Large-scale agricultural investment in Ethiopia: Development, challenges and policy responses

Abstract

In 1991, Ethiopia’s development strategy positioned smallholder farmers in a vital role in increasing agricultural productivity that could serve as a growth engine for the overall economic development of the country. However, the incorporation of agricultural commercialization as a development strategy in 2005 brought an influx of large-scale agricultural investment (LSAI) in Ethiopia and took away the special role that smallholder farmers had previously played. This paper critically analyzes how rural land issues, LSAI, and development challenges are addressed by the agricultural policy and how gaps of institutional capacity with regards to LSAI in Ethiopia are managed and monitored. This qualitative study uses document analysis, focus group discussions, key informant interviews, and personal observation methods to explore processes, activities, and events found in society; the study relies on Bacchi’s (2009) model of policy analysis known as ‘What is the Problem Represented to be’ (WPR). On the basis of this approach, failure to address ‘rural land rights’ has been determined as a core problem in the policy, which has resulted in competition for land use rights among smallholder farmers, pointing out the lack of preparedness and inability of the policy and all government institutions to handle socio-economic disruptions related to the expansion and development of LSAI in Ethiopia. Reconsidering constitutional and highly politicized land tenure security will be of paramount importance in bringing about agricultural transformation in Ethiopia.