“DFID has demonstrated the flexibility and responsiveness to be able to work through federal government systems…….while at the same time building capacity in these same government systems.”
Ethiopia is one of the poorest countries in the world and remains highly vulnerable to external shocks, such as drought. However, the Ethiopian government has demonstrated a strong commitment to poverty reduction, coupled with relatively sound and transparent public financial management systems. Expenditure has increased to the social sectors, particularly in health and education, and the country shows improvements against these Millennium Development Goal (MDG) indicators. The country is however unlikely to meet its MDG targets by 2015, with insufficient progress to reduce income poverty by half.
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