Assessment of Public Agricultural Research Investment Trends and Policy Perspectives in Ethiopia
Résumé
The study examines financial investment trends in public agricultural research in Ethiopia. The budget data from Ethiopian institute of agricultural research (EIAR) and seven regional agricultural research institutes (RARI’s) which is supplemented by national agricultural GDP and inflation data were used for this study. Data were analyzed using descriptive statistics. The study revealed that, agricultural research in Ethiopia is still predominantly funded by the government (77 percent) and total public agricultural research expenditure had increased by 57 percent from birr 0.8 billion in 2015 to birr 1.8 billion in 2020. The total expenditure by EIAR constitutes about 46 and 52 percent of the total agricultural research expenditure in Ethiopia in 2015 and 2020, respectively. Agricultural research intensity ratio dropped below 0.3 percent which is below the investment target of 1 percent or more of agriculture GDP into agricultural research. This intensity gap is related to accelerated growth of AgGDP in Ethiopia, rather than to a slowdown in research investment. To have met this lower target in 2019, Ethiopia would need to have invested birr 6.5 billion or an additional birr 4.93 billion (current prices). Volatility analysis conducted on the agricultural research spending over the period 2015-2020 revealed some degree of volatility in research spending from one year to the other with a volatility coefficient of 0.08 which signifies low volatility. The drastic decline in investment and delay in disbursement were the major challenges confronting the EIAR. Increasing government investment in agricultural and changing the budget calendar, are recommended to address this investment challenge.
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