2. 1. Development strategy
ADLI –Based on 5 years strategic plan
Labour intensive development strategy
The development should be led by the agriculture sector
Linked with industry
3. 1.1. Agricultural development strategy
Rural and Agriculture based
85% of the population in the sector
Increasing the purchasing power of the agricultural
sector( which in turn motivates the non agricultural
sectors )
The major focus areas were ;
4. Cont…
Land policy
Market expansion
Encouraging private investors
Infrastructure development
5. 1.2.Industrial development strategy
Beyond being food self sufficient , the agriculture
sector has to be a source for raw materials
Agriculture _ industry linkage (agriculture based
industries, as flour industries, textiles and others)
Expanding industry villages
6. GTP I
For the first 5 year strategic plan
Improving the economy and their by transforming the
sector to industrialization
Market linkage for the surplus agriculture produces ( i.e.
maize and Tef)
7. GTP II
The second 5 years strategic plan
Based on lessons of GTP I the following aspects
were included in the plan
Trade policy (being competitive in the international
market
Tax free on imported raw materials for exporters
Subsidizing industrialists
8. Cont…
Supporting industries with research and innovation( for
instance the textile research institute)
Considering long term loans for the industry sector