Ethiopia is one of the richest countries in natural resource endowment. Nevertheless, due to pressures from socioeconomic changes coupled with improper governance practices the country has been threatened by prolonged resource degradation with subsequent results. This paper was sought to assess paradigms, approaches, and strategies for sustainable development in case of environmental governance in Ethiopia. To achieve this objective, published and unpublished professional literature including important policy documents were reviewed. The institutional based environmental governance for sustainable use of natural resources in Ethiopia was started at the late of 19th C while Minilik II established central Government. The natural resource laws during Italian occupation (1936-41) focused on selection of economic forest and use-oriented paradigm. As a result natural resources were exploited in destructive way under a condition where there was no ownership. The environmental governance thinking/paradigm/ during the Haile Silassie regime was almost similar to previous one; frontier economics, rather than being ecological oriented. The misperception to natural resources; misguided intervention and irrational land distribution and tenure insecurity have led intensive natural degradation. After the Derg regime took the power, all natural resources were nationalized and governed through application of centralized frontier economics based on socialism ideology. Frequent redistribution of land, resettlement and villagization; involuntary participation of community weakened the effects of natural resource management practices applied during Derg regime. Political instability and civil war had its own sizable challenge on environmental governance. The environmental governance ideology, during EPRDF has been veered from pure frontier economics to Eco-development. Environmental issues have been handled by independent institutions through decentralized and local-community based approaches. Additionally, different bylaws and sustainable development strategies have been adopted by current government to handle environmental issues and have environmentally sustainable and green economic growth. However, still now, environmental governance is not successful and faces challenges from institutional instability; inadequate capacity and political commitment, feeble policy implementation &geophysical variables. Thus, all responsible bodies and key actors must work jointly to overcome challenges of environmental governance and realize environmentally sustainable development.
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