strengthening formal social protection financing system in ethiopia

Ethiopia has been challenged with so many man-made and natural problems. These problems drag the country down from moving forward in the development ladder. Cognizant of this fact, different regimes of the country have designed and implemented social protection programs, even though the programs were not as comprehensive as the one developed and implemented since 2012. Our review showed that recently there are good moves towards including different segments of the society once overlooked by various development endeavors. We found that there are challenges that impede the implementation and/or strengthening of social protection. Among these challenges, institutional gaps, high dependence on foreign aid for financing, limited resource base, and policy incoherence are the noticeable ones. In view of this, the Government’s initiatives, commitment to allocating 2%-3% of the GDP which is to be enhanced incrementally, and awareness of the existing bottlenecks are good signs that social protection schemes will have a brighter future. It is obvious that the challenges require a concerted action, and existing opportunities need to be capitalized on. Finally, we suggest that the government may need to look for ways of diversifying its financial resources; realizing a coordinated effort among pertinent offices; creating systems of accountability for those who fail to deliver their responsibility; and self-financing and sustaining already exiting development initiatives need to be promoted and strengthened.

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