UNI V E R S I T Y OF LONDON
SCHOOL OF OR I E N T A L AND AFRICAN STUDIES
T H E N E W T E C H N O L O G Y ,
A G R A R I A N REFOR1XI A N D P E A S A N T D I F F E R E N T I A T I O N TIM EC TFII O H I / \ 3 N T A G R I C U L T U R E I N 1 9 6 6 — 1 3 O W X T H
S P E C 17\I_. R E F E R E N C E T O T H E R E G I O N .
S u b m itted in F u l f i l m e n t of the R e q u i r e m e n t of the Degree of D octor of philosophy.
Tenkir B o nger June 1987.
ProQuest Number: 10672697
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- 2 - A B S T R A C T
Critiques of the new technology in a g riculture have expressed its class, technological, regional and crop bias. They call for e x p anded research to cover more crops suited to eco l o g i c a l l y marginal areas, agrarian r e f o r m to d i s t ribute its benefits and the generation of mechanical technology an d institutions amenable to the poor.
E t h i o p i a experienced both the d i s s e m i n a t i o n of the new technology (first in 1967 in the Arsi Region and as of 1970 in limited parts of the country as a whole) and a radical r e d i s t r i b u t i v e agrarian reform (since 1975) a iming at a s o c i a l i s t transition in agriculture.
A micro level analysis of output and input in 30 farms d i s a g g r e g a t e d into the pre and post t e c h nology period on the one hand and poor/lower m iddle and r i c h peasants on the other is built upon to as s e s s the e f f e c t of the new t e c h nology on production, factor productivity,
the social d i f f e r e n t i a t i o n of the peasantry, changes in the form and extent of the marketed su r p l u s and p rices in 1966-1975 (post technology, p r e-agrarian reform) and 1975-1980 (post new technology and post agr a r i a n reform) in the Arsi Region. This is further ex t e n d e d to E t h i o p i a n agriculture as a whole including the cou n t r y w i d e r e d i s t r i butive impact of the reform, government intervention in marketing and the terms of trade.
- 3 -
The study argues that given the non-feudal, n o n capitalist a g r arian class formation in r a infed single cro p p i n g 'land surplus' agrarian economy, r e d i s t r i butive a g r a r i a n reform, state intervention w i t h high m a r k e t ing cost and the acc u m u l a t i o n of m e r c h a n t capital not r einvested into a g r i c ulture m e e t neither the r e d i s t r i b u t i v e nor the acc u m u l a t i o n o b j e ctives of development.
4
PAGE
A b s t r a c t 2-3
A c k n o w l e d g m e n t 6
List of Charts and Figures 7-8
List of Tables 9-18
CH A P T E R ONE: I N T R O D U C T I O N 19-4 4
1.1 I n t r o d u c t o r y Note 20-22
1.2 The New Technology, A g r a r i a n R e f o r m and
D e v e l o p m e n t Str a t e g y in the Poor C o u ntries 23-28 1.3 The New T e c h n o l o g y and A g r a r i a n R e f o r m in
E t h i o p i a 29-34
1.4 Aims, Da t a Base and M e t h o d o l o g y & L i m i t a t i o n s 35-38
1.5 Synopsis of the Chapters 39-41
Charts 42-44
C H APTER TWO: A G R A R I A N ST R U C T U R E AND THE M A R K E T E D
SURPLUS IN E T H I O P I A N A G R I C U L T U R E IN 19 6 6 45-113
2.1 I n t r o d u c t i o n 45-47
2.2 T h e o r e t i c a l and M e t h o d o l o g i c a l Issues 48-54 2.3 A g r a r i a n Systems in E t h i o p i a n A g r i c u l t u r e 55-66 2.4 A g r a r i a n Str u c t u r e in the Mid- S i x t i e s 67-81 2.5 A g r a r i a n S t r u c t u r e and the M a r k e t e d C ereal
Surplus 82-95
2.6 C o n c l u s i o n 96-97
Charts 98-100
A p p e n d i c e s 101-113
CH A P T E R THREE: THE NE W TECHNOLOGY, CHAYANOV,
LENIN A N D THE C H I L A L O P E A S A N T R Y 114-179
3.1 I n t r o d u c t i o n 115-116
3.2 The C h a y a n o v i a n M o d e l 117-122 3.3 The F a r m M a n a g e m e n t Data and the A n a l y t i c a l
Met h o d s Used 123-129
3.4 The C h a y a n o v i a n Hyp o t h e s i s and the E m p i r i c a l
E v i d e n c e from C h i l a l o 130-146 3.5 The Basis of D i f f e r e n t i a t i o n
C h a y a n o v i a n Vs. L e n i n i s t Formula t i o n s 147-166
3.6 Con c l u s i o n s 167-168
Ap p e n d i c e s 169-179
C H A P T E R FOUR: THE N E W THECHNOLOGY, A G R A R I A N REFORM, PE ASANT D I F F E R E N T I A T I O N AND THE M A R K E T A B L E SURPLUS
IN ARSI IN 1966-1980 180-295
4.1 I n t r o d u c t i o n 181-183
4.2 A g r a r i a n S t r u cture and. the M a r k e t e d Surplus
in 1966 184-194
4.3 The Com p o n e n t s of the New Tec h n o l o g y Inputs
and E s t i mates of O u t p u t in 1966-1980 195-214 4.4 F a c t o r Prop o r t i o n s and P r o d u c t i v i t y in
C h i l a l o P e asant Farms .215-244
4.5 The T rend Towards D i f f e r e n t i a t i o n (1966-1975)
and P e a s a n t i z a t i o n (1975-1980) 245-260 4.6 The New Technology, A g r a r i a n Reform, Income
D i s t r i b u t i o n and the M a r k e t a b l e Surplus in
1966-1975 and 1975-1980 261-282
4.7 C o n c l u s i o n 283-285
A p p e n d i c e s 286-2 95
C H A P T E R FIVE: THE N E W TECHNOLOGY, A G R A R I A N REFORM, P E ASANT D I F F E R E N T I A T I O N AND THE M A R K E T A B L E SURPLUS
IN E T H I O P I A IN 1966-1980 296-355
5.1 I n t r o d u c t i o n 297-298
5.2 The New Inputs and A g r i c u l t u r a l O u t p u t
1975-1980 299-309
5.3 The P a t t e r n of the Social D i f f e r e n t i a t i o n of
the E t h i o p i a n P e a s antry 1966-1980 310-318 5.4 Income Distribution, the M a r k e t a b l e Surplus
and A g r i c u l t u r e ' s terms of Trade 1975-1980 319-347
5.5 C o n c l u s i o n 348-350
Ap p e n d i c e s 351-355
C H A P T E R SIX: C O N C L U S I O N S 3 56-361
REF E R E N C E S 3 6 2-
E R R A T A
to chapters
All tables, charts, maps and r e f e r e n c e s /t h e r e o f , w h e r e they start as:
4 read as 2 5 read as 3 6 read as 4 7 read as 5
- 6 -
AGKNQWLBDGMENT
I would like to r e c o r d ray gratitude to the many i n s t i tutions and individuals who p r o vided financial assistance, emotional support an d intellectual stimulus which, in different ways, p r o v i d e d the impetus to bring the study
to the finish.
W i thout the generous grant of the Africa Educ a t i o n a l Trust and the p a i n s t a k i n g e n c o u r agement and help of my Supervisor, Mr. T.J.Byres, the r e s e a r c h project w o u l d have never begun let a lone reach to the final chapter.
Mr. Mike h'odd of SOAS kin d l y assisted in the a n a lysis on the econometric section.
The library staff at SOAS, the S c andinavian Ins t i t u t e of African Studies at U p p s a l a (Sweden), the Institute of D e v e l o p m e n t Studies at Br i g h t o n and the African S t udies Centre at M i c h i g a n S tate Univer s i t y - genero u s l y gave
their e x p e r t i s e and access to their acquisitions on the development literature p e r t a i n i n g to Ethiopia.
My wife Anne, s u f f e r e d the externalities (in mo s t cases n e g a t i v e ones) that go with this kind of work.
I hope that she will be com p e n s a t e d by any p o ssible light shed towards u n d e r s t a n d i n g the pr o b l e m of agrarian t r a n s i tion.
I am indebted to the ma n y Eth i o p i a n s and n o n - E t h i o p ians wh o s e discussions interacting with the l i t e rature helped to focus on the p r o b l e m s highlighted. Kate M o n t a g n e and Raphael Zuppardi h e l p e d when I was most in need of support. Finally, the skillful typing by Ms. L ilian Umar gave the thesis its p r e s e n t shape.
_ 7 -
LIST OF C H A R T S / F I G U R E S / G R A P H S
CHAPTER ONE
C.1.1 The L o c ation of the C A D U / A R D U Project In Ethiopia
C.1.2 The D i s t r i b u t i o n of C A D U / A R D U Centres in Arsi
C . 1. 3 CADU O r g a n i s a t i o n Chart CHAPTER TWO
C.4.1 The Location of C A D U /ARDU and the Three A g rarian Systems
C.4.J Note on S u rvey of 1966-1968 CHAPTER FO U R
C.6.1 Comparative Holding Size D i s t r i bution in Ethiopia, Arsi and Chilalo 1966
C.6.2 C h i l a l o / A r b a g u g u / T i c h u and Arsi Area Un d e r Cultiv a t i o n in 1966,
1975 and 1980 (in ’000 ha)
C.6.3 Ethiopia: Index of Change in Population, Acreage, Va l u e of Cereals and Net Marketed Surplus in Arsi and Ethiopia
C.6.4 Index of Per Hectare Cost, Gross Incomes and Net Income C o mparisons in P r e - T e c h n o l o g y and N e w T e c h nology us i n g P e asant and M e c h a n i z ed Farms
C.6.5 Chilalo, Arbagug u / T i c h o and Arsi:
Comparative Change in No. of Households by Peasant S t r a t u m
in 1966, 1975 and 1980
C.6.6 Change in the Percentage D i s t r i bution of Holdings, and Cul t i v a t e d Land in Arsi, Chilalo and A r b a g u g u Ticho in 1966, 1974/75 and 1980 C.6.7 Index of O utput and the M a r k e t e d
Surplus by Peasant S t r a t a in 1966, 1975 and 1980
C.6.8 Arsi: The Distrib u t i o n of Cereal Output by Peasant S t r a t u m and
its Disposal in 1966, 1975 and 1980
C.6.9 Chilalo, Arba g u g u / T i c h o and Arsi:
Value of Crop P roduction at 1971 Prices in 1966, 1975 and 1980
C.6.10 Arsi: Index of Output, Input, Productivity, Prices in 1966,
1975 and 1980
PAGE
42~
43 4 4 ;
9 8 9 9' 189
190
214
241
259
266
279
280;
281
288
- 8 -
CHAPTER .'FIVE.
C.7.1 Ethiopia: Index of Hectarage, Yield and Ou t p u t of the Ma j o r Cereals in 1974/75-1979/80;
1974/75 = 100
C.7.2 Ethiopia: P e r c entage D i s t r i b u t i o n of H o u s eholds and H e c t a r a g e in 1970, 1975 and 1980 by Pea s a n t Stratum
a) Holdings b) Hec t a r a g e
C.7.3 Ethiopia: The Dist r i b u t i o n of Cereal O u t p u t by Peasant St r a t u m and its Disposal in 1970, 1975 and 1980
C.7.4 Ethiopia: Index of O utput and the M a r k e t a b l e Surplus in 1970, 1975 and 1980 by Peasant Str a t u m C.7.5 Ethiopia: Index of Output, C o nsumer
Demand, Tax/Rent, Surplus and the C o n s u m p t i o n of F e r t i l i z e r in 1974/75-1979/80
C.7.6 Addis Abeba Wholesale Price Index of Cereals and DAP 1971/72-1981/82
1971/72 = 100
C.7.7a Ethiopia: E s t imated Demand for Cereals 1974/75-1979/80, the Ratio of Rural, Nomadic and Urban Demand and the Addis A beba C o m p o site Price (Retail) Index
C.7,7b Ethiopia: Es t i m a t e d Demand and Supply of Cereals and Price Levels
in 1975-1980: 1975 = 100
C.7.8 Ethiopia: Estimated Com p o s i t e Production^ Producer and Addis Abeba W h o l e s a l e Prices of Cereals
(Actual and Projected) in 1974/75“
1979/80
C.7.9 Ethiopia: Index of E s t i m a t e d Production, Producer and Addis Abeba C o m p osite Wholesale Prices of Cereals (Actual and Projected) in 1974/75-1979/80
C.7.10 Ethiopia: Index of Producer Prices of Maize, W h e a t and Teff in 1974/
75-1979/80
C.7.11 Ethiopia: Index of Producer Prices AMC and Open M arket Cross M a r k e t
ing Margins in Addis Ab e b a in 1979, 1980 and 1981
C.7.12 Ethiopia: M a r k e t i n g Chains and Volume h a n d l e d in the W h o l e s a l e of the Ma j o r Cereals
PAGE 305
318
325
326
327
334
336
336
337
337
347
352
353
- 9 - T ABLES
CHAPTER TWO. .
TEXT
4.1 Ethiopia: D i s t r i b u t i o n of the Status of Tenure by A g r a r i a n System in 1966
a) A b s o l u t e Distrib u t i o n
b) By Status of Tenure: Each Tenure Type = 100
c) By A g r a r i a n System: Each A g r arian System = 100
4.2 Ethiopia: The Ratio of No. of H o u s e holds, Cropland, Livestock and Oxen by A g r arian S y s t e m in 1966
4.3 Ethiopia: The Distrib u t i o n of Oxen, Oxen Hou s e h o l d Ratio and Holding Size in 1966
4.4 Ethiopia: The Dist r i b u t i o n of No.
of Oxen by Size of Holding in 1974/75 a) Absolute P ercentage Distrib u t i o n b) By No. of Oxen: Each Oxen Interval
= 100
c) By Size of Holding: Each Size of H o l d i n g = 100
d) Ethiopia: P ercentage D i stribution of Oxen by Agrarian System and Peasant S t r a t u m
4.5 Ethiopia: The Distribution of Peasant S t ratum by A g r a r i a n System
a) Ab s o l u t e Per c e n t a g e Distrib u t i o n b) By A g r a r i a n System: Each S t ratum
= 100
c) By P e a s a n t Stratum: Each A g r arian System = 100
4.6 Ethiopia: O w n e r s h i p of Oxen by Status of Tenure in 1966
4.7 Ethiopia: Size D i s t r i b u t i o n of Holding by Status of T e n u r e in 1966
4.8' Ethiopia: Hi r i n g in of La b o u r by Status of T e n u r e in 1966
4.9 Ethiopia: No. of Plots, Average Size of Holding, P ercentage of O w n e r ship of Cat t l e and H iring in of Labour by S tatus of Tenure in 1966
PAGE
60
61
64
65
72
75 76 77 77
- 1.0 -
PAGE 4.10 Ethiopia: Estimates of Output, Tax, 88
Rent, Consumption, the M a r k e t a b l e Surplus and Supply of Cereals in
1966 a) Total
b) Distrib u t i o n by Peasant S t r a t u m (%) c) Distribution of Total by C o m p o n
ents (%)
4.11 Ethiopia: D i stribution of M a r k e t a b l e 92 Surplus by Type and Peasant S t ratum
in 1966 a) Total
b) D i s t r i b u t i o n by Stratum: Each Type of Suhplus = 100
c) Distribution in Each Str a t u m by Type of Surplus: Each Str a t u m
= 100
4.12 Ethiopia: A p p r o p r i a t i o n of the Market- 93 able Surplus by Peasant Str a t u m
in 1966 a) Total
b) D i stribution (absolute) in %
c) By Type of Ownership: Ea c h S t r a t u m
= 100
d) By P e a s a n t Stratum: E a c h Type of Own e r s h i p = 100
A P P E N D I C E S
A. 4.1 Average Size of Holding by Status 101 of Tenure in the South in 1966
A.4.2 Ethiopia: Tenural Status of Rural 101 Households in 1966
A . 4.3 Ethiopia: Per c e n t a g e and C u m u l a t i v e 102
% d i s t r i b u t i o n of Size of H o ldings in 1966
A. 4.4 Ethiopia: Distribution of Rural 103 Households in 1966
a) Households, Holdings, A c reage and No. of Fields by A g r arian System
b) D i s t r i b u t i o n of Size of Holdings by A g r a r i a n System
A. 4.5 Ethiopia: Mode of the P a y m e n t 104 of Tenancy Rate by A g r arian S ystem
(%)
A . 4.6 Ethiopia: The. Distri-buiiiri"nw^ - .... 104 of Wage E m p l o y m e n t outside T r a d i
tional Agriculture, D e fence and Security in 1970
A.4.7 Ethiopia: Rural Indebtedness.!/) 105-106 1966
a) Reasons b) Source c) Size
d) Indebtedness by Status of Tenure
- 11-
A.4.8 Ethiopia: Rural Indebtedness, Size of Holding and Oxen O w n ership in 8 Provinces
a) D i s t r i b u t i o n (%) of H o u s e h o l d s Indebted (Yi), % of H o l dings with less than ^ ha. (Xi) and 1 Oxen or less (X2)
b) Result of Regression ‘ u nder A.4 , 8a
A. 4. 9 Maximum, Modal and M i n i m u m Si z e of Land in Individual O w n e r s h i p in 10 Regions of Ethiopia
A . 4.10 No. of Owners of Total H e c t a r e s by Size of Ownership in Ha r e r g e Region
A . 4,11 Ethiopia: Ratio of Tenancy Rent Under D i f f e r e n t Share Cropping A rrangement
A. 4. 12. Ethiopia: Distrib u t i o n of GDP at Current Factor Cost 1961/62- 1976/77
A . 4.13 Ethiopia: Imports of Grain in 1964-1975
A.4.14 Ethiopia: F o reign Trade and the Share of Agricultural C o mmodities a) Exports
b) Imports
A . 4.15 Ethiopia: Sources of G o v e r n m e n t Current R e v e n u e in 1963/64-1970/71
(Mill, of Birr)
A . 4.16 Ethiopia: Disburs e m e n t of Fo r e i g n Loans by S ector in 1962-1971
(in Mill. Birr)
A . 4.17 Addis Abeba and Regional Retail Price Levels 1966-1971
CHAPTER THREE
TEXT
5.1 D i s t r i b u t i o n of Size of Holdings in the Case S tudy Farms, in Arsi and Chilalo
5.2 Gross Income and Consumer Units
5.3 Consumer W o r k e r Ratio and Gross Incomes
5.4 Gross Incomes: Consumer Units and Gross Incomes: Labour Units
5.5 Consumer W o r k e r Ratio and Gross Income Per L abour Unit
5.6 Consumer W o r k e r Ratio and Gross Income Per La b o u r Day
5.7 Gross Income. .Per Labour U n i t and Labour U n i t P e r Cul t i v a t e d Land and Consumer W o r k e r Ratio
5.8 Gross Income Per Labour D a y and Consumer W o r k e r Ratio
5.9 Gross Income P e r Consumer Unit and Labour Land Ratio
PAGE 107
108
108
109
1Q9
110 111
112
113
113
124
134 135 136 137 137 138
139 139
- 12 -
5.10 Gross Income Pe r Consumer Unit and Consumer W o r k e r Ratio
5.11 C o n sumer Unit Per C u l t i v a t e d Land and Gross Incomes
5.12 Gross Income per Labour Day and Consumer Unit Per C ultivated Land 5.13 P r oductivity of Capital and Capital 5.14 P r oductivity of Capital and L abour 5.15 Gross Incomes and Capital L abour
Ratio
5.16 Gross Income from Crops and Family Resources
5. 17 Per Capita Gross Income and F amily Resources
5.18 Gross Income per Hectare and Fa m i l y Resources
5.19 Net Income Per Hectare and Fa m i l y Resources
5.20 Income Per L a b o u r Unit and Fa m i l y Resources
5.21 Income L abour Un i t and F a m i l y R e s o u r c es
5.22 Capital (Ox) Productivity and Family Resources
5.23 Capital (Working) P r o d u c t i v i t y and F amily R e s o urces
5.24 Capital (Total) Product i v i t y and Family Re s o u r c e s
5.25 C ultivated L a n d f Other Family R e s o urces 5.26 Oxen and ot h e r Family Res o u r c e s 5.27 W o r k i n g Capital and other F a m i l y
Resources
APPENDICES 5. 1
5.2
Table
A. 5. 3 1. Table 2. Table 2*8
3. Table 2. 10
4. Table 3. 1 t; T able 3.2 6. Table 2. 12
7. Table 3.5
8. Table 3.6
Chilalo V i l l a g e Study:
of Level of Signifi c a n c e
The Ma i n C h a y a novian H y p o t h e s e s in the Words of C h a y a n o v and the Two - W a y Tables therein
Two-Way Tables by C h ayanov R e l e v a n t to the Study in Chapter Five
2.9 Annual Income by Labour
£ C o nsumer Unit
L abour Output per Labour Unit and L abour Input by Con s u m e r Wo r k e r R a t i o W o rkers Output D e p e n d i n g on Co n sumer Worker Ra t i o and A m o u n t of Land Held
Ou t p u t Per W o rker by Net Sown Area
O utput Per W o r k e r and C o n s u m e r Unit by Ne t So w n Area Labour P r o d u c t i v i t y by Income Per C o n s u m e r Unit and L a b o u r Input
Influence of Capital (K) and Fa m i l y Size (LU) in Farm Ar e a (C)
Influence of F a m i l y Size (LU) and Fixed Capital (K) on Sown Area (C) (Desyantinus) Per W orker
PAGE 14 0 141 142 143 145 146 149 151 153 155 156 158 159 162 163 164 16 5 166
169 170
170' 170 171
172
173 173 174
17 5'
176
- 13 -
Table 3.7 10.T able 3.8
11 Table 3.10
12 Ta b l e 3.11
13 Ta b l e 3.12
14 Table 3.13
Capital (K) and Sown Area Per W o r k e r by Family Size Satisfa c t i o n of Personal Demands (Consumer Budgets) by F a m i l y Size and A m o u n t of Fixed Capital (Roubles)
Gross Income Per Family W o r k e r by F a m i l y Size and a mount of Fixed Capital Gross Income Per 100 Roubles of F ixed Capital by Family Size and A mount of F ixed Capital
Sown Area (Desyantinus) Per 100 Roubles of Capital
(C/K)
Total Family Income in Relation to Fixed Capital Per W o r k e r (Roubles) and F amily Size
CHAPTER FOUR 6. 1
TEXT
The Com p a r a t i v e Distrib u t i o n of P easant Strata in Ethiopia and Arsi 6.2 Chilalo: Status of Land C l a s s i f i e d
for Tax: 1970
6 3 Arsi: Ac r e a g e and Value of Crop O u tput in 1966 at 1971 Prices
6.4 Arsi: Estimates of Output and the M a r k e t a b l e S u rplus in 1966
6.5 CADU/ARDU S u p p l i e d Biological New Technological Inputs and No. of P ar t i c i p a n t Peasants in 1967/68-
1979/80 (three years moving average) 6.6 CADU/ARDU S u p p l i e d New T e c h n o l o g y
S ervices (Heifers a n d A rtificial Insemination) and Supporting Physical
(Rural Roads) and Social (Extension) Services by Crop Year
6.7 Arsi: The Mechanical New T e c h n o l o g y Inputs (Tractors and Combine H a r v e s t ers) and No. of Mechanized Farmers in 1966 and 1972
6.8 Chilalo: The P roportion of Area Under C u l t i v a t i o n (%) by Ty p e of C rop and Se e d V a r i e t y in 1975
6.9 CADU/ARDU Pur c h a s e of G r a i n and Milk from Pe a s a n t s in 1 9 6 7 / 68-1973/74 and 1979/80-1981/82
6.10 CADU/ARDU Rural Institutions in 1977/78-1979/80
6.11 Arsi: Change in Area Under Crops in 1966-1980 in ’000 ha.
6.12 Change in Size of Mean C u l t i v a t e d Land in 1969 and 1970 Cropping Seasons in the CADU P r o j e c t Area
PAGE 176 176
177
178
178
179
186 187 191 192
•196
197
197
199
200
200 201 203
- 14 -
6.13 The Change in Land O w n e r s h i p and Use in the CADU Project Area be t w e e n
1969 and 1970 Cropping Seasons
6.14 Change in the M e a n Size of L i v e s t o c k in the CADU Project Area in 1969- 1970
6.15 Arsi: E s t i m a t e d Value and Rate of Growth of Crop Output in 1966 and 1974/75 (Mill. of Eth. Birr) at 1971 Prices
6.16 Arsi: E s t i m a t e d Value of Crop Ou t p u t in 1974/75 and 1980 in Mill. of Birr at 1971 Prices
6.17 Arsi: Growth- Rates of the Value of Output (in 1966-1980) and the derived p e r c e n t a g e share of growth accounted for by yield and a c reage in 1975 and 1980
6.18 The P ercentage Share and C o m p a r a t i v e Growth Rates of M a j o r Crops in E t h i o p i a and Arsi in 1966-1980
a) Acreage
b) Value of O u t p u t at 1971 P rices
* 6 . 1 9 - 6.39 (All R e f e r to Case Farms') 6.19 Farm Size and Labour Input Per ha.
in Birr
6.20 Net Sown Ar e a and Output Per Ha.
6.21 Ou t p u t P e r Ha. and L a bour Input per Ha.
6.22 Output Per Ha. and Oxen Power Input Per Ha.
6.23 Ou t p u t Per Ha. and P u r chased Inputs Per Ha.
6.24 Land P r o d u c t i v i t y Per Ha. and Capital and Labour Inputs Per Ha.
6.25 O utput and F a c t o r P r o d u c t i v i t y 6.26 Per Ha. C o m p a r a t i v e Cost, Return
and Factor P r oportions in C h ilalo Peasant Case Farms and Mec h a n i z e d Farms in Birr at 1971 Prices
6.27 Per Ha. Cost of Agricultural O p e r a t ions in Chilalo ana Ada in Birr at 1971 Prices
6.28 A g g regate per ha. c o mparative cost of n o n - m e c h a n i z e d (ox/labour) and Me c h anized (tractor/combine/labour) operations and the p ercentage share of labour in Chilalo at 1971
prices
6.29 C o mparative Co s t and T i m e liness of Ox/Labour and M echanized A g r i c u l ture in Ch i l a l o in 1975 in E t h i o p i a n Birr.
PAGE 204
206 207
208
210
211
219 2 20 22 3 224 225 226 228 232
2.35
236
236
- 15 -
6. 30
6.31
6. 32 6. 33
6. 34
6. 35
6.36
6.37 6. 38
6.39
6. 40 6. 41
6.42 6.43 6.44
6.45 6.46
Chilalo: Total and Incremental Balance in the S upply and Demand of Labour by Type of Task (Mill, of Man Hours) a) Total in 1966
b) Total in 1974/75
c) Incremental Balance B e tween 1966 and 1975 at the same level of
labour input per hectare
d) Incremental Balance A s s uming 10% and 30% Increase in Plo u g h i n g and T h r e s h i n g Tasks
Chilalo: The Change in the Level of Factor Use and their Pr i c e s in
in 1966 and 1975
Arsi: D i s t r i b u t i o n of F e r t i l i z e r by Quantity in 1971
Di s tribution of the CADU Credit for Inputs by M e a n Size of C u l t i v a t e d hectare of New C redit Takers
Per Hou s e h o l d Cost/Return Index (Pre-Technology Village - 10,0) in Crop P r o d c u t i o n by Peasant Stratum, Adoption and N o n -Adoption of the New T echnology (at 1971 Prices)
The Mean Level and Disposal of Farm Level Incomes in D i ghellu and Y e l l o m a (pre-technology) in 1966, As s e l a (1971) and E theya (1972) in E t h i o p i a n
Birr
Arsi: Change in the Mode of Pa y m e n t of Tenancy R e n t in 1966 and 1968-
1972
Chilalo: Area Under M e c h a n i z a t i o n by Holding Size
Chilalo: P e r c e n t a g e of Area Under M e c h a n i z a t i o n by Previous Type of Ownership
Arsi: Change in Size D i s t r i b u t i o n of Holding and Acreage in 1966-
1975 and 1975-1980 by Peasant Stratum a) Holdings
b) Acreage
Comparative Size of H o l dings in the Case V i l l a g e s and Arsi in 1966 Area Under C u l t i vation (percentage)
in the Case Villages and Arsi in 1966, 1974/75 and 1980
Case Villages: Total Net Fa r m Incomes in Birr at 1971 Prices
Case Villages: Ratio of Households, Hectarage and Incomes
Arsi: D i s t r i b u t i o n of Income in Birr by Pe a s a n t Stratum in 1966, 1974/75 at 1971 Prices
Arsi: D i s t r i b u t i o n of Income in 1974/75 and 1980
Arsi: D i s t r i b u t i o n of Hou s e h o l d s and Income from Crops in 1966, 1974/
75 and 1980
PAGE 238
240
2 47 248
249
249
250
251 25,2
253
2 b 2 262
263 264 26 6
26 6 269
- 16 -
6.47 Arsi: The Components of O u t p u t of Cereals in 1966, 1975 and 1980
a) Total and Time Index
b) Ratio Index: Total O utput = 100 6.48 Ethiopia: Index of Average Retail
Prices in S e l e c t e d Centres for S e l e c t ed C o mmodities in 1980: 1975=100
6.49 The C o m p a r a t i v e Price Ratios of Cereals (Wheat and Teff), F e r t i l i z e r Industrial Rural C o n s u mption Goods and Wages in Assela in 1975-1980 6.50 Per H o u s e h o l d Percentage C hange
in Income of the D i f f erent Strata of the P e a s a n t r y in 1975-1980
APPENDICES
A . 6.1 Arsi: P e r c e n t a g e of Te n u r e by Peasant S t r a t u m in 1966
A. 6.2 The D y namics of Land Use in the CADU Area in 1969 and 1970
a) By C r opping Season b) By Status of Tenure
A . 6.3 Arsi:, Growth Rates of V a l u e of Output, Ha. and Derived P e r c e n t a g e Share of Growth in Y i e l d and Ha in 1966-1980
A . 6.4 Estimated Area Under Annual Crops in E t h iopia and Arsi 1966, 1974/75 A . 6.5 Estimated Area Under Annual Crops
in E t h i o p i a and Arsi 1974/75 and 1980
A . 6.6 Value of Ma j o r Crops in Et h i o p i a and Arsi 1966, 1975 and 1980
A. 6.7 Chilalo: Size D i s t r i b u t i o n of Holdings at Different Levels of the A d o p t i o n of the N e w T e c h nology in 1966-1972 in C h i l a l o A . 6.8 Arsi: P e r c e n t a g e Growth of No.
of H o u s e h o l d s and Area Under Cultivation in Arsi in 1966- 1974 by P e a s a n t Stratum
A . 6.9 Chilalo: A v a i l a b i l i t y of A g r i c u l tural Wo r k by Sex, Age, and Type of Task in 1975
A . 6.10 Increase in P rice Ratio of Khaki and Cereal Prices in Se l e c t e d Market C e ntres in Et h i o p i a in
1975-1979 CHAPTER FIVE
TEXT
7.1 Ethiopia: C o n s u m p t i o n of F e r t i l i z e r and Number of U sers in 1970-1980/81 7.2 Ethiopia: D i s t r i b u t i o n of F e r t i l i z e r
by Size of Holdings in 1971/72, 1973/74 and 1974/75
7.3 Ethiopia: Area, Yield and Pro d u c t i o n of the Main Cereals in 1974/75-
1979/80
PAGE 270
274
275
276
286 287
289
290 291
292 293
294
294
295
29 9 30 0
303
- 17 -
PAGE 7.4 Ethiopia: E s t i m a t e of Rates of Gro w t h 304
of Cereal Out p u t s in 1974/75-1979/80
7.5 Ethiopia: The C o mparative L abour 308 and Land P r o d u c t i v i t y in the three
Agrarian Systems in 1980
7.6 Ethiopia: The Relative Sh a r e of 309 Peasant, Coo p e r a t i v e and State Farm
in the O utput of Cereals in 1975/76- 1978/79 ('000 tons)
a) Hectarage b) Output
7.7 Ethiopia: P e r c e n t a g e D i s t r i b u t i o n of 313 Households and Holdings by P e a s a n t
S t ratum in 1966, 1971, 1974/75 and 1979/80
a) H ouseholds b) Hectarage
7.8 Ethiopia: The Components of Ou t p u t 320 of Cereals in 1966, 1971 and 1974/75-
1979/80 a) Total
b) Index: Total in Each Year = 100 c) Index: 1974/75 = 100 in all cases
7.9 Ethiopia: The Dis t r i b u t i o n of Cereal 228 Mar k e t a b l e Surplus in 1966, 1970
and 1974/75-1979/80 a) Total
b) P e r c entage Distribution by Type:
Each Year = 100
c) Index of Change: 1974/75 = 100
7.10 Ethiopia: The Distrib u t i o n of Ou t p u t 329 and the M a r k e t a b l e Surplus by Pea s a n t
Strata
7.11 Ethiopia: The Supply and D emand 330 of Cereals in 1966, 1970 and 1974/75-
1979/80 a ) ’Total
b) P e r c entage Distrib u t i o n of D emand
7.12 The Addis A beba Retail Price Index 333 (AARPI) in 1974-1979
7.13 Ethiopia: Es t i m a t e d Composite Cost 335 of Pro d u c t i o n of Cereals, P r o d u c e r
Prices, Addis Ab e b a wholesale Prices and the Index of Change in Price Margins in 1974/75-1979/80
7.14 Ethiopia: The D i s tribution of the 340 Final Va l u e of Output by P r o d u c e r
and M a r keting Institutions in 1979/80
7.15 Ethiopia: Changes in Per H o u s e h o l d 347 Distrib u t i o n of Incomes B e tween
1974/75 and 1979/80 in Tons of Cereals A P P E N D I C E S
A . 7.1 The Q u a n t i t y of New P r o d u c t i v e 351 Capital (Tractors, Fertilizers,
Fuel) Inputs in Ethiopian A g r i c u l ture 1958-1972
A. 7.2 Dis t r i b u t i o n of Improved Seed 352 1978/79-1982/83 ('000 Qtls)
- 18 -
A . 7.3 Ethiopia: Admi n i s t r a t i v e R e gions Ranked by Land Productivity, Size of Holding and Cul t i v a t i o n Intensity
A . 7.4 Ethiopia: C o e f f i c i e n t of V a r i a t i o n of Annual Cereal Prices
A. 7.5 Ethiopia: Results of the 1984 Census and Projections Bac k w a r d s Assuming 2.6% and 6.6% Growth Rates for Rural and Urban P o p u l a t
ion for S e l e c t e d Years ' '
A . 7.6 Ethiopia: Distrib u t i o n of H o u s e holds by P e a s a n t Strata, Urban and Nomadic Populations used in the Model of the M a r k e t a b l e Surplus
PAGE 353
353 354-
355
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C HAPTER ONE
I N TR O D U C T XOIM
1.1 Introductory Note 1.2 The New Technology,
Agrarian Re f o r m and D e v e l o p ment Str a t e g y in the Poor Countries
1.3 The New T e c h nology and A g r a r i a n Reform in Ethiopia
1.4 Aims, Data Base, M e t h o d o l o g y and L i m i t ations of the Study
1.5 Synopsis of the .-Chapters Charts
PAGE 19-44
20-22 23-28
29-34
35- 3P
39-41 42 .44
- 20 -
1 . 1 I N T R O D U C T O R Y N O T E
A fter several decades of concerted efforts towards development, most of the people in the s o - c alled Third W orld find t hemselves in p e r v a s i v e poverty. The condition of human survival is indeed precarious for the poorest of the poor as the recent famine in Africa has t r a g i c a l l y d e m o n s t r a t ed. The level of poverty and its d i s t r i b u t i o n varies r e g i o n ally, sec t o r a l l y and more importantly by class d e p ending on r e s o u r c e endowments,1 state policy, class configu r a t i o n s and the att e n d a n t goals and strategies for development.
But, if we focus upon the 34 'low income' economies identified by the W o r l d B a n k (those w i t h less than U.S. $410 per capita
in 1981) - which contain about half the world population- the important structural c haracteristics of their economies is the prepond e r a n c e of agriculture in the share of national income and employment and the relatively sl o w rate of growth of a g r i c u l t u r e and t h e r efore of the economy. 2
In the years 1960-1980, the real per capita income in 'low-income e c o n o m i e s ’ increased by less than 1% per annum. The growth of per capita agricultural o u tput in 1970-1980 was n i l . 3
Am ongst the ’ low income e c o n o m i e s ', in Ethiopia the contribution of agricu l t u r e to the national economy, employ-
12
ment and exports is one of the highest (only 12^and 17 coun- _
In oil producing countries, for example, such as Saudi Arabia, Kuwait, Bahrain, Iran etc. the basis of a c c u m u l a tion is a wider one, therefore the na t u r e of poverty is different.
2 There is a wide r ange between these countries in the level of these important variables w i t h more countries in Africa being m ainly agrarian than in Asia and Latin America,
World B ank W orld D e velopment R eport T983, p. 148
- 21 -
tries r e s p e c t i v e l y had hi g h e r rates). It was also one of the few countries w here pe r capita agricultural income d e c l i n ed in the same period. Following the agr a r i a n r eform in
1974/75, food imports increased from 18.7 to 62.4 mill.
Birr - from 2 .1% to 4.2% of imports (Griffin: 1985; p . 39) While the economic, political and social c o n d i t i o n of the poor is s i g n i f i c a n t l y d i f f e r e n t in s o c i a l i s t countries such as China and Vietnam on the one hand and n o n - s o c i a l i s t ones such as India and P a k i s t a n on the other, in e c o nomic terms the p r o b l e m of p e r v a s i v e poverty and d e v e l o p m e n t in the non-mineral exporting poor countries ma y be e q uated with the social and economic p r o b l e m of a c c e l e r a t i n g a g ricultural production and p r o d u c t i v i t y and the m e c h a n i s m s of a c c u m u l a t ion - the p r o b l e m of pea s a n t r y the p r o b l e m of agrarian t r a n s i t i o n .4
In w h a t follows, I shall use the n o t i o n of pea s a n t s in the sense e m ployed by Saul and Wood 5 as those
"....whose ultimate, security and sub s i s t e n c e lies in their having ce r t a i n rights in land and the labour of the family members on the one hand, but who are involved, through rights and obligations, in a wider economic system wh i c h includes the p a r t i c i p a t i o n of non-peasants*' (Saul & Wood: 1973, p. 105)
In this definition, the relation w i t h non-peasants is n either r e s t r i c t e d by the r e quirement of u r b a n i z a t i o n nor by the specifi c a t i o n of the relation of the state w i t h the peasantry. In our view, this allows for the study of the changing r e l a t i o n of p e a sants with n o n - p e a s a n t s and the
4.
For the concept of agrarian transition and the po s i t i n g of the a g rarian q u e s t i o n and its r e l e v a n c e to development, see Byres, T.J. "Agrarian Tra n s i t i o n and the A g r a r i a n Question" Journal of Peasant S t udies V o l . 4 No. 3 April 1977 pp. 258-274.
p.
For different notions of peasants in their historical and aeographical diversity, see Shanin: 1973; Marx: 19^0;
Sahlxns: 1960; Thorner: 1973.
emergence, dis s o l u t i o n and re-emergence of states c o n d i t i o n ing the internal dynamics of peasants, their integration with external forces - the very p r o c esses wh i c h crystallize, and d i f f e r e n t i a t e p e a sants from other c u l t i v a t o r s - p r i m itive communal ists on the one hand and c a p i t a l i s t farmers on the other.
- 23 -
1 - 2 T H E N E W T E C H N O L O G Y ,
A G R A R I AIM R E F O R M /MNTP D E V E L O P M E N T S T R A T E G Y X3M T H E R O O R C O U N T R I E S
If d e v e l o p m e n t and the basis of acc u m u l a t i o n in the non-mineral e x p o rting poor countries c ould indeed be equated with a g r a r i a n transition, by most measures, the so-called new t e c h nology has been a landmark in the recent ag r a r i a n d e v e l opment of some of the poor c o u n tries into w h i c h it was introduced.
The term refers to the increasing use of a package of biochemical inputs (new seeds - m a i n l y wheat and to a lesser extent rice - fertilizer, insecticides and water) and the a s s o c i a t e d m e c h a n i z a t i o n (agricultural machinery, i r r i g a tion pumps) in some areas of poor c o u n t r i e s w i t h favourable ecological endowment, and infrastructural setting. The optimism of agricultural growth and a g r a r i a n t ransition albeit via the c apitalist path, w hich s y m b o l i s e d its first coinage as a package appears to have s o m ewhat w aned and its r e f e r e n c e diluted re c e n t l y from m i r a c l e seed to high yielding v a r i e t y and more recently just mod e r n v a r i e t y ?
(Griffin: 1979, p. xi)
Wit h i n the new technology, a d i s t i n c t i o n is made be t w e e n the biochemical inputs which are divisible and 'scale neutral' and the rather lumpy mechanical components req u i r i n g m i nimum outlays .
6.
We will use the notion of new technology; embodying a new labour process in the introduction of new seed, f e r t i l izer and m e c h a n i z a t i o n in the h i t h e r t o labour, oxen and pl o u g h and farm produced seed u sing traditional agr i c u l t u r e in the E t h iopian highlands.
- 24 -
of land and capital for their efficient utilization. Even the letter's scale economy is, however, said to be ’pseudo', since h i r i n g / c o o p e r a t i v e services and equ a l i t y of access to credit could offset their scale bias (Lipton: 1977; Griffin:
1979).
The successful dif f u s i o n of the technological packages, the m a rked change in the rate of agricultural output growth in areas a f f e c t e d by it, the responsi v e n e s s of farmers to prices and a s s o ciated ch a n g e in product mix, the enhanced demand for o f f -farm pr o d u c e d inputs and c o n s u m p t i o n goods, the spiral of acc u m u l a t i o n leading to capital d e e p ening and e x p a n s i o n in a g r i c ulture have been e x t e n s i v e l y d o c u mented (Byres: 1972; Griffin: 1979; Lipton: 1977; Bisrat: 1976;
Falcon: 1973; Ghose: 1976; Patnaik: 1976). At least in those limited parts of the poor countries 7 where the t e c h n o
logical pa c k a g e has assured profitable opportu n i t i e s with relatively stable levels of input and ou t p u t prices, s u c c e s s ive empirical evidence has refuted the 'cultural determinist' theories of d e v e l opment economists (Boeke: 1953; Georgescu- Roegan; I960)* The tool kits developed to investigate the b ackward b e n d i n g supply c urve as a special case in explaining the b a c k w a r d n e s s of poor countries and/or peasants were no longer tenable.
A l t h o u g h some areas w i t h i n countries such as the Pu n j a b in India and P a k i s t a n have shown r e m a r k a b l e growth rates of agricultural output, its overall impact is limited to foodcrops and w ithin these to w h e a t and rice and a bulk of the latter m a i n l y in the Far East.
For the differential rates of g rowth of agricultural food (mainly rice and wheat) o utput in the 1955-1965 and post 1965-1975 n e w technology decades in the poor regions of the world, see G r iffin K. The Political E c onomy of A g r a r i a n O h a n g e , 1979, p. 5.- In the later period, only A frica showed a n e g a t i v e growth rate.
In all, however, the only s i g n i ficant growth rate was that of wheat from 3.5% to 8% in the Far Last, all of w hich can be by no means ascribed to the technology a l o n e .
- 25 -
However, rich as the literature on the new technology in agriculture and its impact on the rural economy of the poor countries is, its e v a l u a t i o n and i m plications for dev e l o p m e n t in general and agricultural policy m a k i n g in such areas
Q
as a g r arian reform, agricultural input, pr o d u c t prices, and orga n i s a t i o n of the agricultural sector have opened a wide range of debates which are by no means new. g Those embracing
a t e chnocratic approach to economic d e v e l o p m e n t in the poor countries w e l c o m e d it for its growth e n h a n c i n g effects w i t h o u t much c o n c e r n for its social and p o l i tical consequences.
8. A g r a r i a n re f o r m is referred to in the literature as a wi d e range of m e a sures which ex t e n d from the c h ange in terms and/or rights of ownership of land to credit, education, extension, m a r keting c o m m u n i t y dev e l o p m e n t
(U.N.: 1954, 1956 in Byres 1974). Byres d e fines it as "...attempts to transform the agr a r i a n structure by a l t e r i n g the distribution of land and the terms upon w h i c h land is held and worked". (Byres: 1974, p. 223). We shall re f e r to this definition as it e n c o m passes a wide variety of reformsr
9.
The debate about the technology b a s e d on micro and macro analysis u s i n g the pers p e c t i v e s of the changing social relations of production in agriculture, the state and allocative efficiency in r e s ource use has been going on in the pages of the E c o n o m i c and Political W e e k l y since the mid-sixties. For a summary of the debate as it was in the early 70s, see Byres, T.J.
"The Dialectic of the Green R e v o l u t i o n Technology" in South As i a n Rev i e w vol. 5 No. 2 1972, pp. 99.-sll6. For a global a s s e s s m e n t see Griffin K. The Political Economy of A g r a r i a n C h a n g e , 1979; Brown, L. Seeds of Change:
The Gr e e n R e v o lution and D e v e l o p m e n t in the 1 9 7 0 s , London 1970; Pearse, A. Seeds of Plenty, Seeds of W a n t , O xford 1980; Frankel, F. India's G reen Revolution:
E c o n o m i c Gains and Political Costs, 1971. For a re c e n t a n a lysis of the economics of the technology in the most important state of India in this respect, see Bhalla, G.S. and Chadha, G.K. G r e e n Revolu t i o n and the Small Peasant: A Study of Income Dist r i b u t i o n among P u b j a b C u l t i v a t o r s , N e w Delhi, 1983. For a series of m i c r o studies de a l i n g with rice, see Farmer, B.H. (ed) G reen Rev o l u t i o n T echnology and Ch a n g e in the Rice G r o w i n g Areas of T a m i l n a d u and Sri L a n k a , Wes t v i e w Press
1977.
- 26 -
They mo r e or less took the well known laissez faire di c t u m
"growth will take care of itself" (Vyas: 1969; Sen: 1980;
Cummings: 1969). Others deducing from the wi d e l y r e p o r t e d change in the org a n i z a t i o n of the p r o d u c t i o n along c a p i t a l i s t lines with the effects of growth-mechanization, the conseq u e n t di splacement and/or the c h ange in the form of the e m p l o y m e n t of labour, the increasing rate of proletarianization, w i d ening income d i f f e r e n t i a l s wi t h i n peasant h o u s e h o l d s and between the p e a s a n t s and the agr a r i a n bourgeoisie, call for state policy instruments to ame l i o r a t e these t endencies (Lipton:
1977; Griffin: 1979; Pearse: 1980; Ghose: 1979; Falcon:
1973).
When o p e r a t i o n a l i z e d into concrete agricultural p olicy measures, the r e c o m m e n d a t i o n s entail a m o r e e q u i table d i s t r i bution of r e s ources e s p e c i a l l y land, credit, social pr i c i n g to foster selected pro d u c t i o n processes in res o u r c e use and crop ou t p u t towards inputs using the scale neutral ones rather than the scale bi a s e d and the m a i n l y foreign e x c hange using mechanization.
Except for the land reform c o m p o n e n t which r e q uires a structural change in the control and use of land, m o s t of the pa c k a g e of ref o r m s could be v i e w e d as cor r e c t i o n s for mar k e t imperfections in land, labour a n d capital. P r e m i s ed on the s c a rcity of capital and land at least in the short term, the control and the inefficient us e of the latter by large holders, the a b u ndance of surplus labour and the empirical evidence of hi g h e r land p r o d u c t i v i t y on small
n suggested. These are
farms, a p a ckage of m e a s u r e s i s ^ meant to foster the pri c i n g
Lipton argues that small family farms can saturate the land with plenty o f labour per acre, as there is little else for the labour to do (Lipton: 1974, p . 289).
of factors at their opportunity costs, capital saving - family labour using - production p r o c esses (with higher labour ^ - capital ratios) which are said to be optimal from the v i e w p o i n t of employment, equity and efficient r e s ource allocation.
From Lipton's argument for r e d i s t r i b u t i v e agrarian reform, a llocative e fficiency of land, labour and capital saving in production, distributive w e l f a r e in c o nsumption between social classes and to some extent an optimal rating of time p r e f e r e n c e could easily be deduced (Lipton: 1974).
Explicitly or implicitly such policy m e a s u r e s imply t e c h nical and economic (let alone political) ease in the s u b s t i tution of capital by labour (which may not be possible as we shall see in Ohilalo) and that of mechanical po w e r by traditional capital.
Ma r x i s t scholars have sought to understand the new technology in terms of a mode of pro d u c t i o n approach within which it c o n s t itutes a c hange in the forces of production, giving rise to new (if any) agrarian structures. The u p t a k e of the new technology, the resulting dy n a m i c of the a g r arian sector and its mom e n t u m are posited w i t h i n the ma t r i x of the c o n f i g u r a t i o n of ciass(es) and the distrib u t i o n of class po w e r in agriculture and the social formation at large m a n i f e s t e d in the historical and cont e m p o r a r y s pecificity
' The most cogent s t a tement of this app r o a c h to d e v e l o p ment is found in Lipton, M. "Towards a Theory of Land Reform" in Lehman, D. Agrarian Re f o r m and R e f o r m i s m , Faber & Faber pp.i^-S/jfGriffin, K. The Political E c onomy of A g r a r i a n C h a n g e , 1979. The formali z a t i o n of these premises, empirical evidence from Brazil and the case for r e d i s t r i b u t i v i s t agrarian r e f o r m ' i s found in Cline A.W. The Consequence of Land R e f o r m in B r a z i l , Amsterdam,
1970. Cline A.W. & R.A. Berry A g r a r i a n S t r u cture and P r o d u c t i v i t y in D e v e l o p i n g C o u n t r i e s , London, 1979.
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the state internally and in its external I'elation with capital The r e l a t i o n between farm size and p r o d u c t i v i t y e s p e cially of land wh i c h is central in the r e s t r u c t u r i n g of factor ratios in p r o d u c t i o n and the components of demand and supply in a g r i c u l t u r e to attain the d e v e l o p m e n t objectives set aboveA,e a c c u m u l a t i o n , g r o w t h , d i s t r i b u t i o n ^ are p r e d i c a t e d within the framework of the dynamism of the relations and forces of pro d u c t i o n in agriculture (Byres: 1972; Patnaik:
1972; Rudra: 1976). W hile these issues - the new technology, agrarian reform, land productivity in the context of the de velopment objectives set above and e v o l u t i o n a r y and r e v o l u tionary a g r arian t r a n sition in their w i d e r theoretical and historical a s p e c t — are d i s c u s s e d in c h a p t e r two, the next section introduces the bac k g r o u n d to the new techno l o g y and a g r a r i a n re f o r m in Ethiopia.
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1 - 3 T FIE N E W T E C H N O L O G Y A N D A G R A R I A N R E F O R M X IN E T H X O P 1L7\
In Ethiopia, following an a g r eement b e tween the then Imperial E t h iopian G o v e r n m e n t and Sweden, the new technology inputs were introduced in 1967 with the est a b l i s h m e n t of the Chilalo Agricultural Development Unit (hereafter C A D U ) . The project built a network of r e s earch (crop, forestry, livestock, animal, machinery, local industry), e x t e nsion (crop, animal, literacy), ma r k e t i n g and c o o p e r a t i v e services (purchase of farm products and the su p p l y of inputs (mainly fertilizer to a lesser ex t e n t new seed, o x -drawn new p l ough in credit), i nfrastructure (roads, water) and social services (nutrition, health services in limited parts) - see the attached chart p o r t raying the diverse a ctivities of the
project It later (1975) e m braced the
other two s u b -provinces of Arsi, Arbagugu and Ticho to be c o m e the Arsi Rural D e velopment Unit (hereafter ARDU) - see a t t a c h ed map*
When it was planned in 1967 as the first of its ki n d in Ethiopia, the planning team outlined their approaches and strategies in CADU: (publication no. 1 1968, pp. 387-388).
The specific operational objectives were set out as:
a) achieve social and economic d e v e l o p m e n t t hroughout the project area by concentrating on farmers of the lower income bracket;
b) explore and p r esent findings of sui t a b l e methods for bringing about agricultural d e v e l o p m e n t in E t hiopia when applied in an integrated ma n n e r and create p o s s i
bilities for r e p l i c a t i o n elsewhere in the country.
c) train rural d e v e l o p m e n t staff for the p r oject and for
