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 development.
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 settlements; (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 received 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 Committee 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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