Poverty, Inequality, and Social Protection in Ethiopia: A Policy Brief

Abstract

In this brief commentary the author argues that social protection is not a useful approach to addressing poverty and inequality in low-income countries like Ethiopia. Instead, the author suggests focusing on wealth creation and the capability development approach to poverty reduction. To achieve this, the author proposes targeted state investment expenditure to enhance the productive capabilities of the economically vulnerable population. Besides, the social protection system should prioritize the design and implementation of livelihood improving investment programs, as in-kind or cash transfer support is not sustainable given the elevated level of economic vulnerability. The effectiveness of Ethiopia’s social protection system lies on improving coverage, targeting deserving individuals, and sustainable financing solutions.