The safety net in Ethiopia

They are participants in Ethiopia’s Urban Productive Safety Net Project, which was launched in 2017 and is among the largest social programmes in sub-Saharan Africa (outside South Africa) designed specifically for urban areas. About 400,000 poor Ethiopians in 11 cities are already enrolled. The government hopes it will eventually help 4.7m people in almost 1,000 towns. Beneficiaries are selected by a neighbourhood committee based on how poor and vulnerable they are. In addition to the paid work, they also receive training. Those who want to start their own businesses are given grants.

Safety-nets, in one form or another, have proliferated across Africa in recent years. Spending on them in sub-Saharan Africa now amounts to about 1.5% of GDP (see chart). In Tanzania 10% of the population is covered by its safety-net (at a cost of just 0.3% of GDP)…

Ethiopia’s programme is a step towards building a national social-security system that will, in time, replace a hotch-potch of small ones. It builds on Ethiopia’s flagship rural safety-net, which is the largest of its kind on the continent and covers some 10m poor people in the countryside (out of a total population of about 102m). The government has committed $150m to fund the new scheme and the World Bank has stumped up the remaining $300m needed for the first five years. Ethiopia hopes that within ten years it will no longer need help financing the programme.

Here is more from The Economist.  You can think of this as further evidence of state capacity in Ethiopia.


Has that removed visible signs of poverty such as beggars etc?

It's interesting that a society that is about as rich in per-capita terms as UK was back in 1750 at the dawn of Industrial Revolution, is thinking of providing "social security" to its citizens.

Hey. This is a dirt poor country. First focus on generating wealth by working hard. 20 hours a day if necessary. Security and comfort can come later.

Social security can be provided by families and extended communal networks. And the churches.

To this day India does not have any kind of social security despite being close to 3.5-4 times as rich as Ethiopia in PCI terms. Because the family is supreme in India. It is the duty of the kids to take care of the aged. Nobody else.

Social security provisions by the state are only necessary in godless, decadent societies where families are weak and crumbling. Like US and Western Europe.

It is unfortunate that the modern welfare state's architects back in late 19th and early twentieth centuries included two conservatives - Otto Bismarck (in Germany) and Winston Churchill (in UK). It was a cardinal mistake. These guys laid the foundation for the demise of the family in the West with these deleterious schemes.

"To this day India does not have any kind of social security despite being close to 3.5-4 times as rich as Ethiopia in PCI terms. Because the family is supreme in India. It is the duty of the kids to take care of the aged. Nobody else."

With the outcomes we are well aware of. For example, an African-like HDI, rivaling Congo's, and worse than Hondura's, the second-to-last in Latin America. The audacity of failure. (It is funny that, with all its history of socialist-lite economic inneficiency, Indians never got to build safety nets -- what was even the point of massive interference with the markets?)

Seven decades ago, a Brazilian ambassador reported that India was not ready for self-rule. What changed since then? Well, nothing. Actually, as Modi's die-hard Satanists dismantle the heritage of Christian colonization and persecute Christians, things will get worse and worse. Today no Indian can claim, as Nehru did, to be an Englishman ruling in English tradition. The only worth tradition in India is gone forever.

I'm sure every normal person is Ethiopia is working very hard!

But when the government owns all the land, and your economic freedom score is 52.8, making its economy the 142nd freest in the world, good luck with growth.

As the Index of Economic Freedom says about Ethiopia "The poor quality and efficiency of government services are made worse by weak rule of law and pervasive corruption. State distortions in prices and interest rates undermine monetary stability...Despite recent incremental improvements regarding the ease of starting a business, dealing with construction permits, and getting electricity, opaque regulatory requirements still increase the cost of doing business."

There is nothing wrong with being godless yet the example you cite of the USA being godless could not be more wrong. 90% of Americans believe in a god. This is highest percentage in the developed world. Also if you hate the USA, I suggest you leave it. As a Trump supporter I have no problem supporting deporting ungrateful curry eaters like you.

Well. I am a curry eating Trump supporter myself.

I am a well wisher of United States. And being a well wisher, I bemoan the decadence that has ravaged this country over the past 80 years. Starting with the New Deal, and later the Great Society of the 60s, and the Sexual revolution.

Is this the land of John Winthrop? The land of Roger WIlliams? The land of Mary Dyer? Not anymore!

Blacks do not even seat at the back of the bus anymore! Catholics can not be executed anymore in Massachussets!

"90% of Americans believe in a god"

It is not enough to "believe in God" and then do whatever you want.

Are these 90% people (say 300MM) worthy of the ideal set by John Winthrop when he made his famous "City Upon a Hill" speech while still aboard The Arbella? No!

Are these people worthy of the example of martyrdom and austerity set by the indefatigable Mary Dyer, who was willing to die for her beliefs? No.

Americans have to introspect and rediscover their religious calling. That calling won't tell them to live off the state as it were. That calling wont allow its geriatrics to live off the youth through a Ponzi scheme! No sir, no!

"Americans have to introspect and rediscover their religious calling."

Worshipping cows for instance. The audacity of failure!

If failure could be sold, Brazil would corner the market on it: You too can have disorder and regression below the mean!

It is not true. Brazil has the eighth biggest economy in the world and South America's fourth highest HDI. Meanwhole, India is Asia's Congo.

I would print books for in-safety-netted urchins on the outside (skin) of donkeys, and feed the poor with the insides (meat) of the donkeys. Call the latter a hybrid cuisine, Ethio-Brazilian fusion. Everybody wins except the donkeys.

And donkeys don't vote.

There are not enough donkeys. Brazil has big social programs. The biggest the world has ever seen.

I must add that when UK was at the same stage as Ethiopia's development (back in 1750), social security was the last thing on people's minds. Virtue, in contrast, was paramount.

The great English historian Thomas Macaulay, took on an assignment in India with the East India Company, to make some money so that he could pay his father's debts! That was the kind of familial ethic that existed in UK back in the 1830s.

Don't know if you are trolling or not, but maybe subsistence or near subsistence living is a lot more desirable in an age of vaccines, antibiotics, and electronic communications.

The Safety Net in Ethiopia... brought to you by rich countries that aren't Ethiopia.

I would argue that Safety nets and social security are NOT in the interest of poor countries like Ethiopia, as they sap the virtue of the people.

For a citizenry to develop virtue and character, as well as hard skills, they need to be INSECURE and on tenterhooks, so that they don't put their feet up and rest!

They ought to know suffering and pain lest comfort provided by safety nets may lead them to a local maxima where they stop trying!

Poor people can elevate themselves materially, and spiritually only by hating themselves and emulating and idolizing the rich and the successful!

This theory has never worked in practice, in history, or reality. Ethiopia has never had a welfare state yet how many have lifted themselves out of poverty? Not a whole lot. Same applies to your beloved India. In fact the most individualistic societies like USA, China, EU, with high percentage of divorce, secular, individualistic lifestyles, tend to be the most prosperous. Religious societies, family-based societies are comfortable being poor because they have family to fallback on (see Mexico, the rest of Latin America, Southern Europe, Middle East, non-East Asia). When family accept you as you are, what incentive do you have to change?

You have it all wrong.

Western Europe and US lifeted themselves out of poverty by being very religious, and with very strong families, and little-to-no social security. The first pension scheme in the Anglo-Saxon world, if I am not mistaken, was set up by Winston Churchill in early 1900s, long after UK had become by far the richest country on earth.

Decadence set in later. As a consequence of Affluence. Decadence is never the cause of affluence.

The cause of affluence remains Virtue. That's the first cause.

Even in a country like US, the best way to improve the character and virtue of the masses, is to shrink the size of the government by some 40%.

Get rid of all entitlement spending. No social security, no medicare, no Medicaid, no unemployment insurance, no food stamps.

Let people feel the pain. And see how they respond! It will lead to a Great Awakening, and improve the moral fibre of the American people!

That will never happen. About 47% of America is a government employee or a beneficiary of Medicaid, Medicare, Social Security or welfare payments. They, often from the Great Beyond or Teguchigalpa, vote for whoever will give them more, more, more. ACA was about growing government dependency and Dem voters, not health. Immigration is about forging a solid Democrat
majority not sticking it to whitey.

If it were otherwise, the people would vote out of office the most corrupt, incompetent political class in History.

Generally agreed, but immigration is also driven by the need for more mules on the tax/GDP farm, given how deeply we've leveraged our economy. Of course, immigrants get old and sick too and over half are net tax consumers out of the gate.

Does it include free shoes?

I hear donkey leather is soft and pliable.

The bolsa familia was a big story among the "Economist" type of people a few years back. The car wash scandal (in which it turns out that every single politician of any prominence was a crook, including Silva) and homicide rates in favelas have somewhat taken the lustre off of that story though.

Some mistakes were commited, that is true. But, overall, the net outcome is very positive.

The main way to reduce poverty is economic growth, not expanding the welfare state, and as inevitably happens in corrupt Brazil, the welfare state is used for corrupt political purposes: "The Workers Party, known as PT locally, has wielded the program as a political tool, turning it into a form of vote-buying. With the cash transfers, they greatly expanded the popularity of their party, turning a new generation of low income Brazilians into PT supporters. But this would appear to be another case of the government “robbing Peter to pay Paul.”

Brazil still has a poverty rate of 25% (and anemic economic growth). By contrast Chile has among the lowest poverty rates in S. America, comparable to that of the U.S. (not being corrupt like Brazil, Chile adopted the Chile Solidario program before Brazil without so many ill effects) .

Yet, absolute poverty reached a historical low. Again, statistics clearly show that, since 1970, Brazil has experienced dramatic convergence with Chile. Right now, Brazil has the fourth-higest HDI in South America. The recent market correction aside, growth has been robust. It is morning in Brazil.

As for corruption in Chile, ,

Regressing below the mean is Brazil's track record, and using that sub-par performance as the comparison point is the only way to spin statistics to make Brazil look slightly less awful. Brazil is and will always remain a third-rate country. Chile has shown real and substantial progress towards OECD levels, and even Ethiopia is demonstrating some real promise. In fact, you really ought to consider moving from your corrupt, crime-infested, poverty-ridden favela to Ethiopia.

In Brazil criminals, no matter how rich and powerful they may be, are punished. President Temer drained the swamp. Meanwhile, Trump's solemn promises of "locking her up" were proved to be cynical lies. Again, since 1970, brazil and Chile are converging. It is morning in Brazil.

You spelled 'mourning' wrong.

I'm curious if you realize that all the Brazil-bashing you see here is a result of your bashing every other country on earth, especially the one where this blog and most of its commenters reside.

I spelled "morning" right as in

"I'm curious if you realize that all the Brazil-bashing you see here is a result of your bashing every other country on earth."
I must feel insecure because we do not have lots of donkeys. Tourists seem to like them. And hot water. Any way, blame the victim! I am sure there are people who say Jews got they deserved in WWII.
"especially the one where this blog and most of its commenters reside."
I see. So youncan dish it, but you can't take it.

Uh, well, no, we aren't the ones whining about 'Brazil bashing' every thread.

Because there is Brazil bashing every thread. I said before and I say again, anri-Brazilian propaganda is the antisemitism of our time.

Ha Ha. There's no mention of Brazil in 90% of the threads until you show up and start spouting nonsense. Oh to be fair, it's usually so over the top it's funny. But of course people start making fun of Brazil in response to your hilariously out of touch pro-Brazil commentary.

That is hardly the point. The real point is, every single pathetic, hot water-imbibing, donkey-riding tribe is praised while Brazil is overlooked. Then, when I defend Brazil from blatant injustice, Brazil is mocked further!! It is just like antisemitism.

It is totally different. Jews are great but Brazil is a shithole.

If it is true, hiw Brazil built the replica of Solomon's Temple?! With tonnes of pure gold?ão_Paulo)

Not even the Jews in Brazil are impressed by that copycat structure. It's like the Chinese who make inferior copies of historical buildings. And since Rousseff showed up to the inauguration of the building you can be sure that there was massive corruption involved.

It is not true at all!!
The project was wholly paid for by voluntary contributions.
“The church spared no expense in designing the many other features of the temple. Aside from the main sanctuary, the temple also has 36 rooms for children's Bible school, with a capacity of about 1,300 children, radio and television studios, a museum about the original temple, and 84 apartments of differing sizes for bishops and pastors of the church.


The temple construction cost $300m(...) The temple takes up an entire city block, and 24 properties had to be purchased in order to create the space to build it. The project also required new traffic signals and other improvements to the surrounding streets to improve traffic flow.
Brazil's Jewish community has generally accepted the temple(...)”

You can't pull off such large building project and be issued a special diplomatic passport without corruption in Brazil:

"Brazil’s leftist president, Dilma Rousseff, is expected to be here for the inauguration of the temple, underscoring how she draws support for her governing coalition from a bloc of conservative evangelical leaders, including Mr. Macedo’s nephew, Marcelo Crivella, a Universal Church pastor and gospel singer who until recently was the minister of fishing.

No one has reshaped Brazil’s religious landscape quite like Mr. Macedo. A religious broadcaster and founder of the church, Mr. Macedo now travels by private jet on a special diplomatic passport (a privilege also allowed in Brazil for high-ranking Vatican officials), espousing prosperity theology and Pentecostal tenets like exorcism and faith healing.
With a personal fortune sometimes estimated at $1.2 billion, Mr. Macedo rose from obscurity through his control of Rede Record, one of Brazil’s largest television networks, and his aggressive expansion of the Universal Church, during which he has fought accusations of corruption, including tax evasion and money laundering."

It is not true at all! He got a special passport because he is a beloved, popular religious figure. He is far from being the only Evangelical leader holding a diplomatic passport. As ointed out, Catholic representativesalso get them. Thr permitd for construction were awarded by the city administration as law mandates. There were no corrupt bargains involved whatsoever!

As the saying goes, birds of a feather flock together. Corrupt Rousseff paid off a corrupt religious leader's corrupt nephew. That sums up Brazil: rotten to the core.

Brazil is ranked 96th in the Corruptions Perception Index (2017) out of 180 nations--regressing below the mean as usual and below China(!) and India, and barely better than Ethiopia--while Chile is ranked 26 (whose score is equal to the average score of western industrialized nations).

Ethiopia is converging toward Brazil (admittedly a low standard). It's morning in Ethiopia, which is why TC visited there.

"It's morning in Ethiopia, which is why TC visited there."

Silly me. I thought it was about all the donkeys there.

"Brazil is ranked 96th in the Corruptions Perception Index (2017) out of 180 nations--regressing below the mean as usual and below China(!)"

Nonsense, corruption perception is high because punishment is ubiquitous. Many former governors and Congressmen, powerful businesmen and former President Lula are behind bars. Meanwhile, Croocked Clinton and Dishonest Donald are free and rich.

Brazil has less going for it than the presence of donkeys, which is one reason why it is so corrupt. Prosecuting people for corruption in Brazil is like shooting fish in a barrel because the place is so thoroughly corrupt.

Quite the opposite. The anti-corruption forces prevail because corruption is rare and frowned at. There are no Tammany Halls in Brazil.

Beneficiaries are selected by a neighbourhood committee based on how poor and vulnerable they are.

So the post-Soviet Communist parties that run Ethiopia keep peasants on the land by denying them the right to move to the cities. They also have intrusive neighborhood committees that control things like access to education and health care - in case anyone wants to talk about Democracy too loudly.

So who do you think is handing out this cash? It looks like vote buying.

Lot of nonsense on here about Ethiopia from folk who have never been there.
Ethiopia has seen millions lifted out of poverty.
It has one of the fastest growing economies in the world.
Corruption exists but no worse then the corruption that permeates the EU

Very interesting. I didn't know such thing existed

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