The role of the developmental state in Northern Ethiopia’s Raya Valley Groundwater Irrigation Project: an institutional economics perspective

Shumuye, Muleta Yirga (2017-12)

Thesis (PhD)--Stellenbosch University, 2017.

Thesis

AFRIKAANSE OPSOMMING : Ekonome, politici en burokrate aanvaar nie meer die konvensionele mening dat die vryemark (neoliberale) ontwikkelingsmodel die enigste model is wat minder ontwikkelde ekonomieë kan transformeer en hulle kan help om te groei en te floreer. Die aanvaarding van ’n toepaslike ontwikkelingsmodel vir die Afrika Renaissance is van groot belang vir politici in Afrika, beleidmakers, asook hulle vennote buite Afrika. Die besonder vinnige ekonomiese groei in die ontwikkelende lande in Oos- en Suidoos Asië maak dat hierdie ontwikkelingssmodel ’n interessante alternatief in die Afrika konteks geword het waar agtereenvolgende neoliberale vryemark modelle gefaal het en nie die kontinent van werkloosheid en armoede kon bevry nie. Hoe die idee van ’n ontwikkelingstaat in die Afrika konteks interpreteer word, word tydens hierdie studie bestudeer, meer spesifiek wat dit in die konteks van Etiopië beteken en veral met verwysing na die gevalle studie van die Raya Vallei grondwater besproeiingsprojek. Die hoofvraag wat tydens hierdie studie beantwoord word is: Wat beteken die ontwikkelingstaat in die konteks van Afrika? Die hoofdoelwit was om te bevestigr hoe die ontwikkelingstaat paradigma die omgewing van instansies en die reëlings vir konomiese ontwikkeling in Afrika beïnvloed het. Kwalitatiewe en kwantitatiewe benaderings is gebruik om hierdie vrae te beantwoord en om die doelwitte te bereik. Die benaderings is baseer op primêre asook sekondêre bronne en gemengde metodes van data ontleding is gevolg. In die literatuuroorsig was die fokus op die hoofstroom siening van die ontwikkelingstaat sowel as op konsepte in die Afrika literatuur. Die rol van die ontwikkelingstaat in die ontwikkeling van die land is onmisbaar want die ingryping van die staat is noodsaaklik om tekortkominge in die mark aan te spreek en om die mark en kapitaal te transformer deur die rolle van die mark en die staatsinstansies in die ekonomie te integreer. Die ontwikkelingstaat paradigma kan die langtermyn ekonomiese ontwikkeling van baie Afrika lande verseker op voorwaarde dat daar toegewyde politieke leierskap is dat konteks-spedifieke instansies Daar is tydens hierdie studie bevestig dat die interne asook die eksterne omgewings (onderskeidelik as genoegsame en nodige voorwaardes) in baie Afrika lande geskik is vir die ontwikkelingstaat ideologie op voorwaarde dat hulle onderskeie nasionale, ekonomiese, politieke en sosiale omgewings tydens die proses in ag geneem word. Verder word daar tydens die studie bewys dat die ontwikkelingstaatmodel kan lei tot lewensvatbare ontwikkeling en tot transformasie, want dit maak dit moontlik vir die staat om die nodige geld in belangrike ontwikkelingsprojekte te belê en om terselfertyd die rol van die private sektor in die ontwikkelingsproses te vergroot. Tydens die Raya Vallei grondwater besproeiings gevalle studie is daar bevind dat die Etiopiese ontwikkelingstaat konteks-spesifieke instansies gebou het wat dit moontlik gemaak het om die nodige openbare bronne te gebruik om die menslike, kapitale en fisiese infrastrukture op te bou en om waterbronne op ’n volhoudbare manier te gebruik om die omstandighede van kleinboere en landelike ontwikkeling in die geheel te verbeter. In hierdie gevalle, studie is ewe veel aandag geskenk aan inheemse instansies as aan formele reëlings met instansies. Dit vergroot die rol van die inheemse gemeenskappe veral in dorpies. Dit sluit die verspreiding en bestuur van waterbronne in.

ENGLISH SUMMARY : Economists, politicians and bureaucrats can no longer accept the conventional belief that the free-market (neoliberal) development model is the only one that can transform less developed economies and put them on the road to growth and prosperity. Adopting an appropriate development model to promote an African Renaissance continues to be a concern for African politicians, policy-makers and African allies. The unprecedented economic growth of the East and Southeast Asian developmental states makes the developmental state model an interesting alternative in the African context, where successive neoliberal free-market models have failed to spur economic development and free the continent from persistent unemployment and poverty. This study examines how the notion of a developmental state is interpreted in the African context is examined, more specifically, what it means in practice in the Ethiopian context, with specific reference to the case study of the Raya Valley groundwater irrigation project. Based on this case study, the primary question of this research is what does the developmental state mean in the African context? The general objective of was to assess how the developmental state paradigm has determined the institutional environment and arrangements for achieving economic development in Africa. To answer the research questions and to achieve the overall objective of the study, both qualitative and quantitative research approaches were utilised, based on primary and secondary sources, and mixed methods of data analysis. The literature review in this study the focus is on the mainstream conception of the developmental state and on the concepts that have been developed in the African literature on the subject. The role of the developmental state in promoting development is unquestioned because state intervention is essential to address market failures, and transform the market and capital by integrating the roles of the market and state institutions in the economy. The developmental state paradigm will/can be effective in achieving long-term economic development in many African countries, provided they have committed political leadership as well as context-specific institutions. During this study, it was confirmed that both the internal and external environments (as sufficient and necessary conditions, respectively) are receptive to the adoption of the developmental state ideology in many of the African countries, so long as their respective national economic, political and social contexts are taken into consideration in the process. Moreover, during this study it was found that the developmental state is a feasible model to realise viable development and transformation because it enables the state to channel the required public investment into critical development projects, and boost the role of the private sector in the development process. The Raya Valley groundwater irrigation case study revealed how the Ethiopian developmental state built context-specific institutions, which enabled it to allocate the required public resources to develop both human capital and physical infrastructure to utilise water resources in a sustainable manner for the betterment of the smallholder farmers, and rural development in general. In this case study, the indigenous/customary institutions received as much attention as the formal institutional arrangements, which strengthened the role of the community in addressing the various communal issues at village level, including the distribution and management of water resources.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/102768
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