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Source: Economics Intelligent Unit
Country Report 4th Quarter 1995


Federal Ethiopia at Crossroads

The Transitional Government of Ethiopia (TGE) technically handed over the mantle of power to a government popularly elected on the basis of a new constitution. This took place after May 7, 1995 when the newly elected Council of Representatives began the operation in August of 1995.

The election of the Council of Representatives was conducted after the approval of the new constitution by the constituent assembly. The Constitutional Commission drew up a draft constitution and submitted it to the Council for deliberation. The Constitutional Commission was established by law on August 18, 1992. This Commission completed its task and submitted the draft to the Council on April 8, 1994. The final draft was presented for debate and eventual adoption by the Constituent Assembly.

As per the electoral law issued on August 23, 1993 a National Electoral Board was established. The Board was charged with the authority to conduct elections and consequently the election of the Constituent Assembly and national and regional elections. Elections for the Constituent Assembly were held in May 1994 and 543 delegates were elected on the basis of free, direct, and equal universal adult suffrage. The Assembly subsequently deliberated on the Draft Constitution as of October 28, 1994 and approved it on December 8, 1994. Similarly it mid-wife and monitored the national election of May 7, 1995.

The framework of the new federal republic was erected under the transitional government, and, given the continued monopoly of power by the ruling Ethiopian People's Revolutionary Democratic Front (EPRDF) in both the regional ad federal states.

The same joint session also appointed the president, prime minister, and speakers for both the upper and lower houses of the new bi-cameral federal assembly. The federal assembly, the CPR, consists of 547 members and the Federal Council reportedly of 117. Ethiopia's new president was sworn in on August 22. Negaso Gidada, a 51-year old Oromo and former minister of information in the transitional government. He was unanimously endorsed by the representatives. Meles Zenawi was elected prime minister. Both the new president and prime minister made speeches outlining to the federal assemblies their political programmes and priorities. Meles appointed a new cabinet on August 24 following his nomination. The majority of the ministers are from EPRDF; nine had already served in the transitional government.
Government budgets  1993/94  1994/95  1995/96 
Current expenditure 
of which: 
4,716  5,472  5,701 
administration  1,386  1,478  1,581 
education  825 885  361 
health  303  346  361 
Capital expenditure
of which: 
3,847  4,596 3,966 
economy 3,049  3,426  2,846 
education  317  412  394 
health  198  234  249 
Total Expenditure 
of which: 
8,563  10,068  9,667 
Domestic revenue  3,880  5,231  6,461 
tax revenue  3,309 3,860 4,459 
non-tax revenue  571  1,371  2,002 
External assistance 2,012 1,794  1,348 
Capital receipts  2,315  2,940 2,288 
TOTAL REVENUE  8,207  9,965  10,067

fiscal year, June-July

In line with the new federal Constitution, Ethiopia is a Federal Democratic Republic comprising the Federal State and the State members. Member states of the Republic are: Tigrai; Afar; Asmara; Oromia; Somalia; Benshangul(Gumaz); Southern People's; Gambella People's; and Harari People.

The Federal State and the State have legislative, executive and judicial powers which include all powers not given separately to the Federal Government; powers given expressly and concurrently to the States and the Federal State, are reserved to the States. The Federal State may delegate to the States powers and functions granted to it by the Constitution and vice versa.

The Federal Parliament is bicameral, consisting of the Federal Council and the Council of People's Representatives. The Council of People's Representatives or Parliament is the highest authority of the Federal Government. Its members are representatives of the Ethiopian peoples as a whole. They are to be elected for a term of five years on the basis of universal suffrage and by direct, free and fair elections.

The Federal Council is to be composed of representatives of nations, nationalities and peoples and each nation, nationality and people are represented in the Council by at least one member. The members of the Council are elected by the State Councils which may elect them directly, or hold elections to have the members elected by the people. Its primary functions mainly center around the interpretation of the Federal Constitution. It is to hold at least two sessions annually.
 

THE CENTRAL GOVERNMENT

The highest executive power of the Federal Republic are vested in the Prime Minister and in the Council of Ministers. The Prime Minister is elected by the Council of People's Representatives from among its members who belong to a party or coalition of parties that constitutes a majority in the Council. Members of the Council of Ministers are nominated by the Prime Minister and appointed after approval by the Council of People's Representatives. They need not be members of either House. The Council of Ministers has, inter alia, the power to submit draft laws to the Council of People's Representatives on any matter falling within its competence.
 

THE REGIONAL GOVERNMENTS COURTS AND THEIR POWER

According to a document of the president of the Supreme Court the State Council is the highest organ of state authority and the State administration, the highest organ of executive power. State governments are established on the basis of state and Woreda jurisdiction and the State is constitutionally obligated to accord the lowest unity of government such powers as will enable the people to participate directly in their self administration.

The new Constitution provides for the establishment of an independent judiciary. Supreme Federal judicial authority is to be vested in a Federal Supreme Court which has final power of appeal on matters within federal jurisdiction. Final decisions of Federal State courts may also be reviewed and revised in cassation by the Federal Supreme Court if an error in law has been found in those decisions.

The Council of People's Representatives, if it deems it necessary, may, by a two-thirds majority, establish any number of Federal high and first instance courts nationally or in some regions of the country. Unless and until such lower Federal courts are established, Federal high and first instance judicial powers are delegated to the State Courts.

States shall establish supreme, high, and first instance courts. The Council of People's Representatives and State Councils may also establish or give official recognition to religious and cultural courts.

The Chief and Vice-Chief Justices of the Federal Supreme Court are to be appointed by the Council of People's Representatives upon nomination by the Prime Minister. Other Federal judges are also to be appointed by the Council upon nomination by the Prime Minister on the basis of selections made by the Federal Commission for Judicial Adiministration.

In like manner, State supreme Court Chief and Vice-Chief Justices are to be appointed by State Council upon nomination by the State heads of the executive branch of government. Other state judges are appointed by the State Councils on the basis of nominations submitted to them by State Commission for Judicial Administration. Before submitting nominations of Supreme and High Court judges to their State Councils, State Commissions have the responsibility of obtaining the views of the Federal Judicial Administration Commission on the nominees and to forward those view together with their recommendations.


THE EPRDF FIVE-YEAR (1995-2000) PROGRAMME

The new five year plan emphasizes that individually or collectively people with capital will be encouraged to play an appropriate role in the development of the national economy. To this end a conductive economic environment will be created for private investors to participate in the government's agriculture and rural based development programmes including activities such as the following:-

a) agricultural produce and inputs marketing
b) rural transport
c) commercial farming
d) export of agricultural products
e) animal breeding

The government will assist the private sector by providing land (which is not occupied by peasants) at reasonable fees. In addition, technical assistance, training, marketing services and credit facilities will be made available to all who wish to invest.

Economic and social infrastructure will be expanded in order to support the overall development programme. This will include development efforts in education, health, road construction, transport and the provision of clean water.

The plan also stipulates that rural road construction and maintenance and water resources development will use labour-intensive techniques and the rural population is expected to make contributions in labour. Regional administrations will also be the major actors.

Farmers' service cooperatives and sub-district-based (kebele) peasant associations will be established. The service cooperatives will be active mainly in rural marketing and credit. On the other hand peasant associations will serve as the fora of rural participation in political, social, and economic affairs.

Women's participation in rural development is to be a high-priority objective. Woredas (district administrations) will be the major administrative units which will be responsible for the implementation of the rural organisation and development programme.

The EPRDF programme also puts emphasis on improving the living standards of the urban population and the urban economy in general. A major priority concern here will be :

1) the step-by-step reduction of unemployment and related social problems.
2) of equal importance is the expansion and maintenance of urban social and economic infrastructures and facilities.
3) Urban employment generation is expected to derive from public spending, private investment, and self-employment schemes.
4) Skill development programmes and other technical assistance will be provided for unemployed people.

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