PLANS FOR ECONOMIC DEVELOPMENT
…In the
case especially of those foreigners who have invested capital on development
projects in this country, apart from working in cooperation with both Our
Government officials and Our people, there has never been a case in Ethiopia’s
history when the property of a foreigner has been unlawfully confiscated……
The greater part of the world’s population still lives
in economically backward countries and the life it leads is consequently characterized
by hunger, disease and other similar problems. Global peace and security can
only be permanently secured if all people of the world pool their resources
towards the complete eradication of man’s common enemies – ignorance, hunger
and disease.
It is well known that the international economic and
social organizations established at, and operating in various underdeveloped
countries in the world, are helping the economically backward countries in
different ways. Some wealthy countries are also manifesting their goodwill
through granting loans and technical assistance. What the economically backward
countries are looking forward to, however, is the application of the money now
dumped on destructive armaments, to the solution of economic problems. Fully
supporting this idea, Ethiopia has participated in disarmament conferences and
unfailingly is struggling for world peace and man’s welfare and prosperity. A
nation can make rapid economic growth only when it makes use of foreign
economic and technical aid and, if the people make every effort towards the
proper exploitation of their natural resources.
In Our speech after Our state visits to various
friendly countries on August 29, 1959, We noted the various reasons as to how
advanced nations have achieved their present stage. In Our study of the various
social systems in the course of Our extensive tour, We have found that the
reason for their successful progress lies in the fact that they have
accumulated enough capital which, in turn, made it possible for them to carry
out better farming, finance various projects to develop their industries,
harness their rivers, and in general exploit their natural resources. Unless it
is used for worth-while investment, the hording of money would not yield
dividend. This spirit also remains true in the case of this plan.
It has been found out that planning is indispensable
for the rational utilization of both a nation’s resources and foreign aid or
loans.
Having recognized
that, in order to improve and raise the level of the Ethiopian economy and
administration and so raise our people's standard of living and economy, a
plan, based on the country’s, needs and capabilities, is required, We gave
orders for the execution of the First Five- Year Plan, which came into
operation since 1958 prepared after a long period of study, on the basis of our
directives and by the Planning Board We had established.
As a basis of, and working procedure for, a national socio-economic
policy, a plan is a means whereby a nation can be developed through the
rational utilization of labour and machinery for the most important aspects of
the country’s needs. The execution of any such plan needs, however, national
participation. Planning is the basis in the rational and sustained use of
capital, manpower and time in the acceleration of economic development. The
opportunities We have today in having at Our disposal those advantages which
the now economically advanced nations acquired after long periods of trial and
exertion, namely the means to step up the rate of economic growth and purchase
equipment necessary for industrial and other purposes, enable Us to implement several
projects in a much shorter time.
It is evident that prior to the First
Five-Year Plan Ethiopia was engaged in the execution of numerous development
undertakings. Long-term projects were carried out in the respective fields of
telecommunications, public health, road transport, air lines and other similar
phases of develop-ment. Satisfactory results have likewise been attained.
Nevertheless, a plan, embracing Ethiopia's socio-economic growth, was prepared
from a wide and detailed study of such undertakings as were previously carried
out through experience and also for the rational utilization of labour and
capital. The advantages of a plan are by no means limited to the government; a
plan shows the respective goals of our country in each sector, the required
funds and their sources, as well as the success and failures of each year’s
endeavour.
Though the targets set in the First Five- Year Plan were not all
reached, the experiences gained are satisfactory. The works accomplished during
the period of the First Five-Year Plan are great and many; so are the changes
made and improvements brought about in the phase of administration.
The history of planning shows that no pioneer plans were ever executed
even partially, much less wholly.
Since a country that has a plan is aware of its requirements, Ethiopia
will be able to acquire technical and economic assistance from international
organizations and friendly countries for the implementation of the development
projects included in its plan. Millions of dollars have been spent on the main
projects carried out during the First Five-Year Plan. These projects included:
a survey of the Blue Nile basin, Webbi Shebelli and Awash Valley development
schemes, cement factories, oil refineries, textile factories, a sugar factory,
highways, telephone lines; modern ports, jet aerodromes, transport jets,
hydro-electric dams and equipment, the university and several modern schools
for raising the school population by 47%, as well as other economic and social
undertakings. In the field of private capital, several industries and similar
development enterprises have been established.
Foreign Investors
Encouraged
We have never ceased to encourage foreign
capitalists to work either in co-operation with Our people, or to invest their
money on development works on their own. It has for long been part of the
tradition of Ethiopia to welcome foreigners and to safeguard their rights and
interests during their stay here. In the case especially of those foreigners who
have invested capital on development projects in this country, apart from
working in co-operation with Our Government officials and Our people, there has
never been a case in Ethiopia's history when the property of a foreigner has
been unlawfully confiscated. This is a source of pride for Ethiopia. Ethiopia
will at all times welcome foreign investors who may be willing to employ their
money for development works, either in partnership with Ethiopia, or as private
enterprisers. The necessary law pertaining to the money to be expended on
development plans will shortly be published in the Negarit Gazeta.
As the period of the First Five-Year Plan has now expired, We ordered
that the Second Five-Year Plan be duly prepared. After the Second Five-Year
Plan had been prepared and studied in detail by the Planning Board Committee
which meets under the Chairmanship of Our Prime Minister, and the five Standing
Study Committees, the plan was presented to the Planning Board that We head.
After an exchange of views on it and having realized that it has been prepared
in accordance with the economic resources and needs of Our country, We approved
of the Plan and ordered that it be put into operation. As We have earlier
started, the Plan is to serve as a guide not only to Our Government but to the
entire people in the Empire now engaged in the work of development.
Allotted $2,670,000,000
It has been shown in detail in the Plan that for the Second Five-Year
Plan the amount of money to be spent on development projects and
administration, both from Government and private sources, has been estimated at
Eth.$ 2,670,000,000.
In order that the Plan may succeed in achieving
its objectives, much work has already been accomplished in advance. Among those
that have been given priority are those pertaining to the promulgation of the
Public Servants Pension and the Civil Service law. For the plan, We have
ordered that various organizations be set up.
We have in the past made it known to you
that We have formed several committees in all branches and departments of
activity. These committees have been entrusted with the task of studying ways
and means of effecting a lasting and not short-term programme of advancement,
of finding methods of improving the administration, the application of justice,
the spread of education as well as improving on the system of land tenure. The
Committee also studied the possibility of making the administrative system of
the Provinces meet modern demands and standards so far as present conditions
permit, and also study ways of raising the standard of living of the people and
their skills, as well as safeguarding of the people’s right to equality
according to each person’s standard and ability.
Among the main points in Our plan for the improvement, progress and
advancement of Our people is that relating to the need for an equitable
arrangement with respect to the payment of taxes as well as to the tenure and
allocation of land. With this aim, We have annulled various taxes that
landowners had to pay in the past, relieved them of extra obligations otherwise
binding, allowed that only one tax be levied, and have ordered that those
Ethiopians who may not have land give evidence to this effect and be made to
own half a gasha each to be used not only by the persons during their
life-time, but to be passed down from generation to generation as well.
Furthermore, in accordance with the order We
gave to the effect that those who may have land but lack money to develop it be
granted loans, the amount of money given out for the purpose has now reached
Eth.$3,000,000. So that the work may in future be carried out on an improved
scale of performance, the setting up of a new bank that will lend money for
development works is now under preparation.
We do not, however, feel proud or complacent about the progress so far
made by Ethiopia in this respect as having accomplished enough. The present age
compels man to go on improving. Since the way of living of people at any period
is closely tied up with the particular conditions prevailing at the time, we
cannot look back to Ethiopia prior to the 20th Century and criticize the manner
of administration of our forefathers. The reasons and difficulties that made
the way of living then what it was can be accurately known.
It would not, for example, be difficult to realize the problems and
obligations created by the age we are living in now, which faced Ethiopia in
her past endeavour to reach her present stage as well as in her future attempt
at faster progress and development. As generations come and go, those assuming
responsibility for the period do not cease to try and improve on the past in
order to meet newly arising demands. In this respect, it is quite evident that
to march with the time members of the coming generation should build on what
their forefathers have bequeathed to them. It is because the present generation
is cherishing and keeping intact what it has received from the past that it has
succeeded in attaining its present stage of development, by making the
necessary changes and improvements called for by conditions now existing. This
would require great foresight and the work accomplished so far as regards to
this task of great responsibility is no small matter. It has been fulfilled as
a result of God’s blessing and His divine guidance.
Land Tenure Reformed
Even though the system of land tenure as
well as the collection of taxes in Ethiopia may have varying forms, it is quite
evident that these have their foundation in the country’s past history.
However, even though such a system was only suitable to the time when it was
being practised, to make it go hand in hand with the age, and thereby serve as
a safeguard for the interest and prosperity of the country and be a means for
the strengthening of the unity of the people, the old systems of land tenure
and certain rights pertaining to the payment of taxes have been kept in
operation. Land is also being allocated to those Ethiopians who may not be
owning any at present. It has, however, been found necessary that this be
improved in the light of present conditions, needs and requirements. Having
realized that the money collected from taxes would be used for the development
programme of the Empire, and having thought it desirable that tax collection be
carried out in accordance with the Proclamation, and that no distinction be
made among Ethiopians, and so that all people be given equal rights as regards
the payment of taxes, a committee was formed and ordered to study ways of
improving on the present system of land tenure. Having reviewed the first part
of the committee’s report and recommendation, We have passed the following
order of amendment:
(1) We have ordered that a bill be submitted to Parliament to be
deliberated and passed into law to make people possessing land as “Riste Gult”
and “Siso” pay normal tax on it to the Government Treasury.
(2) The proposed proclamation be presented to Parliament for discussion
with the final aim of being passed as law to improve on the traditional form of
relationship, shown existing in the Civil Code, between land-owners and tenants.
(3) Those serving for “Feresegna”, “Alenga” and Gala land and “Gult”
allowances, to be paid salaries from the Government Treasury.
Those who were formerly living on
allowances from “Gult” and “Siso” to be given land.
(4) Government
lands in the Provinces, owned by
people on lease, to be given to those who have no land unless the person
now possessing it has developed it with his own money and is not simply
collecting regular revenue from tenants.
(5) Crown lands throughout the Empire, the benefice of which has been
allocated to augment the Civil List, of will be distributed in three
categories: (1) for development projects, such as industrial establishments,
the building of townships and settle-ments; (2) as compensation for those
people whose land has been taken over by the government for development
purposes; (3) to patriots and exiles and to disabled veterans who have not
recei-ved land before. The land that may be left over after apportioning in the
above manner, is to be given either to tenants living on it or to the landless
people nearby, half a gasha each.
(6) It is Our wish that all Ethiopians who are to be given government
land on the basis of the order given above shall, when receiving the land so
donated by the government to raise the standard of living of the recipient, pay
for registration and transfer of name, Eth.$15 per gasha of fertile land,
Eth.$10 per gasha of semi-fertile land, and Eth.$5 per gasha of barren land,
and so bring the land under their ownership.
As is explicitly put down in Article 38 of
Our Constitution, there is no need to point out that the Ethiopian people enjoy
equality. Our instruction as regards reform in the land tenure system will
reflect the same basic statement in the Constitution. It is known to all that
every Ethiopian should have land and be given money to cultivate the fallow
land, and that an organization to carry out this programme has earlier been set
up, is indeed well known by all. Unless the wealth of
the people increases and unless they co-operate their unity as a nation would
be compromised.
Therefore, we have made it in such a way
that chiefs and elders, without their service in the past being forgotten,
should live by working in co-operation with the people so that their own
interest would be safeguarded, not to the disadvantage of others.
While the economic growth of Our country
and the living standard of Our people are being realized to the extent of the
effort We are making, and while the benefits of the endeavour We are making for
the growth of our country and the prosperity of Our people are being realized,
it should be the duty of every Ethiopian to co-operate and work hard towards
their implementation.
All these are preliminaries of the Second Five-Year Plan and We hope
that several socio-economic achievements will be made during the period of the
Plan.
Objectives Outlined
The main objectives and targets of the Plan are:
(1) To achieve a great economic result through the rational utilization
of available capital and labour;
(2) To make use of different means of development in order to narrow the
economic divergence between Ethiopia and the economically advanced countries.
(3) To economize money as much as possible and invest it on some useful
project in order to bring about an independent growth of the Ethiopian economy.
(4) To obtain balanced and uninterrupted economic growth in order to
raise the standard of living of Our beloved people.
(5) To improve and expand education, public health, fine arts and
industrial projects more intensively.
(6) To encourage every citizen in Our Empire to be a participant in the
endeavours for the economic and social development of his country, as much as
his capacity and ability can allow.
The largest portion of the national income
comes from agriculture and the raising of livestock. Moreover, the greater
number of the population is engaged in these occupations. For these reasons, in
the period of the Second Five-Year Plan, agriculture holds its place in the
forefront of the Ethiopian economy, and a special plan has been drafted to expand
the agricultural production in a much better way than it used to be before.
Moreover, it is designed to increase the
quantity and improve the quality of the crops of coffee in particular, which up
to now has remained the backbone of the country’s economy. Planning is also
completed to provide the country’s meat industry with 600,000 to 700,000 heads
of live cattle annually for local demand as well as for export.
Since Ethiopia’s mineral wealth is
undetermined, it has been considered in the Second Five-Year Plan to make more
extensive prospecting to determine the country’s geological wealth and open a
new vista for its industrial growth.
In this Plan, it is intended to treble Our
present industrial output by establishing a number of industries and factories
which will utilize the country’s raw materials from agriculture and mining.
These industries will be useful in that they will boost the economic status of
the country by producing industrial items of high demand in both local and
foreign markets and also provide plenty of jobs for the people.
Realizing the great importance and
usefulness attached to facilities of transportation and communications, it is
designed to expand the systems by 28% in the period of the Second Five-Year
Plan.
It is also stipulated in the Plan to make
necessary steps to better and multiply those social amenities, like education,
public health, pension and other similar welfare measures, which reflect upon
the living condition of the people and upon social development of the country
in general.
Calls For National Participation
In Our effort to raise the living standard
of Our beloved people, in Our endeavour to bring about prosperity to Our
country, the feeling of co-operation and understanding has always characterized
Our people. A special case is the recent development in certain provinces where
the people are seen voluntarily raising funds to build schools, clinics, roads
and other similar projects. What can give one more pleasure than to see such a
measure of self-help in one’s life time? For the prosperity and progress of his
own country, let every citizen of Our Empire strive hard to strengthen this
esprit de corps everywhere. We entrust the spirit of good will to Our people to
work diligently and co-operatively in order to arrive at the realization of
this socio-economic development that has been launched by either Our Government
or Our people.
It is not sufficient simply to see and
admire the natural beauty and fertility of Ethiopia. It is Our obligation to
work upon and benefit from this country whose fertile soil has been granted us
by the Almighty God. We have to gain honour and pride for this country.
Because of her unity and independence
Ethiopia had and still has jealous enemies and aggressive dissidents. It is, therefore,
the primary duty of every Ethiopian to safeguard the unity and freedom that has
been fortified since time immemorial by the courage and bravery of Our
forefathers. We have to maintain its integrity, to work and, benefit from its
existence.
So that Our people
can live working and enjoying the fruits of their labour in peace and order We
have given modern laws and made various proclamations. For proper
administration of these laws in the governorates-general, provinces,
sub-provinces and districts of Our Empire, We have allocated judges for the
courts, police for the security, and civil servants for running the government
offices. We have time and again reminded the government officials that they
were assigned to serve the interest of Our people and not the contrary. Hence,
We again would like to make it known to Our government employees that without
losing integrity and honesty they are hereby instructed and ordered to work
diligently in whatever occupation they are engaged, for the economic growth of
their country.
We have also entrusted to the Planning Board Commit-tee which is chaired
by Our Prime Minister to publish and distribute the contents of the Second
Five-Year Plan as well as to strictly follow and execute the new plans at hand.
If each and everyone endeavours to cooperate and work in as much as his
capacity permits, Our faith rests upon the Almighty God that He would bless the
results for us.
Oct. 14, 1962
Selected Speeches of His Imperial Majesty Haile
Selassie – page 499 -
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