;rllrl has betm. The r:;.ain ob~ (:cti 're of the prc'5r,.m is to educ£lte Homen on better foed, better child cal'': iL."d :'a ilil:, .anninc. ','11th respect to rlll'a~ ,<;ater 3U;)Ply, CADD has undertr },atf!r de'relop:'1ent in the project area, Its T'lJT1t\l hcs.lth ?ror;r8JTl has 'ceen i iteCr1Led .r~th th~ pro"inciaJ. ;H~Blth ser'rLces depa.rtr:1Crlt si;'1cC ltarted. 16. ~~gi!:!ll.: It is tvo to :11:3,1<.:e 3:ny ';a:!"ue jud[;'1(;J1ts about the :·;P?, ut CAD:] seef,1:':; to ha'le gradually f,athereri ,,{ell tT'1ined flr.d highly ~,oti va ted r~th":OpLa.l') staff k..J!~()Se ..10rk"";"ng rel J1tiGDs l,·rit:: their ex!)atr-:~tt:; COlln fJer parts ~la"1e TJrog~"essed srloc·thly. This snou,ld be att.r~b1~t(~d to L:,c ::'1.11 j 00:0 t nil t, Cit JU ar:d tht; quality ot 1e at all lcv~ls o:~ the ---,-----,---_._----------,- I I prc~ec ~ . r':-:!s:1lt i t.:'; :.::.. El_'1:3t;.~.:. ~c'n prs~~r[':,:,~ l::ts 'Ceen p!"os:!"'essi:1:" 3at~s~~n,:~t,)r as G~i~~ n~.~;,,:Lel' {~,:" !")'~~>ltr:~t(: :Jtn{:~ decl::,ned l.~rom ab,,;ut liO ~ '1" in 1;6(~ ~ (~:;nut 21~ (J,~) :~t 17. 1:1 contra:.it" /~t\ cee~ facing s,~e na~or sd~ini3~rative problen;. A~ the o~t50t, i~ h~d lEl':'ic\Llties both e:q)a::-riate "".. lei " 'In r~ig:~ . . . levf~,l st.~":"o ,:'o:.lr of ni:1e e:xpatriate staf: 90S:'s were filled ~en t:l.e proj ~ct s tarteci, th..l,:8e of \~hl.C:l stay(;(i 8pen until the project r,ad be',,:l ir (neraticn ;:'O!" ~i:)ost :\-i'"'" :/t'!,:,TS t~,~~ad proble:ns retaj.ni:1~~ Et.r. ].n l'ig'1-1e"lel staI-"x', ~.;hic:1 !10t only J80p~' lized its 2:thiopiru1i::atior: progra:'l b~l a~.so t several ke:r pOGt~3 ~,""nCtillt .. CJt/er a period of two Blld ()r:.e half y',ar':3 1> Ethiopian high-ie'I'.', st:1.:';" have left :';ADU. ','arim;,:::; !"t"asons have b: en i 1"0 for such a hig:' t~u'nl)v,~'t', some ')[ ,.·r:i<::h 2Te: lac:':: of a traini: is Cr.1pJflcnt :~or Sthiop~on f'2-&11-1c"81 staff, ;:l.istar:ce of the pi-oject area £" om la j)1' urban centers, incompetence 0':' some 0:' the senior staff, unbalar::::ed sa strnc ture and u:uai:c recnLit:nen t f-lrocedul'es. 1 B. .~caLP8:TtiE~P1::.ti'?-I}_: fn order to prepart:! ~'~.C'Z'0 Lo jecor.1c more 1,:'Jolvld i i , nnd e'l'mtua::"l:,r be I'8sponsible for, ta.l{inc; decisions gover":li1'>O; events ar.d act,i'Jiti ...: 3 beyond their mm farm bou.r;.daries, and in. C'rc:ez' lor tl~':' proj ec ,s to ~ave long··lasting success, all three projects have progrruns de siGned to '..:licit p:u-ticipaUon of the tarGet population and local authorities in tnt:: dev·:lopment effort. Participation of the tareet population is to be promot..d p by est8.blishin:~ 'liable cooperative societies w:.d U:at of loc).l !':ovcrn;::cnt p.uthorities and officials by asking tbem to be :::embers oj' cc-mnit,ees that will be involved in making important decisior:s. 19. Lre general, the cooperative development !)rograms are at an early stage, particularly in the :1PP. CADUts efforts, though 'JerJ li;uted y have been ulsuc~e!.sfu.l because its credit. and marketing acthrities were not ade .. quatel,'- ir teLrated with .its cooperative development prog1'31!lo Since it ;'ias provid '_ng fn;e credit and marketing and mark::;:,ing ser"/ices throu£;h trade cent,er3 ;.;1'il,; at the sanw time tr,ying to Gstablish self-sLlfLicient cooperr, ti'le :3Jcieti,~s, farmers were reluctant to ,join Gooperati.ves Ilhere :l8.d to i...I 1C,lT som" costs. CAJJU has recent~-y been pla:ming to adopt a policy ',.;ht;~":: credi t and r.arke t.in;:: services through trade centers .Till be ter::'Q:1ated in E. given area j ' a pr"i;:tary cooperative society is not ~stablishecl in the area l,i t~in ::-hree years. 20. ':i:;PU has :"lade good prog-::-'~ss towards the establisl-'"',,,":nt of '.': a0J,'J cooper ati "es:becau::;f1 its crecii t and ::-tarketing <,.c ti -.ri_ ties r:ave been along coor:er,~tl 'Te lir.es from the outset. Besides, the ',.joliL'1lo peopJ.e see:c: to ace thi. concept of self-help very I";')udily si~ce '::.hey a:'e :2J:uliar ',ri .~\-: 'rario1.:s tradllional Group acti-ritie:::;. :lowever, the Gooperat.i'le prog:;rU:l h2S been Li.gh:y subsidized so far since salari(,~s and otb~r c:xpen38s 0:' :iAJE sta:':' are nc t char to the group marketing organizations. It should ::;,,: ::o:-cd, hOweVf 1') ~,hat rarr:lers in ;·Jolamo hTTe snmoJTI ;-,ore recepti'lity and cooperation conpl1!'ed :~o :'aI"::'ler:: in Chila10 'lC~l t,r-.. ro:lt~h ';.IAD\.] is poorl:r z·:;o ,3.nd acbin~ ste,'ed ccr::pared to CADll, ;'art ot' t,l:c expl,?.rlation is of CO:ITse that "1\:llDf} r.as out. 0 f: cor.. 3:J;flp!::,ion a ~~irH ~ ~tJh:;n ~. "~t~uca.l_:; ,i(~ :Ol~,:ltr:t, "J'4~!-",-;rt:: C'.::1 ::::: ~a:~j t:1l:~l!~ C~~:::~· ':c,J~.()I'i,:~ 2~; ~·J~:'2. ~1~1 t:'Cci~, pC',-;er, ~t is :: ~~:-JJ !..~:L~IJ:--~S:,3 Oi.~ thj.~ :"~·:C:,·l~..J ::,) :ia~:~~al:1 :..l:~~ o;,.":":'c-=-als Hh..~ch 'D:: bol:> tcring tr.e t::,):-:.~~ ,~it..:::'~·; ~:..::.:. 381:"' -!."c:i:~~;~(~ ''J:'' :.~e pe£L~)3.n ~ ar-8 : :"1i 1 to dC:1arld h~s ::;£15': (~ ~,3 :"rO:1 ~r::JS(! ~~IJ.:-:e o~":·ici~:.ls __ S:n~ed ) .",he Lac:11 aci~rli s tr~lt, '"'e :J0t~-1P tl.:'.. ;:cr p:-e~)t~::~:" Ca..'l11ct Illy aCCO~lIrtociate ::-,,3 -;:rojc:c ts. 22. )st CADU':, Fhase ~ costs (1)67/5;3,·1}70/71 period) \,ere L:Lc:1., a~d Ph&'.:3e r: costs 1.~9tO/71-1)7L!/75 ppr-5",-cd)-' ;:il"~ es:'i:l3.~ed ).5 1:2.] lion. SIDA. cov<:r3 sals.ries a.:,e '3.cco;;..,odat.ions 0: SWAdisr: ::.; ta:f CL~(:. fe 1~3i studies 0:' t~c i.n~v-e~3~,~~; t ,.It.j' o'p eratinG 'O:"3t 3. 'i'he Ethiopia'1 gc'rerrJ..-::e:1t ccntr::'butes salaries and acco::!.l.o daticns If E~~"dopia.rl staff, 12...'1d a.."1d tb.~~ rema:: bal2...'1ce of the costs. :·iADU Fhae I c( sts (1;I69/70-197J/7:.) are esti::atect at about · 7 :1il~.o:--. of ·\*lhich · l~~ is to be fiI1.2nced crcc...i t fro::! IDA, ll.. tec~Jlic al ::lssistan'e f ::'on m:J 2. by the '.lorld :'ood Progr?...cl. a,r.d 23. 3.J :::thiooia.'l gO~JBr:1ner~t cJ:l.tributions. T~e tot.al cost. Cor t.:-:-:: :tPP over a si:':-j"'ea.r IJeriod (1 'j('70/~11{Y7-/"6)' ( ' " '/ ), I, .. ' , .... q .... ·'o :1:",,- ,..,.Lon.. ~"·.1 as:-;l.S .·nr'LCt; lS eSv:lr:lat,efi at aQCUu t',",l.d1~';'>( :11' J ' 1Cn..I. . . .l 1C.::u 't :~rO:-l 3Ii}'~ llr 1 i AO and :·:thiop tnn C:C'IC1"nrnt!r. L cO:1LrLbu Liorl~) \>r: 1 L CI...)',,"l'I" Ll:t" l~11"!~ t. three :re,;.rs' CC:.lt~;. [he 1973/711 _. 197)/76 peri.ed costs, estl.wH,('d aL nL!,')\!' " .. ,~['l 1" . ' ... ,-- ~v(!~)L! 0L.,,_.Ll In, are e:cpectca vO oe _1.:':1a..lce d ", <' -J' I'lL"') ~ccn.:"!.:...- crecl.... . . 'C. ... rom 1 II \V , .. _.>" cal assi:ta.'1:e :rOr:l SIDA (9.~; L :,:thiopisn goverrl!71e~t ccn:rib'ltio:1s U~;) 11:-1.'i em·r:} ?a.::ri1C:1t3 :'::0:1 v:'::1i; :'ar"!7:.crs (J:~). 23. because, a;'"'lC,l(~ Qtr~er :~ave been en. cd. d.il~-"ere:;. In w. c:.""f'ort:. t.") 0"1 ~r( this short.. ccr;:ing, cost,s per ~"'~r:\~t~r ree..chcd [~d cDstS I)CT OPlf! f~ect2.l·e i~c;le ed were esti.'":"ultJed :"'or eRc~ -2ct....;\ :'ar.ner Has a5:3~eJ ~() , :"ai~e!1 OL credit, arlO ia!1d ~..;as 2,ssu=:'!(:d to ':Je de~/elo!led L( Lt.. has bC~~;l fe!~tiliz,::d a ld; or planted 1,ri th i:~pro·£ed seed 7ari~tios. t,"l t.h~.~ ~~st..L- ;7lates t~e:·~e "l·::;rJ cr"ude, the~"" show S071e in. r~.?lat~:o:1ships. ""n all cases, bllth ~otts per :ar:tcr reached ar1d costs DCI' hecta~,::, de',cloued wer':: relative.y h Lgr.eI' at the beGin:1::":1g d::e to a lo·..;~r rate of '~ar;ner r)artic::" patian 8..::~d b~';lUGe -ler..J high cos~ ;..-er~~ inctlrrec on i!1frast:ruc;.:.,~rL·al f'acil . i ties. :;oth costs per :'arner and" pe:- :wctare decli~ed pragressi vely o',er ti:1.C as:,he:1u.'T',oeI' of participan t:3 i::creas,~d. ~he findinEs show that cost~ P pr C'a"""'''r ("l~'r"'" a~ "he'T a,"f' \ .... I'·... c-~"a"ual1:r ... '" -- ..... 14', .. J "(;. ,_ I.-~_~....... ..J ;"'!.l v;" 1:.0 about the So..:;'lC (;)AI. Co. ·· .. level :0:'·' alL three projec~s "!VI"::1 ~i:Q1~gh :ensit:r f>f :::8i:1:" co~ponent,s. ::: :'"act, C00~3 ;Jr-:;Y-- hectare T~f.!re gr9.d~~all . Gel:o:T.1~f1 lo\ver :"01" '..-:L,;;j tnan :~or ::2. ~~:·.:r ·..i}tJ:j or ::hc :'!P?, inJi l- a~l.. . . . 1::':': t.·, 1" "'J,~lr:-':' ::~... 197ViL 't'L~]L: t G P r P.S~:'."0 ~ settler, esti~aL ·;::l.:;Ul~ pr)j8(~t (urectio;-l, is J,. [::~~:-:) t~V';I: t!:c~~;l~ -:'s e:.cp.d by :::achines (e.g., ~n CADO) a1'1d (3) there,:,'", been a s1ii't 0:" share-rent agreements from one-third to one-hall' i.:1 .:',s,·[or 0" landlord:> dte ~,o increased demru:.d .co:" lar.d by lar,;e contr"..c t far:';ers 2Id ','~- auced ot' tenar:.ts (29). , 27 . ·,';ith respect to the distr:'bution or incor:1c ·8et.~·leen snall....scale anu I~-scal"~ culti'Iators, nost of til-2 incr~.~;~t:ntal i.ncollc has f~or:e ::1LG the band.3 0'::' t.:e c111 ti '.rators because they ar,~ ..iis?l'opor ,. users of ':,he i:1puts, since tb; a,:':1OU:: t , o~' inputs Dl'oDorti :)na~_ t() the arca a t::orro;;er cul ti 'fates. . . u:3i:1;~: r~::;~ 7J:d ~) · ~ht~::"'r::.L;; l'lC :-:103 t. li~< "Ie"",.:" li~ irlnC'.fatjOG:J =-f!~./rGchJced ":",::e projcc:.s. :t~]_ t,{:l'~I';f~ ~'::"'O~f~C:::':3 !:a·... :; ;):lC\~::- tY"at,f~d th~i ~ :!r;tt~!ities UpCr! ~~~~ !':C~S:' ~c:~c;~;~i~10 n'! :-:0 :1: ~~~""~r--!il:~ :l~e;::·' ~..;hi:;h ~it, ~= t:1e '>sre~test ~)os3i:)le T'eSpOnse. Su: by ~Ji.r-:ue :J: thf~ f3.ct, th.l.~ :,ncj rlI" '\ ri1'Jr~_~ f~rt.i.l~ ';nri :,nol'~ ::L~cessibl~ t tht"}se 3.reas :nust alre3.,Jy :1a'/~ be~r' :,e·:_·l.;"i~/ely ·,....~ll-c:·~'\. Ob':io1J.sly, T"h(~r~~f'Jrl:-;, f.1i3~)::_i.riti!~s in inC0!r.f! bc,t',{8t-~n\"rv3.S reached by the pr'jJf::c~S :md those tha.-::' rt'!main un tOll~~hed :: ;:"~ :r'-dene(l. I."ldirec~ ~rf<;cts: ~·!o study' has 30 j:""l: b,':en ;'1Zl(~~ on i~d~~_:ec: benefits or ,~c of 2.oy of' the projt~':t:3. :i'J'....e'Jer, iat:::!rvi~'..;s wi th r~Am: s~l£,f, local offici:l..ls and f?.r!~f!rs i1': \~hi}.1.1o i::;di83.ted that the nu:"b'~r of ell '.ldren going to 3chool, de:n.and for schooJ.s, roads and ot!ler" publi~ sErvi::es and the number of corrug3.':ed roofs h3.ve increased si.'1ce the incer,tion ()r GACU. 3C. l):ri:'1g 1969 and 1970 alone a.n 8stinuted ;CC to)SO tena:1t fami1ie33.r8 believed to have been evi:ted in the SADU project area al:JTIn due to e;.oan led mechanization (29). It is difficult to conclude th'lt the e:cpa:1sio;' . of me -:~"niz;jtion in Chilalo is a di2''?ct conseqnencA 0·' CA::l!l sinc(~ the exp;)r SiOl h 13 occurred thrctlgholl t :hA. n,:J t:. 0";1 and si.nce CA ~J ?bn;" i~:1~d i t:~ tractor r~nt:1 icrvi::es after the first tHO yea:s. It. c01Ltd, hOiffWel't t::) hypothesized thtt CADU's effective demonstration of the profitability of agriculttre (ouLd have hc'ld 3. considerable i:rrpact not only in Chilalo but' througho~~ tle~ountry. 31. Tlce '.nter'/iews also indicated that food COnS1l:":lption in gener1.1 ha~3 inr::rrnseci ::l;d that farmers a.ra now buying ;nore luxury items, such .l.S Clo'.Jles 'lnd :;hO,)3. I t should be pointed out, however, that the establish ment of clsh mac'ket outlets for milk L"1 the 8ADU projf3ct area has reduce(l :11ilk con!l.ur,p'ioll (3, major S1;pplier of basic: nutrients) by the producing family ,plrt~cU: '11'1] the children. 32. Q. in '!e~r1ed p~;;0n ~,; 'II :or lOr:R-~·/e~r: ;H~,i ~71.1st;Jined f!~owth. ;:everth~J.e:~;1, volu;:tb12 1es:jcn~ !D highland q~r~ cu':.tural :,levelC'F",er.t. h[l're been In.a:'ned. Above £11.1 J the '/:n',-/ of the Et liori3n t'a nne t' ;l,S Gh;mge-resistant !'las been di.spelleci. !i! Recommenc a tims 33. (;i.) As pilot pr:::>Jects, the :;:thiopi:m package projects should provide \'3.1n"bla leJsons :'or for:nul:l:i:'H; J.nd desigC'ling fu':.ure ;Yt'ojec;:,c; through J~CU'i'J.ti~ document3.tian ')f dc:t'li Is. Tr.8refore, ':3.:::h projec", ShOl11d have '1 nl'")perly organized'3.nd adequately stafred pb.nning ar:d e'lalll3.tLm unit that is 3.b1e to rnor:itor the projects 1 prOf;Tess .1.nd to 3.sseSS it;, - X~~ ,J'l~ralli npa::'. T:1f:3r':: shJu~ld :llso :,e 3.:1:':ldependen':. eTalua tion unt f, Sil;:.." cocrdina.0~S tr.o 3.ctivi·.:'.,~s 0': 7"h'~ :li~"'eren': pr),jects ar.cl tha":. foll:)Hs Up pro~re3S :Elde ~~acr.. ?ro.10Gt, ':£1e project 3 3.dherence :0 its '"Nork progr31fls, 1 the exten':. 0;' t:~rge:: :ulfill-:,.t~n"", !:"8S0U~:'ce ut.ilizatiun, etc~ ~l) Insof3.r 3.5 on~ o~ th~ projects' objecti7e~ is to reach as :t1any .:.'ar:n~"'·3 'is possible, gi'J'~!1 ·,he Gapit'l.l and C3killed :'u.npo~"er constrain::::, they shou'.d ~. ':.1'· v·~ .'.1. t ,·:;d'clC :;I)S::,3 per Iar::.er r~:\(:hp':! or per hec~are de .. veloped, ,rhLe ilaintaininl3 effi::l:.>Dsy 3.bo'/e J. speGifi.~d :nin:Lt11.J:n level, (c) :t.'1alyses of ':hf~ ~xperl~nce3 of th'3 tr_re(~ t.-"\-J.cka>se project.,~ ha'le ShO,';lthat a;::;ricultur::tl ext.er,3i:i:1, cn~di7, J.Ddnarke otlght to 'o,} int8~::'l.1:cl:1pon,mts 0: any Pc1.-'::;Clgr> pro:;ra.:' desL;ned for a(,ri~ultur8.1 develop :nent '..mer ~ li-q t :.tutional c:t'8di t, a::J morlfH'n ~'.:l.rkt~ti:Ls facLli ties 3.~·e lack in>; · '~? be ver.' ·"~(:H.veJ the vCirious sec'::'ions responsible for these ac'-:,i'Jitics ~hould bo l .' . integra ted and prob:;.bly put under the same division, in ordA!, to ' ' 1 , 1.I1icts of intere~t i:1 their ::l.cti'lities. ( Ii As long as L'i1proved ir:cor:le distribution remains 1. :na objectiv::! of the projects, th", security requtre:nents for creC:it should not oxclude t 10 fJorest segment of the target popul2tion. If not cOi'lplste1y elL'Tlinate 1, C:>W11 payments should be made to increa:so progressively, both o'ler inC~)lf'l ('1:'5 and over tim~. For '3xarrrple, the lo;,-est income class may pay ~,,) dcm payment th~ first year, 10'1 ln the second year, 1'):; the third yea', etc, (e I To :naintain the rather high repayment rates the projec ts have 'Deen abl~ to attain so far, mora stricter repayment enforcement measur9S ,hould be taken. local governn:ents should ru.:Lly cooperate .nth the proje,ts in taki.ng defaulters to Cf)lll't. In addition, it i3 at least worthHilil'l tnir:g 'dAJU's system of pro'liding credit for consumption pur pose righ. befole har'lest in order tf) stop the j.nevitable borrowlng by f3.r'lel"S f om beal traders ",nd money-lenders at exorbitdntly high interest rates. (f) Dedication and motivation of extimsion '..rorkers :md other staff is 'rery e::.Bential for the succeS3 of the proj,~cts. It is therefore important tha ~ the projects harIa means of reH.tive societies to 3ucGessfu11:i lmdel.."'take market,in,;; :operation, and make sufficient profits to be able!o compete \:'J':loe 3. number of transfer,';.ble lcs00ns """or the c~sii~n and ir1'1plernentati:Jn of rural develop:n(~nt projec ts . ( ) The op".!l'ation of:::tl.DU 3hol.;'3 that ct suc(:essful pilot, proj8ct should Ltcll::de 3. resear::::h division to develop appropl'L\te sl'!eds and tools ;.Thich C2"1 tren be propagated over the country. Bu>-, for the technology to benefit ,he ooc·rar sections 0:' i',lle popul~\tion, proper attention should bf; 'len to th~' pi evailing social conditions. Othenrise improved tech:.'1ology :n.1.Y lead tel ev:,ction of tenants, landlessness and unc;!1~lojli1ent. The pilot project lan ~l!o be used to train extension staff. ()) The project:3 show the necessity of having a -,.;ell-trained extensio 1 st lL' in order to transmit the technique,>. Thlt in order to prop erly mot '-vat '3 'he extension staff there should be clT 1::C0r't,iye, system '10 that pro:lot1,::ln:: and s;o,lary increases CiTe prediGatea Up011 s,)me achievement index. (c) The intensity of the extension services, hQ'.o/'ever, increases staff re!uirements and pushes up the costs of reaching farmers. Thus, given the skill.ed "'.1.!;poi.or and financial constraints, it shotLld be difficult ~o extend tie system 07er the entire country. Ways to reduce the costs have to be studi~d and L'11plemented if He are to have rural development projects ';inlet! are to r '!ach tte mass of the rural poor. (1) The large costs and the manpo',;er requirements of th'J inte grated s :hemes might restrict the projects to only some areas of the countl'Y. Though t lis :niFht be acceptable 1'or 3. pilot projec t, it raises the questions of regio 1al eqt:ity because only some people benefit. GADU and 'tlADU sho..... t:h.:L the ben<:' ~- x:; d~sign of p:" ~~CtS, ~:tssnr"3.nc~ 0:"" re?,~ly:nent o~. -:f2Cit is of:erl s,)ught by pr07idin,:s cn),Et only to t~o '::r<;di '::,-·,.;orthy ,md credit-worthiness is ,~'.ld by the ability of the rccipip:1~~ ~~,) pr()'1ide sec~u'ity and a :~er:'3.in xnount oC dO\m paynen T,. But the po()r,~s~~ ~Gtions of the population are u!1able to pro7ide th"l se·:;urity 01 r:lis8 7,r.·c, dO'\~-::l pay:n"mt. The a'Cperien~e 0: '::;.'\..1)1] S:l pr<~';en':. ti1e p<-U'tL~ipt,tion of the poorer se:::tions) and the :)perat:.on of 'dADU 3ho;,s that amID p,'1yment re~velopne!1t 3t1:CY , (0\:::',/3), ;{~lL:h is cies t:) :'.::3.:"y','.e ;:.. nur.fcer ~ T\;":l} df;velop:"1en~ r;r''),:c;c!:s ir~ .~~rica, ~rri:h ~ vie~.; ~c f?X2-."';lir..ing t.heir t:';;")lic l t: ons for futl!:'e ~/Iorlc 3:1:"..k c..roup opera :ions.. ~~E; )"er211 ~~cti'l<~ of tr.e ARDS is ~,o i.dent':,.:'y J eV,3..Luate and d~:;5c:r~ce the essf~nt.i.:l= componer. ,5 do Ie: characteristics 3.::5 ·.... ,;:1 as the phash,s of: i-Orojects and 91'0 gra.;ns de,; ~d to affect the cplalHy of life 0[' 13.r'se nur:ibet,:, 0:' p80pl(~ ~tfi thin 3. rea 301 ably shor t ti.:n'1. 2. 1.18 study is p1anI'ied to pl'ocrjed in th.ree phases, Pha::io I of ·,.;e!l.eh ha; be,~n .'estr icted to a review of solce ted projects 3.nd 0:: the les sons to ')e d :,aFD. from them. In order to reflect a variety of e.xperiences and tc.. c:::plc 'r~ as many as possible of the major elements believ,d to be sign::' fic;mt in pror:1o ting the gO:3.1s 01 rural de'lelopment, the s tudu '??';~.. i . ' passes S':,Ver 11 Baf'.k and non·-Bankf)fojcct3 in sev,:'("ai. Ai:·l~3.i countr soutl1 of the Sahara. 3. E~8ed on differences in tho study approach, the roviews have be~n cat~gorL:ed as s':bstantive and part.ial. 'Inc partiil revie;.;s j.nclude projects that have already been evaluatec extensively or project:: tha:, are too neH :,0 pr~sent enOUt~rl ITt::'lterial fot a cor.iprBhensi'fle evaluat:Lon" ::;r tt~ SuQstant-,.ve ~eviews, ",.mich incl~de tr:f~ ~hiopial1 p:3.ckage pl"ogra..71s, eac':1 pro~ect '1as::Je8P carefully se'Lected so as to Ulum:Lr.ate a b'articular and irr.portan, ar: )rc.ach to rUl';>~ ae'lelopl'1ent. It is hoped to era',] lessons abou~ the poss.bil Lty of transf2rT~~'1l~ successful exper:'ences elseHhere, as long as the S'lcce 3S of the projects being revieHed c!epends on the approach and not on a uni~u(' environment within which they operate. U. 1:1e purpose of the substantive reviews is therefore to assess ~hf' size and distribution of benefits from the pr n j9ct5, the bre8.dth of partici pa tion 0:' the different socio-economic classes in the projects and the role of insti,utions in the performance of U:e projects. ~1.ch rp.'Jie'''' has to i6.en ti:y the factors responsible for the economic benefit and for the degree 0:' participation. On the basis of the revieWS, it. is hoped to draw lessons as to h017 best to desi~n projects in given circumstances to meet certain criteria of Tc.:ral development, invol-ving econonic benefi -:s and a broad degree 0 .. parJ"icipation. 5. 1:1 J.ine wit.h the overall· objectives of Fhase I of t:ie AImS, a comparatLve r~view of Ghilalo Agricspltmal Development llr.it (CADU),'.{ola;no Agricultll"al Development TJnit (WADV-) and the :'~niJnu;n Package Program (:JndHJions of the rur".l populati.cn. T~e stl;.dj is bas~d 011 secondary sources of L'1':or"".at,ion in '"he fC:':T! of published ructiClrt and :'8vcl.;rA.. . ~n~-' (:3R.J), ~Tro~'Jc: ters J~" :.ht'! jif P'er~~~t pyo"~ects, :~~sG8.1'2h s--:~::_~,~.\;n5 :::..nc 0ther "Sthlopi3.:1 Go\,'eT:!r;te:1t 3.E;~nci2~. ?ield ~.isi~-.s were ~:ondu·:_:te~ :\J~' di:lc'.lssions ',,,-ith '/aTio'ls prO~;Act s::,,~1.!.": ,,1nd fa:':nerc:, a:'.d iiSC:.13Sions 'd~':"': :, .. ld ',\"ith persons involved in ::ttion 3.11d ev, 111a,io:1 0: the pre ~.S f'Jflddl:-,i0!nl inforrr'.a tioD. 6. 3ecause the E<;thiopia:1 ec:mo;-,y is predo::1inantly dependent on :lgr:'cul ·\.~re cevelop:r~ent st~"3.tegies :lnd pcli.::ies ha."J~ bee!l :;i'",ing priority t to the l'ode'nization and i3xpan.sion 0:' J.gri~111',cral Qut,?ut to :naxi:Hiz.e the economic gr )-..;th of the na tiO:i.~j :~ost of the d(Helopment plans stressed developi!ent of peasant agriculture bec:lUs~, less U1::m 9~ of the tete'll al:Sri cultura.- OU",pc:t comeS fro:ll t~e ccw.":leI'cial farming sector ( ). Ho~.;ever, ·tlelfare con;iderations suc~ as lI;]prove[1u:Jnt in the distribution ot J.nco:ne anc. crN.tio 1 of employment '",e1'e only viewed as desir;,hlcz;uYlco:nita.'1ts of the devf,loplent policies t and j~hey ~"el·e never incorpol."':\.ted as major policy objecti"es · .\gr Lcul tural dev~lopment programs proposed in the o;<.rl ler fi'le year ns "mphasized la'(' rse-scale commercial fil.r;ning as the major mC2ns of gro·... th 1n o·:tput. 'They i.'l1plic:'.tly asstuned thattr.e most effic:_ent ;ae;:ms to :nore ratid ,:!'o,,.;th was th::-ough the use of capit.:::1.1-intensive techni:J.ues in:ro duced by cOlme:ocially oriented farmers. This viwd was corroborated by the ineffed iveies 5 of efforts to develop peasant agriculture by :neans of isola~.2d lines of at"ac\c, '..rithout pJ."sper coordinat:Lon. Agricultural research tnstitu tions wi thoc:'t ldequate seed mlltiplication and distribution facilities, .. availab:lit:; of improved seeds and fertLlizers - ithout provision of c:!'edit and orga;:lizatim of mal:keting facilities without iiTIproving the :::leans of prccbction, transportation and communication have proven to have no s nificant impact on the econcr:rJ. 'This result led Ji'.any assi'itance agencies such as the Food and AgricuLt,ure Organization (FAO), IERD, and the United States A~ency for Internation.s.l Development (USAID) to suggest that :::thio!=>j a ac,iopt the pack1.ge approach by concent.rating its effort3 on more proni.sing regions, if it were to mee~ even the need for the bare necessities of the overwhelning majority of its popUlation, which is engaged in 3:r.all-scale farming. E"101utiOl of GADU 8. The Ethiopian G07",rninent=did not ::lake any firm decision on tJle suggesti, m llt3.de by the assistance a~.mcies. Ho.....ever, it sho-,.;ed considel'8.ble interes t. in l.dvancing the suggestion further. This ·..rLllirlness to try the package l1ethod on the part of the Ethiopian GoverrL'llent encour3.~ed the S;.[edish GO"ernmeJ:~t t) act favorably on :.-:thiopia.fs :equest for agricultUl":J.l a:3si3~oc:mce because :;wecLm i ts'::!lf ·..ras i::tf;;:r~sted in try the :lcthod 0.53. :ne3.n~3 of' provid:L"lI; de':elopr:1cnt assistance t,o Less ed Sountrit3s (LDC;::;). Such '---------.----~. ,, 1/ n18 ar 1:4ccr '""~~!"'cr:-, gcr.cr:tes of :he export - 3 :"!1U"-UELI :_~j )f inter-2st ':JG-s~'"-e~~n :,:-:~; tWriO (~OVel'L.~8r:.t3 led to :'h8 i"of:-rL"1.:ion 0:" 3.te'L,)] of S',{,"disn "'xperts~o nr:der take an i~l'J 0: the p0ssibili t:es for aegion;?,l as:;:icult;.lral develop:nent progp.:n in ~hiopia. 9 ?rom its previGus 1'e'15_,,'''';s of sever3.: ;Jrojects in different. coun trtes :incLu( ing Go."illa in 3;·.nsl3.desh and th~ Ir..te:1sive AgricuJ.tu:::a.l Dtst;ricts ir: Inca) ,:-,c i t,sio+-'. lled in'le stigation of Sc.hio ptan c or:di tioT\s, 7.he te:1.F1 conclwed ,h··,t, .,' Jcts of J.ny development-a.l actb'ity in isolation "'1V~11n prooab: J n 1'" , · ,icant. The team founel t.ha:. 1.)cally tes t.'Oc inno'l3.tions should .', ·.l ,. -; a basi.::; for any p~'{t{:msio:1 effort, 3:1d tht~ f3.rmers s h o u l d , .'':' these innov3.tions. Therefore, not only should the innc vatio!1 . . dXp.::c:':nenti.uly develcped i:1 the :lre'i., bt::' +.Jley should be :r.~tde '-> a'/ailatile,o far:ners on credit at .e.s.sonable costs, 3Ild the far::lcrs should be ablf' to sell their produce at a fair and :,;~cm'e price. 10. On the basi~3 of the conclusions deri'.;ed. ~"'ro:n the preli.:n5.l".ary in 7estig::: tio ,3, the Swedish and ~'thiopian governr;;ents agreed 7,0 C:-.OOS0 an are·, for a ~.')il1 r ~gior,aJ. de;~lopmont project ',;here essential e16:ifents of lU~ ::lent weuld be appli8d ir an intensively integrated pacLage approach. r~'he S'... edisr preje;t prepara'::.ion team indicated its prefert:!nce for Ch.i.lalo A~ITa.ia in Muss). :!",()"linee maialy because it, seEmed best suited to Swedish expel.·ience: the mai,l pctc:ltial of the area was in grains, .field crops and ani:nz-Ll pro .. duc tion. '~he Eithiopb.n Govern.'llent accepted the team IS pr eier ence for Cb..ilalo. The Swe1isr: Interr..." itional Development Association (SIDA) submHted the genenl project outline in October 1966, a.r:d it ~';as ac-;eptea by the Ethiopian Qo'/ern ment, ~'l:_ th rei!' modifications, in ~rch 1967. A detailed project proposal was !Jubinitted in June 1967, and an agreemont between the Swedish and Ethio pian RO lern;nnnts was signed on September 8, 1967. to implGmt:mL t.hfl propo::;ed program und3r the name of rtCADUll, The first agTe~m,=nt covered three ye:tI'S, and t.he sec)nc: agreement, ;'Thich ends in 1975, covers five years. Sut it \.;ae:; origina . ly ·mvisioned that, if successful, t.he project might fla.-Je a ;::ontim.!f?d life of up to thirteen j'cars. Svoluti(:l1 of '.":ADU 11. The 'dolanlo Agricultural Development lJnit '"as effectively estab ,lished :n bril 1970. Although -;lolamo Mrra;ja "''as high in the priority 11st of areao se:ccted for package p~o5rams as enviSioned in the third file-year plan, i1 '.m.~ t~e strong personality of the A·...-raja Governor that '..;as instru mental in t:le ,~stablishment of WAnU. ~..jolarno Awraja, one of the :nost densely populatEd a,:'eas in the nation and part of a large homogenous region that neetied i:nprove.nent in its agricultur3.1 activities, ;''as believed to be an area "he;,e any rural research and developPlent progI'",-!7\ ;';0uld have :1'.3.xi:num L"lTpact. It waD felt to have the most suitable agTicult'l'"al project :or consider ltien by the International Dev"llopment. .l"1tl';'l tion of efforts on 3. 'ew proven innov."l.tiO:1S (m.lch a::l fertiltzer and i::1:-'-~;':~d 3E"f'cl var ieties) in 3.ddi tion to a supervised credi t PI' ogr;:lm. 'r{i thin the constn,ints of a7ailab:.e mmr'O"Ol' and financial reSO'l.ll'C9S, the HP? dims to benefit. as ,il,J.J:~r peasant fa -;nE'Y S ,,;s possible o'/e1' large areas, Glliploy in>s methods anc. innovations dsvelopedmd te~;ted in tha cornpl.·ehensive pro.j~cts. Thus, GADU ana '.·IADG act c"s pathfind.ers for the MP? in that they develop and test new exte:1S2_on t<:::ch niques and inr,)Vct,~ons to l)e distributed in thD r1PP areg,S. 1!l. 'n a.-dEl' t adminlster ~1. nation-wide extension proiSram using th~ minimum pa,~kag"~ approach as well as to supervise c\nd coordinate the cOI7tpre hens~ve pr·>ject-s, the Extension and Project Implementation Department. (EPID) liaS estabLshed. j n 1971 with the assistance of SIDA (to) .1/ T:1P. ~;.:tensicn Div-:'sion 0 ' EF[D operates the ;1PP in areas selected fIT':: 1Iltensified extension activitles on :.!,~ basis of availability of tested innovations sui t:'tble for the area; fav)rable demand prospects for products that can be ,o;1'own in thc area; iInpcrta:lce of small-scale farmim; in the area; Cl.ccessibUi ty r: ~ SITL"'..ll :icale fJ.!"m:ng ~'1 the area at all times, Le., availability of an all-":'~' ,ther road :Jassim; t . U"ough the area; past experience in the area with resp.;ct, to its farrr,er:: I r,~spo:1se to r.lewly introduced innovations j1.tti tudes of the area f::'trmers towc:rd change. ~ith the e!tJbIish~ent of S?ID, all 0th~r nre?iODS 0xr~nsion prot;:·3JTi ~";I!r(~ '-errrlinr1. ted. i2. Perforf.1ance of th~ pTo~~ects ;.;111 be eX(1m i.n Lhe CGntAxt of the stlted aims and objecti78s. DlerAfore a brief r~view of the ~oal hierar:hy of the three proje:;';.s is ',.;arranteG prior tr::: any detailed pre sentation of the evaluation. 13. All three proj'3cts aira to raise the producti~lity ~'..nd s:-3.1:dard af living of small-cale far:::ers. They aim to achieve t.hese goals by pro vidim1 far;!Ie~'s with technical adV'ice through their a"Ctension progr.2 ·'S, by proV'iding fa:':ners with i:npr~'led inputs on CT(',Ht at interest rates much lower thaJ: alternative SQurCes and by LlTproving t.he farmers! position in the market. Thus, the stated of the three project" are qui:e Si::l1i lar. In .::act, the goals of GADU and the t1PP are identical since the HPP 'tIas r n c i f t e r CADU and probably si.nce both pro:Jects werf~ prepared '.rUh teclmj :-:3.1 as sistance f~· om SIDA. Th~ 11Eil1 (,;·o"11s of HPP 1h. Si,lce GAD:.! and the ~IPP have th3 5':1,;ne set of goals, th2' list I efe:s to both of thehl. 'l'he three m.ain in order of precedence are: (a) Achieveln(mt of economic and social de'''elop:nent throughout the project area, ;.there activities to!:tdrd this end 'Jill be Conduc ted sue h that: (i) The p:c'<~ 11'ation of tIl;; 301' ea papula tion :i:1 the ?roject's activities and their assumpt:ion of more and more responsibility is en.~anced . (ii) Adverse employment effects 3.re a'loidec, and wherever possible additional er.lploymer.: appal' tunities are cre~ted (iii) Project activities are directed mainly to',.;ard farmers in the low-income brackets (b) Continuous search for sui~~ble methods to further agricultural development in the project areas and in other parts of Ethiopia (c) Training or ~hiopian staff and creation of possi bilities for applying the experiences F;ained 'lt~ADU in other parts of Ethiopia. The :·hi.n iKlals of ·tiADU 15, TI,e mc-'_~'1 distim;uishing :'e;'lture of 'dADU fru::l both :-l?? 'inc; ChDU _5 th~~t, l.D. 3.dditicn to .::ltten;pting to T1.ise t:he irh~0rrles of s,7':i.l..l 13.r:ner 1 iT. the .v3.isi n f:: t-!1':~ :-;,i~~")Il .L:1C2~·:8 pf~r :""U:'i-!' ,:.In=-ly 0:'" ,J.'';Cl.1: ~) ,000 s~,.al1-sc,:11~ 1',iGh-1J..I:c. : ,'=tr:ner s f:,onl Eth$2C{} ~O Eth532S by j~U~ ~ine 1/. (b I ~3tablis~i~~ 58 tlers- :n two l~wland 3re~S 1,7 'Jf ""i~olxno (Ab~?lla '}r.:: 3ele) 30 th2 t e2l:~, se ttle:~ ·,..;-=-ll obtai~1 a~ "'lrnUct~ C(i~3h irlC:..")me v~. . :.~.:~Ct.;.t 3t;-~ . ~}., by ye.:l.r ni:18 (;11 Ee1p oring ~lbou:' J. shii"t :J.~O~ suhsistnnc~ t") ~t1onel·i2ed agricultur r , . I I::..crease the g0v'.~r::;~t~!1:'ls JC,ElX reVenll~ .t'...l' ( O. :he farmer's increased inco~e c::;! D0:-rtor.strat.'l the i.l1pact of dev"lopment efforts :u:(; pr'Jvide C-'l.tJ. for the for:mllation of ot::er devel'JP::~e:1t projects 5.n E·~l.iopi.a 17. PnOGRft.:'~ 17. Applic-=l resf~al"ch, desi~1~d to deve}.'Jp innO"J:l:.ions, is an im:';l)rt,Fl,.-:t j .::o;nnO!1~m:; of the CADU p;]'cKage of acti'lities. C. .\JU h~-l.S s11ccessfull:1 cevc;l,:Jr)i?d \'l'O'l - ""I,,lC :n" V .... :_,l .. _.~~ ........... 'I ~rQl) vaI'l·~'-1.' ~ jC' ·· r.;lt t"",,'::':> ........ c::;~~, ~d~""'t"bl'" '-r· u ·'fe"'''n'- soil (".,...,;,,1,' ·.h.,,·)!-) 0. Jt.J .... ,,-- :'v.::1--J.'---.1 ~ ~O -<1.' ;. .... __ _~ ...... 1 climatic ,:':m(titi'Jns. Tables 1 and 2 5ho;.; SADU's t in int:-o~'J:': yieldi1g ',H.eti,".j and better c'Jltura1 practl:~c;5. :-:AJU progre 3S 18. Af-',er attemp7-s to intr0duce tractor services ....ere found to be sociaJ.'.y tndf!sirable because they led tQ tenan'::. ~viction, and 5inc8 th0. econom ~c :;:-ro::i t..:1bili ty of using tractors, 9i the!' throug!'i inc~'eased Jieljs or red Icee: costs, 'rlaS found to be insignificri.nt compared to using i '11prove~ local )10''';-5 ~2), CADU became reluctant to i:1troduce totally forei;;!1 far:n i.-rrplem,mts. It3 Agr ictiltural Engineering Secti::m llas been \.larking to im-: prove ~he b.'c{)r -intens:iJle ani;'Ylal-cr3.;m local far:n i:nplement3 :uld to tr od:1'!!' local (lrti.3~U1S 'Who make· and m.c'li'!1t.:].i:1 :'he i:npr:>ved imple~ents.. It. :'1as i~1-" proved the l8ca1 pIa", developed -'l.r: ,J.!15,:n21-,::r-:"t'.-l!1 mrro.... , jesig!1~~d :. :le','1 hand hc,9, Je\'8lcoed a st3.tionar] +:.hl"'?s:;'er'lnc i!1'",!,r)du::rd \..'heelb'1rrrJH 'Ind 1/ 1,0 snttlements . 7 r9stllts "Ln ·1 :;: !i.:;~:"~ ~~0; ht::~::,,'.t;e ;:'"J.~d',~.~--,iJn ir~ ;::~·)~)ts 20l:1!lar~d ~,~) ~ht') tr.1 i~ ~ional plQ~..l, '1!1C- ~-,!S:i.!"ll.-: ,... Kt?,71-dY:t'n"":'l spik~-~t.l)\lL!1 h.:l:·r'2",,·;~i ~,t) >.J\"tJr .. ~,hl? :~\)~:.. res:11ts in ?-} lU:':1'<:~l3/:1;.1_. :l:iditi\;n:tl OU":pu:, (2) . ',':i~/:l :~eSp~t~:, :~ 2.i::0 s tJC k c\·; 'lel~:pr~(~nT.. , '~A::;U c 8r..,~ ~~:. ~,r ,'1 tes an ilp~~r J.ei i ..t'll; j:;. ! __ ·::c~.;s J"nd "1di!l.-~ b~ e 7 cat.. t~tJ i:s il:l !:"l-.lled Oil':' b~2'.~:l:1.se gr'i~~in~~ :1:'"t;:e. i3 l:.:ni'ted! Z J . l , u a I i '.:y 'oe'3 f :'5 no::' :n.li lJ.oLc:lr',d :;::c pos3il;~liti~'s ":or e.~portin~ bee: ~,_~'":(!er p:"J5~;nt.. cond~~i'Jns 3.r(~ r:x~~re;:;ely l:L'71i ted. TaLl"! 1: (in o;r.~'l.) :Xop:;: _ _ _-A._ ,__ .~_, _ _ _ - - - - , - - - - , - - . -.. "'----------~- .." .. '1,'1 .· ~-.--.>-,--~-_~_ Lc:::.::tl wr ,:::1:' n)t fertilized I () . '3 12.1 I'Ll I:n?r ovec wh.3.~, not f-:;rtilizeu IS. 0 11 ·. ~ Improvt)( ,.11· ·a t, fe:rtilized 20.:) l.' ') , L.")ca1 b2 rlE:: lOt f9rtilized \3.0 1'~ " .,) l:':;.9 Lv\.>3.} bar , fer ti.liz~d 1? ::: ~,)c'il bE 'in:; . n·)t fer·tilized 22.S 22. ,3 1:3.il Local [1,3...,,,<, not :ertilized 3.:; h.9 5 J) Tab'e .2: C'D~1?ARISON OF TI"2LDS ,i-'OR SELE8':2ED ':;;E~AT '!A3ETES, CADU, 1970 (in q/ha.) ----_..... _---- ---::'::-- ·.~--.-----------------.- n ---_._ ;·/hea t '1.3 r i e . Local ''riC eat, T1.)t fertil~ed .7 7.1 Yaktana )4, fertilized 21.9 11.9 Supremv J fe:' tilized 20. J :\entana F'J.'o~1t.:tna., fertiliZed 26.3 31'';;6, t'ert,1Ji.z'~d 2S.7 --~- .... ~.-------.----~--.--~---------. Source: 1.a!1c! n3.S :Je·:n :1f)tiGe.j ~.n:,hin r.:~,,~ '_~I\.J] pr()j~st ::1.l0.:l ~:,i;n3.~il:l It:l ~.~) r1i;~:hf~r r~4-,,\lrnS 1i1 ;-;rop ~r,)dl:2~.'ion~ ',1uesti,:)n3 on the v3.:id'i~,:/ of r:-'':1i.:-:; ;nay :'~l,.:"so the efforts ~o ave livestock. ~ven though under present ~ondi~i0ns ~n ~~-,:ra dol'~ar Spl~nt :'aT :::rop p~"r)du~ti8:1 sp.pn.J :0 b~ 'nore profitable t~1.n that spert- or l',ves'>Jd:, it does !10~ necess:wily ::;81.:1 tha:' the r81.1.::.i-:';> profitabiLit:. 0" Grop produGticn is ~'ierl1.sti:1r:;. The '1\"ll"CSin:i1 ben~:'i:. 0:' a dollar .3!Jel t )n ct'JP ~rodu~ tion '.-r:i_ll s:'3.r t :'0 dec attar .J. po~n.t in 3e:;i.~cs , [1S =-nccr.:e3 0: t:e popu.l~lt,ion ~or:t~:,,~ue to rise rincl pe e IS kr:orll-:: i~~t~ abo\tt rnl""'-it~0!11J~ ~/a:"ue8 o~~ v3riou :)~odu~ts conr"inues to iT1prcv~, "~heiT' de!\3.nd fcc l've,toc;': products ·lis-l . _:.'is other ptcducts ~-rill keep '),1 l:l ere 20. :"ree pI':ljects have intensive extension prograr,ls as a ,~eans of Al int1'~duciag he p-ro'len tt,cbniques to farmers. CADU's extension ?rO~;::'·l.rn op~r- a:.es Uti' ugh ":~1.)del farmers", 8:J.cfl of whom is selec;:,eu i':~~:n.. .fi.:i'> ·:,-:,:-,....;iJ,ttps pr'J"Jidf')d oy 'ar ;lers li'Jing -..;ith.:n a designated GOO-hectare 3.l"~:1. C!18 r1xtpn sian agel't, ,raLned at the intonnediate :1~r:1.CU1.tl1';"3.2. ~o1l8ges of cit.i1P4" .!i,~,,~J. 01' Ambo, 3nd tH) a3sista...l1t extension 9.gcnts, trained at CADU's Trairli.ng GBnt n " , art> respcnsi',le for a J!9.ximurt1 of lS model fa:rmers ',..it.hin one "extension are"'..". 2'j. Th· edens'Lon ag,mts advise mod8l farlners on v:lrious cultun.l pr'lc tices an: -:m hor to ns~ the impro'led inputs. In addition~. they hold period:'..~; field dajs t" d~rnonstrate the 'lalue of improved seeds, ferti.lizer and other innovat:i,cns ·0 i l l 'interested farmers '..nthin 'l.rl extension area. ?ieJ.d days held on the 'llots of lTlodel farmers and on demonstration plots are usually st1'3.tegic placed all tIle side of a main road, near market3 or near Chl1~C!h~s. 22. Th~ rl'Jmoer 0,: extensi:m a~'~as jn CADU has incl'eased f f om 7 in 1956/53 ~ 1/ A dltailed analysis of the !1:Jdel Farmer Area Dev'3lopment CorTL":'li ttees is gi'/m in 7,he sec:tion on local particip~t:ton. 2/ Ar,r ~cultUJ'al Inputs and :'hrketing Service3 (APIS), a subsidiary of the fiID Bank, i:3 to hJ.ve a ::1onopo1.y power L'1 procurei'r.ent ,md dis trilution activities. 11 _ possible. 1"':18 nt~""nber of trade c~n+~ers within the :;£\DU p~·'"Jject a.rea ~s increased :'rom only 7 in 195-3 to 32 by the end of 1972, PI' im':lT ily d1..~e to the rapid :!Xp2ns::,on of ar ea cove:ed by extension activities. &ich eligible farmer can get the desired inp~lts fro:11 the closest trade cente-, after s a :::redi t as!' 9(·ment a.;'1d making the :1c':ess-3.l'Y down ?3y:nent. P8!"formancJ of the Credi: _._----------_. Pr0~·a.'1 1 :'fumbor and Amount 'J: Table 4 gives a YfJarly breakd,)',offi of the nu:nber, amolllt--and-a.'lerage si~e of 10:lDs. After a ranid i."lcrea.se i."l bot:, the nUTaber and anount of 103.n3 from 1967/68 to 1970/71, thore ".'as a gradual decline in the q11antities of inputs distributed on credit, the number ,11' loar::5, the arnount of lo.ms and the a'lerage size of loans. T,.ble it: NUMBER OF WAHS, A!1:>U)i'T OF WANS, A1TmA:JE TOA~';S AND QUANTITIES OF rNPUTS DISTRISUn:D ON CREDIT ,:;AJU , 1967/68-1972;"3 ---.--.-_.- --- -- -----~ _._--------------.--------------- ----- Crop Amount of loan ~vera~e {03.D -_._----:;-- Year ., 1n- ~ In 30 1967/68 h IS o ,700 83 977 b~ 1968/59 861) 359. lSD,Lt50 909.31 180 116.87 2,::'77 1')59/70 i -t{~( ~ hh9.h2 U. ( u ! :;02,876 2l'{ ·25 l06 (-41.11 ) , -r'\U )\... · I 1970/71 lu,OT~ 196.62 1, ,703 185.86 102 ( - 3.n) 1~5.oo0 1971/72 Ih,1hf: (- 0.S3) 1,L!37,517 (-2.91) 99 (- 2. 9u ) 3l! , C c;r, 1972/73 12,52-; (-10.28) 1,108,632 (-20.57) 88 (-11.11) 35, --~.,.--- ---- - ,,------.,---.. ..--~---~- ------'---_.--------------._- Source: '~ADn a~ml1al reports 3.nd CADU's CretU t Section files /a 'I:'1e ~_'irjt crop year, 13.sted only a few months, was an exper ~~ e'!".-t;.:" year and does not reflect nOl':nal situations. For , the small 'lllaJl+"ity of fertilizer disuibuted compared to seed to the l.:l-!:'~ 3~'ri'Ja1 of fertilizer and does not r\~flect less derrkind Jar fertilizer JJ. .:?cline in the nurnber of loans, aI1lOunt of loans and ~uanti ties The d · of inputs distributed on credit, is in one way related to th~ marketing prol:!lems 1/ ~incp C\.DU gi'/8S only one loan per farmer p~r year, t~1e nUr:lber of Joan,; correspnnds exactly with the number of credit-takers. of the pro,:est. ',;hieh are discusseJ in somf~ ceta:i.l i:1 tnA :na::'keting sec:ion of this rlo\,ort, Juring both 1971 ;;.nd 197::', r~he c()n'::inuous declin" in gr'l.in prices thrcughmt the country(particularly that of ',.lheat resultin~: from l'i.q~" quantities of.mr;orts by t.hfj Grain Corporation) forced CADU's 1>tlrkntin~ Division tc: of 'er farmers p-rices lc',{('r th;m those of pnwious YP·:1.rS. Local tra.ders anc. bi ~ landlords,y ',;hose vested interes':s ;.,'81'1" in conflict ':/ith GADU I S maj( r a Jns J took advantage of the si tua tion by campaigninG .'1~ains t. CADU and tElli.Jg farmers that CADU '"as really trying to make profits by offer ing t..'e<1l Ie wer prices than it had in the past. To prove their point, they pointed ou~, th it ~ADU was charging farmers extreC1ely high prices (about Eth,i,!.lO per quinta.)) ill" its ill1proved seed. varieties but paying only half 3.3 much '~hen buyin ba:k the same varieties from them. This is a conVincing argument to fa.rmers who h;He Ii ttlo under standing of the costs involved in developing neW high-yj '~ld::'ng seed varieties. As the result, !TL'iny farmers are believed to have dec ided not to take any credit :'1' om CADU. 3h. Inotl'.er reason for the decline in the nu:nber of G:"ddit··take.rs ~.: that m~"1Y 13.rm·'TS did not see the need to fertilize their p10ts year Ctfter year. Man) fe: t th3.t, once applied, fel·tilizer '#o11J.d kelp on i .ncr.nsi!1g, yields for :I'la:n; .s .lasons. In addition, many farmers b~gan buying their sBeds from other farl .e,' '; (who had grown high-yielding varieties developed by CADU) at prices !Tuch Iofer than those offered by CADU's Seed Division fo:... <1hat '..as probably a bet· er varit3ty J and many others were reusing the seeds th(>j bough:. from CADU j;1 ptevLous years. 35. 1;.18 (on ~inuous decline in the average size of loans is prirflarily due to the~harge l in the project' .9 credit policies. If We assume tha tall farmers elenel:! f )110'.1 the recorrmtended rates of fertilizer and seed application (CADU reco:-:' ..en(,s 'DO kg. of fertilizer and 12S kg. of \olh,~at seed per hectare), it can be :Hen hOi the size of loans is determined by the 3iz~ of area culti '1ated (or o'mec). When there '.ras no restriction on eligibility for credit, during the '~ar2y_ife ( ) f the proj~ct, a large proportion of the credit-takers were big cuLti'iat')Ts. This led to a larger average size of loans for the earlier yeal's carrnared to that of recent years, ..hell stricter credit policies excluded th.3 bigg,:r cuJ.tivators · . 36. ~istri:.~lt~!!.. of C:r:.?~i:.~~23"<...,Di~ferent Classes of Farmers: Given the considel~able n.xpansion in the nu.mbers of credit-takers as ',.fell as the amount of 1 )ans, ;·re ne..'Ct Clttel7lpted to anal:]ze how the loans were dist.ributed among diffe :'ent::'illcome classes. 2/ Since land is the rn.ajor source of income, area owned I;,S u~ed as a proxy for incOl-ne. Area mmed is preferred to area --'---~---.-~----------- 1/ CADU·:3 ctecii t policy had by this time e..'(cluded the big landlords from part .. cip.lt:ing in its credit program. 2/ Dist;'it"ution of project benefits among differen~1 income :";.L2.. sses, ·..,rhieh is h:.ghly related to tho dis7,ribution of credit, is discussed in det;;i: in (1. sep'iT a te sec tion belm·. (:111 tivat"d t ;cc_use a landowner has opportt:ni ties ':or a.. ddi tiona.l income f-:-,xn l;:,.nd he Ik'l.y :101 directly use Out rF:!nt out to tenants, and a tenant's incone is not elrre ~tly refleeteri by the a:'ea he cultivates 5iJ1CO he has to give away 3. ttiTc or a ha.lf of his earnings as rent payments . 37. As:xe -.ould ex:pect, the a-lorag ! quanti::'ies of ~eed and fr;rtilizer . u:;ed by ,iiffgnnt income clasEes increased ..ith the 3.rea owned (Table 5). 3"u:-, whereas l.n 116', /68 the increased usage of seed was aLllost directly propor tlonal t·) la:gE'r f3.rm size, in 1969/70 ·the larger farms Hore using relath-ely less see,L In the caAe of fortilizers we haole tb~ opposite picture: in 1967 /58 ,he? 1;:,0 ho ha. fal'1'l'.s used the least amount of fertilizer but by 1969/;0.;ere using the most fertilizer, though they ,;ero still usL~,g less of tt pc' ac::-",. Thus the larger farmers are now using more fertilizer and less seed th,m they were using earlier. This could be because thl3y are using th:~ir T.LO 1 . t.~9 ?L7 1-10 81 2.0 L.O 438 3.5'3 1.66 1~903 1.82 2. 11-20 36 4.7 3.3 114 7.L2 3.6) H.ll ).08 5.62 r..:-' 21-40 21 12.0 2.0 66 9.58 4.98 179 3. 7.10 Above 40 18 IS.if 6.0 ~4 15.39 29.80 St. 3.67 9 -59 LT.class Hied 1.8 32 B.)) 3.06 552 ! r) "- . '1'0 tal 189 868 L,7::8 Source: Compileo from tha CADU Credit Prog::a:n, 1968··1n~. /a Ninety percent.. of the te;1ant credit-takers in 1969/70 cultivaLed less Uwn 6 ha. (3). " o -!' - ...":.,;"" ::::: ... ,; :"1 _ ~ I" ::: \...... ~-: ,- ;;:) :--. L... ·,,,;i ..... )...1 "':I " I .. :> -' I · G ~;! :.~~ ,~ cD ,> ,> " -, ~I :: ,, .: " " ~~i ;j , , - .0 c '" ,- c. ]i .. . ''; - ~ ~ .' £lCCOunt'3d for ()r,l'/ ~ -"[':'/71, ::~)'~~lI~r, no~ only did thAY ~~ 0 ~p )~~ of blJ1" th,t 1")67/5,3 and 1968/;9 s:i.'I>\ P.. dLf:eren Z" ;'U1''2. ,;""" d)·.:n .. ;J·!.j:';'\.i1:/nl~:(' of :nputs ratio indicates th,~t ;'" the a"'~r;:i(~L··.1'; ;:;',T""~'" :r~'r·:'lr.'!'\t I!::, ~ o[ t.hf:! toi:ill '/2,.1:,:8 of inouts die tr ,outed rm c:!:"e(~:'7 ,. ",',c I;'~.,;, :,,)011, ... '::' in 19,) ,and abou:' L2~ i~ 19;0/7) (Table 7). L"lL. Tr.~ l'3.tios also inrli:::!~>J 7,hat the do:m-pttyment rate ....., lS :-:lore or less the ;a.-ne :('T 'llmost <111 cL,:::scs ()f credit- t~J.ker3 L11 1967/68. H. " :rcm 36~'or t,np l to IO-ha. o-..mers::'o hSf, for t,he 21 to l.:O-ha. ')""'11e:rs, II~ :'lct, 1m.aor is C,'<."illg O'/N :!O h;,. r):lid only ,-< ,,1ip-hUy higher do,.;n-pa.yr:;ent of IL); CO!1par:d ':0 Lo-t, ~or tenants. I"urin~ 1968/59, reg:oessive cimm-paymnntG rates w~r!' ;::.~ :'El1y op~rati1)naL l1v~ tabl,) shows that te!'.ants p1.i..d J5~~ do',m payment, (:c;npll'~'d to only :?2'{, fGr landlords owninp' OVf:.r Lo hct. Tne rrobable explanatLn f)1' this discrepancy is "hat the 2()-7~~ 'INm-payment requirement <';!'Aateo wl:.en ~hE: initial ~redit :.'egu1ations '"er;~ 1:1id down a11o',,"e': ~oo '.;ide a margin "01' :,Jlci'/idua1 discretion. F\lrthermorp., L-. an attempt to ir:duce as many :<:.rms:-s into the progra;:: as possible 2.nd thu::3 -:'0 demollstX'ate tha v:'!.lue of : npu ':.s suf[:',ciently, :r~;r,ulation:J \,'ere not al·...ays closely follo"red. LiS. Th~ i::rpact of th(~ re';is(!d ~1"e(Ht p"tOgriUll, where c1e:::U'-~ut ruJes and ,egu1;:.tio.'13 in lill,~ with the st"lt.ed aims of the prl)ject were 3P.t during the 1969/"0 Silason, Gan be cle.arly seen in the ;:rrog't'essi'18 natur"! of the c!o ..m-nayrnf:nts made by dif[f'Jr~nt ~lasses of [armors. Table 7 sho,,-s ~;hat t:1C a ,/p'!'age dc,wn-:Hynen"'J dux Lng 1970/71 r1.n~f'Jd t'rnr:1 ;: fur tenants to Sh ~ for the hid 1~nC!lord3. 1J.6. 8r ~di e I~ is :;l5nerJ.lly J(:liE~'v(~ci ~'-,hat lo~~ inccrme Ulan hif':h-income bOTro',Ter~. 3~,)C:lUS8 of their ~igh'r propensity to ccn3ume, :h8Y are ~lleged either to divert ~ro :.iuctiOll c,edi; tJ ::;<)nsll,l1ption or- +,0 US(l r,heir incr~,c"8d inc:)''1(~ [Jr ;Jnsunp:'i.on ::''lther th,n r"k~,'i1ent of credit.. This reaSOniI'lg p:eob;~hly jus:'ified :'he r'~ luirement for d'J;,m-pa;rmenti3 in b~ co.3.) of GAD;! (as ',·lell1.s thA :.1P?). It is . furi:her .:lrgued t.:",?t faC'mers feel .'1 grea::'er s~nse ':)1' res'Ponsibilib for their fleht; ....t!el~ ~ thpy :'1<1'/0'; to 'nari:2 ':!o-,,-::-p;lymen::.s. ..' . h7. An an1.lJsis ~f the r~:Ja:Ii1~nt pArfol':r_1.~C~1.t CADI] ShO'dS that 3cnll h.rmers are ::,y r!J me'3.D::3 ',,01'38 dei"3.ulter3 compared ':.0 large farmers. P~thouR;h U18 prop0l'tion 0: tenants ~.[ho tcr;~ ...:r2dit ,.j,~r "he 1957 /Si1 S8~1:)on ".".1.S only , 2.11 a the:;: ps.id b,1.ck their Lxms by dl,eh,J~ (7'1'019:3 :3 and ~:). In~0r. ':r:cst, So of tn·: lo:ms Qutsta:1Gi:1 s 3.: due d'l7,~ ',;'Helttributed ::,::.e b l~,~,-nords ,..ho mal!c up only lO~ 0:: 3.11 :::n5 -:-Ut:'nr:; (Ta'ole 9). di , It II 1"11 I 'Y';; h 1.. 7· RArpTn ~~' nll\JN Pt.YM~:1\irr '1'0 'T'H"l V!TJrn ()~ T~JPiT'1''::; T.'n~ nT~p~ri~Pl~ CLASSES OF FAnHERS, GADU, /68-1969/70 _ _ _ _..:::1,967/66 1958/59 J Do"m DOl-,m DYH;1 paym8n~ payr;;ent p2.yr;;er,' Area cr..ned Grtdit Value CreeL!. t Value GrBcli t 113.1 U0 (hiL) ~ .. v. '''''''h''' ) :p R3.Uo (Eth$) Ratio ) ~:it io - - - - , - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ _------,--------,,- ..... Ten3.n t .3960 .31.31 138, " j,)~L 1 10 .3635 .23SS 19);L4 .3,)Jj 11 20 L, ') .4261 ')1"') ............ 1 . . . '::>1 , _, ~J .ll~17 , .LI:94 .2781 ~ ~ 21 3t 2S,S)) .. 7 .) ~u Above .0328 .21 !03':, of Ul"':"~-"~ "~i~:1:' o..G::':1:: :l:1L J.7'')U/::)'j were 3.'::, trib1.1t;~~, ::,(} t~le POO!' re?1.~-·~~~::·, ;,)~;.:,~:,-j~ ~Ji ~,:1~~ b~~~~(~r landlord~5, but it. i5 dif;"ic~_u.t :') ?'~\-, t,h~ ~13.!""':~ 'J:1 .-~~::! c1.r~!.:~ll1.~~ ~l·:tt;:.i f~)"" th(~ 0utstandL~g loa!1s of 59/7<)~ T,i"Jle 10: ?AE~:~;;3 0:;' QU~3T.UmI~lG LOA?iS A'~ DUE DATS, ,JADU, D '!'J - - - -----------_.,----- To ell CrfJdit },J t!1 tand ing ,t ::redit. (~h:t) (Sth$ ) (}utstanding Takers Def3ulters Defaulters 1967/93 15,700 2 t OlS 12.9 189 17 8.9 -, 158 t uoo bS.l ~ 1956, 'q 72,905 8S8 307 3'.t.) . 1969/(v 502,875 '21.tJ ,931 h9.1 h,769 2,1L!3 uu.9 Source: ~o'\piled from the GADI] Credit Progr3..iTI, 1968-70. Th31'P are n0 i.ndica tions that the decli:1e in due date repayment rates -,n, ca:lsE;d oy serious crop failures 01' any other u!1controllable :£'3.C:'0=. Thus, ul"'~ess there 'riere less '/isible forces responsible, the poor repayment record ,ni',] t'3 clue to inef:i:::iencies in trl(~ debt recovery process - probably true sinl:e i:. was learned that only a very small percentage of the credit rern..3.ined out:3t.3.ndin~ fe",,[ :nonths :lfter thn dUd datt~+ For exarn~le, on!:.: 17~b of the t. )1;a1 1968/59 lO2.DS and '(.It ~ of: thA tot.al /70 loans ·.... ere out standing abc'.1t fO'JI rnont.'l3 after due ria te (;, 6). 50. BeC3.11Se Chil3.10 ",;as b"lst suited for cer~'lls and ii-:estock and ':::e cause iTla~ket3 ',lf~re favorable for.. ',.;heat and milk, CADIJ r:;oncen7.~·ated i':,s :nar ketinr; a~tivities on these t',10 ?ioducts. ~lo org:mized milk markets existed L'1 Chila:~o until CADU's :2:'keting Di"/ision sa,''[ the p05sibill":.;t of supnly the :najOl' m3.rkets at.. Addi3 Ababa 3.nd :·!azret. It or cd cJlle·~ s~J3.tbns along thi~ :najo:- foad1.nd st,artnci collecti:1g milk from farmf~rs every mur:1ing. l1w f::l.rm~rs arl~ paid Zth.W.2S per lit.3r'lDC CADU s~~_ls i t for ;<;.,:1.;:o.-S pAr liter ~:1 Addis Ababa. )1 . The nil1< market:'n;:; opllr'ltion :1eeded a ;tini:;:11m (,r 1,L!OO Ii tA3TS to br~ak even, and the :na~or buyer, the Shola !.11.iry i"ar:,l in Addis Ababa, '21 proble:-ns du;:L:1 _ t1~~ drif;~-- P;:'L:'-J 'J: :~:t; y.;tr, L,."::-., ',{h~~:1 7:'105:' of the ~attle are drivi:!n t) I h;:~ lc',rlDJ:1c13 ;»:- ~~'t:~ S~"~')rts ar:; br~i:1~': mll~(' 70 l~s:Jen p'l:3t':.lrJ~ pr-J'::lf,rns by introduci.Tl~ 3uDolemeJ'.t:.1!" { fe8(~ir.g ::illr~~ng t~~t~ dry s~aS0~·1 .. :'! Ll~in~ -~rl)s~3br~d ~.J.tt...lf! are also b9i~~ aeveloped !or distribution to f~:~Ars, Tab.e 11: -_._--.. - - Nonth -----_.. _- ... .1 t,'!f S -- s :1onth Li~er3 July II, 31.;1 521 January 8,089 12S AU;stlst _B,'.70 Ul5 February 8,013 127 S"lptember : 6,311 L21 fA~.ar,:!h 22/)31 nS O·::tober ; 13 , :f11 IlOB April 3h ,971 u3J ~ov~mb"!r ~ 8 I Ill] 2?8 Hay 38, :;17 1.55 Dece:nber J 1,1)60 187 ,june 33,183 h72 ------ -- - ..._._------_.. _-_._-------_._-_._---_. Source: Bmgt ~kk·:Jy. P"as8. 1t -- '-- . .-.----~~ 53. l'h, f.'..unbol· of milk stations FSrw fl'o;:] only OI:~ in 1967/S8 to nina by '.971 / n, but the totCi'_ amount of milk collec ted :-:as been contL"1uously declin:"nl~ Si:1C(, 1969/'10 (Table 12). TI,t'! !:1.".lin r:::1.sor: for the decline aP9,-~ars to be bcc3.us'! - far:7lers fot:.nd . . meat culti'fat-ion to be 'nore F-'X'ofita.ble thc:n cattle r~,i3i ::~, ·... hiGh C;'.'.13ed tho continuous increase in wheat hectarage (as ·...ell as oth"lr crops) at the expense of pas+'ure lands (Table 1)). 51;. CAJlJ's g!'8.in ;narketing a~t:'7ities 3.r~ liJl1ited to :-,he areals till-,>,' major crclps - "heat, o'l.rley and!fl'lx. In f3.ct, thq ::].';t,j::rr emph,1.sis has so far been in ~;heat marketing, a~"can be seen fro:n Table 13. Of COUl'se barley '1ectarag:: :cn Chila10 is much la.frser )'~:an tha:.. 0; ,.. heat, bu':; returns per hectare re !ligher f'Jr Hheat thjJl for barley.' Besides, barley h3.s tra ciitioP3T:y 'ui!ec used for ho:ne c5rlsumpt.ion, ',iher::'l..l ',.heat is :nos:,ly :narketed. ----._-_., 1/ Th,E cu·,~:ll[lal pr3.C tiC:8S re'_1;1ired :"\y;: th~ ;-.r:.; icc ~-,iGn ,'):~ ·,·;nea ~'" and 'oar ley , 8.H si lilll', blH, yielj~~ pl_~!, h~ctar~ us fr;r:-'=-lizl~r3 -;L:.d i.r:r;Jco·!\..ri var ic:'·-,e~ ~-fith1,n the '-~h.!J:J prr),1eC7.1 area a:o higher :"or 'dhl~~t; ~!1,j H"heat der:3.nd:i '1 hi~'h~r price U'L1.n b:uley uIlder present :;rJnditions(2, S, 17, 20, 31~ . t"Ui" sherm.oI e, '~l~~Jfr '~an "3.,:"" i.::r :,~t; '1:: 7.:) '~) L,j t-":2:~l:' ~i lIs :..:her ea3 mos tor {Jt:'1f!r C!"O~;S h'~~!"1 to ':)0 J\.)] '1 ~!'t .' i1 :',::';" ::~t5, ~.. ;r:~_"",:1 ::,\8T) !1aS ::)und t.J be too l~03t~:'. I'hi3 ',:;Gnce!'l ::;r-1 ti.,):1 ~- .~;.J) fJ 1 nx i.,2 ns:' ~~ ,],!l.e! \ona.: ke t in gaG t i vi t i ~::.~ on ',me;l t : I3d ~o ·3..11 ,,_1.') ,) '- . / ~ 15,939 Peas 8 957 G.?)).7 ',' R,320 Ca~tn b.881 11: ,b 3. J 1';', '1',' i) -" , ~') 3eans ..,' 908 )} , 1<) ')':0 . 7 i 7,5CO 21,1}5 Teff 1,)16 1,:395 7,,51.)0 9, SOO SorghlXn 610 Lentils Sour c e : C, ,DU -iir or Re sear eh Task No. 3 and CADU \:;r op 3;.1.11\",1:':;'6 Sllr',:ey fc1 . /a N(lte :hat there has been a tremendous increase in, the hectal'age 0." all crops at the expense of pasture and fallow 1ands, indi::ating U!e gl'o'nth of interest i., crop production. Frio' to the 1971/72 sea30n, CADU ',.;as purchasing gr3.ir-s (mainly -beat) frf)[~ fal';:'iers by oaying Eth$O.SO to Sth$h per quint.al above prevaUing loca.l marki,t p ·i(;es. /1 This policy resulted in GADU incurring losses. ror exaInple, d1 rin ~ the 1970/71 s-:!ason~ CADU lost SthSS3,217.Wl J and that prompted r,he Plannillg 'l'ld ~';lllli1 U,oP. Ser.t:!.on. to },-;·:-k fol' i):'h~ 'lpDroa~hes :,0 a more stable pri( e 3;ncture throllghou7, Chilalo ..hile hopefully~li!ninating CADU's losses. 56, "he .~anning and Evalu;ltion Ser::tion decic.ed to forecast the average price of ..leat for t~e 1971/72 season using a simple linear regression 2/ .."hich foreca3t!d price as a bench mark. The foreeasted price was Eth$27.S0, and after cedu:ting CADU's selling costs of Eth$.5.72 per quir.tal. a purchase 1/ CADU provides its marketing services to p.'lrticipants as -"ell as non participants of its credit program. For e:x:a:rrp]~, in 1970/71 it purchased only 10,107 quintals of grain ITem cr'Qldit-takers co:nuared to 19,725 '1uintals from non-borrowers (unpublished internal me~o· ranr...um of the 1-l:arketiniS Dhision). 2/ The trend Line equation ,,":1.:3: [ '" a + bX; I Price, X n,,":r'a t-' ... .,l.,'J .... o~· S<~ r'.).:J r;t:~ .J"\~ ::v .... £,,0;' :\solla.· ',,,"\,: e'cr ot,':ter tr~. . de centers, ad tr;\f~n~!; we ~t3 :llr!..:.:~ 'oJ ~".~.I~~~.>~ ?w">:o'!nt Jf add:i tio:1;1.1 tT:1n~fer cos ts. Under t:-tis polic~ ~ CJ:~ ha~1 r.. Q ,~dl: ~~:."u~Jt, 70,C()) ~uiil-:';l.ls at a. mi::1:u~u:n price of 3th$27.(, pc' c'.linVtl to b:: c ,,';.: "'·"~n. 5/. jJ.]cted minir:1~LI1 pr i --;<; of S:.h.p;'7 . 0·") ;Jcr 1uint.al Ht1,:] f3.r fTorn ''lle J.l( ':Jein~s rcal~.'z.~jd 8.~ f.. ~l~ r'~Jsuit o( .~O;-"f) \":~~3.n~~i~ tJ;(: d~,t·;lop~nents.l/ Ir.rports of h3,OO) ',0:13 of ·...heaL OffJefOd by t,r.e Grain Corporat.ion to :nee t.he antici P8.tP.ct shor·,3.;:':(~l cet-;.;een June '.u:d :;o'/etrlber ot' 1)71 arrl'J0d in Dece:;'\ber just as the dor.,"st.7.,: [,1.r'1e3t of 191"2. ·....:?s bein.g placed in the maxket. These im ports deF' r,S8! ·.. heat prices 'throu;:(;lOut th:~ JC~l,': f~au:jinv; considerable loss to CADU's cUt01CTfOUS :,t"J.rketin:~ Dl'::S-tO:1. rOT ,he 1972/73 season, it 'JaS d<:!cided to let farmers bear the ;n;u' keti11g ris} s ilVC1vf;ld. A t'c(o-p3.:tr.wnt sysb;t:l ;'(;3.3 proposlJd, with 90% of the prev3.i1ing lac \1 l'.arket price as the first payment. HO'llever, beca.use local traders ',Ie! e r'!ad] to buy all of t.heir p't'oriuce at loca.l market prices, far mers refUSE d t) sell their grains to GADU. T-...o reaSons forced CADU to re'7ers~ its policy 3Ild bUi grains at preV'.'liling local priCe::;. li'-irst, f?..rrr:ci':; nught start 10siT g t:leir confidence in GADU, p-".rticularly so sinc~ t.rader s and other local infh ent.als '..;erc trying to take advantage of the si tU3.tion by s+.1.;:"f-l- · lating ru:nc r s dis':;redi t::.ng CAl)U '3 marketing activities. Second, a sudden hal t in bu:" ing by GADU ..ould have moant less c ompeti tion for local traders (hence lOH~ r pric es to farmer s) as well as a. gr ea tel' )JOSS ib11i ty of a lo.;er credit rep< yme.lt ratt3 by farmer s. 59. ',. hill tiers is an undoub ted need for marketing and Pl'J.C1I1g pollctes, a tte.'1lpts by CAiJU lione to sol'le the problern are futile. CADU handles such an insignific;:; nt por tion of the marketable 1'lheat surplus in Chi1alo, let alone the nation, th.:;,t setting nou!' pl'ices was a risky and costly venture. 2/ 60. }. de·~.ailed analysis of tho marketing syst8m in Ethiopia in general and th9 GALU P:::Oj9ct area in particular is given in AppendLx: V. On the as surnption U:lt ··{heat is purchased in Asella at harvest time and sold in Addis Ababa just bef, 1'e harvest Se:ci30n begins, es ;~imates ~..;ero made of gross l;'!.3.l"ket ing and stcragr' r;nrgins per quintal of Et.h$u .20 .:'or 1958, E."'th$J .11 for 1969 and Eth$8.J3 f·r ~970 (TablA 8, Appendi."I( Gi'Jen that CADU1s selling costs n. (including :3toragr:!) are about 8th$6. 70 per quint..u co:rrpared to only about Eth$3 ,00 pe~' quin ':2_1 for Sr:1a.ll traders, CADU can hardly compete I:ers and from a cooperative even though by bei...'1g a member of a c'Jorerati'le he will incur more costs (at least in the short run). 7hese costs inciu(:e membership fees, contributions for building stores and costs assoc.,ate j ;ri th certain risks (such as unexpected price declir18s or de faulting m8;lber 5;. Under such a setup a. farmer is being rational in choosing to operate inst ~a(~ through a trade center. Currently, CADU is developing a program tha; '"elle phase out all credit and marketing activities through trade centers, in f;:rliJr of cooperati'les after three years of full operati.on. 65. Tlere ''''(;re several co:::plaints by board mG::1bern of the only re gistered co )p~r ,,~::ve at Bilalo that inaJor decisions regarding r.l:uketing and pricing poL.cies littout their partil;ipat.ion. 30me even complained that their coopArative (.as, fer all practiciLl p'lrposes, been tn~at,ed ~ust like any other tr8.ce center. Such conllicts al~d mi:nmderstandings could ha'Je r.egativ8 effects on the 3.ttitudes of farmer s towards developing self -confidence in running the:Lr soc ieties, tner"lby jeopardizin!: thp- entire objective of promoting local participation."! jj) 1/ Under ex-:'stL'1g -regulations, non-members can lSet their immts from nearLy ::;'10peratives. The only difference be~::"een member~ and non :nembE r s ~3 r,h3.t members are charged t:th:iJI perJ.uintal less :'or fer tjliz'~r. - 26 66. t()p-l~"."e'~ C0f1;~it,t8e l3 J.. :r:inisterial m:l(~ ~o~n~itt~l-~ tho ,1.Gti'..r~:ies ,')f 1.11 packa~p prok;r.::r:1S ':1:l~,~: ·,..it':1 tho 3~ti'ti.~~'1:J ot .)'.::"r :<:''.~t;ies. At,':i l)\i.~r l~'Jel is :':11' :\'..rr'l,j'l. Devr-lnpmer t .~\ r:t,'l ~ t tee 'Ahase :~~l:l'~ ·,:,ion i~ t·.:) ,:~ ),,)f,j i.na to ~~he ac ti 'Ii t i~s of CADP with other ac' iVcties in t:l'~".;",;"\jt\.. 1/ A~J tl:e ~rRSs-r0ots l~vel, therf' arE' farmers' c:)mffi !.t~flS with 'rlhOi~\ ::le project ;ror:<:c; t,) promo~.e the adoption of im10vatiofs a: C }remotion of ::~:)p"!r:~ti'!s as ·"el1 tlS p:,\rtl::i?ation of tho target por.l1a 101 in Gther deci~non-[n.,,;dnv, pr·):",:::;'''~s. 67 .~ADT·'s AwraJa De·l(!lop:r.fm~, ,~0rrunittee, 2/ ·...hLch includes the a·,rraja 'S0vernar ,)ff: :::e 's of the various ministries , executive dir':?ctor of the pro ject ar,J r'~rr~5e rc.atives of o~~b)r in:'lu?nLia2. f,)r':::es in t..'1e 'lWTaja, has failed t()~ch:: e'/) its obj"!cti'/~~J 1\:\1n1:1 b>;~.:n;~·~ \ :'<> int·~rest.s of the more influem:,ia~ ar:d ;)01.erf l l memoAr:J of ,,ili1 ;;oiaFIl ',:et: ·."Jr~ in conflict ;uth the l s ta ted ai:113 of CADU. The ccnflic t pr cr.1pted CADU to look for alterna ti ve means of pi'omoti:lg local participaticn'3.nd has pr:-xhced 3. rather complex strategy that attenuts to minirl1ize the involvenent. of antagonistic partif"'':'in-thG decision-mildr.g ,)rOCe53. 68. ;ADt;'s new mechanisr.t invol'las four committees, ,::;::"\.i;'! '..nth t118 Sam.e object,ives but st!Tving a ,.rider .:l.rea at each level. The 101iest level is the Hod~l Far:n?r Ire" Developmsnt C:or,ll'nittee (HFADC), '..mieh has six :1tembers: the model farm ~r. :mn golmasa ,3/ thr<:!e elected farmE)rS (at least on~ of which should bo 1 teorult) and th; extansion agent. At consecutively higher lev1'lls art'! the E:cens tOL Araa Deve.lopment Corrrnittee (E,\DC), the District Center Developmen, Cc rr:n:ttAe (DCDC) and tho Awraja ne-"'elopment COlfllni ttee (ADC). Their memb~rship becomes incroasingly large and broad-based the higher level the commi t,ee. ':'}18 ADC has 21 memb,31's ..hose positions range from the awraja governor t'J a :3le,sant farmer representing each extension district. 69. ·.fo g JVt~rnment of ficia~ except the golmasa, is involved in the two lowest cOlrudtt·~e levels where promotion of most of CA,DU'3 ,1.cti'lities is in volved, an". CAJU hopes to use these grass-roots-level Gommittees more effec tively in ,ran 5mj tting the concept of collective responsibility for its de velopment ,,,ffc' t,~. Active participation by th,1se committees is hoped to speed up the 110\, of ir formation, inc:r.~:13e cooperation of the target population and provide fel'dba ~k to project rjirection sothat necessary changes can be made uhenever tl:e n'~ed arises. As a first step, the rllodel farmer area cam:1ittees are screen:ng :redi t applicants, 'I;{i th guidance from tho extension agents. ----_._-_ ..._-_._.------- 1/ An 'awr'Lj3." ];';, , 3. sub-province. 2/ The Awraja Development Corruni ttee has met only once, in January 1969, 3/ The "60L11&3a" ins",it,ution, '"hiGh is vr>.ry new, is uni:Jue to Aru.':lsi Province. A gclma~a is an elected trustee who acts ~s an arbitrator in disputes bebeen f.1.rmer 3 and collec ts statis tical inCorm:1. tion [or the '.JQreaa (di:5trict) governmen+" 27 70. :10s+ o· ;:;AOU's hif;h 'le(:; ::1iddle-level ~'thiopiJ.n st3.ff3.re trained in other £~hicpi,Ln i:lstitutions. It trains i:,s own 1 -level field stafl' and some 0: tlos.! needed by t::A ~{?P 2.:' its traininr; center (Table ). Al most all 0': ue >:8Y professior:a.l nositions and dep.<:JItmental headships were held by exoatria,8s (all b'"iedes) at the 2eginninf" but replacE'-.'11ent of so;ne of its key eXI at,'iate sta.ff ".rith ~j'5hly qualified ."IIld :;.ble ~thiopians has pro~essed sa" is :actorily. A ij;ood indicaticn of thi3 progress is the de cline b, t:18 rU:!l)er of expatriate staff i'rc{:] 3.Cout hO in 1958 to only 2u by the end of J.9' 2, Le., a c:ecE:',e from about 18'; in 1953 to only about J-b by the end of 1972.y rab~ e 8REAKDO'rj}j O? FIELD STAFF TRAHlED AT CADU'S TRAINI~W CE::iTER, 19S9-70 iss: s t. Ln t Extension ~omen's Assistant Tr?de ::;enter __ . _.~nt~____ Extension Asents .. Foremen Year ------,--- I~AD1· ~1PP Total - . - - - - -- CADUTlFP Total CADU" MPP -._------,--------- Total 1969 12 12 1970 22 8 30 12 12 12 12 1971 32 32 6h 22 1 23 22 2) tiS 1972 8 86 94 31 31 Tot,'ll '"8 "26 200 -)17 -1 -3';' ~ -23 ~crr ~--~-. Source: C:nrrp i l ad from files of the Extension and Tra:iJling Division CADU. 71 . PrOvi:lions have been :nade for all package projects under EPID to employ 3taff on contract basis with a three months' notice of termination. This has w)rked :::'avorably for GADU in comparison with the process employed by the Ceni-,ral PI~r30IUl",1 Agency (CPA), l·ffiich hires all government employees. CADU's pro Jed d:'.rection acknmiledges that contract employment has contri buted sign'lfican';~ly to the effectiVl.ileSS of its work pr'Ogram, as it allow'S for proriloti.ons and salary inc!' aments to be strictly based on per formance rather thal on tonure, as is dona by other government agencies. 72. In=()utrast to other Ethiopia.n Government agencies, CADU seems to haye grldually gathered highly motiYated Ethiopian staff whose working relations >lith their expatriate counterparts have prosressed very smoothly. This should be attributed to t he meaningful jobs that CADU pr ovides ar.d to the quaUt:r of leadership at all levelJ of the project. 3esides, CADU pro "fides in-s,'!r'ti:e training for many of its staff and sends others abro3.d 1'01" further st'ldies. 1/ 111e1'8 were about 280 posi:'i·::ms for contr'lct emp1oY8f~s (only :1.80Ut, 220 filled) in 1968 compared to 52S contract employees '01 the end of "972 (34). - 28 Other Prol2ram~' 73. Wa ,81" Dt3velopment: GADU's water development pro~r3Jl1 3.ims to minimize h"al" h lazards through improved rural water supply for both human and livestock cOlSumption. The '.-later Development Section has already under taken carrrp::ehf-ns i..ve :m:rveys of ground and Stur face water sources and has coma up with a il8.ster plan for watel' development in the project area. 7u. Inves~igation is still going on to determin8 the cheapest and the safest sou'ce of rural water supply out of sevf'!ral possible alternatives. Once the b:3st po lsible source is located, the "dat.er Development Section plan.,> to organiz! Ie :::a:_ self' -help ac ti'li ties and to pr ovide necessary technical assistance, Jnp:l.ementation and financing is up to the loca 1 communities, but the s8,:tic tl plans to make provisions for 10ng- teTlii loans. 75. Rur II Health! In an er1'or t to determine the r ela. :.'::":;;'1shin between health, nu.ritrorl, population grmrth and rU1"al developmeLt, CADU lll;orporate('f" a rural he,l~th program in its activities from the very beg:llU1im~_. Its a(~ tive invol'I'emelt in this area, III close collaboration ¥ith the ··Ethiop:lau Nutrition :'nst It.t.te, stimulated the government '~o strengthen the provincial r.ealth ser"ices, family plaJU1ll1g activities and nutriUonal and child-cars programs. In:act, the provincial government's health services depal'trtlSnt took oV'er CADU's rural health program in 1971 because i t >las felt that ex isting fac~li t',e~ could be utilized better. Although there ar e no dOClli1ien ted indicators of the program's impact (such as changes tn mortality rateS and life e~pec-..an:;y), i t is believed to be operating satisfactorily with some assistancu from SIDA. 76. feeder Roads: In order to fa.cilitate its aim of widening the geo graphical coverage of its pr og"1'ams, CADU has recently started building feeder l'oads. It intpnd:3 to build five stretches of feeder roads totalling 155 kms by 1975. ~I~as::bility studies of all fi'1e stretches, which '.Jere conducted by eADU's Infn.stluc~ures Division haT/e como up wi.th benefit··cost ratios greater than 3. But actul.l cost figures ar(~ 110t yet avaUablo since the road-building prog.r.am has just [Jeen started. 77. Since '~here is only one all-weather road that passes through the pr oject are l , the fi ve fe~der roads (~ach s tretchiniS for about 30 kms) are expected to facilitate extension - ..ark, reduce transportation costs between farms and m'lrkets and Ancaurage more j~rmers to participate in the project's programs. :~ADU has already stx3.rted b\l.ilding the Asella-Kersa stretch where both labor-intensive and c'l.pital-inter!si·le techniques of road buildiIlg are being tested. The major problem so f~ has been the seasonal supply of local labot'. Road constructi.on may have to be timed to coi.ncide with slack seasons on the farm ~herever feasible. - 29 v. rnOGRAMS .AJW !14'...,ANS OF DEVEr.oP~NT IN WADU Developme1t of Innovations 78. As was t.he case with GADU, improve.'1lsnts in crop and livestock productiol were found to be essential prerequisites to WADU 1 s entire de velopment prcgrtilll. Improvements tn crop pl'"duction were to be accomplished by intl"od·.tcing :.mproved seed varieties, chemical fertilizers, insecticides, lmplement,: ar.j :.mproved cultural pl'ac tices (such as date of planting, spa cL.'1g, prwling :.u:d mulchtng). 79. Ta'8le 16 shows that yield targets planned for year 9 were SUI" passed by yea~ ?, mainly due to significant resporcse of the project-area soils to :'ertilizer and the high and rapid rate of l'esponSe of the Wolamo farmers to the lnnovations. It Has project2d that coffee yields .1ould in crease by a3:'tuch as JO{ just by the :i.ntroductioa of i~ro"ed C;hi::!T!'Y~rdcJcine procedure:; (selective picking of ripe cherries) and by the im,roouction of pruning and coffee-'rrashing processes (59). At this stage, i t ~.~ difficult to assl~ss the impact and the rate of adoption by farmors of the coffee i:n provement prar.tices developed by -r'iADU. Table 16: A :::OMPARISON OF PRE-PROJECT 1 P....AR 2 AND YJUR 9 (11ATURITY) CROP TIBlDS, WADU, IN Q/HA. Highland: Maize 13.0 1),0 20.0 'riheat 9.0 12.0 17.0 Teff 5.5 8.5 7.0 . Settlement: , l1aize 12.0 18.0 24,0 Cotton 1.4 5.6 10.0 Chilies 1.0 5.0 9.0 - - - - - ------ Source: . {ADU An."1ual Report, 1971/72. Eo. The livestock development progr~ ~as planned, along three lines. The first JI'::Jgram ',.las des~gned to provide effective vetel'inary services in order to c mtrol livestock diseasp.s 8.nc. p2.E"sitesj the second progra!l1 -.las to deal '..i.h destockings in the highlands to :ninimize the pr oble:n of over firazingj 8.Ld the third ?T·)c:,TC'.r:I :faS t::J '::!e~,l ~'Tit;h '.lpgr3.di:w; local dairy CO-riS by pr'Jvidi1".s c:'l.rtificial j~ns9::1in3.tion ser'tJic~~s.. In the :irst prograM, t~e 'Jeterinary sec:icn has act:'7~:!.y pCiytic ':8C in a 'laccination ca:r.paigr. that covered r,h,~ ·...hc)le of ',';ol,r.o A'..rraja, where some 30'),000 head of cattle (00; 30 ',/erl1 'Jaccinated agai~1st three :na.~or diseases 1/ of the Citt::,O Ln '..l ob,rno) ~Iothing ;:13.~; so far been acco:-::plished in the destocking progrw., oVen though the plan was to reduce the :n.:..~bel' of animals in the hi;::;hla1ds by about '1,000 by the end of ?nase I and at an annual rate of about 5,JOO head after that. TIe d'lir] program is expected to make some 200 crossbred heifers £.vailabl·! to farmers by thA end of Fhase I, compared to SuO as origina,lly planned. Some :,S Freisian bulls are also expected to be distl'ibuted through out diff~rent development cen~_ers to provide breeding services, Extensio;l Activtties 81. ',~'wlf's extension pro'Sram ',..as designed to COVel' lour llnroject areas" (two in~he :li~hlands anJ t,,'o ss:!ttlement. .'ll'eas). Each of t!:e hlghlaJld project areas is sut -d: ,.,ided into "dp'v,,10p;npnt areas. 11 There ',Jere 11 development ilrf'llHI in t.hf' h'ghl·lnd.; lly IkL,,),,·r l"i'~'. F:xtAn~i<)n :iprvicp.!'1in p",r:h of the four pro !et.:l 'lIeHlS ar,:, :;upr,'r'Ji::~!d l'Y ,{ "::;enior ;lgenL" ;,'/ who l~; al3[Ji3ted by "field a;ent.>!1 y (one field agent for t·...o development·-~.t"!a;:,) .;.rld :fd6i,1011si:ratorsl! (six: derr.tlnst 'at o1's per d'3velopr::ent3.:-~·:l.).!:! In each of thE' se-ctl~;ment areas there a1"" th":!E field agent.3 .:md ten demonst:l.'ators undtl" sUPet'visi ',1:\ '.f one sem.'lr a ;er t. 82. ',.n.Dt '3 extension s'Crateg:y relies on demonstr3.tiIlg neW inputs and new cultlral practices on the plots of farmers who are usually selected by tho exteI I.siol agents on the basis of their interest in the ~..rmovations and their pm itim as leaders (or i,,'1fluentials) in their neighborhood. Different farmers' plo~s ~re usually used to demonstrate different L~ovations. WADcr does not fav')r CADU' 3 concept of the limodel farmer 'I as a major tool for demon strating new te(::hniqucs because only a fe·... farmer s get a]~ of the benefit fro~1 the actual remonstration process on their farms and because there is a danger t~.a~.:.he ",.hole concept could be interpreted hy non-model farmers as giving prefoTential treatment to a 5 'lecteci few. 83. .ft.) Cln be 3een from Table 17, the targets sot for .Fh.a.so I, La., the numbEr 0:' flrmers anticiprtted to he raached by th~ extension program, has been suq:ass'd Ln th,\'! highlands. The pri:nal'Y reason seems to be the ,unantici pated hi§her rate of adoption of innovations by the Wolamo farmers, ~1ich is attributa'::Jle to an efficient extension strateg'J by ':JADli. On the other hand, the plann,~d ';'ari~et of 1,750 falmers in the settlements ',nll not be r~ached by Vn'~cir:ations '. .ere against rinderpest, contagious pleura-pneumonia ani blackleg (S9). ~ 2/ A "seniol' agent" is a graduate of t!1e Jirn.'!1a Agricultural School ·.nth m.:ny :/ears of field experience. J/ A 'fiAld agent" is u;:u.tily 8. recent graduat(J of the JiJnma Agricultural ~Ji~ 1001. 3u<:' ex?",ie!1~>'d "de::lcns':,r'cltors">J.n b,"ccme :'ield agents, G/ A 'der:;on[Jtrator'l i:3 a 'lth ::'0 11th-grade finisher who h"ls been gi'Jen fidd training on extension p:rac tices. - J1 the en,l of R:ase I, not because the evtension progr:c1_m is faL:...ing but becaus.; the ~Jett1emant progl'd!1\ is 1aggL"1g behind set targets, as ;.;ei11 be discus"ed in more detail in ~,he section on setUcr:1ent schemes. T-O,.b1e 17: pu.mnw AND ACTUAL Fa'1:-iER CO'l:.t1AGE BY THE :lIGHLiU'ID - - - - - F:X:TENSION PROGRA:·t, ~/IArL, 1970/71--1973/71.. -:-:;---- '- - ---- No. of E'lTn;ers to B,:: Reler'od 1970/71 1971/72 1972/73 1973/7u .. ,--~--------.- --~----~-.~." Planne,: 2,000 h,oOO 6,000 Actual ),317 6,521 7,070 10,COJ L~ ------ ---.. - .---,---------------~-- Source /a Pro jec ~,J._·m. 8u. The number of farmer 3 reached by the extension progr3lll is assnmed to be :.den:.;ical with the number of farmel-s participating in the credit program - a ra1.her conservative assumption. However, since 8.1l categories of .farme_l's -.rithin the WADU project area are eligible for credit, i t is assumed that farmer~: ;;o'J..ld very likely t.1.ke ::!..nputs on crodit if they have been reached at all by the extension service. 85. Table 18 gives a comparison between the plarmed and actual farmer/ staff Ia.:'ios, both in the highlands and in the settlements, lJy the end of 1972. Four ti,Qusand farmers were 'O::_anned to be reached by the extension 3ervice tn the hi~:hlands, comp3Xed to the actual number of about 7,000 j only about 670 settlers w~re actually reached compared to the origin2'ly planned 1,200. In genera], there were more farmers per staff for all staff categorie.:; in the highlards 7.ha,1 ,originally planned, due to the unanticipated larger rate of: farme pa.riJic ipa tion. As a result of the unanti'1ipated lag in the settle ment pr ogrdlTl, there were fewer fa;:~ers per staff for aLl staff categories than pl.:mned in the settlement areas. ~d Pl a.nning ~6. WAJU had plannp.d to survey and ,'0 about 10,000 ha. in both the ,. ~ !fIighlan::is :1nd the settlement areas and to el1clurage reorganizatton and;con solidation of existin~ h01din~s in the highla..:lds -,;he. "> fragmentation i3 wide spread (1.,). By the end of 1972, aerial surveys and maps of 15,000 ha. in the hiF;:l.:"3.r.ds and ,000 ha. in the settlements wers prepared ...ri th some technic. ,-1 c:3s i..stanc':l fro;,1 the UK. A pholo-::1os'l ie of the entire a-,rr'lj8. has ~lsa b~~~ ~re~8.Ted. - 32 Table 1.8: Fk~~~3/::XT::NSION 3TAl<""li' RAT"T:O IN 'tiADU 3Y THE ENI) OF '1.972 h. Hi~!llands ---_. ---- Sb.If_._-------- t:lements ------- Farmer. _ --- Set Far:ner I Staff ~--. star..: No. of Staff Ratl'.:' No. of :lta!':' Ha tio Plan::1e ci."· A'~. '.ua 1. Catef"orv _ ;;, r. ?:i.anned Ac-:'t:.al ------_. Plarm ed Actual Planned Actual Extensio:l officei~ 1 " c: 0.,000 3;JOO 1 1 1,200 670 Senior agent J ::> 1,300 2,300 2 2 600 335 Fieid agent 2b. 8 160 875 6 ~ :J 200 135 u~rTl:mstr dOl' luLL :?5 28 120 20 ') " 50 13 ----.--.-------- Source: HAD) ~nnual repo!'ts and ~";ADU DevelopMent Division fHes, /a Fi.:!ld 3t8.ff for the Fbme Economics Section) U_'1\1f!toek S~1ction, 'T'nals Se,.:tic 1 Fnd ~~arketi rg, Credit and Coopt?ratives Secthm are included. 87. Nlthlng has be-,:,n accomplished in the reOI' ganiza t:wn and consoll dation o. fr 19rr.ented ho':'dings in the highlands because the farmer-education prograrn (:n tle bene.:'~:3 '): consolidating fragmented parcels '"as ineffective. The corrrp:.exi -..y of the lan::-tenur8 system and lack of a land r~forn1 officer, ..ho cO'I],1 pr 'perly organ:_::e and sup..::rvise the activities, are believed to be t;1e majol' canses of th<'. i::: ~-+:'fectiveness of the progra'11 · .5011 C:m~,ervltL)"n in the ::ii;hlands 88. CJntinuous clL.:,iv;:I.:'ion, !"em~'val of vegetation, 'YJel'grazing and nooding have r'3sulted in serious erosion problems in 'Ilolar'lo. As a result, 'tlADU plarned to Uc.'1dertake a soU conser'~ation campaiG'll as one of its major activitiEs ther~. Pq t!1e end of 1972, about 13C k1113 of contour terraces:h.ad been c omt: Ie ~ed, mostly u::.n~ ',clunt:uy local labor., This terraci.Tlg is b'l\ liaved tc proviiB erosior, prate ion for 50'110 700 ha. of land (59). ~. ?eAder RO'1ds e;. A t.o~a1 of 37: :.:;113 (190 lens in +'ile highlanoa and 185 lons in thA s9ttlements) of unsurfac'?i, fo_t'-meter-wide I:',inor roads "..Tlcl trU'EHl-meter-wide fa:rm traC:<3 ',{er~ pJa,w'f~d 0 b60uilt by the end of Phase I (h5). Reccrds on length an) ':.:ype of 1'8ads ':ailt and costs are poorly kept s.nd un~'eliable, prob;l.bly ;)f::"a.U3 t:l/3 ~03.;:-·::)Uildir.g pr0grc-.:11 has '1een ch;U2;{!ct +,0 different - JJ departme1ts at different ti:-:le3.!/ Itl any case, information from t.~e Works ;"e,.ServLces Division shows th3:t a.bout kms of fllinor rOil-is d.l1d tracks h'ld . 'en corrLl'!.eted in the highlands by the end of 2.972. Of +...nese, ho lens in volved olly ma:LntenancG '"fOrk on ting traCKS. In the set lements, 16 killS of miner roc.ds and 80 kms of farm tracks ha'l1~ been com1)le"''"'l~. The construe tion cos~s 1"avl been esti:nated at Eth$1,570 per km fn~ nt~ ~r roads and ~h$5 per km f:)r :'arl1 tracks. Costs for maintaining exist ',elr ,~. .l.~ks 'Were estimated . at Eth$7J Der '811 (59). No fi~I'es are available for annl.Lal mailltenanca costs. . 90. l:mptovement of 'wiater supply throughout the project area was one of the major programs of iiADU in its original proposal (hS). Self-help programs Were to '')f~ crg'lnized to improve Hater supply in the highlands as well as in the settlarnc lnt3, and means were to be developed to provide Wd.ter to project headquar te:i."i · 91 · .!y Jctober 1972, a pipe-I-later supply from a bore-hole had been in stalled in ,he p1'oject he;;J.dquarters; maintenance work had been done on ex.tsting pipelim s i:. t~te settlement scheme at Abe]~a; and in a few selected highland area3, lrot!ction of about 20 spring8 had been completed (59). Nevertheless, the watE r d !velopment program as a whole has been progressing at a sloi~r pace th;n expe:ted. No comprehensive surveys have been conducted to deter mine tht! ch,~aj:est sources, and no provisions ha'/e been worked out to make the 8elJ'-he~p program effective (such as long-term loans). 92. Forms of LoanJ and Source of ~'unds: WADU gives both cash loans and loar;s in ktnd. Short-t.erm loans are given in the form of farm inputs (fer til:.zer t seeds, !.T de tic ides , etc. ) at 12't interest per annum. The pro posed modi1..1:n-term lC:l:" at 81; interest. in the form of ::arm implements and dairy eCHoS a.rE; not yet _e 'ered. Thus~ all of WADU loans by the end of 1972 have " -.,n short-term, 93. 11'1":") are tw:: majc changes in the credH program. The proposed cash loa:13 for h~~·::.ng labor in the settlements have been abolished primarily because the loans . .:rere beint~ used for other purposes (mostly consumption), and ca:311 advances have been ':'ntroduced to saVe farmers from borrowing a.t exhorbi,ant in.tere~t rates from local moneylenders during holiday celebrations. 94. ?'ur,ds for t.he credit prograrit \.in the form of inputs) are Jlade avail able by the ED Bail< on a yearly basis at 10't interest per annum (the extra 2% bein::; Cha,1'f\8s tQ. far:::ers is intended to cover supervision costs and risks). \n e::lg~neer iri t;:~ De'lel:Jpr7lent iJivision (Figure 7, :\ppendix VIr '",as 'esp::H;:3j b13 :'or ~';J'd building before ~,,3.nd ?Jannin,,; Section took over. ;urr en ':1y, the 'tforks and Services Division is in ,:harge of building :'oacJ. " 95. "0;:" ;";:-;.;dit: All categories of f:'ll'r.1ers -- mm:.: cultivc.tors ve::.:m:,s ::md snall-scale farmers 3.3 ·...ell as lal'ge are Ie for :::redit as long as they are i,'J.lltimc farmPl"s and op!!!'ate within the pr"!sc!'ibed project area. Such 3. ?olicy is ju::",L:.ied on the ba5~s that land oo::jil".~s in '.'iola.:no are very small, with 3. median holdin,: of only 0.5 h:1. 7ne ',';orld 3ank 1 s Appraisal llisslon Report states that o1:1y !..h' of the landlords own SO:; of the land in ~{olamo (u5), but onB rarely finds farmers cultiva7,ing over 2 h3.. participa':.il1:$ in the credit pro-, gram ill SPltE of the fact :'hai;, no restrictions are imposed. 96. Security ReGui:-ernents: :-iA1JlJ's security r eWJI1ts are ra':.her libera~. 10 max Giuii10:r mini~Lwll L:::i t is imposed, and ab8'le all, no dcn'Hl paymen1, is required. The ::1.ain security measuras are that 8J.Gh borrower (\...3.!'l to pl'o"ide t . . . o guarantor s acceptable teo the screenins co:nrni ttee and tlL.'l.t farmer~1 wi :h1n a given ex~ension area ha.ve to be mutually responsi"ble for the to'.al loan in their area. No individual farmer is eligible for more credit until he has settJ..~c all previous loans, and no fal':ner s from a given extens:.on ire eligible for future credit if the rep.-'lyment rai:,fj of the entire area t·o In m11is after the final due date is less than 90't. 97. 3, ~ ?ening of ;~t Applic§:-nts: Cn~di t om ::;o' extension staff. The committee is e1e·:;ted by all farmers ',nthill a giver. "d !vE'lopment area. II Th) folloring general steps are fo1lowed in p1'O cessin;; cr 3dj t appliea tions: (c) Farmers fill out appliea ~ion forms i i i th the help of demonstrators. (D) Applications are submitted to the DA:'::: for screening, and the DAC ~rues the final decision as to ...ho is eligibl~ for credit. (c) Bulk oni-=r dispatches are sent to the ~keting, Credit :!..: ,d Cooperatives Division toge'L"1er ,..;ith the approve,,:: applications, which serve both as promissory notes a::i.d 10a.'1 agr eements. .. 9fl. D:sbursement 0f Inputs: Disbursements are made through the "Group ~.ar:{et.ing Center s.·' E.:"lch center 11.3.3 an BOO-ton capacity warehouse. In Oct"ber 1<772 there :.rere 13 group marketing centers, 11 in the highlands and onl~ ea~h in the s8ttlement areas, although the original plan en?" only f7e 1imple markets to be established by the end of ?nase I. Develop ment 0 ' hl~~ketin~ center~ is closely related to success in the extension progrart. rhe rapid incrs1.se in the1!number of group marketing centers is due to t.h'3 ·~xtensive ar,: 1. '~::Herag;e by the extension service during the first .~. . .o ./e::_rs. ir:G .!... '. -.:',:_:1~"" of ~:1.~1.S: T'l'~lC! is; gi ~lt? ~ yearly br~~kdo\m :t:":.~ 1.7~r:).r;e ::-'trTIOU::1t 0: lO,:L"1.s. :h the number and - 35 a.'TI.2'unt of loans have o"eer, conti.nuously inc'r83.si_ng althoug'1 the rate of in creaSe L; rnuch higher for +,tle 1970/71 season. Part of t:-.e explalla.tion for such a high r:.-ce of increas'3 i.s that '.{I\.DU '"as not in full oper3.tbn during its f:l~t season. ~HJ~.ffi~-q .-lJin A:,!OUNT OF !.DANS, ·..IADU, 196Q/70-1972/73 Cre? Year Nc. Inc::' !"3.S e Increase 5:th$ Inc:'ease Seerl Fer tilizel' 1;69/7(' 727 2;,035 32 19701T 1,923 439.6 80,169 233,6 20 (-39.4) 1971/7: ,,711 22.2 lr)9,339 98.8 33 65.0 1972/7: , ,O~O 47.2 303,9&J 90.8 43 r"IL t-~"'" # 1 _' ; --- - - ---_._--------_._----_._-_. ,-_.-----------_._-----.--_. SOUl'CO: W.lDt annual reports 3.nd 't1ADU1s Mec Divis:l.o!1. files. 100, Th3re is no clear explanation of wily the average loan declined during the 1970/71 season, but the increases in subsequent years are pri marily due to the c::ish advances that -..ere :n.ada starting :j.n 1971/72. 101. Distribution of Credit among Different Glasses of Farmers: Given that 6S ~ .0 'all farmers in ',:olamo own ;ome land, half of ·.. ho:n rent still more land bEcau,e t.heir holdings are too S1'lall (45), only about 30~ could be clas sified'13 iru.r~ owner-cultivators, ··ith the rest being tenants and tenant O'tmers. Ac;suiling that this tenanGY classification rep-resents the actual situa tion ir th.~ ',.l<\DU project area, Table 20 shows that there has been a dispropor .. tionately F~elter rate of participation by owner cultivators in the credit prograrr, a;,d ~0nsequentl:; a disproportionately larger share of the inputs went to owner-c1;ltLvators. F'")r example, landownders made up 83:t and 71:t of all {, credit- ta.k. rs and accoun':.ed for almost 8J~ and 72:{ of the inputs distributed on credit cu:rLng 1970/71 and 1971/72, r~spActively. Tenants, on the other hand, c :)ns ~ i tlted only 11-[' of the credi t-taker s and took about 12% of the inputs ,wer, tilough they are estimated to be 3~·"I; of t,~e farming population (h 5) . .. 102. it.'hat is not e'isily eXp'~ainable from the above analysis of ',';ADU's credit progran is wny pa:'ticipatton is disproportionately lower for tenants when tho re::tuirements fer credit 'ligibili ty are the sane far tenants as for landm~Il!')rs. ?ir s1" tenJ.:1:'s :nay find it harder to secure guarantors accept able to the screening '-;:~::"!i-:-,te8 due to their socio-economic status, "hich is highlyiependpnt en ·,.;he;,·:p~· they own land or not. Second, tenants may fi::1d their :'''.-l:trds :'ro:l a(:c;J:~:-:,~ n"!'..[ technolcgies~,rA r:.o~, ~o:::''11pnsurate with their f~r:-'orts ~jir.:f~, unc1er (:>:: .. ;·'l:1g :::r./tre-cropping ~irr~1:;g'?1i~n~s, they pay one third O~' f):~e-'l:l~t' 0" trw::-- ;--::'8 ,; lv~r:r>C;4-.:'i t~c' their l;,ni"ior'::;, ''';~O contribute r:othing ·~o t~lP .r;n'j ab:e co;;ts (-nn ':-- only cor.tr:!.bllt:i,on to r,he p:'ociuctton rroces::; betn;:r - 36 tho lane, nnt ~ven impr ovemen ts on the land). Third, the insecuri ty of tenants ' ..x.lecta.tions - due to insecure landholdings, non-\,rl'itten leases, short-tErm_ea3es or lack of provisions for sharing production costs with their l"ndl,rds -- m.a.y explain reluctance to make investments by partici pating in tIe ~redit program. 103. i.further classification of credit-takers on the basis of area cultivated .ndicates that cultivators of less than one hectare :l\3.ae up about B~~ aLd 70d, of all credit-takers and took 60t and 42-; of the bputs during t he 97)/71 and 1971/72 seasons, respectively ('rable 20).. Given tha t the mec.ian hold ing in :..rolamo is only 0.5 ha., '.nth 87't 0 f the holdings less than the average holding of 1.5 ha.. (h5), the high level of par tici pation cf srall-scale cultivators should not be SurpriS1.Ilg. Their share of the inpu';'s seems to be small co:npared to their parti~ipa+i()n rate, but it is d1.: e t,) the relationship between the al1l0unt of inputs necc.!ed and the size of 3.re;, c"lltivated. lOU. :~~h"t Repaymen_LPer;fo~~~: Information on the repayment psr form.a.nce of di~'ferent classes of farmers, classified by tenancy or area cultivated, is not available for \.jADU. However, discussions and inter'lie'iJ3 -. Hith se... era::r. staff members from 'fIADU's /-'farketing Credit and Cooperatives Divisior ha-re indicated that small cultivators and tenants have better records of time] y n!pa]ments. In general, however, WADU's repayr:tent has been e:< cellent. Repayment rateS for 1970/71aad 1971/72 are reported as 98% and 95%, respectively (59). 105. J\~t:1ough 'IIADU does not have a specific due date for credit re paymen:'~ and oa1y requires that loans be repaid within one year after they have been made, its repor'ted repayment rates are very h:'i.gh by any standard. Further:rore, 'tJr\DU's achie-Jement of such a high repayment rate '.nthout re quiring a.ny do·...n payment and ,.nth more than 25t of its total loans given for consumption purposes seems to indicate that dO'h71 payment require,11ents do not necessarily ensure higher repayment rates although they exclu~e the poorest segment, of the farming population from taking advantage of the credit program. Output z..-:arketL'1g 106. 'dADU! s ~'hrketing, Credit and Cooperativeg Division undertakes all acti'lities related to credit, marketing and cooperagive development through the existing 13 sroup marketing centers, whose organizational structure re se~bles ~ooperative societieS while aLloHir~ NADU to retain complete control. TI1e idea is to develop the marketing centers into viable institutions able to provi::ie credit, m.3.rk~'tinr; and storage fa.cilities to small farmers by the Lime tb:l cente:'s are r e.C De r t.ered '1;3 f·Jll-n.:::dged :;()oper8.ti·p::, 30ci,~t.i~3. 1/ 1/ .'iADLJ's :lchieve~:le~ in cooperative development are discus~ed below :..n the section O~: local DarticiDation. · I'll! J.Ul; it.: "':\J, U l J In.L ..)0.l. iV.') \J~' Ui(l,;i::'" 0il LI\1:...; i ~\~'ivi.u ll.l..:l LI\t.;H \..t...J\.').H.~ ur rr~~\;':t..H;) 1~: THE lHGill"\NDS OF W'ADU. ] 970/71- i 971/72 Ared Cultivtilcd Tel141nts ,0 - il,9~ 162 9.15 19.62 5.!l8 09.03 5.79 2~O 9.31, 11l.21 :'.7'2 163. n 5.52 - 1. IJ') )3 t,86 10.39 3.12 39.39 3.30 78 2.51 13.42 3.46 123.62 4.16 "' .JliJ ahLl'J(~ __.l! J,Q(> l·.0) ,9 0..29 19.20 .:. 27.7) ~jilL-t.uti.11 199 12.06 ,1 10. ll, 377 12. U. 50',d) 13. 315.10 :'cll~!nl-\" 'uerti .0 0.99 89 5.02 15.09 4.53 38.02 J.I0 216 8.41 27. 'j7 7.07 157.61, ).31 . u - ;. 99 21 1.19 15.20 4.57 30.26 2.54 52 1. 68 14.53 3.57 89 53 3.02 2 abov..:: 2 . 2.60 ~ ~ O.rn ...Q."j5 0.16 "" --J ::;!;f;- lot ill 112 6.33 32.89 9.88 74.7~ 10.12 .50 10.97 a.!.~ \.)..·..rlt.:rs ll.l) 0,99 - 1,119 67.25 161.e7 48.58 629.45 52.83 1.,'- 93 48.09 128.8'1 33.32 906.02 30.51 1 .,) -1. 99 241 13.60 78.29 23.1,9 290.07 29.3.', 03i 19.1,2 110.38 20.52 951. 75 32.04 ." --..J),2£ 2 anJ ab0ve ---1Jl ...L..5Ji ~ .-i....ll ~ ...:i...ll -_QQ _..hll _9..JJ.l. 11 . O~ Sc;b-toLal 1,460 82.43 260.13 713.06 988.32 87.94 2, .'!6 70.73 272.31, 70.51 ::> , 73.5'1 l ·· I r Unclas~ 1 tied L!:.. " D. i) - fJ.9') 118 3.bU ).70 0.97 72, ~b 99.09 ..... 2 !', I . (j - 1. 9'.1 tJ8 2.51 12.7" J.29 3.33 2 ,111d abuve ..Jl. _~,3L} 2 St: b- to [',! 1 218 6. 20.86 217, III 1,771 100.0 333.32 () 1,191.27 100.0 :1. 10) ]00.0 381. OJ 100.0 2, 'J]O.1l ]00.0 SOUI"~e: Compiled from WADU 1 t3 Pl£lnllill~ and Evululltion Unil filetl L~ T(;nurial claoBificntion UnknOWT1. - 38 107. L:'ke CADU, ',IADU handles an insignificant propor tion of the pr 0 ducts marketld l.n ;.[01a,,110. Table 21, which shows the quantities of products handled ty 'd~".DU's MCC Division dul' the1971/72 season, giV8s an indication of hO'tl srraJ.l thc~ impac t of ~';ADU is on the marketing system in ',{alamo. ]./ Since Holamo is a net importer of grains (teff, barley, Hheat and maize), the HCC Iivi:'io'1 prefers not to buy th~se products. Farmers are to get the best 9.vaj~a)le prices in thej"(' local markets. However, they have con tinually bee~l p:essuriIlg 'dADU to buy their grains, believing that it is able to offer thei:\ a higher price than the local trader s. 'dADU st...o.nds to lose if it buJs g::·ai.'ls because its handling costs are much higher than those of the loca] tr ..deC's. Nevertheless, it has decided to buy some grains in order to preserve.ts good relationship with the farmers. T.'.b1 21: PRODUCTS HA1IDLED BY THE MeG DIVISION, 't!ADU, DURING THE 1971/72 SEASON 3tvcks. Product~on3 Tons CoUee cherri,ls :15.5 198.5 t.2, n6. 8 215.5 26h.3L~ 56,955.6 Cot ton ~ht .1 730.0 106,653.0 116.1 7116.30 109,028.1 Ginger 116.0 8h ,550.8 131. 5 Ic fBi ze ~3L .8 120.0 16,176.0 100.2 2 .78 25,529.8 3h.6 Chilies 25.h 500.0 Ih,700.0 29.h 680.L5 20,005.1 'reff .3 .0 47,937.0 17.6 5,256.0 234. '7 ',mea t 20(1.0 95,800.0 13.4 .uO 4,8Sl.h h65.6 Hides and Skins 9.5 B32.0 7,987.2 9 933.82 8,964.7 .~ Tobacco 42.2 Total i, 9 Source: '..IADU .t,nnual Rep<)X't, 1971/72, and :1CC Division fUes. la ~ ,.rst payment. /b II Tho r'Oliability c:' ::0::18 of the information gi'len on th, tab18 if) luestion a'lle. price of ·..heat. tetf and maize seems to be too high. - 39 108. WAnO fmain marketing strategy is to let farmers participate ill S any risk involving unexpected price declines. Its present poli:] is to pay fanners tOct of the anticipated sale price of any product as a first payment, and when the pr:Jduct is sold to make a second payment after deducting an amount ec.,ual to 20'& of the first payment to cover the marketing costs, Second pa.yment is made onl] if the realized sale price inore t.'an cOVers the first payment plus the marketing costs. 109. The :r.ain obstacle to this policy seems to be 'l'lADU f S inability to forecast product pri:es well enough to ensure second payments. For ex.ample, ~ADU was unable to make second payments for ginger, wheat, teff and maize for the 1971/72 season because much of what i t bought is still i!1 stock (Table 2]), Failure in making second payments generates mistrust among farmers (intHr'/ie>m '.nth some farmers have indicated this) because WADU's first pay:ncm",s, particularly those for grains, are usually smaller th.3...Yl what loc.:: 1. m,!Tc:'lants pay. 110. 1" trt':1ermore , its higher handling cos ts l'aise '3ericus questions as to how U.e M<:C Oi vision rill be able, to funetion as a via.ble autonomous uni t in the fltur!. Starting in the 1973/7u season, the MCC Division is expected to COVel' all of its marketing costs from the deductions made before giving second p;;.yme'lts. So far, salaries of the I:; and long - U1 term CdrEers. This argument r:k: ha'le some validity since HADU does not provide any training prograrn for its high-level s~3.ff. :aut interviews with various Ethiooian degree-level staff indicated that ·..JADU has unfair recruit ment procedures (different fringe benefi':,s promised for the S31!1e level staff) J unbalanced salary structures (different beginning salaries offered for staff with similar qualifications)J incompetence in some of the senior staff (both Ethiopiar sand axpatriates), lack of disciplined working conditions and de liberate ;jJCclusion of some st~'1ff when making certain i:nportant decisions. 117. ',fAnrJls training progra,'ll is limited to de:nonstn.tors arid a feY selected fan'er.3. L'1. the past, demonstrators (·....ho 2.re 8th to llth-gr3.de finishers) WE·re given only field training by the extension agents. Very recently, ho;,ev,~r, ,;lADU started offering them one month of theoretical training it :: ts Training Center. Selected farmers are periodically br ought to the HAm ';.ra:.ning Center for a period of one U'eek or les3 to be trained on certail sp9cj,fic cultUl'al practices such as method a~;drate Q1.' i\::·ti1 i zer appliea ti In, 3.d'!2.ntages of raw planting and value .of pesticides. 118. ~L9torical Bac;::kground of tr.e Settlement Schern.es: Through the individu3-.. L'1 ~tiative of the A';iTaja Governor and some technical assistance from I3T3.d, '~he first 28 fa.'11ilies were settled at Abe~lia in 1959 (22). Th;1 t, setLeme,1t prog-::a;n never flourished because the governor left !dolarna in 1960 al.d d .~ed the same year. Another governor rejuvenated the Abella settleMeni. SC21emg in 195-5 and started a neW one at 3ele in 1967. rust bef.)re 'dAl'U c'.me into operation, he had settled 110 families at Bela a::d incre3.sed the nunber of settlers in Abella to 590 (62). 119. Ee calse both settlement sGhemes Were poorly planned, 'dADU decided tc COl so Lidate and reorganize the old plots bef,::rre prepa.rjJ1g plots for new se ttl, rs .1/ No neff Settler was brought to Abella until year 3 and to Bele ur.til ye,tr U. Thf~ 700 old settlers were to be reorganized before settling S)O I e.T farnilies in year' 3 and 550 in year tl (h5). 120. IrA. ,md the ~t,hi:)pi3.n Government (the two major financers) agl'eed that new settlers 'dill be selected by a sub-conmd.ttee of the 'dol3.Ino Awraja De'1310p:nent Cont-nittce.2/ Settlers '"era to be dr3.W'Il from the (lADU project ar~a tn the high13.nds-of Sodda and OOl03so (60~); other parts of 'dolarno k..rraj'1 (l)~); and other parts of Ethtopia (25;). Settlers have to be bet-.{cen 16 and 45 years of age apd physically fit. They are required to live on their holdin;;s and to give up all clai.'11s to o:'her lands. They are also r oquirec to pay 1. developm!nt tax of Eth$58 per yea;.' for 20 year s, to rep':lJ loans ar.d to ple.Jge the t.i tIes of their lands as security so long as there are a:1Y ::mtstancin2; debts. 1/ 1":'1<3 plo ",3 ·,.;ere r,C):~ 3::::111 :ind "he :ield laY'Ju t did not allo',; for erocion central. 2/ See 3~c, . ion. on 10---:'11 Darti~ipation . - h2 121 · 'fr.e terms of the title include provlslons prohibi ti..'1g sub division a1d requiring settlers to follow a cropping pattern appro'/ed by th.! projec~. The Ethiopian Government has so far refused to give condition al fr~eholi ti tIe to settlers, as was agreed upon in the orisinal project proposal. A 1one-term lease, 'r/hich '..;as acceptable to IDA a.nd the Ministry of Agr icul~ure, ;..ras suggested as the :1ext beot al terna ti"Ie. But settlers have not b3en i::wued licenses to cultivate ar:d no long-term lease agreement h3.d been w)rkd nut by the end of 1972. 122. Sett:..ement Plaaning and Development: Ap~ro::cL'11ately 10,'000 h3.. in Abella.nd5';()OO ha. in Bele were anilable on which 1,750 settlers (700 of whom we:' ! ~lrl!ady there) were to be accommodated on 5-h3.. plots each (45). Surveying md je-;ailed mapping of the settlement areas -:..e1'e to be dona with technical lSSj st,mce from the U.K. Plots were to be laid out in such a way th3.t erosi m \0 is min:Lltized. 123. By October 1972 about ,000 ha. were surveyed ana 'fl.;er :::ost and at the same time bf> prQ"ided additional incane. 1 ;n. In it::; effor':3 to ::1ini;n~ze 3ettlement costs :md :Tl-:ni:-:tize a~· cp3:lib , t;'~e .3~ttle:-1·-':1t planninf, 3~C tion (ie"!elop~d tJ~Lre8 di:feren:' " , kfnds of unsur faced ::linor roads. There a::-e major fe>?!der r03,ds linking the settleme~t to an all-weather road and market cen~ers. Second, there aTe secondar I feeder roads servin'S a large :,lock of plots. Third, there are indbidu "I access tracks to the different plots. The feeder roads are es timated:,o cost Eth$l,SOO per kr:l and the track Sth$lOO per km (52). 128. ';JADU I S documents on the settlement program are \,nreliable be cause th ~ accuracy of certain figures could not :,e confirmed. Neverthe less, Lrt'ormation provided byt.he Development Di'.rision show'S that by October :.. 972 about 4:0 old settlements had been reorganized ;lnd about 2'07 new setLers accommodated (52). 129. ?r~blem3 in Reor~a..'1izing Old Plots: The presence of olG '3ettlers has in seme W:lys been more of a hindrance than a. help to the orderly organi zation 0" ploy,s under the 't!ADU settlement program. Beca.use many of the old settlers wer'~ 1..:sed to graziilg a large surplus of 1..i'b·.;;i'>~:11'1 rm. the unoccupied. ar eas Sill rounding their set tle'11ents, they weT e opposp.d to ':;ADU I s id~d. ,j{ planned 'ayout of settlement plots '.ihieh implted. !,pr1u(':>.;'d Lumber of liVestock· and less gra:dr.g area per settler. Those who had anI? 2-ha. p,I;0~J :'\:;~"d'lc-c: attractec by tr.e 5-ha. plots that I-lere properly laid· ...t because they did not '",ant to lOve a'flay from their communities. 1/ WADi] thinks, hOWnV91", that most of tile s8Gtlers are gradually accepting ::'he ad'Jantages of planned layout3 152). 130. .,nother major probl'~m ....hose effee ts are not yet clear i3 tha t relative:: of settlers have started mO-/ing into the settlement area:;>, with a possible dan,;el' of fragmentation of plots. 'S'/en if a plot is not frag mented, it m: . y ·10t. be able to support a large fa.rnily of relatives since an a'lerage ~lot is designed to suP?Ort a farm fa.."nily of a ma.ximl1.m of five per sons c:11y 1 Jl · , et :lement (;osts: Unfortunately, all cost [i,;ures in ',-lAD'J are 90 aggre'Sltei.:-[lat it is not possible to present a detailed breakdown of cost outJ.3.Ys. -'IS a result, cost figures pI"esented in Table 22 are th~ best 3.vailab2e dis~gg-1'egat~d esti."lates in spite of their questionable' I' eliabili ~y . 132. The total Phase I c~st for the ent.ire settlement pror~rl:n is esti;nated at Eth$5,92S,OOO, or -.:th$),386 per settler ('13$1 = 'Sth$2.JG) 2/ Of the nOl-contingency costs, h2' is expected to be recovered through a developmelt tax on sett'lement farms OVer a 20-year p.eriod, 'lnd S'2; is non-rec07!rable. Each plot costs about SthS770 befoie 3. settler is moved in (Table 23). 1/ ~O!;t of the old st;!ttlers G·~T.e "'rt):!1 ~he sct.iTl8 ~h-;js, their so(:ial ar.d cul tHr'll li:e ·...as EY, disrllptec. ':1y ~neir ~isration to tht! ne;.; are:1S. 2/ COe t e3ti:n:ltes W~,8 based on the assumption tha;:, ?1L1.3e I ',{'HI GOVer a (ne-:/B:3.r perior: instead of a "(mr-and-one-hal.:'-year period. 3ut the c:o~ ts nlanned for 3ix years are expected tu be incurred in fonr -and - hh 133. ~ost of the costs are capital costs necessarily i:lc'Lu'red at the begilm~ng of the proj~ct. Cost per settler is expected to decline for future phases of WAQU for t'.;o reasons. First, the nu;nber of settlers is expec ted to increase, leading to lo....er fL'Ced cos~:s ( or capital costs) per settler. Se~ond, in the future fewer capital costs per farmer are e.:cPec ted to b.:1 in~urred. For example, a rough estimate of the settlement costs for h,25o set-tlel's (Table 2h) indicates that cost per settler could de cline to abo It Eth$2,too (of which Eth$1,320 is recoverable over a 2O-year period) . Table 22: ESTI~TED COSTS OF SETTLING 1,7)0 FARMEltS ovm A SIX- P'.A."R. PDUOD -------------.------------~~-------- Cost ~ of ------~-Cost per C([st:':.e11 (Eth$) SettJ .·~t" . - - - - -- -- ~-----------........!.:;:;.....--:...:....- .,-:~-- Non-recmer~lle costs Headquc: rte\'s llld administration 1,112,000 19 635 Sxtens:on .nd s~ttlement 700,000 12 400 Trainir g alld trials 375,000 5 214 Marketjng ,;.nd crops ~()O ,000 10 343 Aerial pho',os and mapping 175,000 3 100 Settler s 1 +'oo'i 125,000 2 n 3ub-total 3,087,000 52 1,764 Recoverable cOSes C::mser'Ja.til n, roads and clearing 1,587,000 2S 961J Farm cr '~di' i~puts 612,000 10 3SO 3uCt-tota1 2,299,000 313 ' 1,311 Contir!gen :ie~, 539,000 ? 3c8 Gr:ind To s.omc:e :'IADU Pro,Jec-t Direc"tion files. 13h. A1 though 'dADn! s settlemefit progY'o,m SeerlS to be chec,:'')r comoared to other planned settlement schemes in :;:thiopia, it is still '::;~ e.xper~ive - uS to be replicated on a larger scale. 1/ It is thclrefore imperati'"e that 'I'lADU should concentrate on finding means of 10werL'1g settlement costs in its future effort'), if it i.s to Meet its obligation as a pilot project to improve the government's ability to formulate and design settlement programs that can meaningfully increase agricultural employment. Table 23: EREAKD01'1"N OF COSTS FOR PREPARING ONE SE'I'TLENENT PInT Cost per Plot Cost Item (Eth$) M'.nor roads and tracks 115 HI !chanical clear ing 16 r; Snil conservation 230 ClI.ltiVa tion 10h TN" ter development 1)) Total ~{urce: TtJAIJJ Development Divisif'Tl files. ; 1/ ;;ettlel1".ent on irrigated lands has been carried out by the Ministry (if ~htional Community ~'lelopment and Social Aff;lirs (MNCD3A) and ',he ,\:..rash Valley Authority (AVA). The AVA IS efforts to set,tle the nomadic tribe of the Afars is bel::"e'led to have cost about Et~16J250 per ~3ett~,:r on a 2.5-ha. holding, and MNCDSA's veteran settlel'llent ~cheme is believed to be expensive though not as high as AVAls (52). - 46 T.ble 2L: "t;STI:-1A17..JJ COSTS OF SETTLING 4,2)'0 F.>\.R.~ FA..1ILI:':S ' - - (GtlO'tiING 11AIZ? kID COTrON) ovm A SIX- YFAR PF1UOD -----,-_._- ---- Cost t of Cost p'3T Gcstten (Eth$) Total Cost Settler -------,- Nnn-recove:ab:e :osts Headquarter~ d:ld ad!-:1ir.istration 1,112,000 10 ::.62 F.:.,ctensio,l ard 'lettlement 1,487,000 lh 350 'D:aining anc t::'L-'J.13 475,000 4 III Marketin~ ar~d ,:rops 800~000 7 188 Aerial PlOtc S ;J.nd mapping 250,000 2 59 SetUer '; fead 306,000 j 72 h,L25,ooo ho 1,042 Recoverabl! cc 3t!' ConsorV'a',ion, roads and eleariHg it ,on,ooo 37 964 Farn crc:JilH7 for :::r~dit: Only far::'lers '..i 1o:::ultiv3.te 20 ha. or less, ani ',.} a :lave settled '11l of their previous IJa!1s with SPID are eligible for ,:redit. 1h5. ~ec:.tritl Require~.ents: Credit in the :irst year is to a maximu:n o~· E~h$200, but it may be increased to ~thSLtOO in the second and subsequent :. ears for farmer s -Hi th good rep..:.'\yment records. No Minimum ;:::redi t limit 1::: sLpuuted. At present, a 25.~ down-payment is required for all loans, but i t tas been proposed to lower down-payment requirements for short-term loans tc 15 .;. 1h6. :.ik,] CADU and ',{ADU, the :IF? requires a written agreement from each borrower, w~th the loans secured by the persor~l guarantee of two persons of good re~ ute li'ling in the same extension area as the borrower. In areas where land is not co·n.:nunally owned, te!13.nts are required to have their landlords a Jeasf~ clause. If 90~ of the borrowers in a given extension area have not rep.:: id :.teir loans in full within two months after the due date, nv fur ther crEdit operations are to be undertaken in the ar~a. 1L.l7. ..s 1 further group security measul'e~ a security. fllnd vi.ll be estab lished. A .'ee mounting to Eth$2. 50 per quintal of fertilizer bought will be' iJnposed on "aC:1 parUcipant (hI). The money '.ri.ll be deposited in the AID EarLl< b sep, .ra te aCCoU11ts for each marketing center. The fund will be drawn on in ti e e,'ent that def3.ults in credit repayments in the extension area are concer;!" d e.:ceed the covered by the bad-debt provision included in the !'ert.liz.er pr ice, but it has to be refilled. ,>Greening of Credit Appli:::ants: Loan applications are reviewed by extElnsi~ n a :ents -Hi th the help of model farmers to ascertain that the farmer in ques1.ion li'/es -..nthin the model-farmer area and meets the nacessary 1'e :;.uire.:nerts ·.'or credit before they are p,1.ssed to the extension supervi~ ors ,1/ The supertisors make the final screening before sending 10a!1 ag: eam )nt3 to be signed by those ·...h03e applications have been approved. 1l!9. )isoursement of Inputs: Under an agree,nent with the !-ti.ni3try of AgTicul',ure', he AID Bank ?and in the future AIMS) 2/ is responsibla for pro cur :.npu;s for the :1p"::l, ~PID the AID Bar~l<::-an estimate of the"inputs :'equirec fo:'1. given season on the basis of bulk-order dispatches made by each sU!lervisor. The AID 3ank undertakes to deli7er the supplies to the various marketin~ centars on time, ?er form,.ncB of 150. ~ru.'TIb~, :n:d .'\;:1')11:1"':. 0': Loans: A ~,o:'.3.~J:' J, '.)lJ ::ir;r,ers in 1970/71 l.r:U i l , ' " ,r:J' '>?d i:1 +~:1;:: c:redtt progra..rn undc" :'he :'!?P ("::'able ~ 1), r\::JOU t :),15:) '1u1n:"3.ls of fer t.ilizer 3.!1d l:;L l.ui.'1tals of impro·,,~d 2/ :~e footr.ote 2, ;;?se 10. seed varieties, valued at Sth:t2uO,000, were distributed on credit in 1970/71. The corresponding fi.p.1res for 1971/72 are 9,280 quintals of fertilizer and approxL~ately 320 quintals of seed, valued at Eth$370,OOO. labl!" -.1.l: NlJ:1f3ER AND A110UNT OF IDANS, MPP, 1970/71-1971/72 Amount of Average Number of Loans Loans Inputs (q) · . Crop Year Loans (Eth$) (Eth$) Fertilizer Seed 1970/71 3,613 2ho,OOO 66 6,160 I5h /a h,609 370,000 80 9,280 {2r;-,-, 1971/72 1972/73 Source: CompUed from the Credit files of Credit Section, EPID. /a AIl approximate figure. i51. It is not clear why the average loan for year 2 .ias higher than that for lear 1, since the same categories of farmers were allowed to par ticipate in tLe:redit program in both years. At least t"..o possible hypo theses car be given, hOW'ever. First, after seeing the impact of tJ1e ferti lizer and the irnaroved seeds on some segment of their plots during the first year, farrr ers mL;ht have decided to use them on all of their plota during the second ye"r md taken more inputs on credit./I Second, the MPP sets a maximum cr'3di- li...~it of Eth$200 for the first year and Eth$uoo for subse quent yeRl':3. Si:1ce many of the credit-takers cultivate over 10 ha. and therefore ,:eql:ir~ inputs of at least l':u)..,!)hoo if they follo..... reco!l1.l'nended practices, it is reasonable to assume that soma far~lers borrowed mOi'e during the second year!:,han during the first. 152. Distribution of Credit amon'S Different Glasses of Farmers: w; to data linitations, distributional aIk'3.1ysis of the :-rPP credit program will be based 0'\ th':! first nine :'LP areas. Table 29 shoW<) that 78t of all credj.t t.'lkers .....er'~ 13 'downers, although the ove1'3.11 proportion of landowners in ,lhe areas cove:ed is roughl;r estimated to be a little less than 50%. They tdQk 90~ of the sep.d ,ind 67; of the fertilizer distributed on credit during the 1971/72 sed, son . - - - - - --'------------ 1/ To S 'a.t8 it, differently, far;neis might h;J,'Je been reluctant to take RS mUGh of tho inputs as they ',.[0uld normally like in the first year be CallS! they nad nA'/er tried them before, and thus they decided to hedg! afS3.ir.st ris~: by minimizino; the size of their loan. T"Ll" "9: CREDIT DISTIUlIlfl'ION IN NINE M:P AREAS. BY TENANCY, 1971-72 __ .Part idJlO,~}n!t l'a,Ul(!Ts" Seed F"ri i I j 7<'r Lllnd=ers Nn, -(5 ---- - ~~- ~~,;.: Sh.:1~llcnh.:nt~ 331 40.7 481 59.2 1.312.5 48.3 1 ,f.09. a 51.7 ... n (il3: t' h~ko 9 11. 1 72 88.8 0.75 11. 1 6. 1· 88.9 19.0 14.0 116.5 8ti.6 E:hla ;)(! last>le lal 100.0 5.9 100.0 92.0 100_0 Eli i k 4~ 100.0 8. 1 100.0 19.0 )00.0 '" w Kcrsa 2 1.8 ]05 I J. ] 13.65 100.0 1.5 1.3 110. 'J~ 98,7 Conder 122 100.0 5.8 100.0 170.5 101).0 r'inute-Sclam 6 5.9 95 94.1 11.74 100.0 4.5 6.8 69.0 93.2 Asendllbo 0) 1Y_4 354 iXl.6 ~.75 4">.8 .25 54.2 65.25 18." 290.25 8l.f TuluLolo 74 14.6 434 BS.h 7.75 15.9 41.05 84.1 225.0 17.01 1,096.0 89.97 Total 507 21.8 1,8,9 78.2 11. 25 10.5 95.89 89.5 1,625.75 32.55 3,373.24 67.45 Suurcc; Compl1 eJ frOUl Cr~d it ff le6 provided by Hm. 153. Th~98 percentages are, however, somewhat misleadiru~. Only in the Shash!men'9 liP area ..""as there a considerable proportion of part.icipating tenants, ,{hich ~~ed to raising the aggregate proportion of the tenant credit ta.'<:ers. 1/ Furtl:ermore, most of the MP areas in t,he nothern provinces operate under a CllTllTlt:~"" type of tenure, where there is no clear-cut landowner-te.'13..ut relationsdp. ~herefore,a separate analysis of the six MP areas located in the south)rn ')rcvinces is given in Table JO: Shashemene, Bako, Kersa, Finote Salam, Asmda)o and Tulubolo. :'abl~Q.: DISTRIBUTION OF INPUTS ON CREDIT IN SIX MP AREAS IN THE SOUTHERN PROVmOES, 1971-72 -----" Number of Category (jf Oredi t-Taker s Seed Fe:r-t:.1,~",5 '7~Q\H . Ored: t-Tal:er 5 No. 7 " Q J o "Q' '21"'~1'< ., ,( Tenants )07 2u.75 11.2 1,; 1.2.28 ,," 6'> 5.7) [: 1., .. ~ 34 .;~;l y Landowner:! 1,541 75.24 76.09 87.12 3,091.74 65.51 Total 2,Ou8 100.0 87.3u 100.0 h,719.49 100.0 ----------"---------------------- Source: Compiled from Credit files of MP areas. 15ti. Even though over 50~ of the cultivators in the southern provinces are believed to be ter>.ants (49), the proportion of tenants T.mO participated in the MPr' credit prognm d'llrbg the 1971/72 season was only 25~ .)f all credit takers. Tenants accounted for 13% of the seed and 34~ of the fertilizer dis tributed that se'lson, '.{"ith the balance going to the landovming class. If the Shashernen ar',a is excluded! the analysis shows that over 801; of the fertilizer and seed :is t,.ke:1 by landowners. .. 155. . A :.:ep3l'ate analysis using area culti'lat.ed as the basic for classifl·· cation is givF'n in Table 31. The majority of the participants during the 1971/72 5E3.S0n w'~re the small farmers cultivating less than S ha. This result is to be expel'tei since the a'lerage cultivated area for all MPPs is estirnated to be 1. 7 ha. (5 L) · 1/ There is no clear explanation for the high tenant participation rate in the Sh.3.3hemene MP area. Rowever, it had been under an FAO fer Gi1j.zer trial prograw for about thn'le years before it became an:1P area. Tai:;le 31: DISTRIBUTION 01" THE 1971-72 CREDIT IN NINE MP AREAS -"- BY SIZE OF AREA CULTIVAT~~ ---"~---- ..- - Area CuI ti'.fated C:redi t-Takers Seed Fertilizer (ha·2_. No. " :; -Q-:::------~ Q -r ,--~~-----------------~----------------~----- Tenants 0.0 - ~. 9 283 5S.8 3.00 26.6 h60.o0 28.3 S.o - 1.9 lhh 2B.h f..2c) 55.6 652.25 hO.l 10.0 - It.9 h7 9.2 1).50 h.h 263.50 16.2 6.6 ? .50 15.0 - 2).0 -.--1L 13.h 252.00 15.h Sub-total 507 100.0 1: .· 25 100.0 1.,627,75 100.0 Iandowne 1~3 0.0 - ·· 9 1,oh2 57.2 h2.10 h).9 1,1l).62 33.1 5.0 - }.9 h56 25.1 26.80 27.9 952.10 28.2 10.0 - 1.1..9 186 10.2 ili.73 15.h 566.50 16.8 15.0 - 2),0 l.:2 S I .. ~ 12.~0 12.8 7h1.00 21.9 Sub·total 1,819 100.0 95.90 100.0 ),)73.22 100.0 Greo..nd TalAl 2,)26 107.15 5,000.98 .---,_. Source: Com::>iJ.ed from Credit files of MP areas. 156. Fif~,y-six percent of the tenants and 5?i of the landowner!) who particip,~ted i.r: the credit progrrun cultivated less thc.1.n 5 M. 'The tenants accounted for less than 2T~ of the seed and only 28·t of the fertilizer dis ~ibuted among all ten~1ts, while the landowners took almost 4L~ of the seed and 33'; \)f the fertiliZer distributed among the landowning cla3s. In general, however, the percentage of inputs takE);1 is not too different from the percen tage of ,'.rea cultivated, for both tenants and owner-culti7ators (Table 32). The reason t:1at a larger propor 'cion:: of the credit was taken by landowners is not that they used more of the inpu:~s per hectare, but that they cultivated larger areas and had a. higher partiSipation rate in the credit progral"ll. 157. Credit Repayment ?~r:orm!hce: Data on repayments classified by ~i +.her tnnancy or area-cult ivat..ed is not available. But interviews with seven.1 HP area. supervisors indicated that in general sJ1'1all farmers have a better record cf prornnt rep~yment. In fact, most of the supervisors in dicated t.hat S0-:rte bi,::; farmers deliber'ltely r'3fuse to settle their dues, a rp.·J~rsal of ':.h9 pc -'--:"-10 ','51-.r-- -'--: ---_._-------------- ----- Source: CO:lpiled from GU,Ji t ~-iles of tho Shas!1emene MPP} 1971-72. ., such low prices. Third, 'farmers ha'Je to p3.y taxes, rent and other debts at" about thE 5al:le time that lhey are required to settle their dues with EPID. ': Fourth, in a fe',. :1P area5·ther~ were rain shortages during the 1971/72 season. 160. T::e impact of efficient supervision of the credit prog:r3.m on re ',ayment T"l.te:; ~lUno~ OF! 8'3.;3i17 1.1!antifiej. Nevertheless, close observation of the :EPs ndic:lted :,hat repa!:n~nt r3.tes ';.-lere higher in those areas Hhose - 58 ~pervisors were rated highly by SPID on "heir overall per.i:''"Jrrnance. Y For exalrrple, &tko, Kersa and Tulu Bolo, lffiich had highly ratf::.d supervisors, h.,1.d better repayment rates (Table 35). lable Jld-: REPA:0!ENT OF 1971-72 CREDIT DISTRI3UTED THROUGHOUT ALL HI' Mm DEllONSTRATION AIlE..:':.S --,-_._, =at,~ ~Eth$) Outstandhl~ -ra 250 ,14S-- Febr'lar: 2 i, 1972 (due date) 100.0 Marci1 l~ , 1972 139,583 5:;.8 April Ie: , 1972 , 103,06i 4l.~ May Y), 1972 62,031 .,1" '- ...... ' ~ R ./ June 14, 1912 42,219 19.1 July 26, 1972 30,018 12.0 Augult 28, 1972 21,016 10.8 Sour;e: Compiled from EPID Credit files. /a I~cludes interest ~harges. 161 · The MPP did not have any output marketir,g component during its fir31. tim years. For t.'1e future, the ;narketing com10nent is to b.,., carried out \'nder a separate rn:U-keting and storage project. Unc:'er this .,.._'oject, stort,ge :'aci1ities '..nIl ae built at aU~ :--1P? trade cmters and a revolving fund set aside for grai.'l ;:urchases and hiring markeing consultants (42). The r.arketing consultants .nIl assist EPID IS extensi ";i1 staff in the est.ab lishnent of ;;tarketiiig cent",ers, the training of marketing assj,stants, the Super vision of grai~ stor3.ge and handling operations and the dissen!ination of aJ 1 forms of mar~t i:1t"!11igence . ... 1/ Sl:c8nisl)rs are p",::-:"odic8.11y r.1.ted '::.} high-le"el "SPIJ st.-"lff on the has~i ~~ ~heir ~o~_7ation and interest in ~heir JOOS. nu;;tber of fi,rm'~rs they hene :-<>3.ched, number of field days they have held, etc. Ii\b 1" ]'i REI'AntENT :·:':~'i.'()"H;\N,·FS OF Till·: NINE ~H'l'~ ~'l!J:!:::: . , i ·· 1:;/1-'",; dJ,'~:\.")Ui~ ~.-- - - - - - .. ~,-~----~ -'--' -_.. To ~_:J 1 ~I!' Loan r':d (E t.1, :;.) E r:i ~I :\ 1 ~: ~ I ,V(, 'j I:J ,!. tnZ 1\!.7 llil 2.1.> 7/, 1.5 1.1 i)U I.! .Ii I·. ,) I () tWil %.1 119 Z3.U bO L.) (,1) (i. ) o() lJ ~ :> til} o. :} !1hicl r {), !)1) I) ,015 \(1). () !f,601:l 76.6 I,U05 16.7 I ,()O) 16.7 517 H t) ';Il 8. 'h ,ku !+ 1 11 ) 1 , I') 7 21l./, 590 1/.. 0 25 0.6 25 OJ) 2) (). b ii O,U ..... ) )~;Sht..:;:l(:~h· ,I:' 'J'!..} j r;J ... (,I), ti6':' f)) . ~ .:.~) , 22Lt /,6.1l 31,86/, 34.5 26,1376 2 '). I lti,! liZ i I '.I,i, 17,~/i> I ~L 7 ~! 1I.J t (: -~; c 1 :1\11 foHn i, K77 JIiU.O :!.,H7I 100.U 132 4.6 132 !, , (; '~') ' .)~ : ·. 0 I") I, . 11 t; Hd 1.,} I" !I U I f~ ~ ),i, 1~,('2() /,H. Ii 1 (j. 1 72 1,5,2 \I, f,O,) 2J. 'J i,156 J 7. ': 2,332 '-" U 1,1).flr ) II , ldn :;c Intis t L: J,L2lJ 2 ) "1')( ,~~) 6\!, I 1 ,:,1,9 l,S .0 1,1 H2 ]6.7 : , 1 7') JI/ .. 6 '.In LB.') 'no ::!K. ') ['l)f ill : :):. I i)'H; 95 3 LtJ J ld . '.I 71 ,871 46.7 1.},9B7 2b.O 36,507 2],0 22 J lLj') t t,. "j ~(),) ; 1jc . Ill'\-' t~ L,""pilc-s, ill addhior: to ~einr:: concentn.ced withip few HP areas, are in their 'JBry in"ancy dnd at'''! Wlt sel:"-suff'ic::"ent. ffiCf"BE::.S :?i ::::OOPERArIVE PRO?-DTIOfi UNDEtl TH~ MPP, 1971-7':' Number oT- NUlTlbd::' of Coops Number 0 A-COCOS ?r ,,) j ~-: tAre a Ref:d ;: t.E-.'rerl '8'hic'1 Applied :o~, ',fuich For :ned Or ganiz i.n:: ._____ ,__._. _______._1I_~_G_"_·r_s_·.____ Bi_s_... R_8......... _,,_r_3._t_i_o_:1 _ _ _ _ _ _ _Co:mnittees _ 5':l3.shem ~ne i1PP 3 Tulll Bo L }'.PP 2 Agenda',;:) I{PP ·Jim;na :l~?F 2 1 '1FP ~3. z.2"':'''t ./ mcia Se .Las:,,5.e M.?P 2 !-1.aik ~1.C? 2 Fin'Jte-:3ela:;l ~.:?p 2 G0ndar ~1l~ Kembol' l~ '.\ "0 _______ ---_____________---i. :~.F are':l 31lpe-.~visor:~ are usua:":~y graduates (;:~ ·t~e of j\gTii~ul~)urp 8.t a. 2.,xtcnsion a5enCs3.r~ gradt.:2.tes of t.h~ agricultur .... l schools "t ei th"r -. 61 d~:n>I,1 or ,~__-,'':)o. Assista,nt <:.xte:1sion :1.3:l~ so f(l:" been ~Ta.incd at etth~r t:'ce ~ADf] i.'rainins ':.;:-:"t8r or ~. r~e B.3.ko ~li~sion Agriclu :'ural School; but LltU: e)lans are t,hA.~· ·... ill C:C:!:'~~3 from r-,he thre9 :ra" schools t.O bt~ es- a~ tished under tl:e :r:ird IDA 'Sd'..tca ti:)n ?rojec t (~L). ~i:J.l~keti~ '3.sshtan'Slre trained at ~;..D] bllT. -:':1 the fut.ure the:.' ',rHI 88 :'ec:ruited :rom !:he A',..-u:;a ::;ooperati':e '::'rai.11in;;; School. All slloject-mattel' specialists have "lad SO~;le gy;;,duate level tn.ining abrC'C',d. 3y the elOd of 19'(2, there ·.. . ere lbOl;t ~LL ~xpatria:'e s'taff, ~IOrking as either subject,-:natter arp.il speci lli~'ts or deputies to Sthiopian division heads. ~ ~C. "',,0 lines o:~ pr'~:lotion (.academic and non-ac.'loemi:-:) are pla.nned to ~r:1ju Llly :;.. :~.iopianize 3FTJ. After SO:-a8 years of field service, assistant exten ior. J.!;ents and jrw.rket.in~ fore:r..en -,-fill be ,:si'Jen ~ one-year theoretical trai:lng Li. an Sthiopian a 'sricul tural tr.::lining school before being promoted to S8 lior e)~tension agents. After that, they will be able to advance to '155is :,ant s\pervisors am B'J.pervisors. S81ected super'Ji50rS ".rill be given postg:l'adu lte training to bec:>me either subjec:'·fTJ..tt, ! r specialis~s or pl'cvin cial ; gri.;ul tural officers, and on the bas~s of their per:or:nance they could e'lentllallJ te pr0moted to division heads within SPID. l67. .\nL1lal HusbandQ: The t1PP does not have any li'Jestock progra.1l a't. the :nc ::ten ,::mt EPID pla::s t.o develop a livestock il11provement plogram suitable :or t: e ;'PP '.mder i ts p.:esen~ setup. A t~am of exper ts ....ill be assigned to plan ~ilo', (..":'en.tions th3.t can be conducted :-rith p-xisting field staff in co operation ·..-it:, the Livestock and Meat 3card and the Li'/estock Division of the :-ti.nist:,] :f Agriculture (l!2). 168. HJme Economics: EPID .... 3,S organizing a -:'eam of home economics specialist", :._1'1 January 197) :-.Ii teach farmers! wi'les 'Go better per form their taskslr,d to raise their educ::d lonal l'lvel. 169. Soil Conservc.tion: EPID r..as a nr onosal to establish a Soil Con serva t i.on !Jh:ision to -,.;ork f·J.ll-time on :1P' ar~as (hI) . There will be four.. . s9il c\m~e!'va tion sClrvey teams (each wi. t.'l five specialists) to 0.rganize conser·lat.ion plans, intrGduce new tectmiques on demonstration plots and model ~arm:,,':s' fields and s1.:~~rvise farmers carryillg out conser'lation -,.;ork. 170. Roads: On the assumption that bee;inrling in the :01.:r":h year of its operat:.on cacZ1 l1P .qrea requires about 10 kms of ne',.; feeder roads each year, plans Lave been made for tne sonstr'.lction of farm-to-highliay roads at an esti ::tated ost of ab0ut Eth:S8,OOO per km. In order to ensure.that the progn.m is not deJay~1 after existin~ road net....orks are satura~ed (after the third year), tJenetr-tion ;X'ids ar'-: :Jh.nned ·3.t an esti:<1ated cos::, of Eth:H2,CGO peC' kIn. 1':1e an;:ual ;71ai..te:::lnce (':.ut [':iT beth ~inds 0: roads is esti;n:neo at Eth'£;SOO De::' km (ldl:. . . " ..- .... <".......'" -,_1-./. ~. On t!1e basis of the '~eta~led ~resen:',l..:'ion t~e :D~pone~t3 of "'(rill ~e pr9s8nt~d. of In:10'13. Hons Deve lvpment of' nel" tec!IIlolol;ies such as ir1l'pr()"l2d seeds, bet. ter. .- ;ul::lr.1.1 ;:In.ctices a..."1d irnp:'o7ec labor-i:1tenst'le £'arm i"'?:"'::;::7r;:'1l':3 is primarily a :"1,~,or ~or:ponen:, of the :;',)I-:1prehensi'le proj~~ct.3 (SADU anrl 'd..l..D'J). GADUls ~ 3:hjevements in these areas seems dua to its better ~: its ")sta:lis1.::1E·nt of "in aut::mo::tous Seed DiviSion, its cattle breediniS J..,,1d semen nr'Jc;\lct,i m pros"T3.r1S and its 3.9,TiculturJ.l engineering activi::.ies geared to :''',-:''.J: i de 'elopin, labor -intens i 'Ie farm i:Trplements. In c o:rrpar ison 'tlADU has 'Ju'!.y ':Jae:l .~'ole to introduce some corn v3.rieties from Kenya and has just star 1 ad :l3.king pr 'gress in its cattle breeding program. 'tiADU 1 s lad:: of pro~: ~ss in ilmO'Jd tion de'leloprnent seems to be related to poor staffir..g and planr ing. The !-PP has so :ar relied on GADl] and the L1'1stj tute 0: Agricultu:'al R8se<:rch for its fa!'m i::rplement and i..l1pro'led seeds requiremen:.s. 171..t. )n the ba;,;:is of the nu..'l1ber of fa!'mErs they tIere able to reach, if': accOf,;a..'1:e ';.rith their set targets ~ all three proje::".,; :-:.ave been reasonably SI'Gee 5sf'...1 in t:teir extension progr.;.ms. In fact, 'rlADP :''1.S already surpassed :;r.e tlrgct '..t set for the end of its Phase r. lnere e some distinct differ en,;es bet;.le,m the extensi\m strategies followed by SADL 3"1d the :1PP on one handmd ;";ADU on 'ihe other. CADU and the MPP cer.ter their inn0vation demon- 5:',3.:':'on 3..::~,i7ities around "model f:umers" and :ldemons!:,rat:;"on plots"; 'iJADU .::o;,ou ~ts denonstrations on Various farmers I plots, follow.!_ng the ad'lice 0: ~~ar:7le' s I "i;r oup-leaders '1 ::3nd "denonstra tor s 11 on 'Nhieh farmer 1 s Dlot to use f:;r i~s ciemonstn.tion. Advantages and disad'l3.ntagej can b;:; seen in the t-,D app:o,l.C hes. 'riADU' s lIdemonstr So tor S,'1 '..ho per form funct ions si.:;-tilar to the assis,ant extension agents of GADU "l.nd the ;'lPP, have less formal educ~tion than :,he 3.ssistant ext8nsion agents. HOI-l'8Ver, they;.u.e required to ha7e an ~ic':ltt:.=:"3.1 falilily ba.;kgrmmd, and -::J.'?Y arc a3sign~1 to '.-IlJrk in their O';ofn "Com:nllniti·,s. The~l?T e familiar with the social and cuI tur:11 'lal'J.es of ~!1e C0:TI;'!'\w:.Lty, t!1ey speak the l'inguage, 8.nd ,.hove all they have the sense oi' ':J"~- 5.rlt; t) the ,.-;or.l.71unity. ~'"':'1i3 pr3.ctic(~ di:fers distinc lo",,:sc! '':)J ;AIU ar:..d the ~1??, ·~·;ller~ :110S t 0:J ~,~e di3tr iou~ion 0_:" the ,.::;r053 bred d,~iry cows f;hose r8:~u~':?mer. . 1:J is fr0m t.19 3.~Jera;se pe:'lsa.nt :"~.!":'1e.T .. 176. TLere is a na:->ion--,15.dc 2..'3.ck 02' institu:;i'::ma.l credit, publi~ or pri'J3.':.I', +:J :;nall-·scale ::lr;::'~rs dua ·~o st.agnant i::1s-;:,i.tutional factors. ::.lost :"a;,d-nuldi 19~ ar e too small and fc:'..;r.r:ented to justify bank l::Jans; the landlor'd tenant rellt~onships are su:h that tena~ts are poor credi~ risks because they ar<:; suLjec ~ to the '..n_ll 0: t~leir lar.dl:wds and a~'e unable 7;0 pr8'/i~e~':le security requ1.r!,d t) ::-eceive bank l:)2.ns; the CO:11..m1."lal OHTlnership of land in some 3.reas preven.s t18 issua:r.ce of ~o!'tgages. For this reason f3Imer s had to rely on 10c3.1 none' 1enders for credit even though they are chargpd .7<:;1"'./ high in'Gl:r.::.':::;t ra.tes. 1/ Ttis sguati.on pro;;rpted all three projects to include credit as one of the_r ~n3.jor components. 177. A.lthough the general setup of their credit pro fSrams j s s , differences must be noted. The AID Bank is the only se llrGi~ of funds for all till'ep. projects. AIl of them provide loans in thp Cor l C)f farm inputs, but in addition 'NADU gi"les shor t-term cash loans for l '(SllIll,)ti:m purposes. -NADU's justification for the caS:l loans is the -,/olam':) farner':>' chronic borrowing for holiday celebrations: if i-lADU does not provid" cac'n, they ".nil borrow from their traditional sources at very high L~tere~t rates, thereby jeopardizing their ability to repay the IJans pro Vided by ',,/,ADU for production. 178. Sligibility for Credit: After the first two years' a'CPerienc:e of unre:3trict~d part,i~ipatian in its credit program by all cl3.sse~ of farmers indicat~d tha':;, contrary to its stated objectives, the big landlords "ere the naj)r beneficiaries, CADU developed a policy t:-ut a"(cluded the bigger cultiva::.ors. The :lPF adopt.~d CADU's modified policy from the outset. Only '..JADU aLlows a:~l 91asses of farmers to participate in its credit programs as long as they ~re full-tL~e farmers operating ·~thin its project area. Its justifi ::ation is that landholdings in ;>/olamo are so small that one rarely finds f,trmers cul:'ivating over 2 ha. 1 7~. Security Requiremen'"~s: -,'iADU has more liberal security requiremen'ts than ei-~her ~ADU or the :1?P: it asks from a borro.. . . er is that he present t,f.O E;Ual'antQrs acceptable to :.he screening committee. In contrast both ~ADJ ar~ the MPP require dOIffi-pay:nents, sigr.ed lease agreements set.. . . een tenan"s -----..-_._--._- and larlti~Jrd i '1:1d t~\'1~O :lCGep:.:lo~e suarJ.!1tor3-'-o:;'f~ of '"rlhJrn :1a.S -:.,) ':Je ~:-le l~nd- lord ~l~ ~~""'~i~ :~'Jr:"~::r,.;er is 3. ten::.nt. A3 :'ur:'he:- sec'..11"ity :nea3~~:f) all have adopted the )olic:y ot' ho}d:'r.;·i :':Ulners jointly :esponsi'c;le t'or 3.l~ J:' the credit. 1 (,ave indi~ated ~JhaG due to the ra:her s'tringent securi:'y ?r')j.:.?c~ ~-:'::lf:~ reJ\l::'re::rnts of CADU ar:d thA :·:?P. the poorest 3es~!1ent. of the target popu 1a tion "JlE] b,~ tC,xcluded ei ther be~ause they C3.nnot ai'[')1'd the required do;.m IYlyment (:'1" b·~ca'J.se th~3:i_r landl')rds are no~ ~lilli~1~s to sign thf-~ lease c~lause. 2/en for ','JAIYJ, :.he1'e the only req,ui1'ernent is t'.10 reputable guarantors, in t"l1'vie'''{s hav'~ indicated tr..:1.t in SO:ne C;'l.ses the poorest- ten:l..'1ts find it dif"'icult to find gm.rantors accept.1.ble to r.h~ screeninp; cO:1lmittees. §.,:reening of_ Credi ': ADplicant~: Both CADU and "tiADU have ele<:: ted :ar:l'le1's l connittees to aid in processin!S credit applications. In the MPP, credi t 3.::1pli:a" ions are processed by supervisors and their extension ;j ~c.:ff with sonH help fro:r. :nodel far::1ers. Extension agent:1 are ;aembers of the i3.:r:;Jers l comnii.tees in GADU. In'tiADU, the screenin~·~c:r.. lti.l;tee,·...·h::':~h 1.5 composed onlr uf farmers, make::; the final decision on who is eligible f·:;1' credit b~fo:;:-~ bulk order dispatches 3.1'e sent to the :-1CC: Di·/ision. 182. 2.;DI1 seems to have adopted a safer and more systematic screening pro:::edur! ir, n:i.'ling a series')f checks (first by S:ctension Division and then by the ~hrketi;:g, and Credit and Cooperative Division) after the model farmer area co:n!litt~e:J have processed credit applications. This de1elopr:1ent is understa1dable since its due date repaYr:lent rates have been declining and CADU has fo~~d it neoessary to screen out the bigger far~ers. 183. '!.:lere seems to be ,:::ontrastiI1g evidence with respect tJ the effec'ti'Jme!::s of the farmers I committees in processing credit applications. GADU finis it r1ifficul t even to br commi ttee :nember s together, '.mereas ~,";ADUIS IJ::;C [iv·..sion reports that the farr:lers I cormnittees have been meeting regularl? ard :la'le sho.-..m a lot of effort in trying to do a good job. This is aver:, d: st .nct difference, partic'Jlarly sbce neither CADU nor ~";ADU have built-in in(en'~i'les for committee nem'bers. 'i':"1e success i:1 ',vADU :nay be due to the gt'eate: a;..rareness of the :";olamo people of tho project's func:tions and to the t:'adit.ional social cohesiveness and farailiarity ',nth ~:)up actions and or ganiza tions ,)f the -tiolamos. leu. Cis'Dursement of In~)Uts: The AI2J 2an.1< supplies in')Jts, mainiy .. fertiliz9r, insecticides and pesticides, to all three prc-jO!c::,s. '.~-ithi!! the proj"lc i;S, disb11'semel'ts are m1.ce through :narketinf5 centers sC'lttered t¥ours h out the Jro:ec: 3.reas. Per ma:lce of t.hl~ Credit Pr :'aInS ::1J:n'l"lT and A~ou.'1 t 0f wans: T':lP ::1.L:1Qer:wJ :1::10un TJ 0 I 10".'.!13 hi '/(~ been ~on~i~' 8e prQ~ects ~x~ept durin~ ~he last t~o :lears in ·~AI:J : : I':J.ole ). The d~3cline in ~>h:~ a:1oun', .' cr2d~t di3:ri'::>ut,~ci by ~ADU 13 reLited to the :~arY.etins pro·alem3 i" h3.s rL1.d sin(;~ 197C/7l. ,\.s TJ.'cle 7: AHJU':lT vr ·"la.J..I.l-1 Al~lJ lwh.o.c.n ur wANS Ml~I'i0w .l-i~lrul.::'t:. rnUJ i!N ,lin ".1' !1PF Crop Year No. of Amount of Average No. of Awoun 0 of AV(~ri.ll~l! Id !.oans Loans (Et.h$) wan $ wang Loans (Eth$) wan.> l.o:ms I",:Ul:5 (,st.U) IDan :~ ., 1. - :)3 189 15,700 83 19S~-:;) 868 ,450 1 S·~)} -70 11,759 ,B76 106 727 23,035 32 J-71 1, ,703 102 3,923 80,169 20 3,613 2)lO ,000 6::' 14,146 1.437,517 99 4,791 lS9,339 33 1~ /)()9 107:?-7J l2,62S 1,108,632 813 7,040 303,960 43 SO'..l!' ':::~~ : GADiJ annual reports and Credit Section reports of HADU and the HPP. /:". " . t e figures. 66 ,!.. f(:;3ul, of d. gene~3..l pri:::e {J"'~Gline throughout. t~ne coun':.ry, ~ii..JU "rla3 !'orced c,:) 0:f8" f;1:':ner3 10:.[e1' ;;ric;;s per (J,uintal th3.I', in previous years. Local tl"'~lders and o 7. he '!'" ves"',ed i:1t.c;!'est ;:STOllPS took J.dvantaee of the situ3.tion to discrf-.!d.,t ~.\m' ':::y '1.1" ~,::3.t i~AjTJ ".-ic,S only :'1a-=d.:n~"zi!'.g it.s 9ro:'its by ()ffer : fa::n~ler prices. Lr'lis Clrgurnent s~erns to fll"le :;onvinced :narry .:','1r:'1ers not 1>: partic in C.\DU's cl'edit IJrogTa:n. Another reaso!) is that. ma!)y f31 me!' 3 c.id not. see the n0~d to :81' tilize their year after yr:;ar, 3.nc O+,::t'T s·.;ere using the 38e(1 s they bought fr o:n r~ADiJ in p:'e·"ious year s . :he '::0:1 i:1u m::: decline in the 3..7erag8 size of J.oans in the C::l.Se of ':;t\.DU is (1\1'3 ':,0 'he ;h,')nge in its credit policy ',/hien excluced the larger 1armers. · ~ cne q,uant,l'Jles 0 f ' ,\ cornparlson or. .1-' ' ... ' ... lnpuvs 0:;'3 t r10u .. 8 d (T;l e ~, l' ., ... .aD ~:3) sho;'l:; U at ',:Hger ::{ua.'1tities of inputs hav,';! been di:'3tributed in CADU. Not onl:( '",er e t'le number of credit takers l2.rger, but also cultivated area per -particirant is signific.:mtly larger (median far.!! size in Ghilalo is about J ha. cc:npai'ed to about O.S ill. in ITolamo). :1ore seed Has distributed in CADU bee aUcH couefully selected and tested varieties ;:i\li:':3.',,;'Le to the ea ·...ere ger era ,ly a'lailable. 1 E7 . l : : ' s t r i b u t i o n or' Credit Cl..'1\or:.;s Different Classes or l"arrner5: ',;hanGin,~ itc~edit policy, Le., by e..xcluding the blggercultivators fro:r. particif3.ti:lg in its credit program, CADU Nas able to i;llprov(~ the share of the tot;31 loan3 of the small cultivators. In general, hO".Hever, the larger cuI ~~iva t:)rs ac;ounted for la::-ger quanti ties of the inputs distributed on credit i:1 aU -:,hree projects for the following reasons. First, the amount of innuts a fa~':ner gets on credit are proportional to t.he number of hectares he cultivatf's; thus, larger cultivators will normally get larger quantities 01' inputs. Se~ond, the large cultivators made up a very hlgh proportion of those wh'J trok credit. ',hul the sr:tall cultivators have been getting a smaller proportion of the i;1PU~S ,iistributed on c:::'edit not only because they own and/or cClltivate a sr.1all iJroror:ion of the land but also because they have a l0wer rate of par tieipatim. An anal:,.sis of :'armers! adoption of innov~ti()ns in one of CADUls ext-ensiol areas (Appendix III) has indicated that in general tenants are slower aiopters. It ~dS pointed out abOVe that the lo~er rate of participation by tenant,S could be due to the fact that they find it harder to find accept able e;u3.,·... ntors because of their status, which is greatly determined by '.mether they own land or not. But most important, tenants may not find the Nhole con cept o' ;etting yie2d-increasing inputs on credit very re;.;arding under e..xistins sh3.r~cro)ping arrangements where all costs are born by tenants without any com pensatio:l tl'len for "lajo:' improvements ~:)n the land. 1,09. :\.3su:nin>s that a ~,enant reclives the most f;:norable share-croppinG ;lrr;ma"'rn.>nt iv.:..ilable in the CADeT project area by p::tyi,.>; the landlord only o!"lc-f,hird of his harvest as r'ent and oIlF!-tenth af his share as land t.ax, sho·...s ':hat o'/er a 50-; increase in :;ield is necess.'iry to make use of improved seeds and fertilizer profitable to the ~~nsnt ~here~s ~ny !"let in 1'8;t:38 i:. yl"l,j is pro~'i:.,lQ1,'" i:.o ",he landlord. If costs ar~; sil;Hed P:OD01' '~iorntel:, :; ~Qld in.::reases 0:' lefls than JO'~ IT,eke tLe ','entm'8 profitablet,o the ter.. aLt u~HJer the abo*,}"o :~r~<~;,re ... crof:p':'ng arrange!~en:'. ,....,""_...... ..".. ........ Table B: QUATl'ITIES OF SEED ANn l''F.H'l'TI.T??:R ll"!::T:'.:::s:;m;::::J v; .. ~..L.-L, ::;'/,J0-1':' CADU Hft.DU H??_ _ _ _ .0· Fertilizer S-:led- Fer tili z,:;,r Seed Fertili~f~r ~r~D Ye~r (q) (fl) (q) C-;J (q) 1957/68 L2 977 19S8/59 ~ It \I I ·· I I 2, S77 LJ 515 15,308 6,lf.D 0' J959/70 7,925 1 -l 1 '/10/71 h6,000 13,500 1,191 333 9,250 71/72 3L~, 990 L ,65L~ 2,970 387 1 'J7:!/73 .35,C;i9 2,89h ---------"-- .~ur·~e : Credit Sec tions of CADU, vlADU and the t1PP · S2ED A1JD ?~TIIJZ"ER :ost and L1.nd1ord ;:'~r.:mt3 Paying All Irmuts 3h3rc for-----Share for ----------_._. __ ._------ Tenan ts LL'1dlords Ter.ants IandlOl'ds Yield Ir.crAase j. sh2<:"e (,3) -20.00 lL. .00 :; .:So 9.50 < ;) ,,"'> ir'loc!" '~as e -38 2'-; 10.5 -20 - - - ,-------------- 1:1..( .; :ncrease) Ir.-:;YR:lse :.n sh;,re ($) U.OO 24.00 1.50 ~ increas:~ 7.7 50 3.3 ------------------------ Yield = 10'1 /h~L (,6. r~ increase) Increase ~ ShaI"e (S) 4.00 32.00 29.00 6.40 v: increas,;' 7.7 67 57 } S. 2 ------- ------------ ". -" :1'2 ... (; = 12 ~11 lh.a. (100--1" J.I1crease ) _U ;b Increase ,11 S'k"J.:9 C·,! 28.00 L.S .00 SJ .-5 22.u -; J.ncr '!as,' ~h 100 103 L5.S ------- .. Increase: n ::lar':! ($) S2.00 SL..OO 77 .5 38.4 \ inCYR3.st:, 100 133.5 ll~.L 80 Source: ::;,'DU :f2.:1:)!' ReS83.rch 'T'.'lsk ~ro. 1 and CADU 1965 :0'ap &> Ifl?ling. .. B..'1SA(~ on ':;AJU :::;rop Srl.rnpling 1957, for ~nfer~i1ized local ',<[hea t "~:' i~JJ is a 3 aumed to be ~q t 69 " S~5 a! thn r~payment es o~. ~ll thr'38 pre: ec:s _ ?_rmers are by :r.o :~1eans n~orse Ce~-:". . ul :e:,."'S t:-:'EUl large; :"'3.:--:ners. In i'tlCt lar ;;~r f.:1I'r,18rs <::or.::ti :ut:ed a hisher percF:n tat~'3 of t:1C iiei':!.ul:.er:3 because, be::':-.. ;:; politi::ally po~..;erful, -:J~ey ~'elt. ;",hey ~o\:ll,.~ get ;:;..J/CiY ~.jith unpaid debts. ::':'3 r~tusa~ of these :dTT;1ers ·:'D sett~e ttei~" debts pl'ob:-:.bly l>~d to a more :'2.:"l'eaching !-:rroble:-.> in the-:;:t.:1e :JZ' '.:ADU.l'1:t"'. due d:l7.e r;pa,y:nent rates ha'/e '~een gradually declir:ir:g 3.:" t::e r:u:;lber of bor rO'..;er3 inu'eases. GADU1s fail:.l;-~3 to take the fir~,t default-ers to cour:. '.-l.2,S V~1':y li:..;cl/ t::ke,l 3.5 a sign by Jthcr :3..C'r:1ers that no 'lction wC'.11d be t.'\1 prompt action as CADU would require is i;npossibL~. Second, :::'OS8 coo?~ra~ion by the local "',di:1ini3tration is ::18Cessary in order to en-, .:.'or:-:~ repar:-:;er~ts. and t:1is coop~!:,,3.tion has not been forthGs::Jilig. 'I11ird, loc,~ :'nteresr, c;'ouFs ;OOl<: advanta~e 0: the situation by arguing tha.t CADG die: not cor.:e to :~,e~p farner::! but to ison them. '.-lithout full supnnr+:3J.';dCOoper2.,· tion 01' 10;2.1 in:tituticns and :::>,:301 aci;71ini;:;trations, t.he projects ',,'ill con tinue to :1 eve di:'ficulty enfc)!'cir!g their policies. It ·,.as pointed Gut aboii~ tha,:' ~AD0 mj tr.(~ >fP? require dQ-'ll-payments, based on the generally accepted belief tha'~ 5:1:3.1:, farmers are ;;arse credit risks t:1?...n large farr:1e!'s because thf~Y ha'le l <=;rea+,er tendency to either di7ert pn)duction credit for consmrrp sion rathe' tr:'3.n to repay theu debts. Jut experience f'rom '..iADU, where no dm-ai-paYNe It is ~equired, seems to re:ute t:1e argu:nent, .'is '."iA.DU was able to achieve TfJ )ayrr.en~, r~,te3 of 98:; i:1 ye1T 1 and 9S~ in year 2 compa.red to about 90 ,; .::.'or yedr 1, E3; for year 2 a:-;d 92"; for year 3 in CADU and dbout 90(, for , . year L ill ·,he ~P. Son:~ c 'os erva t ions C ;::o..tld be :r"ace 3.:J to -"7hy 'tiADU 'chS ab Ie to ae [ne V~ 3. higher r.'paY:llent rate in spi-:e a,:~ less stringent secur:i.t.v requi.!'ement::. :Olrmers b the '",'I,DU project are:]. proc1lce cash crops likE., ',_ ffee (in add:'tion ::0 gr3.ins; ·...:"c3e ::;1':ce'5 have beer. ~'ecently m"inta:i.:led at hi::;her J.c:vels COffi ;)'::1.:e::: :o':;i~reals, givinfS ther.] ::i bette'!' chanc2 of :TIii.%ir.g timely rep.s.y:nent. :;:'1 ~O~·...r"'T l ~ ~.t :.-lo "!'t-,,'p~'s:n CADu'- '''I''· +'le "u_ """~\' ~~-inly v '~""', __ . l . . J . . . l ~,fDD j;':'.I.. '" "........ ,:1.._... ,,,,1 ~ere""Q --n'o"e D'r1.·ces V 11 .. ,'i J:;.;.,.!. ~,,,,, "'~·n"aln , , ' '-~"_ voJ ,,"", t, ""Joel f"1.'th "1.'-:., "IT'U '" '~ f4ftu v ..... .. v. ,.ri..ll';·l ''>''P,." C ............ '-'~ t'o r a Y '0 a.,,~ 0 .J..J ~\- cn0 T) on. tine. '.hi:] desire is [\.:rt:-:s:- ::flin:'cr(~ed cecause '~Y.ADU has ~'rl)::t the be nin;:; excluded '111 f:l.rmers fr();a '1 :.siv~n area from :uture credic:. pro'ST,U;lS if rep,3.Y1T,p.nt, (er the :lrea falls belo'" :;S1,. GALU has recently adoptpd such :l policy. ::~ 3.re::l,S ~;la7-, ~:..:.'J.d be higher u~aer strict S"len i!1 -,"l~:J:7J, ~irle:!"e the p:rob~e:n :--.,as so !'':If b~en 01i:ri~·~",~i ~, S~ee(1:/ 3.ction ~e . . :.s nect::ssary ~:!=:..~, r:aker. ; f- de f:3.ul ter S 8o:'c::'e t:'18] o~her borro~ers. set t~j exa~ples ~0r I:. is :,.rnpo:t·::t.nt tCL3.t borYQ"rJers 1J.:'~c.~rs-:-,",3..:1.d :u~a~ G:"cd~: :'Y'.:);"1 ·:he pro.::ec:s is lik~ C1 ~dit ~~rom pri:.;~te lendgrs. I: 3hou:d be fur:.r_~2r poi;:tcd out -.,:13."0 full ::!)one:"'atior: of local (.s()"err--l'71~:1i.. 3.:l7.::'r..istTa~ion :'3 ::3ce5S~\;'y t::; e:t:ec·.. ir.1pLer~ent a stric~ ':redit t:'..on SySt~r:l. 19'? GADG and "liADU r.a'/e O'J;~P1..,t,,·:·.a.rker:,ing cO::1por:.en"3, as the >1?? IS! lary ?t" ng compOnetlt has not bee.:1 op~rati Ve in the i~irst 'C~"I~o year S Il A1thou;h totL t:.tempt ",nsure ,,0 pri::::8::l to part.icipatin.,; fa.Tr::ers, their lpprOa( r.es h;:>.ve 50 far been di:ferent. CADU ini";:.i3.11y :'i"ieo to create \, '_tictl the local ::;arkets by purchasing grains f!"ot7\ far-:ners a" pri.::es '.:1 ::;U:SO. t0 per ::;.uinc,al higher t!1a.n e..'{isting prici~s. This led to ::t~l-31. consid~r3.tle losses 10-;" :::: ·.'illt] alt!1ough the '~armer5! opticns :01' di3?J3~ or t.:'1eir ~rai:1 ;:ere widened. During the 1971/72 season, c:p...DU decided ,,0 or":er a guar mtEed floor price ';)ased on a forecasted average priee for the year. Thi3 s '~ra t eg:: also failed because una.nticipated ~"hea t ir.~ports b-,l the ~thiopicJ..ll Grain jorrot(,tion essed prices ;:'3.1' belo-,.[ the forecasts made by GADG. rrna :.nirc! ,t::'ctel;Y, 'dhieh :-J:.lS :,ried for a short period dur the 1972/73 season, -"as to let [,.rmers bear SOr.'le of t."1e risks by instituting a t-,.;o pay:r.fml: SJstl~r.t. :hnety percf~nt of the existing local c1a.rket price ·.;as set as t,he fir s t payment, and second payments Here to be :r:3.Ge :r Ow money :r.ade OJ' stol~in~ the produc:: un"vil prices r~iiched a more favorable level. ?his str8.tesY r.eV!r 'lorked because farmers refused to sell their urC>duce to CADU, :orcin; CADU to rev~rt to its origin3.l policy of r:;a.kj.ng a lOO-~ first paymen to. 1 s:G. ',{wU I s marketing stratesJ is to let farmers parti; i."1 any risk iwo: ve'~ ',,"i th unexpected pr ice declines. This is accomplished by payi.'1g farmer', or11 SO~ of the anticipated !:IUS price of any product as a first pay ment, ;~"i tr a promise for a second payment if and -..men the realized sale price ,nore tlan co'rer S ':,he fir st payment. plCls the ha.'1ciin s and storage cost s. -,i'le. First, both:::ADU :.ind -"i.w:; ha::dle ~uch 1t1 insit;nificMt pre-portion of 7/he ~o-,-~l marketable swpluses of their rr~3pecti''': ,].reas t,~3.-;-, it is diffi::;ul t !.'or ;:;;-;8;;", to able .c,0 ir::'luence prices t;Qqny ~l ific3nt ee. ::e"~ond, t::ei~~ a~ili':~.y to (;crrpete ~.:;f:\:~cti·..·e-=-y ~/.t:' h priv'lte trad;~rs is '~8-1.t har:perp.d oy ~:j,etr re:J.~,i"l~l~l :-,i r.. 3.ndli:-:~ ·;:05";;). T:,eir h2.nC2 an:1 storage 80S':S 3.:'2 T/2r S:'1:.£,6.00 per =luirH::il comp;;red to less th::ll1 ~tr. ,31100'') per (lUintCl~ :or ::-J.e average tr3.der ~ ~~o pro~lide a :)r i:::3';" ~:ie :,3.r :ner, ~/l.:.;JlJ ...-W'Jl: l.c ha ve ~ 0 incur suos :'o.n t.ial 10 sses · , -t:::::'r:l "!iQ::>il1ty of t::..:;ir :'3.!'1::2ting di'lisiom3 re:JUires r2sear:::h into ~{aj7s :,0 recuce ccsts . t COS'iS 2CU. ::h'2 ('::st figures of the t:::-ee projects '1re not compara'::lle :'01' sever':! -re 1.sens. First, the pro ts I components C1nd their sizes are .Efferent; se ~o:.d, they have been in operation for dif':'erer.t lengths of' time; thi: d, th(dir ~ost figures are bro}~en do"~n differer:t~ly; 3.nd fourth t l:he l'eliab .lit 1 (,f their cost fi7,'J1'es differs considerA.oly. Separate analy'" Ses of the pre jee ts I costs '...riil ther,';!fo:oc be given before mking? rather crude comp II is In of the cost figures on the basis of the nu:nber of [2.1:'7:81'5 reached ani tre number of hectares developed. In 3.11. :'l,Sc!5, cost figures . ' , lrlC 1 Ud e a..... cC::J J . ' "ems u .L l (' be t'ney ill casn :)r l.n, . d \.. r .;'''1 ~~~l.. " . . . '(lJ.1 I ~ l' · 1 : l!1ar'l/: 1..9 sources, p......edi3h contrioutiofl includes sal.3.ry l.nd '3.CC 'J:l af the expatriate staff, cost of fensibili:-:y studies, draft ing and elH;ill~,cr ing needs, c.raining of staff outside Ethiopia and ; of the in'/est::1ent dl1C operating costs. 1/ 202. Tho S thiopian GoVel'::"'TIent 5upplies t~e r cquir 8t: land 2/and pay s salaries 3~'1d hot:.3ing allowance of Ethiopian high- and :niddle-level staff. It also pays for tr lining of non-pro,~ec,:; s;:.afi' and the "emaining share of the i:lVestJlent an ~ o:Jor3.ting costs. Sosts of i-nplementing resul-::.s of feasibility studies aT e s.:a.r ed equ.:111y bet-"een the t~... o GovernMents .. Of U:e total Sth$1).8 million spent during Cpj)i]'s Ph3.se 1, 1.13.1% ~-8.S·:l':1.ss: fiEV! 3.S oper'3.tins costs 'lnd .9'S as capital costsCTab19 L,Q.). 1n ·l~st.ments i:;l:or:struction and stJ.ff salaries '3.nd ac cOnlmod3.t ions , ',;hich~ac ,~our.ted f(,r 4.:.'7; '3.nd 3S.L!~ of the tot:::!.l costs, respecti'li~l:;, ·....ere th~'::ma.ior cost.s. 1/ :;,\D! '3 :lhc3e I costs are actt:al itur~s; Phase II COS'0S are bc:d£;cto'i. ?/ 'The pTr;~e.:~. -,.;::tS ~i'}e:l r;O"ern:1e~lt land .. In 3. :(~'i.{ -~ase , privatel J1 <)yrned l-u;( r"O>ir~d by tile pro.ject ~';?3 'lcql1irec. by '/':',nr; t.r:'3:J';ov~r!:'Jlent 13.nd. :10 ::;ajor pu.rebrtse of land :)y ~jl'1 GOIj"rn~;"n', tf'lS needsc exc in 'i fe'..; instances. 72 1,7 ,900 2,)20,1.00 ::; , L~CO 11"'3.';,1 ale! transport 12),2CO 321,400 ~; ,200 ,\d:ni li31 ra ,i'le eX)f::n~e3 19,:)00 109, ;00 0.8 2SS,SCO h9l..t,30b 835,000 5.0 ?'J r ~ la s e O~.. rna t e ria 1 s ,000 SL.J,700 2,h7S,2CO L 10,400 --'-:,."'--------_._-,-,-- _._,-'. ..- , 8,10J. -. , Gr03S Orer'i.tL'1iS ccsts 1,288,JOO :3 ,0 38 ,b)o 4,954,400 ~ ';;l , ,100 ')7.0 500 ? ,lil-!".§QQ 3J ;l~.l 2~ .· 9 :Iet opera ting C)sts 1,039.,100 2,130,800 2,799,500 5,959, Sea h3.1 :Lnv',st:n'mt in ~~:nst~"1~ction 03L,200 4,415,000 S,945,000 T:!1'II!stm mt on equi;::~er.t and 1 ,'leS :OC k =531 ,Seo 58),200 2:)7,GOC 1,uSO,uGO 10.7 In~~st~~nt on land 359,000 8,000 377 ,000 2.7 In '1 ! ST.rr:~n 1', =On TJ!ld , ~OO 3I l .seO J.S -! Ga~Ltal :~csts - 1,:41,000 ::;,181,700 861,200 7,853,900 '7 ;) 2 70 ta:' co::: ':. ., 2,880,100 7, ,::;00 3,650,500 13 , Fl ,ilea lCO.O - - - ' - - _....._-- .------~---.---, led frc:n infcr:nation ~rovided , _, f id UUjjll~T~jj l;l;~!.J hJl( i,.)J..!Ji) nll~:)lJ .U, .1-)' lUI (1-.£), (ii! i , ~ r'. j Tota] -~-----------j- ~ ies 19'{0/71 1971/72 1972/73 19"{3/7L In!l ~ I. --.----~---------- ','IT,I'' te st:.iff ~:rt'lLlrie~ 1, 1, ,000 026,000 760 f SOO 72J ,OOC) L, yOU ,0\..)0 b.ll ?:t!:.i::J;.itiD s f!~ ies ,LOD fje;;) , &')0 () ,200 "1 ,OCO L,Ojc ,OJ:; n.;;:" Net COS +.5 1, 1, 1, 3J7 ,6JO 1, ,Loa 1,201,70C) 6,160, :::lYj ~\). 2? IIl\tf~5t~ertt on const.yuctton ,G;~~O ' t~, 1. I' 111,Ou,; 1, , (}()O I; ~ )! () 'I: nv f;:;) t.:Th~l: L or. f! iu l. ::',530 , l .) 1 1, u,9 ;;. :lJ Other c;osts :[3.1 (:0'.> 'L::l II 49()", 000 1!B2 L ,~ (11 tJ. l~ ,~OO ') ~ , ,000 7. :;2 ~Jntn()::; ted funds 'J~ 0-0 1 2~S ~or , r; (Ie; l'\lt::~;) ~!.~~.(j-.:.- ... -.!-! !':!- \).. , n .. 1 \J .L , Jll;~, t '.Ll 7, SLO, 2JO 5,81~LJ()LO I J 1. , t: , ,1 100.1)0 --------,-------_. ':/, ....,J ' "l..... ..... ..... ,.. '?811 tCiLi',/e CADU Progra:nr1le 1970-7S: 1 GADU P\lI .iea'Lion No. n: L1cl\;dc3 GU;Ll for hiri!1['; CO:1Sc1}tallts, traini.ng of h.igh .. l"vel st.arr and conLJnrencies. - .'" '. ::t DrGV~ ~ '3ny r,:~li~j1.8 .~l_nd ,j·:~*:.a ~:-=d ::·"-:::tk;::cli!1 :h'2 l'.:~~; CrJ.'"ldi+ :;~~:n(~nt. ':~rp::it. -. S~) ~:- ":I:~~ a;::,:;:'--=~3.tf3d :;""~:::' t C:l t,e~,;cl" :.eS .. :;; ~ ·'en in ... -~ 'i:':::'<" -, ;11 ~t~ss~.:::. :tep():-~ ~:~ Cc t:)oer :)9 ~O:"'~2' d8~::..i.!. :'rc:n :.1::>53 si78n :":1 th9 ex di:. -:~7ter:~" do not ~llo~ :lassificaticn of :05_S ?ro ?on::"th, .:onfl:i,:;';" cost f:"~~lr?s .~:,,:~.:.~ ;;r{~~l~M Jl!.rC"~;3" :~:)r pij.t·poses :Jf thj.s a!1rlly~i3, (;'v~'~' i~:-'-:::.rJ"··,~':, ?-::,nan::,") Df_·:;·isi·~n a:-~~~ t.he 'd6r.'l:: 3J.~lk's ~.tisi;:::: tl~'''':)~:-~:S --~ ).. 2--:'~:~ sp?n(1l:1,;s J'l~~r 3. fc:,:!" ;l.tr;.d one-~;lalf Je2l~ ·per iod sr::J"l.fS .som~.: s1..los~all-:ial, :::: -~~S "- th~ tur ..: or: certaiYl ~~ti'li.tics (Ta.ble h2;.. I::! ~3.-=-·t, <::.hi:j 9X::- ~_ }, ";ey~.i l:_ -: ~~ le -1'; ~r:": ~3.8 be~':!!--" ::1tJn~ s',) :~= on ",..;-a tel"" C~:: :'-::.': out ~bc-:~ in :1or~ det.'1il), and u.'1:~ore:s;:;en expc1:ses :.rel'~ ~~~':::'" l...'1 sta!":... ::Jusi!1~.. ~~":iO"Jt1 al1~ the r::=:.lse::1 t..h3.t the to:al ted (O'ft~~ fOUl and ·,Jne-hal: :~ea:::s '~lear . 0:' ::ou:'se, t?_-~i::m Jr' has ~e('::!n f3..s f .e:- :~2n ~::tic F'~rt::~!,:;'10re1 i . . is dif£"ic;,:,:lt to r~:x?lai:! '""it:::'" ~xpe::,~i -!'10n~:.:'"'"l p~:t~ iod ;3'hclJld be ~ 1'; higher ~ha.:'1 th,3_:' pl3.r!n""~'~-i c:_ ;i-:.::.1 f~xpendi ~:!re :In bu=-ld ings, ~::1e~ :on2~7uc:~~n. " =- __ 'l~:-"~:":I . i ... e~'!uip::t~n~ a,~counte(: fe-I" a.bau~- 36-; of t~~ t;~t~1 :?:lase I :::3 '-:'5 .. St'i:f s·::3..121:-=--~1s alene :~nstitu~2j about b3 3nd o ~J.'S:'":l t:";1 g ~".~:;-j :lla =-n :lade "':? 21:;. I ~os~s, IlJ~; creji~ :Jver~d ::.- ~;j ~~:"':'Qpi.:ln C:...,,:)~.;~rr.. r:1ent 1~~-::l!:.ribl1tion C07eT,-]d 23 . 3';, and uK "inC!. -::;-?P J'Jn :'~'~bU::O~1:3 ~o\:gl"ed --.]'; (:'abl:~ uh). ':''lble ll?: '~~):"l?AHIS~)U OF' CRIGIUAL PIlO'JISIOr,~S A!JD AGl'tJAL PjL1SE I COSTS OF ~\rl\DU (l~Ll;;~) -- -----,--- ---_._--..---------------_.---- '1'otal r'{\"I',i i;.,., .... v ... i~~ ~-: t. '.I',: '.1 .; 19 /1971 V)'( 1/1)1 { .2 .1.')1 ... /"'-/' .... ~ (nVAr (over ,,. \ t l:f~Gir 1~ (:~"" (Ye3.r L) ( ,_.", \ ,i.. z:;,.... l. ..... ) l '\ n, v ..:.., I ~, ~C' \.e .~. ll,,~~e~, · r"'""j I. .... , ~c ... -.+' A ~,~ c.c.lJVrs, and i!1putu 1,174,;1 ,201 77 )2~0 11S ,000 11 // , , staff, ADS 372 ,200 203,025 186,000 102,000 fl5] ,Jor) stAff, UK ... __ . w·.# 792 . '.' ... (16 .or;w- ~ ,;; ""- .... _. -" ~' -~. ) 5~~l " 2??,7 22:2,'/')~) Su b -. tQ tal 1) 56:J C;OC; 3L9? 30tl 269 ~ S()L r) '- , I ~i J9 'j; ? 1, G:1Le~~ory II ,~ ., -. !lJC3.1 !:ltaff 487,970 899;093 ..l..;;v ~', 1000 1,210,000 3,515,o[)) ~!, OJ';) '(1 h Loc:al g'c,3. ff a110'..1'lr.ce 92,184 lOO~OOO 82,000 '< -" , l~ 7"~ Const~uction of civil works 1,lL6,397 ,OGO 175,000 2,006> B7'; Operation and maintena;:ce 75J!.709, t,~c. ~i...,)_! .., 7 SJljOOO 29,1 Sub- to tal 1,572 36 2,891,383 1..J94S~ 1,$'98,000 S,LO? ,S69 7,o89,? Gil tegory iII i05 :'loca. ted) ~;:121~) o th<3Y G~):J ~~~ S 1"1 u.\ aerial photographj' ,000 7:; ,OC'}..) 2SG 1()~)O ";for Id ~~ood n'o[ICCl.m (food) 138 ~ 8?O 43,1;39 3."5,0 ';57,7 1 1 1!lC») S;Jo-total f ~ 'J ' · .a ! I 7 S,000 ...... --,--~,-- '~ , 8, 13 90 L.J,0.30.. 3.7:5,OJO 53? , 7:),-) 1, To tJ.l 3, ,499 3,S35;292- 2,338, sm~ 2" ,~,2, 584 11., n~., 2';8 13, 2,U(~ Sou~ce: 8.:11 eu] a ted frc)m v:lrio'Us vis1.o::. l"lis~)ion rr;pc:." ::3 afje! cost as en UY tecbnic';1 ,:;.~1~)i~)tanz;t~ r;ro'lided by ~:i~.DU:s ?ii"'~all('f:! Di·~:_G:i0:-i. !f!:n' 3 "x,d yC1.r' L. c:sts ·~"e cost.s. ~ :' . ~'\. \\ ::· ....J.,J ,. 3u:ld -,.., ," ~~side~ .ial buildin~s 221, .. -) . 3, J :..1..--', Of~ice strres ~nJ JIG "."'/ -; :!~ ,_ I -' , '? ~7 ~c_ \ , : 7S, ~ ?1.r~~~o:-y ::br-i:k) SI),')1.) ,01) n,~oo 11, C')O Y:;, ~OO ]:;, Other buil':: 10, SJ5 tl';a:~r and SUP~)l:l ~"a('i 1 £.ti(ls 58,320 ~o~d ~:j drai~~ge 30,hSo . . . ,...l·~:J" "'a :::!."" «~::: "' ....... ~ (.,,....l.. ''~) .... ::1 .... · S7 ,7l0 Aerial ";!'10~Og::~lP;lY (tr:·\) 75,e,)0 r}nac 8m !1 te<-~ C;IJns true ~ion e:cper ses 857 -~~---- ._-----------",- ~ .. "7' ~1·67 .: 1' , IjO,JO() Sub-tctal L, ;'h::::hiner:' an 1 E'1uipr;1;;:nt, etc. Vehicl,·s 337,577 50,000 ::;30> Tl":lctC:' s l1u ,h9 3 llli, OtheTldcr i:-l!·:ry 523,763 )23,7 ?rcces cen:'er s Jh,51.12 110,785 36,oco 20,OC-U ::;1,:;6u 13-3,890 il),830 JTS ,0 30 Fertilizer ~nd insecti '"\ 1,17u,h27 370,091 121."J20 C. , StEt Cf' SJ 13.:- es ':'t~i0(i?.n 3,'115, :. q t) s:a.:':- J A!J.:3 ~r ~~:C?3.~::":;,: ~ sta.ff, UK Pel" ,j:em _r~d "ir fal"eS ;: OperatiIIS 'l.:1j :rtainteru:>J.1c3 ') :{O.3.c1 5 '- l 'TehiG: . e.::mci trac tOI~ Y;3,331 l:L:O,COo 32:; ,,000 \)-:-,her; 22'? , '?:;O 1)0,000 l:57,5n is), 57:),7 ,3 ..,.., i I '. !';{)-1(;7J/7),.. , I'" / , .~ 2, I' 33 ,000 23.31 L:niteJ K:n;;dolll 297, 'ISO h.7S 2. 1l, n1., 2C;0 100.00 ':'hc total cost for the :1PP O'1er a six":'year period (1971-'75) is I')sti::3. ted ;:d-, J.bout ~th.$70 milHon Cfable h5). Cost est.i:aates for 1S:11-73 ''{er",.: b1.s;~d on EPID f sLoan Appl.ication to T3RD/IDA and fm' 197L.-7S on the ~,~ppl ;; Appraisal ?leport. The foreign exchange component of tile Eth:S5h ;ail1iJn alb:.ted for the 1974-75 period a;nounts to about h5~. Since the cost f:Lgures ',.;e1"'3 based on 1972 prices 1 a price contingency al1o'Ml'w'J is made fOT p::ice incr '~ases of L.~ per ye;:uo (Ul.L) 0 209. IrHcstments account for 26; of the t,c'tal CO'lt, cornpaJ.·ed t.o III S I~or fa].';11 inputs and l.!S-:: foX' opfn'ating e..";:;e of the exten~,icn progr?:ns but are ineli.;ib1e for ered::' t, get the i.np~ts ;:or cash 1'rOl'1 ther:l ;:,.nd f:com private 5uppliJrs for cash:;-;: on cre- d:LT:. T:- ese fatrters:G'8 not inc.lud3d in this is J '"hieh r'<" t.here fore t:""1cere, t:'--ates the G.ct\1al number ')f far:ners :r and hectares d':v01~Jped. Never+:,r.cles··., 111 costs <1::'( tncurred in tryir.?; t;) :c:a:::h th(~ s:;l1.11er h_:':l~l'S (irre.3ps:~;:'i e Jr thd t!~ effect O~l the l:l.rgc-;.' Ufi0:3). l" Seems 'lppropriate, therf'::cre, .0 lS3lgn '111 costs 7,0 the tar population, Le., tht! small fa.rr.tets, 2H,. .'able L.7, ·.-,hiGh gi'les a Y"Jarly 01' of the total cost, rr.~;nber of far;;;E rs . ea ,cost per f?...n:ter, r:u;,1ber of hectar'~s developed, ar.d per hect2Te devd,o:)1"nent Custs for each project, b.s been 2:)1' on t::'e oasis of the ;:l()()', e a~su71ptions. The capital costs incul'red :'n a ?articular year should r.ot ncr~: b~ totally accQu.-1ted for that yea:, but ",herr~ ~-I'as no information on rate~ of depreciation, Adi'!itte<:1J.~1 the 83 "'ire rather crude, and in 501112 Ca5(~3 tr,eil' r~)lia.bilj,:'y r:ould be leg1.tul1ately q\1esti(jned~ yet they puint out some i!1~ erf~ l'elat,iollships. In all three easf;s, "ho~,h costs per f;:U-:ner r~achcd 3.nd c':sts per h8ct"<3.l'a de'1elop~d W"er,~ h".;hE:(4 'it the begi:iIling ':Jeca'..lse fewer :c rme,'s ;Jar and because a la.rger pm'tion of tht~ costs 'di.;S in curred (n il~:'r3.st",:'uct.t~re (mainly buildings). As the ts progressed, ho\/e'/e1" co It:3 pe::: flr;ilcr and per hGctal'~ dccl'_ne;J consider 'Nhat is Sl1.rpr::'s"ng .5 ::oat CC)S\s IX;1' far::::er '08ems to be '3.O::)Ut '~h,~ 5,;';1\(," for elll 't.:U-ee pro~";ec~~, e'en tl:ough tile: nuraber mel int.ens~L ()f tr~e~r ~o:nPGn~rl+.Is :lre dj_1:~- :er~~nt. In .,"ac:', \~()31: per h~c:tare cevelo!J~d se~i~S 8e ger:era lo\·rer for . ,,:::\:J:J t:-:: n [')1' 9it.hel t11i~ E!'P or '..iADU. If these reflect an aCCuTat", 1971·-75 ~·fj,nilr;am i"a";;lOO 2,)12,SOO 3,66) > 1.100 7J 5cb,2JO 5,844,040 7,619~O40 L,l ) 1J L ,672, Ho. f farme!"s re3.~hed 189 8S8 43769 14,146 D,071 15,000 15,000 ,coo f,;,rrncr lS,239 8~2 76S ')31 hIS 508 321 312 No. of h('., dev. 977 b,SI$ ; 308 LiC ,000 31;,990 3S; ,OVJ 3 r; Cos t-:-ll"e 2,9!.8 1,520 239 157 215 ~ - IJL ADU To+;al project /0 cos ts (Eth$) 3, ,499 }, ), 2,338,884 ,2, No. of i'ar;ne~s reaJned 3 !92J 1.:,791 7:040 [) Cost farmer 818 733 332 No. of h~. dev. 2,5JS 6,682 9, Cos tilre 6,168 1,39S 350 P? Total p:'oject cos t~ (Eth$) 2~558Jooo 1, ,657 ,000 8,909,000 12} 318,00') ,7'; J, 000 2L, SiLl ,000 ;':0. 0:' L'ir:l:er T ea,jhod ),61) 4,.609 13,500 )0 r; 7 /JC)O · Wi! G03t f.=trl:.er 'loB 19 0:;-3 6S l ) L1? 2;'4 2 No. of ha. dbv. 4;800 j,8,)0 ;300 ';2, ,100 }I~d, Iun Cost/hectare 533 1176 339 235 186 1 ----------------------_.. )urce: CADIJ "~'entaLive am ;1; ~ 0 f the lolti_ni~nu!_;: :?d.Ck:lge ,r 11 r"'I;J.!,c i 1 1973; 3.rl(~ L,qblE~s from Lhis report. ~st1,ms. i(~s bevono ) are bas£d on the ~ "G fer ;';"18 I--l!ip, T,SilUltlfe GADU am 1'7 -7~-; ~-'or ~:\ :ind Pr irir c!c tJ.O:l ;:~s 1", i I~a ·;·t~:~ I"\O~ ~'ii~DE" ':e.~r f)~ ~"/J\DlJ vers ahouL 1.7 mont.;l~j \1 71) . __ ._- --- tiO'l of 3p.neiits .:::.-----,_._. 215. It is irnp0ssible ':,0 m::).ke 2. mJ..(T,ericc:.l esU::nte 0;; all of ~!1a bene fi:s of t.le p.ckage projects. The test 2.SSeSS::lf~nt ffiUS~ be a cO;::loination of nU11erical va.;,ue '::or the in net illco;nc" due to the ~)'roje(~t31 acttvities 2..nc Clu2.1i'~at:'..ve measures SUG!l as '::hanges j.n outloo;·: and expeG:.ation of the ;:ar?~t po;)ul':~0i()n, Ch3.11ges in their liv:U1fS conditicns, and c i!1 t.:"letr consur:1pti:~n i1.nd expendi turelf:~rns. 216. "Esti''1ated benefits 11 in ~;his analysis refer ",0 increased crop yields resulUn:s from the introduction of n~~.; technologies and from tnGrf,ased pric~s d L ,,! to i..:nproved m.8.rketing provided by the projects. Sever:;.l :L1lpor tant benefits :1av, b'~cn left out of the analysi::l due to d:'_fficultics in qU2.ntiii ea tion. ?or ex lmple, benefits a'rising frOln i..:nproved imolements, from impr'.)ved see! virieties distributed outside oI "Cile projRct areas, In,'lir· ,:.c· creation 'Jf .;mpLoyment from the imprO"led health OJ.' livestock as the result of the 'IE ter:nary acti'li ties and from. home ect)rlf':~d.~·<\l:::"t.l.vii;L.?::. :a::v!"':"it been ac;c("Jnt,<·d fa:, l11US, the esttmated benefits hore a;f.·e itIi\ini~irtun cAncfi ts. If 't 217. 711" c.:>mprehensi'le projects, i-J'hich ha,ve several components such as '.-later su~ply and health programs ....hose beneftts are not as easily cOll.'lted as increase:: in yi;)lds, and ,.hich c0nsid2rably benefit0Q farmers outsid3 project arr~as, fjnd :.heir ts underestimated ·...ith !,pspect to the I·W? In fact J sinc~ thE :·fP? i:3 a direct ontgrmrth of the compre!:I'!.nsive pxojects, pri.1Tlarily CADU, sone aI:' t~'1e benefits genGra;~ed in l{l? "lreas should accrue to the compre hensive r 1'0jlct:3. ---_ _- n o· the Rate Sst:ilna tic ,-- --,,-------_._--,_._ of Return .. 218. Ss;i:n,tion of the economic rates of 1'etu1':1. fJr T~bor for Toad construction and ;r,aint(ln:u-;.ce. Tnis ;lS::;;U:118") tha.t the cost of ~,he economy :01' un3ki11ed 13,001' i::: zel'O i~ :'er::ls of ~'ore::;one pro due ----_._---- titil~3 in Appendb:: VI. 22C, fr;t~l' i"or ~rle >lJ? !1 ?cr exa=~~)1e, COS':'3 of u.pplied :~ese2-rc;h., ar:i~T\al hcs 'oancry all': h0r.18 econom::'::s ac ti "Ii tiGS r~.:?t 7C ':;t~en 8.XC luded br;c:::.uSe they relate to CutLt8 ir1.novation~~ n07~ tD.ke:n in~:J :J.ccot:n~ i:l -:he benefi:s., Since the -!11.unb~~r of :1 e·,.." ;~ar!1",ers part~c ting is expected t~ fall sharply after an M?P hss been in operation tor seven years ;:>,nd is e,xpected to cease afte~' nine ye2.rs, opera+;i:l s costs per H?? h-ne been :-:lade to de;:;li.r;e sradually 1S the need for ex';'.~nsion sa~"!i::es i3 e~\p8c'!>2:(~ to decline OVer t.LTlC ~ 221. The ec::momic rate of retu:.nl f.)r CADU ·,.;as esti..,utf~d at J.fH, 0'.'8:: a peri.od of thir'.8Fm yeal"s. Current", es"',i:nates pu-=. it a': S ov,=1' a period of Len ye8.:5, . . I hich is in fact a conset"lativ13 ~sti:;Hte since cost esti:iiate5 have so :'3.::' beer: coincidi.ng ;.;i'!-,h actual costs ~.;hile realized ~conomiG hene i'i t; ::,\'..~" 'Je81: g::ea t8!' than expec ted. Ih':'s 83tima te 0 f the ecor..o["ic l'?_ te of returrl i~3 c;3.s8d on the assumption that GADU's Seed Di-ri,sion, Catt.:.le 31'el':oi:10:; I:i'li;,i);: and ~1arketing Division ·,.t11 lceEp cperat.iI1g as 5e1[·' . ;)(.;:;· .. tair:inf'; lJr1.ts th:,ougnout th~ life of the project. 222. 'I'he ec:momic rate of return for ',-[ADI] , over a t~.;enty-yec.1' period, is esti:naied.t 13'1,. If farm labor costs are inGl1.lded at t::e on-going rates, i:l: t,ea 1 of' at a zero shadow ~~-age r3.te, the rate of retu.rn d'Cops "co He 3y 1 ouglly di '/idL'1g project costs into 5~'<; for the higr..lands '3.:1d L5{ fell' Ul(~ 5! ttl!r:;ent schemes, the Appraisal ':ti.ssion t~stirn;.lted '1 rate of retu.i'n of 9 .::;~ :'( r t.le highlands and 11::{, for tj-,e settlement SChen10S (u::;). Assu;ned crop yields 0:' 13, 12 and 8.S quintals per hectare in ~he highlands under ~stimated the bEnefits because yeax' 2 average yields iil the highlands PI:re 21,17 and 9 luintals per hectare for maize, 'flheat and tef£', respecti'lely. 3ettlemen:, be:1efi ts ..ere also tmderestir.~atcd, as asst:Jned yields rer. hectare ·...-ere ,';.5 1nc 5 q~:;intals fol' maize, cot.:.":on and ch:.l:i.es, respectively, whe~'e.?s a :er'i.:se year 2 yields lr1eY"e 2h, 10 and 9 qu:Lntc,ls. l"::tte :-more, ·..JAW's 'ket acti-r:.ties'dith , hides and tobacco sone benefits Ihic 1 Lave not be:en accounted 1'0:' in estim2ti:1G the :'2tC of retu:'I1. en t:le ot Ler "lE!>1, the p:o~ect ~las bee:1 spending rlore t~?~n ,~nticil)ate leadir:g -~~J a: o',~e:~est:L~att==>d rate of return . .\ :..~;. ~~'1'" econo~'1ic: rate of r'eturn!\)f the ,·IPF as ,;stima ted :"he A~Dr;.isal ~t..S5:0n is IS~ OVer a t-denty-five year period. This estL'Tlate is co~s'~r /ative ~orr,pal"ed to the Go; estirnated. by the prepa::'J.tion tC3..'.1: of the :,_ . .:)Jan ' } ' 'f'Pp. lon to 1. It .l 1\ (l~) . ..,n ~nc:ce'1se o~ .'(0 .', ~n ;:,ne co~ t 0:~ 'PI) ~c<;. t' . -B~D/~D' , . ... .: 4 til. . " inFlts ·,w.lld Lauer the rate to 11;;; an insrease of pro'::ec"~, rJcne.:its by 10~~ would rai';e in..'! rate to 21~; and the combined effect of 'both £'actors:·wollld gi'le a:1 ~:on( nil'; Tqte of return of l7"{,. ,:? ?2;1. The p::-o,]C!cted economic rates of return should :;ot. be t;'Ll.::en at face 'lalue Gt:,~ to thrl experi:nental natm'e of tile projects, esp,"cial1y in the case of ·..... ADU ald I,he ~'fPP because the quality 0:' data on which ~,he projecti0:13 '..;ore lnse:i i:; 'J',ry poor. 3etter esti:nates could '0.:; deri'/r~d as ;:;cre exp8rLmce Ls frcm::he projects themsel'les and 3.S est L1ates :H(~ ted per todJ. c:,,11:;. Sinc(~ t:1e intensity of ~xt,ension and supportiYlr{ ac';;ivities is 3rrtJ.llor in t.h", ;':F? thaI! L, th::; Gomprehensive projects, >lPP' ~'::"5k is ;)r'Joably ~l'",~~~el' - El:. e'l<;:J 1 it cC3.1s 'dlt,n innoT3.tions3.lr tes:'ed by the :;oi;lpr~::ens~v~ :Jr e':'.5. EP]D has had little e:q)l;)rience ill i:llplem~n"ing such an e.,'Ctensi'Je :Jr~)2':'-?J-:~. so raDicil1. 3esides, :noS v of EPID's expatTiate staff are avail?.blc '~nly :'01' 'l~r'y' sh()rt-term cont.l'/.J.cts, sa tha':. thei..r 'J.nd~rstand~:l'S of local si tuations ane c'msequently thei:.:' a'Jili ty to inaJ.:e expected contributions may not be fully l'e:O,.cized. Furthermore ,~,;le most critical c:o~nponents of the pro ,iects, ere:!i t an..! marketing, are expected to Q;=: undr.;)rtaken by cooperative ;"cieti2s, ',.;h< 5e success ur:der exi:.> insti tutions 1 standards of inf1'a structurei.nd m3.::agement skill,s of pea.sant f3.r~1~r3 :::.3 very (r\.:esti.onabl(~. 225. rhi, a' gum en t is not intended to L:1ply tha'::. the pr ~jec C:S :Jhoulri not have 'c gen un Iertaken b~t merely' to point ou~ the danger in'lolv,~d in ::.ing tc.) ml.ch confidence i.n the esti:no,ted r:J.. tes of r~hLrn. In fact, pro e,'Tar.,3 lik'2 CA. 'U, ',IA.DU and the 11P?, ~fhich offer the best ;neans 3.vailable of re:ic:-:ing J la"tSf.-1 proportion of Stt:iopia!s rural popu.lation, could be justi fied even if' ,he rate o+: return .....as ;;1Uch 10;'181', ii' the Cowltr:' I s. :najor Q::,jCC:iV9 b . n :ac C ·,,0 improve the lot of :t.'ut'al people .. ~26. IJis-c.ribution of the benefits generated in theSe projects is closely ::,elated tc th3 ~.ay the income-increas~_ng inputs have been distr.ibuted. It '"as point, d OTt'. ir~ the section on credit that aft,er finding a i:1arked tenden::, fOT :'he bf·nefi ts to be ir.aldist.ributed in fa'lor of +..he ,vcal thier larGe-scale f3.r~i1ers; (:ADU li:nited participation in its credit program to cultivators of 20 h3.. fOJ la:ldOlmers and 30 ha. for tenants. All categories of farrr.ers par tie .. n ';I,\.OL(13 credit progr~:un, the jus:-ification being that holdir.:ss in '..Tolamo raJ'ely eyceed 2 ha. The :1PP has at the outset li:nit~d participation to cu..lti'/"tor:; c f less than 20 11..1.· 2'::.7. Sut 3t.ar~tial benefits ha'le accrued to project-area f'1rr:12rS since the ini tL.tio:1 of GADU. Hecent estimc:.:'es by the Pla.'1Jling and E7a1u3. tion 3e;:;ti.on 3'10;[ t;,2'c, the :1.verage real income of farmers 'l.Cti'181y partj.. ci~,.Jatinf4 in the pr<:,ject, .has bef~Cl. increasinr; at an arlnual rate of SO:', IJr ~t.h$337(7) .1/ Tl-'.e ,"nl .. r:CC:ll~ of the aV81'age h011sehold in the project "-,:ea 3.S a ",.;hole, :'n::' aludin s 11 1!1-pll"t.ici;:'lants in CADU acti";it.ies, has been increasing at 10-; peI' 2'~~j.i, or !~th$15 per year (7). :-';O;;;Pt11~~d to ::;ADU, bene':its ge;:;.e~ated by cotll _ ';fAJ'] 3.nd ~;:le ,·2P h2.....;e ~o .far been s:n2.. 11. feCir 2 'r:enefi:'3 for ·1i.Um, d"'" to -~:'lD:-O'I,"':! ;e,~''': 'lcLrieties -'l.nd fertilizer J are roughl:; es't,i:nated to be ! 'SthSI,c6, ooe; /e::rit[~et" :';.\.J:.1 0:" the ~·P·?, em::.. oer.efi-::s ar..? ~xpecfed. to exceed cost,s by ~rear 8 i~1 the 7"~?9 compared to :iear 6 in both ~ADU ar:d 1:iAIJU (A;;~endix 'II). ~h! t~~e~~LS are oasdd ~n ne~ yield i~c~~ases d~e t~ ~er~ilizer a::c ()"leC seed v3.rietie:'; . 2eC2.'1:::~ G,A..GUts Gr(?di~ :;Y:)I.:t_,.~y ~:l~ ~~l?-!:g:~d 2.:':~~:" #-1, :--e~r:f~\"; 0: it~) :::redit pr:Jg:-:~·.!, an.3.:ysis ·)f the c.!is:riaut.i·:)ll ::y:-.. Pits ~..;i~,.l i!lC :...UGE: :.he :i~5t, thre::: Y"3~lrs 0: ~ADTj :'0 SC~3 t~"!e ,~~~-'C0C~ 'J: the t~~0 ~':)ll.~ies. ;'na.'.ysis of :,h~ jist::iou:.ion ()f ben8:its :'n cot:l ·;L\JU ar.d :'h.e \::?? ·"i~=' be oa,i.:;!d on only 'Jne year IS ac: "i'Jities :h:e 7:0 li::\i ta '~ions in da tJ.. ::!o·.';~·J'~~, sirc·~ thc;;:e ...;as !lO policy :;~1angl:~ :_rl either ~J::'()je<:t, i~ is ~/e!"J '1:tllJ':81y :.h< t :he di3tr.~b'l~_t;ion of :he ben!~fit-s among ci..t~~"·::r~~:' categ0ries of' :"a.I':nG:~s ·i.l:_ ce s di:"ferent fro:',\ ,'Jne je·:i:t ~c 3.not.:1er. 'S it:. na tes {jl :.he net Yield increases Clue to GADU--;;ravided SP,,::ds .... ~ni r~~~ili .e~ is given ~~ Tabl~ h:j. Tab:!'(~ 1J9 gi'les '1 o!"'2:tkdC\ffi 0: the :~::,,).5S bj.":·ne:~ . ts .:trnor.g di.f:erel1t, ~~tegoTi8s of far:ners.. Area o'\-o:n8d, inste,qd 0::: ]:e;~t c:ul'~irJ'lted, is used a.3 J.. pl"'O:CY for th:--~ incoITl'= ::t'3asure ~1.2ir~] QP(",~~\~~ ... ,:; 1.:C'.1r?.. ::' i...ll~or:1ation on 2,:::"::::1 cult:~11at.~d ~";3.S no~~ availa~ls. In 30:-~e Gases, :1cr·,.;ever b~::3.Us~ a 1 mc',')~mer may hi:1seli' 0'3 :::ult:"/ati.ng a "~il_1 8.:' the ?:r-ojec :. ~~o 'vJ.e' )1"80. Fer tili7.er Seed Fe:' til iz e1' Seed FertLliz8J' "r _ . ~ ., ~ior ~:,n / 3 3 2 30'1 ~i: 3 0 J J 2}:J. Ji~-;:.ribuGion :)[ benefi.ts is very :nl1C;"1 Darall~l ~Li.vh the J.i.3iJ:,ih~ sution of :rsdi t (Tables 5 a:r:d 49). Thus, there· ~'ias a dis t,i;~~t gr',,-dua;" shi.fr, . ll q~nr:'fjt distrio1)1:.i()11 in f,-War of ten.:mts and s;:,all o;mer-cu1tiv,tto,'s .1.fter :::j\D~ 'lc:opted a restrictivD credit policy. I-l:, shoula be noted, hmr~ 11 ever, '~ha( ')t',e-third or one-half af the tenants I 5:-~SS benl'3.ltts 'Hill actually r:;o :l.~)ent 11 pay:ner:ts to the landlords, '..rho contI'ibute nothiIl.;; to production costs, , I '-I :;:',e~ ';hou::;-~ th,] 01::; l;u;cllGrds have been i7'1.c:uall~7 e:('::lm:ed tro;n d::reGtly ;l'lrtici:pa'.>ing in 'jADU!s credit [1l'0gr:lrr1, t[-',ey 'd~re fiIl;}:;C:i,3..11y ;;..t:l~ to buy fertilizer and LjlprOved seeds t')T r;.l~~h, J.nd ever! 'In credit", f~~~ pri~~te fe:tilizer co~pani8~. ,~. -, :. . , ~, 0' 0' " , .-' " , - I :i) - .. '-I " .. .' ::: ., ... c -.: ,". ;:) ;:, .. " " ., 'C "' - .-' ,'" - :r:: .:: .· . ., '0' . ' " ,- .;:) .' ; ~ ., ,; -. ., '0' ." .... ;:; .'.' ~ '" --= :;-'} -'" - '" ;; .. .' 0.: ." - .. '. " :;. .. " .:: -- ... ;,::: .. .. "" -:;., .. .~ , " c 71 ~1 ~r; -:; :"i .; .; ,... " ." - j " .~ .0 " ·7 " CO' I '" I I .. : "-: ::: .: ,.. ::: --j .- :""\ , ,... .c.';. ., ,.. CC :c .; .. " ..., .. CO' ... - I , - I ! 0-; . " I~ I j " ... ;; :0 .: ., .c ~i ." .. ..; ,; :> i :0 ::... ::-'~ .- . -... 'I .. . I 1 I · ~ I 'j - - .. .· ! '" ? .. · i ~ I .c:; =: ,. -= I .. :, ,', ::'. :J :1:;' "' ..., , ,'j .7 .~J '. <0 c -1 -r, , .: .'" .: - ·7 "'I "I " ! } .:1 ! ~I 0-, ,~! -, .., ::> 'J J "I .~ '" '" '" Q <) CO; .~ '" " '" r '-:J .", 0 ,.. 'S . ~) ~ ,', =: .:> · ., "'" '" ", :0 -. !l' j c, ;-..; :0 <-, , <: n .. '",. '-' ., ~ " 2 -, ;~ '.{) ~ .D ,,., C' ,-' ,. .. :~ .. 'co" en ,-, '" .. · .. -':;' ~, cj .."' 'l ::) .. .t ~) 31 " I' c, :r., " OJ --::1 ... 0 \~ i ., " u t ~ " .') " ~. " :.-; 2i ~-~ ,0 ~~ r'lT"'f~nC' Table ';0: GROSS BENEflTS UU~ TU J:'M1.1.Ll. ... W Jtl.l~ ............................. _ ..... _..:....i ..; YieJ.c1 Net Yield lear 2 Ac"oage Crop::! Pre-proJect Year 2 Incre3.3e Acreage Price ('fOG::> ,~ of Area Yi e 1 d (q /ha. ) (q/h2..) (q/ha.) Cha.) Year 2($/q) Benefits(;n Benefits HighLlnds Maize 8.0 21.0 13.0 199 2 29 ,aS6 7.4 '..'-heat 9:cfJ \ 20.0 n.o 69 20 15,180 3.7 Teff 5.5 10.0 !.t.S 908 2c; 102,150 25.1 <.D -J Se t, t lements ~t:;.ize 12.0 2h.o 12.0 12 1 , }L,o 13.1 Cott,)n 1.L 10.0 e.G 223 k'~ )) 103,01 l ; r L,., ..::::').. -.. Chi llir~s 1.0 9.0 8.0 43 60 20,:]Lo l)' · ] Total ,201 100.C Sourc e : Compiled from HADG Annual Report, Year 2, and MeC Divisioll fil~3. 231 . 3i:~::;e :i.:1PTCS :::..re gi'l<;n ou-;-, on the basis of the number of hec ~~ares a :"a~~1er ~~!e 3.0501u te arnOlu~t of oenefits g8in£; to the c;',.u ~i "/3. ~es, l;'T2;":::" :;'ri1~rs is ;rrC:l:'er. I!l t,r:is respect, :.ne distribu-:tion ~): bene.fits is T1C r, ~/f::T:Y d~~:ere:1t f':-o::1 ~~h{~ distribution 0:-" land. 3u+J :he per hectc.~re 8'1:1(:!f i. ts ca:1 differ dependi..'1g 0:1 ·:lhe:'her a fa:::::er uses ,noderl1 ::j.,1.chinery 01' no':: . AS1.L11 Lng a ;iheat ··Ylhe3. t,"11aize-1'ape rotation, CADU estizna "':",ed th2 net reV,,:;ue Ie!' hectare t,Q b'3 Eth;3228 for farmers usinP.' their mm :nachinery, :<:':hSJ77 'or those usin::; rented machinery, and :<:':hS';'26 :'-01' non-rne:::hanized f'lr:",~. :here is no i:llorl:laticn :In the p1'opo(tion of [:trmers '.:si."rJg modern :113.:h" n,"1" (29). But in as r1u:::hls the larger far~\e, S :ire the :::lost likelY user,:"Jf mcdern machiner?, their benefits must be higher or: a per llect,are bas i.: tc). 232. 'Sstir1ation ::J:' '"'ADU',, gross benefi"ts due to i:rroroved seeds and f81'tLlinr for year 2 is sho·..m in Table :;0. Si.xty-thr~e point eight per cen,:, of th!, ;;1'055 benefits of the project ',-Tere derived from t,ho "1i't,t.l'~~n9nt s:::heles, cc,mpa1'ed to only J6.2~ from tl".:) high}::::"":·.. :!:"': . 't.\e r11J:7I8el' of far:ael's is :1 ..F.Jh 13.1' ger . T.'1is difference implies th<....t ":'::.3 s"ttlers "rere the ma.jor benet'ic::.::l':,es, :i,f it is assull1ed that i~he benE!ft'r.~:. =::.'::.:.tcJ at, the seGG~t::' men~, SCre!ll,)s are dist'cilmted ther(~. 233. Hectarage on diff(~rent crops Und0L' fe)" tilizer or improved '/ari,~tirs] classifi-ed by differ'mt categories of farmers, is not availablo for ',IAJJ" 7. HO'devor, assuf;ling that the amounts of fertilizer taken by dif,· ferEnt I'at,~gories of fai':ners give a rough indication of how the benefits \..8n distributed, table 51 inclicates flO'." y'ea"J.' 2 gross benefits 'Here disi.ributed aJ;1cng the highland fanner'). The landmmers, who accounted fer alrnost 80% 0: the beneficiaries, accuunted fox' al!nost 83% of the gro::s b~nefi ts, compared to only 11 % and 6:1. for the tenant-mmers and ten,',nts, respectively Q Table DISTHIBUTION OF :nAii 2 GHOSS BENEI":US D! T"rE HIGHI~\NDS 3Y T~L';'NT Ten ·a.nt5 199 11 l28 11 1(.,170 11 .~ ;'-enmt~o'{mers 112 10 75 " J 8,831 ;:; La:., :1 owner s 1,460 ~ 79 958 83 122,16<) 83 ':,'ot,cl 1,771 100 1,1°1.. 100 Ib7,186 100 - -_.,-"-----_. -----_._ ::()',-' r CB : G3.1cula r,ed from in 1'-:1 l' 01:1 tion on year 2 :;:redit ?r oa;r a;;J . 2Jil. As in 'dADU, infor:nation on the 3I8a uncler dif.t\~re:1t crops is not a.·/3.i~ab'_e for the :'1?? however, the :;,a,:e of fertili'Z.er application is k:lO;"'"11 ~n(: e:3~:i.m?i.tes 0: j~ncretnental output due to the use of fertilizer are a-J3.il.i.bl.·. :'"::erefore, a rTJgh '9stimation 0:' t:le gross benefits due to :ertiliz, r ;:;l!1 be made 1.:3iIlg 'SPID's esti::nte of cereal area under different crop::: an. '.." s:town for :':te 1971/':;-: ;::~ason in Table Since S,oeo q'.1intals or f(rti .1z::1' -,{ere distri':luted t~li.it ::Cl.Son and :.:t8 st.:illdard rate of appli ca tic r1 i o:leTlintal 0f "ertilizt~.· lj:~r hee tare, then f'~rtilized hectares under di 'ferent crops are estL-nated usin~ the percentage bre::Li a):1\'1'-:*; 011:L1a10 A',rra,ja 'eples~!nts about O.Bi: of Ethiopia's tot':i.l area aLd 1.5:;; of the total populat_oI1. 2. A bil; altitude difference in the a.ITa creates a -..rid,:! ra1""ge of cli:nati: cood:i.tions. Tr.e north',.,rest and .;estern paxts of Chi-lalo consists ot'the "Rift 'raIley," ,.here the altitude is about 1,700 ;neters above sea level. 'lOv'Hd the east of this region, the level rises sharply to reach an altil~udc 0:' about 2;400 rasters at Asella, the prOVincial capi,::al. In 7;he eas I~err: p;lrt of Chilalo, there are sever'\1.1 mountains, some 0::' ·... hich rise as hi~ h ;~s L~,OOO meters above sea level. Precipitation increases ccnside,'abJy 'rith altitude. Tho rainy Season is concentrated in the months of July, Al.gU:; r, and September, w"i th some shor t rains in H~1.rch and Aprj~. The peri.od be':"eer:. October and :·l::u-cll is rather dry ··;i,,:'h some frost GCCUl' in£; dm'i:1g :ilO!;t of December at altitudes. 3. )-:05 t~ of the 1ar,d is Icea ted on a 'lery L,rtile plateau '",hose altitude rJ.. nges between 2,000 and 2, :;00 meters above sea le'lel. 1'h3 total c.lltivated .:J.rea Ll'l in 195:;; '"as est5..mated to be 150,000 hec ta"res; :md a :;"971 esti...~ate e of 150,000 hectare:;. The soils of thelwTi1ja are noted for their high ':;ontent. For e;{aJi',ple, the cl3.Y content of the soils around Asella is at about 130~. This factor com ;)ined '"ith th,~ uneven precipitation enhances erosion problens in the hilly narts 0: Gllil'110. The soils are high in pe.tassiu.'11 and orga:cic matter, but are genera::'.ly deficient in phosphorus. '!Ii!' U. The l'w.,j::JT crops grown in Chilalo are barley, wheat and flax. Teff, t.hE'! r.nj)r national crop in , is very sparsely grown. The average cultiva~ed farm per is estimated to be 2.5 ha., and some fragmen tation JilS been observed. About SO; or' the farmers are b'~ Lieved to be ter.ants :>:os t on :l srLarecr basis. i{cc8ntly, howe'/er, r8nt payment~) A?~::1l)iX = Page 2 in the :'I)r:11 n of a road on :'he ',out:8, .:.nge tl'1.at rlL'1S from S'hashemene to Dodola via Kofa] p, CrLila20 8X"por ts;raL' 'rna.inly wheat and barley), oi13eeds and livestock to other parts o~· Et: io!,ia; hO'N8ver, no industrial actiTLty exists in the Awraja. The s:)ut len p;,rt of' the AHraja, mainly in and around ;"1unessa, is potentially rich in Corest resources, and the scope for afforestation is prrnnising in other pa' t3 , 7. A J .IS:) la:1d tem.U"e survey of 2hilalo Ai/1.-aja by the Ninistry of I2.nd 2eform i ld:i.c 3.t(~d t.hat, roughly w.,~ of the holdings are owlled and about liS'; is rent,~.l to tnnants,. 'ri.th 8-; of the land being partly owned and partly rented.:'he sane survey has shown that about Llt:; of the lando'aners, owning about JJ'~ 01 the total holdings, are absentee owners. Infor:i13.tion on dLJ f-,r ibutio 1 of holdings for the A......r aja is Dot availatle. Hm-l2Ver, a 1971 s2Ji',ple :3 IT-IE y of' tht; northern part of CAiJU has shm.;n that about 27% of' the holdings arE Lrger than Lo ha., 9~ of the holdings are less than Lo ha. but gT8:11~er th~,n 20 ha. and 64 ~ of the holdings 3..l"e less than 20 ha. - AselL. DeveloDment District: This highlanrj area, '"hich bercers the ~.: ~~ ·1.ql'~eY··Jn-· the ~. le·st·~--has-an altitude that ranges fro:n 2,000 to 2,400 'Ieters. ''ine Kllhrmsa Cl"OP production research station is in this zone at an ~ltitude of 2.:'CO meters. This developrr.ent dist::,1.ct is fa·.[r'!" t.he low clay corten~ o~ the soils makes ·the area relatively easy to cultivate. ._._ .._ 1: DISTiUBUTImr OF DfdABITA.NTS A..1IfD FAR.:11Y,..,-1 ;:.. ~ l.'''1h'''r'-''''.-,''' "()-:)) ~ .. _.;.,) "iL!'h~c;';~ ........ ;::l..~ ...... "r'" ......... ""'..L. '-''-J,v ..... c~.._ - . 7r.~s, .. ~·r t:1:L;~ ~h_3 :~ram~·,,;ork, of pri~J:3.te p::,oper~:/ in 13.:1d 3.r~ t~:e :-i;:;:1~S l.:~:~ir:ned ~?.:.; the l.'l:!'~ c!istribution s:,;sten -:tr1C l:.en3..:1cy rt:)l3.ti'Jr1s :t~ '.:::.2'/ ttr:; :71r~:L;'5 :>f de i.t. 1/ 13. :rr:er e ::r~ GonfliGtin!~ l:l:1dl-'Jrds 3.nc :. :r;.an.ts i!1 :::lil:1.!."). Sta7Jisti.:s fr;):r1 the office o:~ P!·ov~r;ci3.1 ~'J~lC:!""::::'~r1-: g~ ---Ie a bre~kdo~N11 of ~7-·; ~en3.nt.3, 33'~ landl:)l"ds :lnd ,.; set.tl:?rs J:; ';:T:",,:-:l'::W l~nd. :;.GU's ;:;en,:r3.1 ,'lgri,::;li':ural SU:-Vt~y c!.' 1967 gives ::-'p~ pr')p0:~~i~~': ): :"3:'.2.nts 3.5 :,)2~ ~.iitllin the ?rO~'2ct .:\:·e3.. lL. :iffic;lll:, to 9s"t.L~a t~ t118 ar'ea t:nder ~~::;r:.3:r;. t: cuI t.i 7:1 tion, b·"lt It . s one can ~uess that ther~ is a high concentration of tenan~s in the s~fe:y [lila :::eciCl:t holdings, part.icular Gonsider the extent 0: absent"le mmer by th:! big 13.ndlord3. A land tenur.:'! SUl"/ev ::""''1 1957 h:1:-> :J:·~c,·,c;. about hb'j of all 1andmillers, o',ri:u:; about 33~ of the T~asu:'ed 3.rea in C:11 l:llo, tooe :bs~nt8e millers (T...-.'01e 2). The sa:ne S7.12::::; S1:0:"'80 '.:.::':>t.. 9f tJ:e to ta.l (~r (ppe'~ a,~ ea 3h~ ·,.;cas o\,med , -; :..<1S rented and 11·; was :ni.."(ed (T'l.b 1e .J J · The tot3.1 cr'pp:'!d area covered in the dtudy is, hOHGVer, 12~ of to ta 1 ar!? c3. 0·' C~1il3.1o. L-1.ndOl'mer s AI' ea v.med 57.07 32.93 e,o, Land Tenur <:l 3U~'l~y of Al·'.lS sL Pr ovinc . .J , 1957. 1:;. j\n ln31J"3i:s of the distribution of the nlL'1l0er of cuP,i'lated boldim;s tenui' " (Ti.bL~ 4) ShO;'13 that use; of the nUMber of hold ,CO:'1pris }]; ' , . , .. . "h 'l ' U. ,. . ' 1 . 1 CUl.v-:.Va,"ez.. area 1:1. v.1. alo, lS ol-ITled; a!1C .J., f' .·18 'J:-t.;1 , I of' the holdi:1gs, :nak .l,lT ')11, of ":.he total ..::ulti·l3.tea qrea, is rented. A se~:Ja.!·1.t,e 1970 s:'ady 0,' the aistributio:1 of holdin~s in Chilalo by the Sentr:l1 Statistical Office (~SJ), esti:'1ated hh{ of the :t.oldings to be less than 2 ha., 94c~ to be !.::s ~ lc,ss Ll":.:lL S :'1.1.. and the ;ned iUM hold ing tJ be 2.3 ha. (h8). Anotb~r stud:; by Ar ne l.e:;h1.:'1 ')10 Q.5 Lentil, 0.1 !ti.pe 700 0.4 :'ot.l. ~ 130,958 1')0.) i 9S ,800 99.9 ---_.__. --- 30U1'8e: c.:rop Sa:np1ing, 1967, and ;'linor Research Task :10. 5. 10. :'[013.:'":10 Awraja, a 3'So-pr::>'lince of Sidamo Province, lies on the north-· riest of tI1e :lift 7alley. J.T, :'1'15 :.m area of (lbout 3,178 sq lot and a pop ulation of about ?l.!),OOO. A. l.9,50 census gave the a'J9r~;U;G size of a household as u.9 (l.IS), but the prepar3.tion missim1 survey the much higher fig-.. .l re of 7.S:. The effecti'.'e labor forco is, hm.;rever, estLi'.ated to be around four p:'!!' hou::;~hold. ',~olamo A;"J:'aja is the home of the distinc+-, and fairly homoge 1eOGS et.:mic group, the ':101amos, riho s11.3.re a common language, '"Jol.::u1dny 3.. 20. The original horne of T.he ';[olaInos ,iaS arounJ Kindo mount?i..'"1, and much of the prE'sent .:brraja ;.ras sparsely occupied by semi-nomadic people of G,".lla :u'.d 0.3..<'11batl. otig:_n (52), About 200 years ago, tho ',iola::to:::i :;-:-;~t~~':l to spread into the hi~hl~ nd areas of what is nO;-I Soddo, 130105so, and Damot Gall'l. ··..iut;Bl~~.>.:1 - ::;-~~ 1ne ':/olamCJs '>lere basically agriculturLsts conc~rneq.. only with the production of creps, bu":. they inter-mb:ed to so:ne e.'Ctent with the G3..11as ci.l'i':' ¥:_.~;-'~C',t:'.~ (whom they p'lshed out of the highlands) and took away their livestock. Together "\-lith tile :_iv,~stock they captta'ed, they adopted the catLle breeding tradition of th~Lr c:ap'~ives, and the munber of livestock owned becam~ an important pres tige f-lctcr. ~/evertheless, the amount of livestock in Wolamo is les3 than in Chi laIc . 21. ':he ;'[01317105 are a rather unique ethnic group of southerr~ Ethiopia in tha,:' tl:ey are socially cohesive and tr'3.ditionaily fa:11ilia.:r i.nth group action and ol·:;an:.za ':,ions. Only in some nor thern areas of Ethi.opia, where the vj~last~ system is pr'1valent and com:mL.'1al orlnership of land is common, can on~~ find grouplocL.ons and organizations similar to those of the '.'iOl.::ultoS. The ',{olamos are pl':)bai:;ly ::lore industrious than any other ethnic group i.n ;~thiopia, but lo~.; ni.!·sri~,ior1al and health standards l:L'11i t their "lOrk~~ng capac ity. Their diet is lmT in protein, high in carbohydrates and subject to ',fide season;:tl 'J3.ria :ions. :3 ~nd the Settl~~ents: and Rainfi'll 22. :11e Highlands: highlands is characterized by steep ~,il:.siJes-md lSently altitudes ran~ing from 1,300 to 3,CJO r'et'1rs ~ove sea level. This part of the project area, which cover::; Soddo :,nd lol )SSO :':oredas, has a population of about 236,000 ,fi th a density 0 f 150-27~ pRople per sq km (~,). 9 23. 'lhe raintall, which comes duringt',T'J distinct periods, April-?'BY and July-Oct.Joer, is and adequate at an annual average of lhoo rnm. Ra.iny cbys a'lerage per year (Lt S) . AI though this 3.1' ea lie s in the (70[1), the aHitude limi ts the temperature to ,"1 ma.;;:imum of about c. biomodJ.l patt.e::n of the rainfall a11m"5 double crofping, usually teff after :naize. ~e .3ettle:;1ents: ~~1~ tcpog=aphy 0: ~r:'0 set~ler.1ent. areas in the S.3.'lam,3. 13 c by flat plains at altitudes fro:11 1,1:]0 -t;o 1,SOO :net~rs 'lQQve sec, l"!vel. Its 3.r81. so:;"prises some 20~ of the total 3.rea (,i' 'tJ,l.1::1o Aw-ra,l3., 'lh"):3e s'Olttlement 2..1'ea5, at .reella a.."1d 3ele, oribs~ l~'2.I';:v~rs rl(""Ve ~tlO ,)t ~cJre p:t::::els. Le S: ?ffiC~r;:'AGE JISTRI3UTION OF Lh'lDO';olNERS GI7DJG ?ArtT ali' TImIR r t\~!D TO '::'S;'IA~rrS HI :""!"!E HIGHLUm PART OF ·"I.WU ----.--'-- -----.--c.r-~_:;:___,_- . -.--------__:),-,,-;_;__,..-------- S s :.n. ~~ Tenants ~,ri thou t Ten ants Soddo uS 30105s":; 2S ---, -- Source: C rnp LIed fro:n I?1RD! s App!'ais3.1 Repor)" of ','lADU and CSO. lIe ?,SRC~ITAGE DISTRIBUTION OF :rOLDINGS BY TENAliCI 0 Cfimers Tenants all Farmers I~ss t[,an ) -: .~ ha. 28 56 1;0 L;,;s t1 :3.!1 ) .~, ha. SO 63 Lss trL:::tn c ha. 98 87 -.~ ~~:)re U:an L.: ha. 20 2 13 -----,-- -'- -----------------,----------- Source: [rain ':~3HD Appraisal Hission Report on ':lADG. '~ 2Q. J" £'enEJral, even th':lUgh the structure of the landlcrc-ten1.nt re 12. ti0:1 3 ~:.n -,'jolarno and ::;lilalo are "-1e1"Y si.."7lilar, one can see distinc:, di::e1' . nCes. Holdings gre&.ger than Lo hc'l.. are prevalen~ in ':::hilalo '·rherea3 a hold :".ng ,;;r C1. tel' tk.n :.; ha ~ is acari ty in 'N'olaITlo. TIms, t'r..e in"urodllc:'ion of :nee Tilli 7:1', Lm and the consequent evic tion of tenants is vcr:; unli.l:; patterns are ':ound in the t-"o highland ·tior'~dl.s within the ~;PP~illIX I Pc,gr. lU ',[ADT] ol'Jiect ;,rea. Hol....ev"-':-, :::'e land-use pattern of the project i'l.rea as 3. HtlOle .:now~; a :nOf_es t per:::en-:-.2s8 Q.l. cr oppe d ""re ('1"" e;8 ) ~n 4- h 1;.,.e sm:.1...L 1 an , " .J ' " ~ _ao.... . In 'h ~'l d owr.ers Jr ,eil;m:,s devotinf?; abou::' 75-8o=:; of their land to subsistence crops such as en~:et I maize and s't;eet potatoes (52). Intercropping and double cro9pin,,,; ill e :OTrJ1l0n. ?ffiCENTAG'S DISTRI3UTION OF LUID USE IN THE HIGHIiCmS ·...iITIUN THE PROJECT AREA ----- .'~-'- -----------;::;--;-;---------------;:;-''':-.~---.'-- ,:;r JPS 2 'I, 9 21 3~3.n:: o 2 Other fo)d :::1" ops h h ?on:~s"". and wood lots 58 9 ~otc.l 100 100 ,-----------._---------,--_..-.",-.._---------_._ oourc,c;, ',~ \DC Appraisal rteport. 31. '.\;~e2.: and teff are grown at higher aJ:t,j.tudes, but even at lower altj,tu<'es me finds tiny plots of teff. A.bout :S()C:; 0: the farmer in Soddo :lnd :'3': in 2clcs3o gro"fJ "1heat, O'len though a large"'prop(Jrtion of the pro d',lCtiOl' Gcneo, from a few 1arge fields of the major landlords (53). Pro dUGti''::;' of oriented tobacco ·...--as introduced by the tobacco monopoly of .<1 i'1 1_956. By issuing seedl to farmers free of cp.a.rge, the r:'10nODO ._y ·"1.S able to induce aOo'lt ll,-:;)Q farmers to gJ.'Ow tobacco by 1958 (L;) '. 32. Livestock: L1.Ve5T,oc\< oli)/s an i.r;1Portant role i l l the farming systf'.:n of ',.rolilTlo, J~hough not as wueh as :tn Chilalo. A survey by the preparation missio1 found an ovep~l a-!erage fer the 8.rea of !l.S livestock units per f'Lrm, L.e., 1.2 OX,~i1, 2.5 cO\.s, 1.8 cal'les, 1.0 goats and/or sheep and 0.2:) hOr'5(~S 'lDc/or mules per family (uS). It also -',mnd tha:. the nU::lber of live str;cK l'Wr.Ej :ncreases ,..nth the ar:lOunt of land o',med. There are no common G"r,ui:; i ar~a:l in the highlands and far:7lel's h::l.Ve to either set 8.side land for p,q;tur~, rent grazii1g, buy feed or drive the sa~.tle to the sa'lanna for ;;r:iz"Ln;. Ac:;ord to the pn;par:lt.i.on ;:,.ission sur in 1968, about JO'; of th<) hi,~hl;iEd farmers ho.d no cattle at ail, 28-s ::lILly one ox or cow, and 01J~r Lo; hire or borYo;. o:.is has been revealed by a land tenL'e S\ll"'JCj ..drL::' .-:-~-C',{pr:l. "':';ii!,~<: to be 5J:; ot' t:le farmers in Shoa Province, 45:; in Arussi ?rovince, 54-:: in ~'[ollega Pro :in::e, 43 ~ in Gemu-Cofa Province, 37; Ul,':;:'.j,TO) 'Pr.0vince ~ S97. -i ;-;, Kaffa Provi:"lce, and 73c; in illubabor Province (51). The same study indicated that aocutlO~ of the tenants in ,\russi, 90:;; in Shoa, and uOh of tl-.e terL?.J1ts iT'. ·,·lollEga 1,0 je sharecroppers (51). In addition to the regular pay;nents of a share of the crop as rent, tithe payment is a precondition in tenanc'Y ar rangemer.ts in;Jost areas, Furthermore, tenants are usualJ.] required to render per sana] se:'vi::es to their landlords in the fo1':n of f:cee laoor on the :arm at 1e,",s1. dU::'in s planting and harvest. L17, AlToblem 'rThich is closely rel3.ted to the extent of sharecropping is -c:le :ues ,ion of shares payable on rental rates. The land tenure survey ~ revealec th:lt tenants pay one-fourth to '::..o-thirds of their crops to t.... e Lmcilorcs (~O). It should be further no-::.ed that all variable inputs such as oxen and seeds are usually paid for by the tenants, ',Iith the landlords I cDntl·io1..tion ceing only the land. Security of tenure is inadequate as is clearly indLca+.ed by the uncontroJ~ecl rent..c'11s, ulHrritten and uncertain le3.se a~ree:nents, ur:col;lditional evictions, uncompensated i..'l1provements, and undue ac van ~,ages taken b-j some landlOl"ds, Such tenanc:l r e la tions neither offer Ue i1centive to improve farming :-;]cthocis nor encourage undertaking additiOl.al i_nvestments on the :arm by the tenanl., and are probably the ::13.,40r ·:r,use £'e1" the sta;;r..J.C'.ed, 10H-level productivity in:Sc.hiopian 3.s;Ti-· ct~ltur8. ,a 1~8. CommUI'21 o-,mershio I ) f Land: :'lost of the land H1 the norther:1 pro vince~ is comrr:unally o'..med", l.2_nd is subdivided bet;.iee!",9ifferent villages or src)ur:s o~ i'a..'Tlilies, ,..nth each member of a i'3.:nily or a~vill2-ge given li;'liteJ rig.lts on his holding, E.ach holder is lllo',led the exclusi'/e use 0f the Jand and the right to lease it. :-1o',.;ever, eVen thou?h such land ri~hts ~~e ~eritable, outright transfers, OJ 3ale or ~ift, alld ~ortgases are not alL wed. lar.d in tile cOl:"try. Lc;,;:d :;,p?~1.rs t'J :-.3.ve ,:o:ne into :,:1") h:mds of t,te Gov" err.:nent t:lro1:rsh three dLf~~;;~er~;. :-:1ethods. First, 3. lot of l~d ~"1 the south efn pr')vi:1ce: t) '"hich ir.di',ic,;.;,ls or ;:sroups laid cl3.i.~ '"as seized by tnt, 'Joverr~;)ert a.te: the Y-enelok c:mqu8:;t still fe'~",1.ins under its ownership. A second 30u;ce '.-laS t::e possession 0: lar,d that 'rias privately c;.r:1ed but or. ~ ..hich thE OWl er failed to pay his land tax for 30 r,ha t the owner reverted to he Government. The third source ....' 3.5 si::rply th8 ar.nexation 0: lar.d that di, n)t appear to 0e in use or owned by a.llY other party. So. Th' s, quite extensi'Je arE'!as o£' C-overnn:ent-owT.ed land are knOwn :'0 exist thr ,ug10ut the per areas of the country, .:;specially the 3Juth"?fn pro'in::es. Because of the system of record that has heen used and the Toar st:lte of many of the records of pa :'rons.!?e gr'1nGs ;;'l;lde from Gover:1:nert l,nd, it is difficult to identify with certainty all of these 13,:1ds. ~l. Th, o,¥"TIershj,p of 3089 of the land that the GO'lf'rr",>lent ,::lal"1S cis ,iispded by om"! pO~'Jerful pri":ate individuals or groups of people (51), a d~rini1ion of Government land difficult to apply in practice. Size of s ~2. ~,ri ,h :llmost 19 :nillion rural d"lellers delJenc pr:i":urily upon c:::')P procuct ,on for their livelihood (tt8), a:;.d -..nth 13 :n,illion hec tares of the e::ti:nated total of 122 million hectares in the nation being :::ultivatEd (.3), just under 0.7 hectares of c:opped and fallow land is avail ,,~J.~ ?~r rur ,1 :::esident. ;'!os~ of the f2.."',ily holdinGs, whether o:-med com ;:;'Jf'.2.11:i :r ') !"::"1.ted by ten"...."1ts or Q'\,"TI,~rs, are less tha.I'l 2 her:tco,res. f~~st :t'J:' nd f:lt icnal 5~;nple 3 SSO sugges-:ed that i!1 tte f::ntr l1.:1cJ ?rQ\inc;s ):' 5to3., Tisre, Anls3i ?_nd Gojj~-:1, ,,;hich t accmmt :'Jr a'Dout 3:;; c' tt:e ,:ural ~opulation, average c:'oppec. land pe:, f2211ily holj ing in 1';5,3 ias 1.7,1.3,1.9 'ind 1.2 hecta.res. respec (2). In Tigre ::\r:,u0.'l 'rldtkpr () S!;Ya:7',S a'ld t ld~:ets. Lrnportant. modifications of the "'l'OI'k prcgrams or budgets h".'/e to be lppraved by the :·e..."istry of Agriculture and the donor a§:encies. 3ut the dir~r:+' management:. of the projects' activities are left entirely in the han,;s c:: i he respective project directors. ' 3. '.., 1eL the idea of the r'lPP started gaining 3.cceptanc~ it ',laS felt necessa'y t) Lave a department within the i'linist;:y of Agriculture that could be char;:;ed.;F,h the overall supervision of the I"I??' s as '...rell as the compre hi';nsive pre ts C::ADU, ',iADU, etc.) and projects ai.11(,d at the development of COG1!1l;':rci.l1 farmL'1g, such as the Humera Agricultur3.1 Development Project. The Sxtl~nsi'm and Pi'oject L'ITplementation Department (EPID) ,-[as .3stablished to perfnrm these functions. L. .1\11 inter -minis tel' ia1 COI!lJ;lit tee, chaired by the llinistef of Agr i cc:l tur e, -;.{a:) formed to act as liaison with the central government and to coordin;Lte t.he acti'Jities of SPID with :)ther activities being undertaken by the govnrnm..::;r.t. fa deal wi th specific issues, 'dorking groups or special ccr:unitt.!es ,em department levels were formed, in which organiza sions such as the AID B8.nk, the Institute of Agric:.lltural Research and the Livestock and :1e'1 t :30;l.rd .J.T e included. '1:1 Interna' _ Or ization and ;{d:-ni!1istr'ltion of ., ----~,---------------------------------------- S. A3 can be se~ from fi;sures 3 and h in Appendix VIr, there has been some reorganization wituin CADU. These changes ',rill be pointed out in the course (If the different divisions. It should be noted that the f0rrnat present,s a. hier3.J'chi1.1 set-up of the departments and sections, aU of "Thieh opnr3.te ~-ri thin ·.he~o:1::non fralile,.,rork 0 f an establi:3hed ~"ork schedule and budfSet. t) · Pro"ect Direction: The ?,xecutive Dire8tor I s office ,cClntr')ls ':,hc orO.jAc':. s o'ler The different department,s and sr;ctions ',.,rill describ!:d OJ relating their speci:ic tasks to :.he ove1'<111 objectives of V'e pr ect ~~??Z~illIX j' Pc.ge-- 2 7 ffhe ?lar;.ni:1g .3.!1d ~\"-:1lua tior! Section is res~ons per ticn of t.he entire orga~iza~ion, snsaring the efficiency of the ~~:ious units of the organizatio~, sugge s tins; ;.;ays 0:' L:pro'ling projec-:- at.tairune!1t, ad'lising the v~rious di visions and sections on survey designs, identi~y and ~onducting feasi bility stnc!.i-es on potential acti';ities ':md projects, :;:;llecti.;g s"atisticCll data. that ~-l.21 ~Jg u5ed in evaluD.~~!1~ the projec~ts ef[\~cts and developing a :n'?:r.od·)lo~j for' facili ta tin~~ e';'!.lu;l :'ion feedback to the project rnn3.gement.. :~. ~.~i::F:r.:'J.tion Dep:lY.:';:-.ent: Ttf3 E:xperi:nentation Depart:nent c·:m 31.S".-3 or th~ ·::;rap and Pasture Sec:'io:1, f,he Agricul\:,ural Engineerin>; Section, 7he AniT'lal.i1Jscanc:rj and Breedi:1;s S{:!ction, Ted the Fores";ry Sec:.ion. The ~r()o ::.nd ?9.lture ;3ection is invol'h~ct in finding ne':' C::-8pS 2..."1d varieties sui'bole fo:' U,e ',rea, establishic-..g ;r.ethods for pasture i;npro'/e::J.ent., deter :nining opti~lal growing conditions tor different crop and p.3.sture varieties, 'lc:[uirinl-;;- :1I)1'e :<.:nowledge of soil -:::ondi tions and determining poss ibi 11. tics foy drainag! ar:i I'rosion control. 9. r'te A -;;-:c:.cultur8.1 Sngineering Section (for:ner17 t:he" I~iiplemeI',t Rese·3.rch Se~tion) attempts to develop tools for soil preparation ad crop handling an, tr9.n"port, learn how ~ore mechanized operations can b~ profitably emploY"ld an,: trJin local artisans in the production and maintenance of r..ew eo.. uipme.lt. 10. T1e Animal Production Depart:nent lias reorgnized to i'orm tha A..."1.L!nal nusband::;y a;,d E:eeding Section and the Veterinary Depart;nent. Its responsi bility is t, es ::.ai::lish optimal breeding and manag~ment methods for dairy ca tUe, she,~p a.1d poultry and to train extension staff in L~e ne\.ly developed cte:'hods. B:i'eed i.n§' acti vi ties on 3. commercial oasis have recently oeen trans :erred to ti'.e G')OE' Cattle Breeding Division. 11. Tile f)rE·stry section ai!::s at finding suitable tree species for ci!:':~c:rent e(olo.~ical zones, establishing ~J.,antation and nursery management :;e:::mi:p.les, :.nit._ating refores"c.aticn p:::ograms (particularly for fuel, con s ::.ruction ar.e! e::osion control pU!"poses), estc").blishing ti:aber plant,;\tions on ':;O·lerrt'T'.en't J cmd.3 (aarc,icularly in :·!:.m~~ssa and Asassa) and train::.ng exter..sion staff in fot,.,s+:':7 nanasement. 12. ~h~erin3ri Depart:nent: 'i":"1e Veterinary Departn;ent a1..-;]3 :"J.t incr th;:; kno~,.jledfe a:" r:revailin~ lives-:.ock diseases and thei:' 3uppress:'on t:rrOl'!~=1 preventi'le :: erv:'ces, increasing t.he productio~ of crossbred catt,le throuiSh 'l.rtificial jnse:1in'ltion, producing Se:nen from crossbred bulls, cl'eating '1. c".dre of inserninat::lrs ::md -J'accinat;:>rs and trai~inS extension staff in :!1ilk hYsiene and 'leteri~ary fur;dame~tals. 1). Sxt,,,nsion and Trainine; D~p.1.rt;nent: The dep.3.rtl'1e:it is ::Eide up of ~.ne de'l81oDrr'9nt district extensions sGctions, i-~he Tr:lin:j,a~::;Anter, the In :>:"::':11'1~iQn ,'3e::::t"1n1"'::1e \·!omen's ~(~,~nsion !.Init and thf.~ '})()Der:l:i'J~ ?x+JensiC:D 3~:ct.io:1~ ~\7,1en~~io~1 ~J.nits in -the c~v~lopjnentdi tricts Pr'c;1:Jte 3.coption of ne··~" ~.el~hni(~ku,::;S ',hI' JUs~ :].n ;mnual 3is of desons"0r:.lti:Jn r~3sults, L1dvi38 J.no :1.S"iS7, ·',-r;'lnrs on credit a?plicationsmd prepare :'Of t:1A exp,msion 0: he pr ects I ~,;o"Sraphic CO'lerase. 1L.. ihe ~'i(lnenls ~(tensic:: ~j:-::~ :li.m;3 a-r. increasing the ger:~:--3.1 concept of ce'lelo,'men; a:nong ',{Omen in ':::8 p:-o,ject aree.s, trai,ling ..;omer: in basic 110\:1e 8CClnC,mJ.c.> d:1C e;:,.a bl'c'~""" , ' " ~ . -+ ~"" ...... iS ... o",e:1 I~ "1""", -.." ,J s vup S · ,..,.", "!'M"n'<:- 7·-'- ~n,_ "(,,,,,". ~ __(,~"')1~_011 Un~ "'; 't is Cl~lrrt3ni.ly '~e:rpor'arUy suspe:1.':·3d, i..Ylg an e·,aluat::'on \),:'" i~s perfo:r~nce so far. T!,e ~)o;8r3.t.ive Extens:':;n t:ni:., ....hose ~oa.l is t,he creation of co' o::Jera'::.i'/e soc,et::'es that ;,('1.11 ""/'2:1 take 07e1' the r:12.l'ketins:; sunply, ?~"ocur"lne!"t cud :redit functior"'.5; is curre:ltly idle due ';0 staf': shortage. ::Q~. r~ver, Lr3.i:-~iJ!:~ :Jf (~oopera-:i"r~~ org:lnizers is dane ~1'li:hi:1 r:.he '.['raining :~nte!' . l~:'he re3ponsibiliti8s 0:' the Trai::.ing Center are the selection of ~o',qs :'.'J'~::' special trair:ing <:;0 serVe dif:'erent sections ()" the pro -::0 \)'3 ;~C t, t:-,e '~rajn:':,g of project s tall' and training staff for ether project.:;, :n~i:1::( ~?IJ. '!'n.! Inior.nation Section is deSigned to increaso the kno..ledge Clf de'lelop:1eIF p;'ograms and pro~ect obj8cti';es and achie'J'3ments to dissemi n::lte ~"lfor-'1ation about CADU act~"lities 2~nd a.bout legisla.tion :'8 pr:)ject go\ls 1-n(\ to promote seL:>help schemes such as l-later a:l(~ echlcational p:"oj~cts . IS. Cnir lsi.ructure Departm.:mt: The Infrastructure Departme:1t c::msists of '::.he "flat,:r r: ;v~;lopr;:ent, Constr:lction Services, Building ar:d Road Sections. T"ne '.fa tel' j:leVe LO;01ent Section ai:::.s at organizing self-help sche:nes for 'tl3, ter supply, cT'latilg ',.;ater-supply facilities in accordance :.;ith a master plan on ;-equest frem tie local population, aiding in long-term loans for this purpose, overseeing lac .leost contributi::ms and researching hycr'!logical conditions in the are[ . .l.! · ':'he :on3truction Services Section is designed to help o-:i1er sections with pb,:1..'1i ng, l.3..-,d surveys a:1d c:echnical control. The Building Sect-ion is responsiblE 1'0:' ;:':1e maintenance of buildings and the proj~ct centel' facilities 3.S ''{ell 3.3 sup.,r'ILsion of new buildb,g. The Road Section maim:.ains and re pairs '3xis,: pr ,ject roads as w~ll as building new feeder 1"oacs on the basis of priorities set through feasibility studies. 18. :~)mmon)ervices Oepart::!~:mt: 'Lle Ad:::inistrati'l8 Section, t,he C;3.rpool, ~-L'1.in"tenance'-ari(~S'::ore Secti1)~ and the Cater i:1g Section mab~ UD "he Common Ser'Jices Delartmen r,. Controlling -:he use of all funds and property, lnc'3.L'1taining adequ3.te re ~ords i.:.nd doc1L';1ents, s-..:.bmi tting budget folloH-up3, participat.ing in the prep,i,n.tion of annual T,.;ork ;Jrograms and ou:.dgets and pa.rticipatL'1g i.n staff manag,!men t ~,re the functicns of the :\d:niniSl!trative SecT,ion,Joerat.ion of 1:he carp)ol, '.., ater ',.;orks, cent;-".l stores and '';o1''kshop5 is the Cl1ty of the :~"a,rpool, Ha' ntenar.ce and Store Sec~ion; pro',ision: of lau:lGry services, food and ac':;omrnoclati,JLl for CADU staff is that of th2 C1aI.tering Section. !t Ie. ~rke7,i;:,~ Division: The? l'I3.r}(eting DiviSion, ",..'hose ail:! is to riO .::ure inputs on t~r{~ji t 3.nd market ,=,utput as ~rlell 8.8 :'0 f;S 'CCtblish rJ.e-tf ~r c'?::ters that fa:ilitate its credi::, and :;1,~~r activities, is ~ne of ~ne ~ewly form~c au-ono:nous :lnits .... it~i~ SAD1. I~ ~,;as :-or:ll~rly k!1o~-n: 3.S the ~.);TD'1er:::e ane .in(:ustry :Jepart:nent. ,~r'J? :?:')GllC , r-:.-;'5 :'3~en:ly been :nace ~ln e.. l::'0:1,)~;'10US lU:"j_t ;..;-it:'i:1 ,:ADU.~ts so:e J.ims are the ?rGd~r;tion of' ~'1lproved se~d v,:u'i"ties for sale and f:':';·'-LDoiJ.l s~lf-su:~ficie;lcJ in its operation. 'J' <-l. Cl:,tle 3reeding Di:;:'3icn: ';":18 G,3.t7~le 3reedir,;; 0i'lisicn, ~ffiich used to be p;.:rt ':sse Li'l~2S::::OCi( Di'/isio:1, is the third :iutonO fa:cilitate the acti'litir~s of ::>yoject Direction, the Planning Unit, the Legal Section. the und Ref:)rm 5e ;tion and the Ad..m.nistrati'le md Personnel Section ',,;ere initia ted a[tei~ tLe ~)roject started operating fully_ 2h. TI,~~::7J.anning, Unit: There ·....as no plar.ning untt ouilt into the pro ject ',olhe'l it was initiated, which probaoly accounts for the poV'i~rty of statis tical da I~a for ;·jADU as compared to CADU. '{~'hen the need for basic socio-economj,c sLUdies md careful reports on p2.St performance was felt by IDA and ';lADUi s ?roject Direc-.ion in 1971, a planning unit was established. 2::;. Tr.e Planning Unit has only one perr.13.11ent staff ;;;eH:!oer :-iho holds a 3.A. des-ee frs'J1 Haile Selassie Uni'JersitY,corlpared to GADUls unit that has fi':e ep.tril7-e st3.ff ',nth B.S. or Ph.D degrees and three Sthiopians with 3.A. or :{.S. degrees. I~ has so far been limited to condt.:.cti:1g one '1gri ccl tural sur Jey of the projec t a."1d surrounding areas and helping 1..'1 th8 pr v:.on)f a,ruTJ3.1 repar ts. j. ::'1is sect-lon handles '3.11 leR;al ::latter's t~a:' in'/O-';"/8 prepa:,es standard contract forms "or 1ega2_ tran saction5 s1,;,ch as contracts of e!11ployment, loans, sales a,nd purch3.ses. 2 27. u:ld Reform 3ection: "!.'his sec tion ',..as set up in Clrder to fo1lo~.; the (L'.y-to d2Y project ·...ith respect to land tenure, mainly be caUSe {lAl U d,'-als ;..ri th unclearl] identified and demarcated ;;:,overn::18:1t lar.ds, SO:~9 of ',., "liel':. ~llso Gont.?.in po~:{ets of ?;1.tron1.ge grants :'hat hav~ £\~l~ ther G ;~:lted bi~ prcblem. ·..JADU Te',easures. It also carries out experiments on different kinds of crot' storage :nE thol s. uO ,"1a0etLns;, Credit and Cooperative Division: T'nis Division pro :notes the ,~st;i '01 i.shIllent of c09pera ti 'Ie societies. It per for:ns its credit and rnarketing act:,ivities tr.rough group marketing organizat.ions that are structura:!,y d.m:'lar to cooperative societies but that allaH' ~"AD\j to retain complete cmtrol until independent registered cooperatives are ready to take oVer. It l1so runs coffee-processing factories in the highlands. 1.1. '{ort:3 and Services Di'Jisions:T.'1e 3uilcling Section is responsible ~')::- ,lding activities of t::'e project, such as staff residences, recrea 3.;"1 QU :i::m:::ent~j's and oI:'ices; the 3rick Factory produces bricks, ce:nent and DicGS £'or use by the 3uilding Section; the, 'ilADU Glub provides faoe and recreatio~ :~:)r t~e st~,::j 3.T',d th.e 'dorks,hop Section is responsi.ble :01' c:arpool, trans port and r!lat~d services. tration of the MPP 111 cl<::, :: inc'~ t::e xFP Progr9.i:1 relies hea'lily on methods developed ':Jy 1:~e :or,prehensive project"tt :nainl] ::::ADU, SPID's or~anizational and aC;;'Jinistra ti'Je set-up '..laS desigrwd to have close ties ',n'!:;h all comprehensive pr8jects. Hm.;ever, its · ider geo~aphical cQvera£;e nec,essitated a diff"lrer.c:, administr3. ... tive set .. up th,·~'1 '~hat of the comprenens1'le pro,jec:,s (see ?i?,ure 2 in Appendix nn. . 1:3. ~~:lIDls Eeariquartel'S Cc'lS3nization: l:Y;pa~t;;;font ;~e;;ds. '~':-:e r.e2ds of ,. ~ "'" -;:-" p 0 n ;:);,. b 1 "- 0" p~c,,,n,1..;g t',:1e '..lO::-K an·:' b ' ' ' ' suOrnl v tJ ,,,S 0.,' "..: ~e " ' " 1 - n " , . 1 u~1geJ' , .... p~'Qgress rel)ort 3 ir.cludi r£ an am'!u"ll !'epo!'t, supe::-';is a r:d coorrnnat,lng the -,;o:-k, disen lsir:!; support from foreign 8.f"encies, coordinating wit':. other' rtn~en 1:5 of the :-1inistr:r o:~. Ag!""icul~u!"'e as :ie2.1 as ·~{il~l other ~~ger:ciesJ and Slrper'r:Ls':.ng st:tff, includin~ h and dis~i~si~~~ contract staf.~. !lL. A~ trl'~ moment the !:ead Q,£, the lJeaar t:nen 7., is ~=-dec 8j~ t~.;o deput~,,... haads, on} S'hirpian and one expatriate(tt~ director or' the :,lini.'T.ur!1 ?a.ckaii'? ?:'oject). A ?L...1ning and Svalu~t,icn Unit has recently been established ' -.;h05e th.r~e cis:,inct fUllcticms -..:ill be evaluation of ":':,e ~)erfor""an'.::e of the \.'3.I':'OU5 p:·ojl ct, and progr,,;':ls corrrprisj.ng RPID, pla.nnini-; ':or neH projects 'l.r;c ?ro&;T<,ms lnd pe' forming a va.r iety of economic a::.s.lyses. 4). Li2is,m Division. This division is res!)onsible for SPIDl s super visory ~ork on the comprehensive projects. For coordination of activities between EPID, t~e comprehensive projects and other independen~ projects, a Li.aiso'1 Com:nittee for the package projects is to be es':.ablished. '1'11is Liaison C:)mr';lHt,ee '.... ill consist of the heads or :nanaging direc-+:.ors of the different pre ts. 1he IJaison Division will serve as secreLdXiat to the Hinisterill r;omr:11ttee and -..rill be rei;ponsible for coordination ·.-lith road :mthor i ti~s. Lt5..<::x:t.an3ion Division. ',';Uhin EPID the :nain bU:'den of i,:-:iFb\1J.~ntinlS the ;,[PP P:ogram is carried by the Extension Division. It is in charge of sU::"'Jeying ne',[ a:;'eas to be inc luded in the projec t ana of supervising obser '1ation' d~moLst!'ation and training activities in the project areas. The S:.'(tension Divis:l.on consists of the Agronomic Group, the Credit and [·!arl-:eting Group, thl ALimal Husbandry Group, the Cooperative Promotion Group, the Training ::irol:p "nd the Home Economtcs Group. u7. The Agronomic Group provides technical advice to and supervision of the :·filimu.'l'l :?ackage Projects and the other areas of extension efforts 'tIi:'h resp 1Ct to agronomic problems. It participates in the planning of new or expandJd projects and takes part in the research and elucational coor d:i':1a~ic;l\ '~asks. It is also active in staff training. Upon request, it is required :;0 Serve comprehenSive projects and corr;mercial farMing enterprises . . . hen tiiTle is 3. v,~ilable. uP, The :"'",rketing and Credit, Group is concerned only. ;.ri th the Jemon s tra tion 'ireas 'lnd the :1PP areas. Its main duty is to organize wd supervise the supplJ of inputs and credit activities perf8r:-ned by the project through :narketin!S center s established L'1 each extension agent area. 1."".8 group is also in'lol'/ed i_'1 star"" '-,raining in credit:lnd :;-:arl-eeting. The Animal Husbandry Group '..rill super'lise piJ.ot anir::al:1usbandry ae tivi tie:; in selected o.reas, training of" staff alid preparation for future expans ion, It b not functioning t,) date ~~Io',err.~er 1972). Th.e :Ooperative Prom')tion Group is responsible for L'J.e promotion, establis~;ent and supervision of producer cooperatives to be developed out or the :aJ'ket Centers. The group is 3.1so inVt'::;l-Jed i;-1 s~>'lff '"ell as training of the ::;ooper1.ti'Je society boa.c:! :"1, L'1terna.lconu""l 'lr.d legal J"llestions, ?.nd palticipates in the cGrip\L::'c,ion of the am1:13.1 ;wrk ;;rog-ta.rn and budGe":. of EPID. The divi3ion is respon:iibl ~ ~'or tte Secre't-arial :'it:::: L::;nsport ser';ices for :he h.eadquar tel'S. ~;. :::?IJfs ?i'31d Org3.r.i2;1.~~_on: As ;..[;\s n,')ted above, extension .::lctivities a,rA C~J'ri0d on in three types 0:' are;:;.5: 'Jbservation Areas (OA), Jemonstration "reas (::;A: em: :-:inirnum PacKJ.?e ?r~:ec:3 C'l?P), ·.....h ich :::.Ie :onsecutive steps in the de',~l'J'xne::.t p,i'ogram of a:: ,J.rea. After the uecision is made to provic:e 3.:1 'lreJ. ,..nth .'xt')nsion activities, it is designate~. ,"'.;0 an OA cmd one. extension 3. s ent i::;lssi.T.ei to undertake pr0duction t.rials 'll':d a 6o;,.~ra.L SUI'7~y 0':' the ue:.;,. 'r;,,~ as;t r.t ;'lorks uncer:! cir'3ct 5,.:.:::;<;rvisicm of the ,.\gTono:71ic Gr::lUp from ~::e S:3 alrea:ly o.donted. J. cor 3.nt... 1Yloing the adoption process within CADU, four innovations ifill be cO:lsidered: improved seed, fertilizer, soil preparation -..rith iln proved imp.!.ernents and row planting. To Simplify the analysis, three broad categoriza:;ior.s of farners ..ill be distinguished. All farmers dealing ,[iL':. :AD~ '..rill ')e cla~;sified as adopters; farmers not dealing with CADU will be:::l3.ssiLeCls non-aGopters; and' the third class ,.rill be the :7lodel farmers (Hho a.r' adopters). Li. '0 o'?gi:1 ·..nth, it :night be '..f Orthwhile to look at the 1958 c.nd 1959 :::red:.t pro:rams, whose credit policy ·.. . as designed to promote the rapid intro c'~c!-,ion of t!1e innovations in the project area as '.rell as to publicize CADU. S'len :'hougr. stl.tistics from the O:fice of the Provincial Go'/ernment of . \russi for 1971 show the proportion of farmers in Chilalo to be {>7'; tenants, . }3~ b.ndowr.ers, ",nd S~ settlers on govern."Uent land; 3.nd CADU pu':J-lic2.:ior:s si'lC C\~2:; ~mc! hG~ breakC:oHn bet'..;een tenants and landlords rros~estively, Table 1 si1C'dS ~,ha t the proportion of tenants pursnasing seed and ::.'er'ti1izer em credit t·) b,~ s:naller than or:e '...ould expec-::- +,0 happen by :nerc ,::~ance. .Jf th8se ~'j·ho took se8d 0:1 Credi-: -~ ~.;ere 1:11:do:..n"!ers and only ]11 ~:~ ',-:6r8 ten,~lnt3 . .)1' Lhos':1 ~,t:o t;)ok fertilizer .JrI. credit ~o,h; ''';ere lando~·mers comnared to ::m1y ;J,:S': t,~ni1nts. 1"ni5 bdi::ates t,hat the te!l.1.nts ;·;er'3 no":, ~,b2-~ to take . ;;'?PE~8I.X: II __ Page 2 :f :~~ ~~c - ~redi:-~~~er3, ~h~ ~~9~3~e arga ~ul:i7a~ed ~y :3~~- .r:;.e:':~ " [";3 :::l::;'~13.~A8 t..Q :>0 .. 1~·.3 ~. 2.~(1:j,). :'::e ttl:'e::~r~~~ :"~~.::~.. :..~:-~~ 3U::-Jc;:;r ~):~ 70!: :S~·'~'~"3 ~Jhe 2.·Jer3.g~ i.;(~J. ,:ult~'J3.~ed :)y 'l3.D.do:~~ers t,) C,~ 3.:;011: ;; ~:'l. (:~.)" ry~":'"i.::~~ ~'1.~ :~irst 7::-;') /d~"-:--3 ·'Jf j:\J1~~, :~~erefor~, ;;al'tici.p3.~:':1;; 13.;~c- J','iT:'3rs hnd ~cre calt.i·:-:lt~c l~t;L! '\:-:-::'G1 ... ~~ J.v~:rage l3.:1d:J~..Tr:er, .:i!'::: tG 3.. l::.rg'? r;:.:t::-:1t, "":18 Ser :3.r:T'~e!"s .r'.~'!:j; t.!:.;:; earl:1 Eld-Jp:'ers. Jf c)urse, i:, is di~- ~~~::1~'3.. t 7 :: ~):.l:.' -.';~"13. t ~..)'·:)t~ld h3.·1.~ ~l~p"per:.ed .. 7,:] 5~'1:!.ll f1.r;':er3 ')r~.y frc::. t~~1(~ fi"(~y :'~e exte:lsic,1 c~ctivities a,r~ \-:!~.sLricuted t:u"oug!1 model :(i!':r,s, one would = -----_. ffic e o 71.1 13 2L.S i 0-15 2 '" " .. 7 10C.O ------- .- - .._--- _. illa::isLs of the SOcio-8cnomic status of the :ldopters -,,-ithin t;-;'e .<):1:-~ 3. ma_'ked differ"!!1ce anlOng the dif'!:'erent categor:es ,?T::C::1S::'Cr: l.rea shows J:l:::0~r:,e.r:5 (.3.':).e J). The !1cn-::J.dopter s seem to have smaller CeLl ti V '1 ted ~r eas :::2.;; :he :dop~.~r l . 1':'1ey h;:l'1e fewer number of cows and oxen. They are less ;)":",n 'le::Jb ~rs o:~ groups and associations. They have a lesser ability to I' ead 3.:1,i -"Tite. :'1::;st of them are tenants (0nly 10; of adopters '.. . e:::e tenants). Of "he ac:cpte:'s, the modern ':ar:ners culti-.,ate smaller farms but they are :nore Ii t~r.:'l.:'e, :'our.~er and' 3.r~ ::Jar e frequently members of groups. 7. .:0 a:1 ~'ffort to find out '..my the nan-3.dopter s did not buy seed ::lnd :ertil:.ze'· an credit, several questions were asked. Fifty percen" of th':'J rejpancents s:lid they had no money for the dOHn-payment, l5~ did not believe thctt i~ waE beneficial to take credit, and l5~ said that their landlat.ds ....'ere no;:, willing to share the costs ar gU3.rantee the loan (28). Simil~ ,~i,:n6 indicat8d t~a;:, most adopters had money aV8.ilab12 ::),' the do',rn-pa,¥T'1en t. :1, A stt:dy on t;18 ;-tmoJ.nt of 3,1,,:1r8ne33 0:' 30me i nnQv'3.tion:3 (,:',,\)18 1.:) has also in :iic.:lted the n0:1-a,d8pters t.o be less 'l':I,J..l:'e 'Jf t,hi~~ e'l~~n )n III a:::iar er;.~s s by all :a:e~ori85 ex~ S'l'ATUS 05' 'l'H~ ~liJOPT~~S .. AROUND THE G,O:'iD~ ~XTZUSI01~ J?FICS s 13 3 S.3 5.2 3. :) 7.5 7.0 3.3 ~vAr~~e nl. (f ;asks in groups ~, :l:-:d 3.5,; :lei ti(ln (like urdir 'I) CL 7 O. - v. 10 IS u? 8.t::~ to read -~nd ~rrite 70 50 S2 13 48 h7 hS - - - - - - - ----------------- ,-------.. ;)I)u:::e: ':o:;m .led fro:'! -j,lDU :·linor ReS83.l'ch Task >10. 3. e Di ffe:.·ent Se"d 100 100 100 97 99 F'er:ilizer 100 100 100 97 99 ! ';:'r.lr:tor pr'~par3. tion 100 100 100 100 100 '!? '],\:JU t:rnct )r ~ er ~t:l.C ~ V 70 01 '~4 81 28 :i.O·' pl:lD,til~ l:::D 92 t,Q ,J. 83 ----,,-----,-------- ----- 1/ hiT ~ i.s first \:;... 0 y"!a:'s of op8;:oation jADU '..[;1:; prcnidin[~ tractor ser'l:ce31.1though not p1.!shirH~ the:" 'Ie:.'} :l:-J.rd. ','[ere la-ter dis- GonLnue i::'1e to unfil'l'Jrable soci.3.1 ef:'ecT,s. p_PPThTDrx III Page j T3,o2-8 5 3~o',rs :':;'Tj.'lers 1 innova~ions 8ro~ided ''Jy ijA9 iJ" "ine j_r.. di83.ti,)n i3 is ;. high rate of ,~cc;ept/l.nce of t~3.-C -::~~re the ':alue 0:' innovations 'DJ all ca le 3 ·:;f :'''1'",ers. (;(~ner3.11y, :'1C'd8Ve!', the non ..adopter 3 seem to ::'8 :no:'e about the L.'1..''10'Ja t:i.ons t~an t~e ;-idopter:;. 0': all innovations, ro~.. plan;ing tends to be le3.5-:; aGcepted. Table 5: FA~:':ERS I O?UIION OF D-:iOV ATIONS (nin,or of t of :"'' 1-n ova t.ions --- .- ._ -- -------------_.. s 1:"301':1181' 'fields ~ L,:;h ,r :-ri GO CAD] seed 100 98 97 Yields " igh '1' ,-Ii th fertilizer 100 100 100 97 Yields ~igh, l' nth tractor ~!) 100 Iiel,cis high. l' ' ' . '[l"n rm-/' planting 70 77 ------ -_.- ._----_._-------_. __ .. -~---------.,.-----------,--------- Source: CrD:j ;·!.inorrtesearcn Task No.3. 10. S l/er3.1 questions ',.!ere asked to dcter:nine the number and type of influenc ,l rE ~e:_l/ed by the farmers on different innovations. The findin~s indicate,i tt 3.t the longer an innovation had been on the :narket the more sources ,)1' ilDuence '..ere to be found for it. Furthermore, seeing ',.as a more imp.)rt"nt influence fOT recently introduced j.nnovations and word-or-mouth is morempo:tc nt for the '..;ell-established irmO'lation (28). Number of in fluence j'eme~(oE red by non-adopters are s:naller than those remembered by adopters 1:1e non-adopters tended to rely rnore heavily on :L'TIprqssions fr :xn sources t:eal'-~r and more fa:niliar to the:l1 , i.e., from sources other than ·.~ADJ exc!,pt :ht,- model farmer s. :'1. Th'~ disseminatioI1 of irU1o'Jations is to a high degr<)e cent,el'ed :lY"Junci tr e extension and U;e clemens tr3.. tion plots. Q'uestions des igncd to !'ind the ext,~nt of iIlflllence from demonstration plots and t::e ext.ension :1>:;en:.3 (11'/e :;o:;'\':! up :.nth cO!lsiderably di:rerent answers "rith respect to di f rerent inn 0 v 1. tions. L'1 ~nel'al, non-adopters mentloned results seen :It demonstra':ion plots less:frequently p.nd recalled fewer COnL':1ents from 0xtensicm ag c;p.t3. -This result ;-fas to be expected because by the t:L"1e the ~uAstions were l.sked the benefits of i~pro7ed seed were accepted by ~ost hrm'~r s a:1d th.o~:e of rO~l-planting Werl~ -, ':Jeing c.,mons tr a-:-,ed, arid i : is ,.., ell u:'!~el'stood t:-tJ.t d,,"monstration plots1.nd extension aGe:1ts 'lr8 more nffecti78 in introduc es ~:lb lish :~d C:1e!;. J..??E:f.0lX III Page 6 12. T:'1~ i;;r:ooria:.1ce of 'C,he traditional (local) syster:l 01' influence ::an be se'n :Tom the number of times that people of different categorie:3 ''''ere m:~ntw_ on::d by farmers as t:'1t.; So,,-:rce of the rnain -~-ord . . of-:nouth in fluence ~',-:. 1:.h .:"33pE·ct to row planT,i:.1g. The extensioy: agent at Gonde '"as mentioned IS t:L-;l~S, pe')ple from CA.DU Were mentioned 5 1:.i;ne3 and otne!: local people Here ;;\;:.1t:cn;d 37 tiI!les. These "other people" are fe'... in :.1u.r:lber, richer and 10:a1.y .nfluential (28). ::':;·)ver ed cts i i Si ',ua t ion in Ar eas--':"';--='':''='--'''---'.--=-,.-'---~.;;'',-- - - - - _ . - - _ ... _ - - - - - _ . l . a e c ,use no thorough ba~eline surveys have been condt:.:::ted in areas no',.; under the I~r:ree projects, i:lforma.tion on the cred::.t sit-uation prior to the pl'ojects~s not available. However, it is understood that virtually all subsister.ce f.crmers traditionally relied on moneylenders for credit, sirlce instituticnal cr,dit sources considered lend to such small f·:rr:;-:ers a risk'J '1entur e. A g·'od indication of this is tha t t.'1e ffiadium- aIld long-term loans outstandir s t,; asricultural acti'licies by the cc.mm:ercial bank in Ethiopia ;.;ere less tha. o.sr; of all outsta.nding loans in 1969 (56~. 2. Fur-he.'more, the AID 3ank, /1 which -",a: 5 mainly established to :neet. the pressing creiit needs of the agricultural sector, e.xclude;:; 0VCr: PtO.~ of the farmin,~ pc puLation in the 1".a tion i'l'orn its credit program because of its i.'1flexibltl miriilr 11n loan, coJ.la taral and other secUl'ity requirements. EVen though J.OOtlt .~3:~ of the loans distributed d\.L1:ing its first two ye2.rs of full operation :.en' d:'stributed among activities in the agricultural sector (Table 1) , 01.£; comm.er:ia::.. f,lrmer s and a few cooperati'las 'rlere the ~olE' beneficia:- ies. For exampb, (:f~th$19 million distributed to the a~icultura.l sector, 78.8-; ~'Ias accomli;ed [OJ' by three large-scale faraB and 107 individua.:" far;aers ('~'qble 2). TlblE 1: DISTRIBU-:::'ION OF 1970,·72 AID BANK IDA:W Sect:)!· - - - - - - - - - - - - - -----,---______,_._.. Dollars _..:.~.::.~::..::.:::.:..:.=__ ?ercen ..___._________=_:::.:...:::.::::.:.:.:..:.:::::.::z..::..___._..__ Agriculturt: Ind 1Jstr:! 12 ,SOS ;:iuS. 99 23.19 Other 7,318,2L!:5.01 .uS Total :::;4,365,353.73 100.00 30:!Tce: ;..led frCJfIl a press re1!?as~~ :'or the second anniversary o:~ AID 3,mk, Au/Sust 28, 1972. 1/ l1le :\gric:l1tural ~nd Industrial 3...1.,,';-( S.C. (AID Bank) '.BS established on !~Ur::;l!St 28, 1970, by ;;-,erging t:--,e for::1e.::' CevplopI"lent ::3nk of 3:thiop:i;, and thf! S '~hiopian Ir.vestment Cor DOl" a tion. A??'3N])IX :~t Page -2-- ::':i.bl.e 2: DISl'RIJUl'IO] O? t:1E 1972 AGRI:::UIirt::UL IJ)A:{S EtO:1 AID 3ANK Average Lean ~:1 ?er 11 Ll ,081,202.00 )70,018.)6 21.2 Ia's8-SC lle farn~r :i 3 5,l21,?Ou.28 31.9 Individual f'3.rmer :l 107 8,993,807.78 8h,05h .28 uS.9 Total. 19,195,711.06 158,5;0.)3 100.0 ----_._- Source: Compiled from a press release for ~r:e second anni'Jers:lY 0': AID 3a~k, August 28, 1972. 3. Th~ GADU Project Area: The :nost, widely used source of credH is short-ter:n, 1:on-institutiona1 credit. Cit L"'..terest ranging from Zero percent, if the lender is a re1ati',e, to over lOO~ if borrower from moneylenders. A c1'edi t sm'vey of two areas within Chilalo (Digelu and Yeloma) before Cp-.nU i:1tensifi~d :its credit program has shmm that 51'~ of the intervleh'ed farmers, - ...hose ave~'ar;p 3.rl... '1ual income was estimated at EthS300 .00, had some debt (Table 3) . .J u: of +'h) 1(;; :3amplec: farmers, u1.3; ;'ere o;';l'ler-cultivators and 58.71, ·"ere r~.::r.ant3. 0'li~rall, 5u; of the loans :...ere used for irn.prcve:r:ents on the [arras S',lC~ 3.S O'lyir:,:; '1 neH p10-.... , hiring an extra day of labor for ,;eeding or other producti'/!' purpcses. Fort:--six percc!1t of the loans wer~ used for consump tion such as feast expenses, tax payments and court case expenses. The "iverage s:.ze 0: the loan wa:::; estL:-;]ated at Eth.'1l6u for the nroduction loans "ind EthS)~ t'or the comsllmption loans. The study also indica ted that cnly 3S ~ of thE to :::>.1 number of loans, or 277, of the total v'llue of the le.s.ns, ...."'1'0) paid bac!: cn tilTle (15). LI. Ine ::\ajar sources of credit-Here found to be rela:i 'Ies, close friends, ethel' f".rmers and traders. About 6id of the number of loans from T,;lati ves 'md friends were found to carry no interest charge, compared to only 10;; of the number of loans from other sources;'ind the average annual illterest rl te ransed from 3u:~ for the loans from re13.tives 3.nd friends i.;) a,*out 110~ for +::'18 loans from at-r.er sour~es (16). L"1 the case Qf cash · lQ.ans, thi~ most common interest charge was found to b~~ Sth;51.00 per month for e'181'y -~thS10 .00 that was borro;.;ed (18). A S~;?·~~:A_RY c-: T}I~ :'::~RZDI'1' SITUATIO:; r:,; ;:~-iILALO DEFORS ~ADU ~:X?A(mED IrS ·~RSDI:' FROGFL\:1 --.- - - ,,- ---.-.-----.. --------~,-';:;---------.-=---;-----------;:;-----:----- ---_. __ - ----_._--------------_._---- .. ?ar~ers i~t~rviewed 109 100 ~1.3 3h o;.~ leans "a.l(en ror pro1~c~i~~ purposes 5h Av,~rl;e siz,~ of loan for iJro:iuctiw: purposes (EthS) SL..CO 1, 0: 1.0;:-""';: t"Ken for consu;:rption pU~10S~S L.6 Aver2.;e ~ iZI! of loan for con ;u.'TIj: ticn purposes (SthS) 51.00 300.00 Compiled from CDV a.w.lor Research Ta:3k ~ro. 3. Di :e1,.1 and Yeloma Areas. SOURCES C~ CREDIT OT"hER TIIAN CADU, TO FA,;.'{}1ERS :Gf DIGEIJU AND YSLmfA AREAS, CHIUID A'/i?.AJA of Loans Relati';es 32.h 1,856.00 2<; .3 11 12.6 3S0.DO ~ ) .., ~ Other rar:i~er ~3 118 · :S 3,L21.0D 33 )3 It '!!' '1'1' :l.dt?r; ar.j r~oney-" · lend!rs :) S .11 720.00 lL3 Othernst itutions 11 10.0 :; .0c) J.1 III le'o .0 5, .co ICO.a -_._--_._-_. -_._----- SOUl'CC Compiled from CAJ:j :·!1.:lOr itesearch Task iro. 3. ..;.??~;;]=( T:! ?age U 7a.b1.e ~: :J>1?~~?tI3{);r 2'? :jASH LOAi'iS AIID LOA::3 L; :-':~:~!J FRO:1 DIFFs?tKr: ,~REJll" Sc);J?:SS I?'I 1!-:3 DIGElT] A~'~D YELC!'-!.A A~=-~S :10. 0: A'l « :~o . of ." ..1..,.. ,. ," .,0. of . . iv. :::rec!i ;:, 0::- Loans 0)3.n of war,s Loan 0:- Loans Loan Loans Loans (~. ~) ..'!.v.l~ 0) Rela tivel and friend; 3j 1,752 ~:-; " -, · J l7 250. l.u .9 ~~ )0 2,215 Gh.} Other l':!nder }': 3,795 102.6 2L. 351 lu.c 51 u,lu.s se .'J r'-, Total 5,757 82.2 Gl. 605 1h.5 III ;' J,)0~ ..,,/,-. S7.3 ------_ .· ,,----------------"..... ,---~----.- Source: Glmpiled froll1 CADU i1inor :tesearch Task iro . 3. S. Us Jal1y some t:.'pe of security was required for t~e loans. iic)'....ever, orlly hS-; ~)f ',he relatives and friends, compared to 9'5::: of the ot.her lenders, required s8c1:ri""1 for their 10311S (l8). Of the loans analyzed in the sample survey, t:.7 -.; Lad 30[:18 kind of written agreement, 60-; had bet;.jeen one and three -..ritnesse~, hL~ :1ad §,"Uarantors, 9~ required land as a collateral, and 73~ re ~1uired cclla~er 1.1 of some sort. Only 27'; of the loans were given '..ri:hout requil' a.1'1}' kind of colla teral or security (Table 6). s. Hesul r~s of the Digelu-Ieloma area credit. study are too li.'7li ted to dn.lf cone Lusic:n:3 for the ent-ire ~ADU pr oject area, but inter'li2;"s and dis :;nssions 'Ii tr. :::ADU staff maKing s:L'11ilar observations in other parts of :::hi lalo seem to indic:ate U,at the Digelu-Ieloma situation is in fact representa ti'Je of tLe A;.rraja. 7. The ';i1D:5 ?roject }~ea: Although not as detailed as the iJige1u Ieloma arf!a s:ucy, a sL'7lilar st1.:dy covering a '..rider area !13.S been conducted in ~':Ola~'110 Awr lja by tue Plar... 1ing Unit a t ~rlADU. All areas -..ri '::,hin ",iolcwlO " A.-rraja, e)cluiir.g tho~e ·...ithin "':.1:e "dADU p,;:-oject area, "",ere incl1.:ded in the sample sur ·/ey. A.s '...as the case ·...ith ,:hilalo, neighboring :::ir:ners ·...ere found to be the majr1r lenders. Si.xty-six percent of t..~e 3urv~yed households 80r rowed frorr ot;,er farmgos compared to only 10; from tra.ders ('rable 7). ra.ble :;: T'{i:J'SS lJF 3ECUrtITY ;1:"\.1 DL??F.u=t~:';T :REDITORS 1:,1 ~:l?; JIG3w- ELOi'1.4 GHIUW )""';R.;',J.~ -------_.. --,---- Type') of and Other S'3cllri f-Tiends ,;! 'J l' ') Gash 'J Kind "; Loans " ., ~"h~i ttP."l Sl i~ ,, ~ a~T e '~~er: ~ 19 38 J) )') <;:0.2 72 .? 2J .1 7u YJ,:J :;-~f 0 _ "'J ~ '''{i tn~s s 38.0 L3 75.7 he v /Q " 0l). :J 19 h5.3 57 SO.Lt Guar an ~,or s 12 2h.O 37 50.7 32 hS.7 17 h1.5 Ll9 h1.1.1 ulnd col1'.terll 2 4.0 8 13.1 10 1L3 :) 0,0 10 9.0 A:n:j kir\d 0: S"SUI i ty 23 46.0 58 95.1 c'r' ')') 78~6 25 63.h 81 ~J? 1,- · j :'i ~Jo SeCl rit::: 27 51..0 3 4.9 15 21.h 15 36.6 JO 27.0 ;:'0 ta] 100.0 51 100.0 70 100.0 hI 100.0 III J.OfJ.O ---,--,----,-- ----¥,..--.. ~~--- . --.. -~ Source: C)mpi1ed f::oem CADU :1i.ner Research Task :.Io. 3. 1>01'::.-1: ALT'SRN.<\ TITE CREDIT SOITP..CES F'OP.. ?1I..:1:'SrtS TIr ~"'O L\ >!O NtiFU.J A ----- -- - -----,----,---,---:';"--,-:-:--.---.-,--~------'!- ..----.-,..._.._,----- ~rec: "t. .:: )'Jrc~s Households gorr :; - - - - - - _ . - - .--,------.;:,.:.;.~..;;;.,;,.:~:..-.--=:-.=-:...::.~:::.::.::.:.'--,--------,----,,---.:...,--. 21,779 .09 3,138 Otr.er sc urC!S e,017lt 2Ll. 32 ----,---- 30urce: 'inprocessed data r::ollected oy ','iADUfs Plannin~ Unit. /1 ~one:'le:1ders, loc.:ll associations, e1:.;:. .~.??~D:LX 13 Page b " 0. :,~"te3, 26~ of t.he sur'?~ye:: h-:-useholds ~ai':' no i:l:ert;st it 3.11, abou'c 25~ paid i:1t.erest r,:~nging from 1 ~o 30;; ?er aCl1'lUn and al:no:'t L)'~ '".)f the households interest n. tes hi;:;her t::ar. 50; DeT 3.T.nurn . of Households of :tousehold::l o 9,053 28.00 0,- 8,278 .:;6 :;l··lOC 12,919 39.40 1,753 ).~h JuS 1.07 '--".- ----- Source: L:nDi'oc8ssed data collected by ·.~·!JJUls Planning Unit. ., 'l.:"he sa:nple survey indicated +;:-,at a.. L'1lost aLl of the loans given ·.. . '"re in :;a3h, ,;i.th less than :)s beir.g g:.',,",. in kind. This seems rather unusual, tilt :·~os~. of the extension and credit ma.rketing staff a:' ',{ADD felt tha"t it Ha3 rc'asmable because people in :'[013.010 borro.... mainly to f:L.'1ance feast cele:)ratio;ls. ';lith respect to the size of loans, onlJ' 21:; 0:' the sampled ho lser.o1,l? borrow 07er Eth$uS .00 per year (Table 9). !:lISTRDT1TIO!1 JF HOUSE":-!OLDS 3Y SIZS OF ID~; ·:iOLA:·1) A·,.1UJA .._----_._--_.---- :nan I :;umber 0 f Hou .-- 1 r ~.I.... .() 9,772 25.=5 5,u37 24.0 S,003 18.7 l..5.0-60.0 2,287 Above 3,lL9 ] 2.3 Tot.al 2:J,SLS leO.a Sour "): UnrrQc'~ssed data collected b-] -,iALJU's Planning Unit. ?age '7 1,). ; S~'~;7i:":lt8 sur'le:: of p2.rts 0: ''';olCL'',o ·,.-ithin ;;he HADU project are~ ~a~e up ~,.,r.L th s :'~ilar co:-.. clusions 'The TliljOt'i ty of the nou5e # holds in :.he :1: , as ".,rell 3.S in the ~cttlesent are3.S, "",ere usually indeb~ed, and ~lnost all Qi: 1::1e 105.r:s, which tfen~ pr edoT1inar.~ly ':,aken for COnSll.11ption, ;.Jer~ :Ttade in C:1S:-:. As has been :'he ::ase ,:.;it,h 'lTeaS nc~ ~-:v'J- ered by ~:IADU, the or sources of credit in both the hi':;~Llz..;1cs 'l.nd the settleMent ar"as 01' '..lADU ",lere found ;:'0 be neighbor in;:; far~ers, local tra jers, and 10c:::.1 'noneylencers. ;;0 co:!.lateral "as required fo.!." rr;ost 01' the loans, but thf'Y required \rri tten agree:nent . liitnesses or '/eroal agree:nents. 11. Other Areas in Zth~~: It might see:n hazardous to i;enerali::e frol'1 these li:nitec fi:ldings. But looking at the simil.3.rity 0.::' economic and social sbtus of the rural population a:: the hetereiSenous parts of Ethiopia, and given she unLversal lack :)f any institut.ionali:ed credi:' sQur:::e ready to Serve :11e :maU farmer, it is probably safe to hypothesize t;h3ot "the cre dit situa':;ion relealed in the Ghilalo and '../ola.-no 3.l"eas is indi:::ati'le of the national c:ed: t dtuation. A 1968 Stanford Researc-h Institute StUGY of the credi t si tlat:on in Ethiopia see:ns to support this hypothesis ,( ) .' 12. 1:1e ,tully classified farmers into four groups on the basi,s r:f thc;i: :.;red~t nee.ls. Thd first category consisted of subsist? f;.. ve t! 'ins Lc:t'.ons, :.. hi:::h in'l01'/e :.he or-oducer, the asse:;lbler at the --: :.r:"::et, U e a:ce 'lo'3..er ~l:' the prir:t.J.ry :-:.ar::Cet, :-he wholesaler. the retailer :11: t:-:::: ter:-1L U . lar ':8:' :lee the C,)nSt:.l1eC'. '. 'l~:L,,~D ;'~2Iket::; IT, is throup,h the local ruril:na.rkets'! that ::lOS;:' of ~" ::l'l~i.·o::-:~f -'lr!)'US """'3.''''S .:.n"er ')..,e '''8... ~c.,,~,,'~~, J . :.1.. c,- _ d _, - '"d '.... t ' · ct.ar"e~lng SYSLei1. Liese "tar k ' c'\-. .L. ~ eGs Tl.ln·~- t::..)" not Cl.lj'- as 'l.ssembliYlg ?oi:1~.s for st:!:rplus foodstuffs -out a:lc;o as retail ~:!.3:ribl1tj.lr:i;1Jt}et3 for loc'l1l'; produGeri a.nd :ir:1ported cQr;'l;;toQi '::,.~es. ( "lese :J1;:rr}::ets ::teet p"!riodic;llly, ClOS ::'11 t-,.;ice 'JC' t~:ree times 3. '.;r'(ck. :::-1:e rur1.1 :-rlar'r:ets genF!r1.11y have only scant f2.cilities. i1et.'liler:3 eldo:n ha';:! ,,(::'9 than a cOVer spread on tte ground. ,\sse:nbL,rs · ho arC'! not .... :'e:i.UJer,:.3 '.~' :~1:~ :narket 'lre-3- gener'llly h:·l'l<; no faciliti,":31n(~ re:lOVe the:.r ;r,1l··~:---.:.lS8 £'. 0:1 ~t,:~ :narket on ::-.. 8 S.:l;rtq day. I '~::e 3.::92. seT 7~d ~,;):i a ;:13,:"li'/ity be:·..:~en 11.:30 ,:"nd 12:30, '3.nd ~.he pea;~ tu.!'e ti;:-e iS1.bout 1::;: 30. T:'1''':s normally r.he :na.rf;~t ::r.:s:' be within ?bout 5 ~O'.;.:r 5 ·.,-al~<, or g.. ::,ou t 30 ~:;:1 ,J.:: th!~ :nos ~ . t:--..e sxne 3'JI "ley ha3 sho·,·.;n :h.:!. t ~ 0,: :he :~!"- ket '/isitJrs ,:m 2. 0'.aj0r market. day tr'l.vell::~ less th3.n ?~:; :"C7". to market ~fhi2.e the re:;]ai lL'1§; 12 ~ tr,nellec bet..... eer, 20 and JC ~:A. s.. row 'Jf~.e!1 ,3,. p8rson 8.::~ends J. ;Ylarket de?er..ds :-:13.i'nly en tI:e exten:' ,):.. his dE'per.,enc ~ en :he :nar:"et l~Ot' exch::mging hi::; surplus prcx:u:;l,ion for or.21er pr]chJG·~s. Ir. m()st cases, howe~ler, !':1arkets era;.; J.ttenci3.nce 'J:'" ~~"is:L:ors si::npl:; .::':)r "'V s.:r:::ial ::Cife they offer. 9. >'rL'11.1':; :'!arKets :l'he pr i;;:ary markets 2.rp. usually V?!'Y " :"-:Jilar in i'ur;,:=tion ",0 t:le '/illage mar;:ets, only consider".bly large;, SiL" -.he:! Se);"l",! wore prodl,~er') 1:1d ::onS~"TIe:-s. Farmers from surrounding <-:~r"". . 1.~ '.:10 .:·~~':J."'2~:"'1nts '"ho procm e slPFlies :r8m sur:>:,oundir:g 'Jillage ::J.arkets CC:0 ,"::~ to sell :r.ostly to la::;e 3.sse:-::blers or to their , '"ho in tur:1 c:::st 0: thl3ir pure h'l.S;S to a ter;;li:lal ma.:-ke:'. In addition, there :3.:'8 re~3.ilers sellin5 a ·..r id! array of goods and same ·.-lholesalers in the PI'i::13.ry :narkets. J,.J. ler::l,nal. ~'hrkets: Addis Ababa and ASClara .?.re t:le maj::r ter::1inal l;)arKet.s. er 3 are used for all major sales and purchases in these narkets. cine! they J::-e ns ';T'.lment;...l in sett.i.11g prices. Prices est3.blish"d at the ter::li;--,al r~:trkt'ts to ::l, large extent govern corresponding prices L'1 the JC',ier level mark!Clts, 11. tlrkf~h:)le Sm'plus: There is no quantifiable L'1:or:nation regardin~ the propor',ion o~' s'lrplus g:'ains and pulses passing through the vario'ls nar ke chc'lme~,s:,n Ethiopia. t!mre'ler, a study by the Stanford :lesearch Ins:'i i,ut") ha3 GJ:ne :.Ji';h up so:n"! esti.ilates. Based on the assurrrotion that about 1 E% of the pop :1'1 -: iC)L ;'as mClrke-c-c8penden-c fo!' its grain and pulse needs in 19S?, of ',.;h:':=h 1 '. < ~';3.s in Addis Ababa ::md aoout Ld in AS7llal'a, the study conch,cied that t:-:e ~·'r::li:1li. markets 1.n Addis Ababa 3.nd :\smara consuned just a'ler ; 0:' ~,:-~e total ;;ark,~~,> 3upp~ies, and i~,e re~,:!inL~g t!.rban ceYlters a~ "' . ...;......l .......... ~" '- s-- V J.....l V\.; ·· I.J.. ... CJ....... .~_~ .. ~ ........ ,J"-J ".~, ... ..J.-~_"" !Jri:n'!r:l :-:t3.rket~-) ~tl/~re :nost ;;- '.'l.ir..s found to ~ve run the full '3equer.. ce o~ iIl~er' :-::edhries. !!i' 12. It :. s "Iery diffic~L . 6et an est:..:na:-,e of the :;]arket.ablG and ::tar I :-l<:~ 1. sh~·.-s .hat. G:-t.i.1al'.J has an increasingly expanding marketaole surplus ,:;:' -:he ':0'.:1 rna or crops of the ;-rea that needs to be exported to other parts 0: :),e con.!.!) try , ~'or a :nore COl'l'eC t ,~stL'7lation of the total marketable pro du:::-:i..on, h,Q:iev'r, knQ'..lei~e of consu;'.1ption eJ.asticities is necessary. " 13,. A 7".. thE! national leve":' ~ graL""1 prices are larse ly dete!":nin~d by tr.. e i::::er:=J.ction of the supply of and the de;na.,"1d for marketable surpluses at t.he ter:;,inal m3.'kets, and they de~>ermine prices at lower-market levels. For ex.3...· ;rple, ?::'ai n i11erchants i\t Chilalo, as -;.;e11 ·:lS CADU's ITlr'1rketing div:'sion, relate t'1e:i' buyir:.g prices to the net pr -=-ce that they e..xpect to receive in Addis Aba':)~. 1, /! ·::.:':-' ~'i!JU.'! Page Lt . ~'l-Le "'iOSt i:nportar-tt. :7:erc:"'~3.:lts irlv,.)lv~d in sect the general level 0: Dri88S for th,,:: entirfl is!"'::;':';:' :r:Hketin~ system are th,~ large assemblers and'whole~ale:s in Addis Ababa. 30th ~roups contr~l large supplies of sr"..ins "..nc th,,:y both unC:ertake::;onsider3.ble sea ,'nal or speculative s :';18ir::olL'!ct~'Je expectatio;:. 0;'" "'cr.8 c)upply .... eTrk'lnd relar,ionship "ind theil' i :J.oility tc sU~1port the :n..a.rke·~ are the 8ajor price ceterminants. T:1e Ethio ;Jian Orair Gorpo~ation i,s nmi "he 5i:1g1e most. importar.t Clerchant in the ::t-:lrketin;s sys'~em. r!owever, it is s:Tl2.11 in relation to the total market, handling c.:11y ab~:)Ut 3~ uf "he narketa.ble surplus in 1958 (57). IS. F:~ic,~ s.~ttim; at the assembler-~iholesaler level in Addis Ababa is fa':ilitated b:; b.-akers, ·...ho reEJresent bot.h the se:lers and the buyers. At a fee of n:)t ;,or'~ than 0.5; of the value of the transaction, br8Kers usua,lly nelSotiate the m03t f;,~vorable r;ransactions (57). oeL'1g faniliar ~{ith the daily aninl of supplies and the available stocks in Addis Ababa as ~{ell as kno'rl"i.ng mo~: t ,); the imporr..ant mer::;hants, brokers help in making the Addis Ab2.bA. term.na: m;Lrket a nore cO~;1petitive and effective ii13Tk?t. ~ , I1 stl''3.n.er and less important pri::lary and 'tillage markets, only a s:nJ.Il nwnb:~r of rlerchants, generally with li!l1ited resources, compete f'et supplies. F\lrthnrmore, t."le corresponding supply area is relatively small with the lLke]1 result that supplies and pri.ces will fluctuate consider.,,:;..J·y be~;;.;een pL.ce~ aI,d over time. 17. 1].e ~r.E'ral pri;;e le'lel for pulses in the terminal markets is closely r e1a. ted to ;.;or Id market ptices. Thus, the price paid in the local marketin,s systeM for pu13(~O:; reflects anticipated e.xport prices, ~-lith the expt)rter taking the risk oj' pr'.c8 fluctuations. Ethiopia, aC:::01.h'1ting for less than 5; of the :ot'1.1 worlc ex)ort of ]Julses, is a price t'l.Ker in the :.fOrld ::\31'ket (57). Thus, ~>:--,e :na.~or c iff ~rence bet~.;een price determination of grains c"nd pulses is that t.ip D1.sic ~r iSl C t' p-ulses is not formed by the supply a.nd demand relatio;:.ships in ~thiopiE bu', r:J.ther by the price available for Ethiopian pulses on the world rl\arkEt. Euket Infcrma ',io'1 on and ?rices ------,---.--~-~----~--------..---------,---- Ynl~ r~:,ng~~ and relev8.nce of t!1.e ~:1arke't. iruorma'Sian availaJ)le to '3a(~rl party in a trar.sa :tion is usu"'l.lly directly related to the size "'.nd ext(~nt of his mark(~t ~nv )lvement. example, the l'lXf;;er 2.s5~;nb18rs 1'er::ei'18 fre quent price in:'or:1ation dir"~cT,l:l from the ter:nina,l markets by ::,elephone .T:le small f'lT:nel', ~~n ,he other~nd, is entirely c ; pendent upon ',..hat he Ccin Learn frotT'. his neigheor; and the 10c:11 or prLnary :narkets. As a result, the bargain':.ng oo'"er of the :s:naller party in each transaction is generally leSS becaus:~ of h.Ls lack of'rice infJrmation and alternative outlets. l.7. NO:·,:lir.s is bein~ d8ne, either at the national level or '...i:.hin the oroject"" t) alleviate t:us lack of market i:cforrrlr"ltion at the 'lillas8 "'-ad ;;1' lev,',l 0 t' i he marketin;;; system. ::owever, t::e propo3edln>~e ;~r8.in Ser lice! (y CAll:] utJ.y indirec tly result. in :Lllpl' )ving the sitllo. :ion '"ithin CAD;r, 1'1e orogram ?rOp03es to lool< in-;:,o the p03sibili"y 0:' b.·linG ·;??-::m=c '1 Page 5 pro5ect-:" . r ea f?rmer s :reel:1 use ':..tOU-supplied scales :or :heckin;;;- t-he ~ieig;1t of :heir gT~in 8.nd a't ,,:;e S'3..."1e ti::;e be , .given 3. rough idea of ::18 :{ullity of . , " ~ . ":heir pwdu::>~ ~nd the pr l.C;; s t :ley -:an e:rpec tat :'ile l.T :narkets. 20. Tn '.S plan Has tri'3d :m an experi;;;ental basis in :..::u1' village mar kets and the ;:;rim.ary market at Asella. In abost all of the areas ';Jhere the progr "-':1 ,/a:: operative, 10--;al :71erc::ha.'1ts re sen ted it vehe:ne:l t1y, 'l.nd 3. t ti.:nes viclen;ly. In Bekoji and Ase11a, the municipality::hie:'s opposed the wholE ic!,a )1' the program. Interventic:1 of the C-::)Vernor l]er:eral ;.;as required to :~'TIpLement the program in !\seila. In spite of these setbacks du:::ing t~3 t':o md a half months that the progr'L':1 ;.a,s operative, however, the Plan;", ani Evaluation Section considered the ex::.:!ri.ment a relati",ely successful vlnt ire and has suggested running the program in the future on J.n expand ,~d 1 as l.s · 21. In ;;;e '.eral, the lack of adequate and reliable inf:m:na7.ion at all 1e-/e::'5 oi' th, m,lrketing system is a priJ;l:ll'Y cause of thf! wrequ,al b'l.j.'gaining pm{s!' of ':he p:r[)ducers, poor producer prices and the 10·....-leve1 of L'1ter :narkt~t prLee ::!ollsonanee.· Information about supplies, st0,cKS and price::;, i::;' :1oso1utel,' eo sential to the smooth ;.;orking or the marketing system. Transuoi.:' t~ .tic 1 . 22. TI~e ?_·.ailabili ty and cost of transportation is a major determinant of the cc,::t, e ::'j ciancy of t~ m<1I'keting system. Transportation also largely deter:nin:~: th,~ -s:;]ount and location of the marketable surpluses that can b8 efficient:y i.ltegrated into the marketing system. The c01.L'1try IS objective o":~ changin? t he;u::;sistence economy int:J a market econo;ny is very closely asso ciated 'n;n t l 8 '3xp3.nsion of the transportation net;{ork. 23. .~-1os , ~,a:ins and pulses 3Xe haIldled over ~;'ledium 'ind long distances by trucks. ? OM the farm to the village and pri.r:1ary mackets, ho-..;ever, mules and dOllkeY3 p;ov~de the r:1CS-S frequen+J mode of transpor-::a.tion. The condi:ion of the dry-we,.t:: ~r roads varies considerably, as cio the per ton-kilometer trcn:spJr ta::io: Cl.1.rges (Table 2). Thp. difference in the cost pez;, ton-kiloffii'!ter relates to th," a/ailabilit:t of backhauls, the conditions of tl:e road surface, the tErral l CC 'Je;'ed and the degree of cOf:1petition among transporters on the r:::mte:i. Tle 13.t,~S specified in Table 2 refer to those of the CADU ~13.rke Di vis:.on "ner~ a.':ailabili ty of backhaul was assured, since arranf;emen~s ·...ere T'l,de :'or t;'le :-.3.u:~ers t.o carry fertili:3er from Addis Ababa to Asella ami the "larious tr;cde :::enters, and to carry back grains from the trade centers to ;,,,';.'11:1,Ihz:'et 1nc: Addis Ababa. The v8.riability·of the transportation ra:.es i.:3 very .3.praren:, in this sarr.ple of ntes paid o;J the CADU :'arketing Di·;ision. ;2u. ''he lor.r; hauls over all-1...eather roads :nave the lo;.;es':,::;ost per tcm ~ilrnleter. Short hauls oVer all-';Je~ther roads are relati7ely expensive. Even tho1..:,;h it js nQt very clear from r~his table, those h..1.u1s tr'2t req'Jire tra'lel JVe, 'lry-\-.E ath,c;r roads are exp,?nSi'le eVen :or lor.~ hau13, as ';Jas 3ho~·;n by ':.~.e declinE 0" t.he rate from ;,ddis Ababa to Gimbi fr')ii] ;::th;i)120 per t;:)n to ::;:t:<;!l) per ton foUowinr; t!1e :0mpletion 0: the all-weather road ( ). .;??~IDIX V 'fiag'e b 2S. ·:'"'r. (! .:;.nim.J.l :lr.. d 11u.~3.n par ...er 2.fie under taken ';Jy :~ar:-n8r sand local assembler.i i:: a major eleInen:. ::"'1 movi:-l?, s~rpluses to t::'e village and pri " _.. ~, v . L ""'ar'vo,L1'r: v :nary mrK:t.S) all d'nen\,;e, ';"''-') T''''::>, ' " h _ v '", SY"'T'em ~ J ,"- 'nl"n~l lJor+er"ga 1'" :1.. '0, _ ~ -_~' ,1 also used ir. l1o'!ing merShan7.5 I ;::mrCh'3.S8S :ro;1 srnall 'l:-ld remote T'J.Tal m:ll'kets t l U e :.arge markets. ~'able 2: T?..A~;S?oRTA7Imi CHARGES FOR GRAIX3 - PAID BY~ADU I 3 :'!ARK'S'l'ING DI'IISTmr -------- ?ron Addis Abat a Nazre t l.GO 100 0.10 Addis Ab;.l.c a Asella 1.80 175 u.ll ~lazret Asella 0.80 Asella &.agure 0.50 21 0.2L Asella 10le 1.00 JJ O.Jl ,t.sella Billalo O. ]0 11 0.27 .. \.sella Kersa l.~ 57 0.28 Asella Asella Trade Center 0.10 2 O.So Asella Kofele J.7=) 370 0.11 Source: :::;:JJiJ :·hrketing Di'lision files. 25. 'l'ran:;porwtion by anirnals is relati7ely expensive, nmlever. The Imperial Hi~hw,lY Authority has ~sti:.1ated EthS2.uO per ton-'rcilometer as the ,coSt, 0 f c:a.:r ryiL;; ~oo&s by mule or c;,:t;nel ( ). .-! 27 . 1 ' 1 8 '.'ot~nti3.1 savings tr.at IJQuid accrue from the constr'J.ction of f~eder road3 i;l t:le iurplus-prcducing area are therefore likely to be lan:e. J ~ 1'11 e cos t at l 'J:L:1g q!8 pro d uce ~'" ... ' .. ' t an d +h e pr1ce o~ lerec ,,0 trw prLT.ary marrce u" ' .. ~ 1 '1t the mark3t ciet,~rmines 'the supply area and the quantity coming from it. Therefore, lOWEring ;:,he cost of moving producefrm;1 the l'l.rm to the :narket should ir.cr \laSe the size of the supply area associated '..nth each market. This ~.;ouldlJ.'JP tl~e ad'Jantage of i:-lcreasi11g the marketable surplus uupplies "nei lo'..;erini; 0: :narketi:lp-; :nar as the rr::5ult 0:' lo;.;er assembling costs :l.Ge .::. ;;reat,,'r' by-passing of local :n2.TKets. A??EXDIX 1f ?age 7 21. ';::''lere He no forr:1ally established grades for grai::1s and p~lses :'hroughoui. th,~ country. In pr'ictice, varietal differen'.::es &..re used as a measure 01 intra-commodity differences. ror example, -~th teff, three color gracuations ranging .f:cxn '..;l:i te to red are recogli.ized in almost all :narkets. Si.raliarly, three color -based varieties are recognized for ·..rhea t and barley by the large merchants such as tr.e Ethiopia.'! Gr3.i!t Corpora tioD and the nom' mills (Table 3). Quality differences based on such measures as specifi:: S::'2.'li.ty J '1oisture content and Itvel of L'T1purities Me no;:; rec ogn:"zed SY3t.81a t i.r:ally by the :narket:!...r.g system. PR);'X'JHINMlT COLOR OF VARIF~TY ,._---, ,_ _" __ w_· Teff 't·/heat Bu ley ~/;"r iety I Red 31aci< Black Variety II :-1i..ted Brown Gray r- -/ariety ~·rni 1::e J....: :'ihi te '{,11i te ----_._-------_._--- Source: ~in ::eprt ?10. 15, Marketing of Grains and Pulses in Ethi~E..i a c nd''::ADl1 Marketing Division interviews. Current, Ly, the marketing division at CADU is purchasine '..meat fro:n ';:armer:, on t~e b""sis of four specL~ic grad~s. The grade specification is based on th,~ l'~vel of impuri tie:;. This '..ras possible because CADU was able to conl~end with the major national problem of the mLxed nature of the seed stocks thr:.mgh the distribution of imoroved wheat varieties of uniform quality (TaJle u). . 30. T:1e ~':ai:;1 reason for the current muket classification of gr ains on the basi') of the predominanr. color is that all grains produced and sold '11'e composei of a mixture of 'Iar ieties since the seed stocks are extreme.1y mixed. An malysj.s of four ~-{heat and three barley sa.'T1ples by a Stanfor~ Research In,titutt~ l1arketing Study in Ethiopia showed that, although thE:!" black varie .,ies Here predominant in each sample, the other varieties mad;e up as much as l7~ of the total ',.;eight of the wheat and 25 ~ of the barle:l9 (~7) ·.<\.noth"r rJ'"'ljor ploblp..m is the lack of a sufficient penalty for the ... inclusion 0:' foreign matter in the commodity sold. .."..P?'S:DII '1 Page c! ilANGE J? ?RI':'S3 FOR DIFFERE:r;.' G:\)J)~S O? :.:::<:1,.1 AT ClLDU, 1972 Gr",de Impurity Allohed (~) PtITchase Price p~r '~\lart as fhed per Grade I per trade center II 5.0 Grade I minus EthSO. ~O III 7.0 Grade I minus Sth$1.00 ~'r 11 above 7. .) Grade I minus Eth$J. So ---_.__ _---------- .. 30urce: C,t)U' !a.rceting Di'lision files. 31. bca:. t:rreshing methods (ru11ning animals over t:v~ dried grain stalks on the grould) of:en result i:l a very high ',;eed-seed and foreign matter con tent. Oneltuc:y has shown that weeds and foreign matter in the :-Iheat 5a:nples C'anged up t., 2':~ -; by weight and up to 2L:; in barley (27). In general, there fore, the m,~b::ting system is not yet able to distinguish quality and hence reward merc.'lants and producers on that basis. 32. 11li5 inability occurs despite the lact that consumers usually shm. explicit profer'~nces in regard to srades and varieties of a commodity. For exaJnple, TallIe::; shows that t:-.8 annual wholesale prj,ces of red teff compared ..heat co::rpared '..nth white were conSiderably differ;:mt. ·rrit:-, brown, .nd brcwTl - InterestingJy 8!1ough, it was also noted t.hat in periods of increasing scarcity, :'::e price d: ffere:r:ce b.~t·...een -;arieties tended to decrease and vice versa (57). 33. Tte :n,)tric system is a wel1~accepted standard system of weights measure:: in Ethiopia. Ho...ever, there has been very little government .';.;1;:1 checking of the weights and scales used by big traders. Furthermore, ev~n if the scale:3 u~'ed indicate tt.e Weights correctly, most producers must rely on the tr3.de:~ s -.0 tell.;them the L'1dica ted weight of their pr oduce since they cannot l'e'lc!. I'he GADU m.'lrketing experi:nent found tr.at, in ::lost c:ases, the farmers.{ere being ·."cheated,I! either by false '.;eighing or by incorrect C3.1culation )f t.he a1TO~t of :;:oney their produce '",as worth. The study indi cated that 20 out of 29.. traders (59~) paid a sum ranging from 8o~ to 95;; of the corret~t amount, which is on the average Eth$3.00 per quintal less than correct amo'..:nt (27). S'h:n though the acti':i tieS of U:e package pr 0 jec ts 112 'Ie resulted in more or less doubling the p:'oduction of peasant farmers, it ·.lOuld still AP?~;::)IX V FEge 9 19 90 79 80 96 89 93 ---_.__._,------------------- Sour:"!: SRI Report No. 15, a:lrl<:Btir:S; of Grains and Pulses in Ethiopia. not be f~ r f'om the truth to aSSUIne that small owner-farmers and s::'.3.11 tenants 'f ayilg :ent in kind ha78 less marketable surplus grain than large tenan.ts (::on,ra(:;t farmer s) and 'big landowners. In addit:'on, most farmer s are under cOLsilerable pressure to sell most of whatever mC'..rketable sur plus the:; ha:e·,;ithin the first fe''; months after harvest, since borrowed money, t:Hes an j other fees are usually coJ.lected at about the ti.l1e ,...hen hD.f'lesti.'!;s h a: its peak. Sven credit granted by the projects is due at ::he peak)f he har'lest season. Consequently, most farmers have no need ::J t.:r:::::er-: ,ke 110:'e seasonal stc!"age th2...'1 that required to meet t!1eir mm ]~. A 117C/71 ",.ieekly ~ur::~. se of grain by CADU emphaSized this point. It s1'.::)'. . . ,,;d tha:. i here :.;e1"e no ?l,;:chases made after April, indicating that :ar:ner s :--o.::.d S J Ie ;.[1"1 a tever ;;'lark2table sur plus they had by tl:et'l.. ...ii t.h the ilar'l"st Ji,le for the i:1it=-3.1 C,\DU project area ranging bet;.;een ~,'\id Uecember i.nd1:'C:-January, 11; a: :'he purchases ;..[ere made i:1 ~rovember, 28% ir: December, 27% ir: Jamlary, 27% in February and only 7% in ?';arch (Table 6). fhi:3 p1.ttern is :"''1 spite of LIe fact that, in the SADU project -:erea, the 5upnri)rity of the 10c3.1 storage method OVer :1the:!' newer ::1ethods h:1S been c:mfirm8d by the Agri:;ultural 2ngir;·eering Department 0: CADU. The dry :natt!:;>r loss of the local s'torage bins ;.[a~ only 2~ comp.:;.red tQ · for the [tnch, but most usually in January. 'rhis Im{ coi..'1cides ',.;it!1 the ma,~or post-har'/es t period 0: marKeting by farmers, :..hile the period 0: high prices corresponds with the pl'e-ha:-vest scarcity 0: fo~stuff. One ':; the factors contributing to such a lo'.-/' degree of :na.rket. integrat:on ~hE most important probably is "the low level of market ini'or:ndt:'on availabll', p trt icularly to smaller producers and traders, maki:1::; them u,.'1a~i3.re of price dis :re~ncies. ~·len if they 'O,..;ere a"";3IeJ they do nat h.~~/e sufficien-;.. . bar 15J.inir g p )l"er to influence prices significant,ly. ~rketi~ ~!a os l.t7.'F..,·! t:::Jdl gross :narketin;s nargin is the differer.ce bet'"leen the price rec~i'J·'d ,:;y the produ~el" and the price paid by the ultimate conswner. Normally, th,'re should be a distinction made bet.....een the margins to asse:nbler s, the mar 'Si:1s~o ....holesa ler s and retailers, the margins t..o expu c:",~;.·:;; "\ ,:,ri. ..,the mar gins at tr ibu: ed to s?a30nal storage. Here, however, the discussion ~.'ill be limi tej to g'" oss marl.(etin~ margins for the Sd~~ oi' ~:::-:~rl;b.~'::;I 8.nd because some data arp n)t aV.3.ilable. .' 48. Tarle l 8 and 9 sho";( t1:e total net marketing margins uncer the most favl)r;1.ble cOI:di·:ions. The analysis is based on the assumption that wheat is bought 'it thE! p1g ana l~ cents for u,.'1loading for a 'c..otal of Lo cents per quinc,al (a.J Loading at 'lillage or primary market (ti5 Unloadin~ at ter:ninal market for storage (c) Lc'1ding fro:n s torag9s for fin;ti di s tr ibu tion (d) Unloadb=; for fin3.1 distribu;:.::'o!1. L? T1e total ret :r:a::-:<:eting :nar ir.dicated on Tables 8 and:; j:) ""c, 3.11o~, f:'L r :'sY.:, fixed :03-::5, cost 0:' capital invested and costs ::l::::n A.S ;';A :;:;a'·, l'JS5, insec:, dJ.;nage and other losses ~n quality a:;d quantity. Tn '3 mar ::5 ~e1 to be hish cc:nnarec to a situation Hhere the r;'.arketing syste~1 is hi'7,b~:: :'.It.egrated, but not J.S exhorbitant as many have indicated in the pas':.. L ':'estingly e:-,ough, the I::argins seem to be hi;=;her '.,hen the ge.leral pricE lei:-;l is high, i:1dicating that in general t:::-aders oensfit ::lOTe tha:l prod1:cer s d lring years of higher prices. 1 ~~lbl~: :'!Ail-K'2;TING a!\..,\i.GniS FOa ;'iHITE \'trIEA'I' ':iIT:~ lFER;lINAL :!A.HKET AT ADDIS A3AaA. AS THE BASE --- .-- - ..-.---::::--:,.....-----:-... ?rirnary Y.arke1:. --:------------.~--:-~-- Addis Ababa :!et or Village Transfer Price in Marketing Price in ?eb. Cost September :'hrgin ~ of Ie ,r (Eth$) (Eth$) (~h$) :'l:lrgin ---' ---'--'--'-~----------:...=...----....:..: :iUTU:.3.. 19 )8 ?""' .~') 3.50 24.h5 1.f.JJ 8.3 ;9 2J.. .u'~ 3 .~-D 22.71 -2.29 -10.7 19'0 24.4lJ. 3 . f.JJ 30.98 2.94 12.0 A5811.1. 19,;8 20.25 2.:0 24.45 1.60 7.9 19,';9 19.:0 2.60 22.71 o. 2.6 1970 22 . ,~O 2.50 30.98 5.38 24. S Sagur~ 19~·)a 17.00 3.10 2L.4S L 25.5 10.20 ..., 19S9 3.10 22.71 1.41 I · ~ I . : 'ro 22.00 3.10 30.98 ~ S.88 25.7 3ekoj 1968 17.75 3.35 24.4S 3. .8 1969 17.00 3.35 22.71 2.35 13.8 LnO 21. 3'0 3.3 :) 30.98 6.13 .""' / --' l! 30urGi~ : CADU Statisti:::al Digest and :-nrketbg Division files. AF?E:,;JI.:( 7 7age 15 ',"- ~:I "---,~ t :-!..1.rketing C~0St 2 .~) 22 · '?~ 0.90 2· , -7-; ·::S.J 2.0. :; 1. S' 1.50 I.!.h 1 S.o .::0 1.50 l' 70 22.80 1.50 32.CiJ ).).j l'·S8 17.00 2.10 22.73 3.5" 21.1 .20 2.10 22.00 2.10 32.00 7.90 35.0 2.35 22.75 17.00 2.35 -l C711 ,~ 21.30 2.35 32.00 8.1S 37.8 -----.-- .. -.-----~------------ --- C"Ju Statistical Digest and :'Brketing Divl sirm :~iles. - - CA LeUr..:, TrONS ON 2:':Ci!lC"r.:c RATSS OF' jETURN .. EC()~~(Jtll(; k/\Tt: Jr" i. 1')721;1 !':iF," , I~U·.·I7'j h('!~_~~:"'~';::cl..;;":..:l-,I-""-"n---,-l..:.t.::.c,","_ _ _ _ _ _ __ ~'~.. _ _:_:.~~_ l(Jll;I~' --~-,- .. -~----'- - .-.--,~-, - (I ) 1,:tI10 .) ,1.65 d ,150 j/'lt;!)t 1). (HlO 1), .UG;) 10 lj 1 '(. (1 t .... I.c,!l :'C.:J. (l ...;>., i ,~ 'i ~ } - \'1.1 ." I .y ~""". ' .'I. ,. 1 (HI l. i~ :'dd ';(111 Jtl,iH!IJ S,11J qty. tJi ::;..d..:c t:q"·C~J. :-:g!:o. (2~ I. ~500 JUS Hi ,out!' ~il.liU\J ~q, II Svt,! ,~ty~ .:d :~)JJt'r LCl!t bc.:d* ~-t~6~ k~!I ..l j so l:j',) i.'}() c{)U I'(H! :'1,'1 '1 /y 1'.: (f i ~ '1'j ,,':/ ... :. ....... : ~C .... J. Y r'<..l qi ,il ......... .,: ..i:.L in':1' ;'..,1., ~~ ... rlt:y ~~,,'J, ~ ;Icr ~/i>H'r~ ':O.!lt yct' I;"L 2f.! ~ 2:'IS '2~ i J 2) . 2:., ':"./<) li,) ;" ...... l.!c t · .:.:,:, tn': U:. r. ",w:.t l;;,.:: 1),<.,/1 11 ',t,/IO 0. t)/ liJ I ~ 1', F",j(:t.:l "t'\.' t !l(!cd p.:r- Ke',. j II :'l!l. q (1 ha. 1) '; .-c.) I 1 ~ ,0}\J .', ~, 11') (}O.000 1.!U,UOu I (.. U ,OV" ,I,\fd >b F~rl11i.:.cr, iL"" pt:r q ($1 '!B 38 )9 10 )~ '" 4 l,1 b,ll' 1 t:'j b,,,,,'cd. ,Iii" ;. ) .'.'! , ., ,, YiL,lJ tn..:r. ,iuc l~) Iooih ..'-1l , ....· ...· d. q/th; 1~ 1 '> I', l I ~ Yio.1J: !"~l.'. J.'.~~ t~ :..i1::.:: .i.i,,'\.,J ~ ~ \:1.!1J Y.I ..·ld Jil..- t.) I.t:'rt:. ,',n 'Iorfh~, 400 :1 I )I)(J 21~~Hiti IJd,OlilJ 1:IJ,dtHi 11)0 I J U, (l"(j qty. pI ..·!1Cdl, q '" H4 S20 J, rdJO J · ~\;iJ I, 2,Ui;l, qly. oL !!.\I.rl cy. q llt1 7~a 6,1110 I). (j;ll) 'J ,DU.) .e:,i)I)i} I. (lth} '1ty uf f1ax~ q 4 130 1] Ii 1',? 11,,, 10<) ) ~'iIJ~~l;t '1t,.. ut mlll>., l1lt't"tJ X J ,0( 1) i'rjl,',.:-/ln..:r. price fvr ...'!)~al, no nl) 2/,1 ) "1; 21 ~ 2U/) j c} J r'r~L·(·Jl:;\.'r. prIce tin hHrl~'y I Sf) 1';/ J lSi] I',' J I II 1 'I 1 ~ I It 2714 2.)/ 1, J l/'l i" I h: l Ji \ Price/in.::. prh:c tot L1Jlx, 2/2 1'1; 7. i 2/ ~ If I; ( 1 !'ri{·c/iw,.r. pr1ce iur tn.dl,\! $/'1 : ~ /I ~ 1~ II ~ 1J /)Jl~) ~~)!l '.I .",/1'> .! '; /1:' ~ ';,' ! 'I i'rlJ.:e!in ...· r. prh:L' t,)r t.ll:;.: 1 i lel" f u tn,' t I i.·f> l..-hCd l jeL·d ,'2':'0 IH6,90} ?8fJ,272 '.Wl,80() :,9: .OOU '* j~ ,OUt) It, ,t.li)U ;" :-00 ",,1',,) · I. j(j!/ .~ I · ~)\)l) lIt.:. IH' fi l Ii JUl.' to t<..'f bllrlcy l..ii.!cJ JO. bOO 1·· 7(,(; btl 21)(~ ,(;1)0 10,~ ,d!J\J tu td lq~\ tlvl' l*-'t' 1Il1l!'::I.' :>ecd lui.l(ll'r Ut!L't :-.ct.:d 2,1, SO )0, t ':It, ,. , Vi, /,J(J l',l.'lg'{ lei fvrt11 i:ccr (011 I..'la.:.lt) I,Ui!O 2,,' ,on l,loY,no ) I 2 b), tdH) 5, )tll) 1 OJ,}!! 0,1 :'O.OOi) /, ,1.t.o. (lIn) ,t,,,,) III 1 9/, ~I 11,%lJ lHO,OUU ; . ~() , (J(! () Cd )!urdl1l!>c of wil(:llt 1 '/.40 b,~QO Ikl>t.:fttH dlll~ ttl jillfcl'l ,j\;.: td 11111-.:b.l:II,,' uf fl.lx " ,HI,u J 1'/2 2/1".00 )u. {Hit} )~J ,OUt) ~ 1 ,IJC:q l;t: I It.: iit h .lUI! tjl l"llL (11 [1111\1. /)1)0 2(jJ'(hJ 4/ , l), b~il }O. L I · ~(Jj) .'t. ", tknl'llt:; ~,,"l,.;_-Ld !l !I~:ril.:. H,:tlvLtie:, 2l,II1W !dd"OJ) l,uol,'J2" "} ,e2H ,Of, 'J lId! ,DOO I, I )(J. :'OU I · I. / I I t~, 1\; C", , tL /J1.:rvi':(' 10 ,(lUll n,&IO 4!, ,(JOD 60, )"S I~ ,I)()() ;:J.ld'L IH,tHO (.j J;3; Y) ,4b) · ~~IJ ,, '-<" Jl ~ , jill! t.:.:,,,, t l' f lli.l! Y lIprviCt-'l'> 1 :'4.70\) 111,"'.0 c:) l I'l W'.d 1'1' 1I1l1'pl Y ')I~r ,nn ·1\ t d 1 l:l 1n ! tl:l,:a ! i l s :'2,OHO ~ II .1') 1 1 ,72&,800 "l,'JV,,!l') U,)~'>. 7~ J!/') · t) ~ I } · r, I) , Ill) I,til/I, 2,MbO,Ion ,}I2,~,JO J,L60.r.(JO S. G}u ,1.00 7,/.0:':1, )(J{J ~ ,672 .tllW (, .i~H·},.~UO .).~' ht!,/ TCdd) "L't rrd ("\J;Jt (-2,M2H,0201 (-6,UUI,',4Jl (-1,9),),,,,)1,) ("1. tld2. :.!bl (~U)d,'}UjJ )lIJ.H)7 j l · j}{.l). I: . ';"1', J j /" Int l'utt: ,-,C lC(ljrn ... :!\i7w ,Jvcr 1J Y'-'.lr!<> :)<'111';1.: ;1:llOll1" ..Jltd I:v.d i,'1! UnI ll', 2; LCONQ;f>nC !L\TE OF !ZETl!RN CALCULATl ONS, l.JlI..])U th~~ OOO's) Gross Va lue Less VI'nr ... u .. l' l-U J L!C l Gros:! . roject Les!) Net Addit:ion~ll Outputs Earn fit f'.nc:t·,,/b F:l r1:'~ ~ ~ 1 310 (- Jlli) 2 IS!, 6 160 3,980 8LI (-], Sot,) 3 507 22 529 2,l120 lILt (-2,O()') <4 977 24 1,001 2,063 7 ] l; (-1,:C>09) 5 1,673 27 1,700 l,LI 50 150 1 lOll 6 2,48 tl 27 2,511 1 , 150 16U '11,201 7 2,216 280 2,496 694 165 + t , li '~ ;' o 2,272 7 2,279 498 166 .q ,61 :i 9 2,283 7 2,290 492 166 ~J ,632 10 2,282 7 2,289 492 166 -q ,631 11-20 2,282 7 2,289 4b9 166 f-) ,(is!l Economic rale of rcturn 13% ovcr 20 YC "", ";;.l H ·.. l!!!iu; b:tltl{JNlC itAll, (IF Hl;'flil'ltl HI!d:HJ~t I',\"',.\"j j'HoIill t it f CUb Lu. Incr,~m~tj;.!i :';l ·.h':~~. ~"i '1.,[ It I Nt:! h' =-_~I':...,,"-,,-L,-,' t ~:.£..._.~~l.~_" 1 llrtw t ~ l_"_ __. ~!:l :. ::.. .. 7e7 300 2:W 811 200 :7 2."dl 1.1/ \ -2 ,oltl ) 1\02 1,297 285 522 1,627 ~22 " " {'11o ! b 16 ( ~ ) · "j{) ') j 197'J 2,Oti5 285 1,,8 2,214 1,0&9 t., 2'; 1 ~~ · 2 'i4 I·", e t ' /) 1974 2,B7ti 2d:' 458 J,748 Ud,l ~:fO 2,189 ltd lO.:W) t, I )'JJ i_'.,/f);.) 19! 5 2,746 2tiS 458 4,819 227 1,114 In 3,776 it):, 14,"1 H,ll,2 \ Ju'} I" I 7 a9~ 3,650 1,81 1').11)4 20,6)9 l.:co ) j, 91 ~ 42,b:l~ 45,>~S , t 'J, ~ .on L '; 1 'jd .. 1,842 5,919 895 3,225 46) 21 el )3.92& L.,°I ... Ol) , 1:' ,07t. 1905 1.8:.2 5,581 895 2,738 483 22 1,9 J j .6o~ 1,9,6(,0 t 15.91}') 1 '.l~o 1,042 5,3)7 895 2.212 48) 22 1 42[, n )1,220 51,110 t 17. 9')() l'Jl:I} l ,842 4,721 8')5 1,050 4(;) 2:.? ,ld 1 11 lc ,21 ) 5, , I Stl I iI), 1 I ,842 4,721 119) 1, [.50 1,8l n,Lol ,2. ::,,2 52~7!.n t :id,t. 1j.'j I 'JIl~ 1, d42 4,721 895 i ,0)0 483 ,",602 I: . '/ J 5 J, 1 'I) I ;;O,tH,f; 19 1)IJ I, tl42 t. I 721 895 I, b50 1,8 J 2L. bl::lo 32 , .1./7 :;), J ld t 2l ,1 u! I ~~l 1,842 1 7 Z1 ·· tl~5 1 ) t;~(; 48.1 :' 2 .6)) J2 .:, tJ 5.1 ,i.')L f..!! l() I') ';2 1.842 4,721 /::195 1,050 40' ,5.tJ 1i 12, leI SJ, til, J ~ i 1'J9"j-I)) 1 ,61.2 4,721 B91, 1.6!)O 46':: :2. ')t>u J: ,151 »). )LJ3 t '" l · J ~:) t:.: HI1.1',I) \,. l/j t ..· ,)l' (\."lul'll - l5.:tb7. llVel 25 yt.'! ITS INCEPTLON TO JlJLY 1971 ~ . . P"()~"H"- ni,.~".-"~ .. __ , _. ~--- --.' .. i , ~.~---~-------- - . -----,---- --I . I I.. f"~"~-ruCt1.0d I I Publ;c l~Iealthl 'I W'";::t~::'~ 'I S~~~~ccs S~ - - - __L . . I _ _ _ _...L_ _, . Sect~on I I , Crop Produc Animal Prod. Forestry Extension and Co !1;JllO 11 tion Dept:. Department DeIJartment Educ2.tion t. ServlctCs I II l I I Survey and --i Experiment. Section I Research and Livestock Sec. Forestry Extension Agricultural Extension Unit Ii~~ing I '~~~~lon Adlld.nist ra- tion SCG~~ 1-- I H IL- Kulum.sa Farm Veterinary Section Gov't Land 'I Reforestra- ! \~omen IS Extension Unit ~ Credit sec . .l Carpool Haint(;nance & 1__ 1 tion . I Co-op Exten'l I 1---------) Section! , .... , ·· II Training .... H Information 1'1 Un:1 t .. f."!\'ure.~~ ORGANIZATlUNAL CIiAHl' uF CNllJ I P10l".,t .... :; ~_ !·~·.;!.l;.~tt .... i) "I Sefj!ng I ?I jilIn! n,.~ I.. llhl tUfOl I lind CrcJt t Ccnl"l :!f r lJft 'i'rn11l1n~ '1 .od Vct:luna t to 8 t I un. '~\o '" "d O"l ·d .. I') vi') D(.'vclopml:nl !)cttlclTtClll ~ ~ ~ PelJc Control I~ IIi l;ii I ;lnJs CJn.l~ lr.~cula lion. Construction «lnd H.Jilltc:uJ.m::~ Pro lev ::; t.4lLsllB I~ I \ and n'~!iLunJry \ ~: ORGAlHZATlON OF \oIAnU PROJECT, JULY 1971 .. IIADU Intennlnlstorl.1 ~~'<~".~----~ Vice Minister of Airlc\llture · { nep"tge~'iiCJ I I I \!.O;n u~oLJ ~:;j ~ --~L ., rJ !ro':nl~6 __.' r Lh£~ ~:op ] I .J",] 19 ''''>-. 12 !:'.!~; ORGANIZATION OF WADU PROJECT. OCTOBER 1972 Ii~DU - .. - - - - -1 ~--------~ I I I L ---.----: rm' i ~~~~~ hlDnd In~itt'uct10n ____i_\l~. ExtenG i O'n --------------,--- - I---r r----_-;"---;---, j--C;i ii:-.; . ~ >- ~, ~ ·0 ..J~.!y.ltH. t Ion " \') tJ jQ I..' , " ..:; ::! '~I ~ ;;.:; I I -~ 1. " i I ~ I i I I + i -':.-:'I·d~y t\,r'-';.)fh :'.F.!..:X": .''\ r c, ·.. t. ~ r:i. 1 1 - rt t"tHlre .n:m LA. f. "" \L:~{~~~l pr~!::, ... ~ (;;0::: ': ti.1'I ~ J. ,_, t, .1 .. J It)~~l .~~!rl~~rr~ti~~ r--- --_ .. ----, -------'? ~ I 1.,,~.1 I Cr t''':! . St.'( :.!un !.lH of Dt'Pfl rtLicnta -----------~I :;(:'{'li'Jl1 _J I \ \ ( i I :+-___ we.l L. of D. V l'::jnl"~::J l.Pfr ,}r Dtpari.wl'l.C,e Lie c -.>f 'tic. 'fll ~ <]g Depat r~!:i(.ml.o Lctt.'er, kg.1 N:ttOIl _ _ _ _ _ _ LA - - -_ _ _ _ _ _ _ _ _ _ _ , ~--, '-" ::.Hkctl"t I --r 4 I ';;'1,<;,'1100, i ~efau~tct r l __ 1 1 J VH ,,( .; Depth u·..)~ n t!t tLl,_ _ ~ i J l' t I I < I' - < i H. f. Are4 T Ce:. Dcvcl()pr.l(!n~ CtJO':mi t tee p t 1 tit ~._ !l 1 i E TH lOP 1;\ . \ I j .'.: / ".--~- 1 .. ~';~':':l2' 1_"":11"-'11 ?.!~d I:1ciLlS::..ri,-.lJ_ ~':>';'!~:)~X71:;~~ 34nk, 3.'::. ?r~s;.3 release, J( ~?o)er 1-:72. :.;JIJ, A,;ricultural :sngi~eel'il: 2!:.d I, 1 ';69, 1 ,17 3. '! ..~"'1 A.;,s.ly sis of t,~e ,~~.;.JU ~r~dit ?r ogr:=;'1 :J'..!:·ing L:S3-S9 ~o 1,)1'1 aIld =:.s :l::1P:lc:, ')n l...!1~:Jr;.~ Di:3tr ibu:i.)n, l' ,\ugust h71. c..l. "";';L'1'.1a1 ~eport for 19::8-59,n unda~ed. 6. ";';-..1ual 2eport for 1959-70,11 u!1dated' ' 7 "Am:.Ull ~eport for 1970-71," SepGen,ce:r 1971. "::;,\i:rJ 3;:atistical Digest, II 1958, 1959, 1970, 1971. -_ __._--' .. 1t':!ADU -,{oraen! s Ext~nsion," Septe;noer 1970. 1e. ",; Gc"lse Stl~dy 0:' ?easa..'1t ~'.'3rmL'1g in Dighel'J. ar.d Ye1ol1':;' Areas, A·,'P.'aja,11 JanU2.TY 19S~~. 11. in B'?kQji 7il~age," 3epte!71oe:r 1959. 12. _ _ ._ _.._ _ , 1I~:nsUS in Dighelu 'Tillage," fuj' 1953. 1.3 · e a::-,c Yelo::1.'l. :or 1~S7, '! ?ebrua::y 1958. 11.:. · -_. __:'ie=d 1. ._-' 'IT' 2)::'l1<1y c! ::;~dnging d'.lT 2ural Society in Arussiland; Some ?indings fron lc;S5/57 ," \L'lr ch :'? S8. 15. !ICQtlPar::.~i ve St-udy 011 ~£'l.e ?ossibili ti8S for Di::erent 22I:~ ~ =-..~ the ,:hil~~ 10 ~.\:rf::a,!t :·1inor :1esear·:h T3.sk ;;c. S, ?1?81" 11ary 1c #' ~7 \ ') ' ~ 16. 'f,~red~~, Sit~~atio~ in =hi~3.1o A-r"iT:lJ":a, '1 ~~tir;,0!, :\ese.3.!' ~h ·1'3.3k ~,Jo .. 3 , ~-'----'r J1~lJ 1/:>9. 1 ,- 1 7. f'CrJp Sa.:~lp1i::;g far "-7 " :~:I 11 59. 1 E. ":;1" op Sa;npli:lg :or 1;-;''),'' .July 1')71. for 1?T!_, '1 l..:nrJated. -y ~; ::??. , :! l.l'ne '2:3 :'.3.0 li."J :'1::1 e !"'. :, . 0;"'" ;;i3.., 'I Re~)04':' :;0. I, Oc ta ber 23. , :IT'he ~stabl ....sh..'nent of :ie i o:1al !)evcl'JP'~~~:~!: F~~o,,;-3'~ ':t in J)::"?\," :teport. ::0. II, Ihy 67. "J ,;": . i t!r,"e3.sibili:.y 3~'.lJy en local R01.ds an':. ," Ac;g'lst 1959. :'~rl-:~3~ Pl3.C~!s i::. Chilrllo 25. __ ,____ , "General Agricultural Sur1<:!Y," August. 26. ____~, "Ge:r::ers.l Agricultural Survey for 1970, II ',.md3.ted. 27. __ .____ , "Gr?.in :·l:3..rketing :<:xperiJnents, II August 1957. 28. ___~_, "Tne I:movation-Diff'..lsion Process, II Special Studies No.3, Mar~h 1971. 29. "I.nvestigation cf Mecha...'1ized ?armi..'1g 3.".d Its Effects on ?ea.san-::' _cu::..ture,!1 March 1972. 30. "w.nd J..mer ship, Tena.icy "3.nd Social Or ganiza tion :in 'tiaj i Area, AYITaja, II ~1arch 1970. 31 · "A 1955 ~op Sa::1pling i:1 Chilalo A·...r raja," ::ray 1957. 32. _ _ '___ "."t~an 0: ·,..jork and 3ucge:' for 1953-59, ....ith Preli..-ninary 'Sstimates '-'or 19:;9-'70," undated. 33. , "5agur "', A >l:irket Village," June 1967. 3IL. "Ser.1i-.'\.nnual Report for 1?S7lS3, 'I .Janu"_ry ::.-;58. ~r .)0. 0:'" I10del ?a:':1ers,!T :j'8tober l";:J. ... 37. \tl~ t'lodel :ar:1ers (3a.se-¥:1e t ~8. ~?IDj '.IT¥:~; :-1.::Ltketi:;.g 3.na 1971-72," (::~'Je~':11 reuor:.2). 39. l~"ertili2",eT -u ·F1 ... Irlrie"S~l "Ji:=LIs 'l::d De~ons::"a'Gior..s i:1 'St:1i :2," J'.lne 72. . ;. :'....~ . " , "-.. , ,; 1:.,,: C1' ('\ ~_. _ ....... _~ ..... _ ,J ) -/ ~~~-_s~~:~l J~~i~e, ~~.:':)pi:J., '1 \;'~lj' ',. r. icul tUT ~: A ?ir s~ Appro3c~, I! ....,;,..,., -:if)-)--" _. ,c, _:: ~ .. -'", "" ~ -"- ,,--~., . "" ,. ." .' ) ~ .; ~ "'"\ r " ., .-...J ~" !'~r::;·,l::..1 63. If':,\)l~.~.:J /.onCs 3.r:c ~'~lr SyS~~e~S, 11 Dre[5en-::'eci -J1. soil '1d ',-i;t:8r .:1 , " ~. --_._-- ; ":fori:: 21..1.n lear ) , July 1972-Ju2.y 117 3 , :':.:ay 1972. .