THE CHALLENGES AND PROSPECTS OF GOOD GOVERNANCE ON

ECONOMIC DEVELOPMENT IN ETHIOPIA (IN CASE OF DIRE DAWA

ADMINISTRATION IN GORO SABIAN KEBELE)

DIRE DAWA UNIVERSITY

FACULTY OF SOCIAL SCIENCE AND HUMANITY

DEPARTMENT OF CIVICS AND ETHICAL STUDIES

THE RESEARCH PAPER SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIREMENT OF BA DEGREE IN CIVICS AND ETHICAL STUDIES

BY:

EBRAHIM ABEBAW 1304627

ADVISOR: KASSA YIRGA (MA)

MAY, 2024

DIRE DAWA, ETHIOPIA

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 DECLARATION

I, declare that this research paper, entitled the “The Challenges And Prospects Of Good
Governance On Economic Development In Ethiopia (In Case Of Dire Dawa Administration In
Goro Sabian Kebele)’’ is my work submitted for the Partial fulfillment of the award for Bachelor
of Art (B.A) Degree in Civics And Ethical Studies, Dire Dawa University.

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 ACKNOWLEDGEMENT

First of all, I deepest thanks goes to the Almighty of God for let to stay in life to this day and
enables me to complete our academic life. I also would like to express My deepest gratitude to
My Advisor; Kassa Yirga (Ma), for his enthusiastic support from the preparation until the final
discussion of this paper with frequent follow up with receiving in detail, main body of the paper
and forwarding constructive suggestion.

Last but not least, I would like to extend gratitude to all My friends, colleagues and My beloved
family who have supported and motivated me to come this far. My sincere thanks and
appreciation goes to you all.

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Table of Contents
DECLARATION...........................................................................................................................ii
ACKNOWLEDGEMENT...........................................................................................................iii
LIST OF TABLE..........................................................................................................................vi
ABSTRACT..................................................................................................................................vii
CHAPTER ONE............................................................................................................................1
1.1 Background of the study......................................................................................................................1
1.2 Statement of the Problem.....................................................................................................................3
1.3 Objectives of the study.......................................................................................................................5
1.3.1 General objective..........................................................................................................................5
1.3.2 Specific objectives........................................................................................................................5
1.4 Basic research questions......................................................................................................................5
1.5 Significance of the study......................................................................................................................5
1.6 scope of the study................................................................................................................................6
1.7 Limitation of the study.........................................................................................................................6
1.8. Organization of the Study...................................................................................................................7
CHAPTER TWO...........................................................................................................................8
REVIEW OF RELATED LITERATURE...................................................................................8
2.1. Conceptual framework: governance, good governance......................................................................8
2.2 Good governance.................................................................................................................................8
2.3 The Determinants of Good Governance..............................................................................................9
2.3.1. Rule of Law and Legal Framework.............................................................................................9
2.3.2. Responsive and Inclusive Institutions........................................................................................10
2.3.3. Ethical Leadership and Integrity................................................................................................10
2.3.4. Effective Public Management....................................................................................................10
2.3.5. Independent Media and Civil Society........................................................................................11
2.3.6. Performance and Results Orientation........................................................................................11
2.3.7. International Engagement and Cooperation...............................................................................11
2.4 Good governance in Ethiopia.............................................................................................................12
2.5 concept Economic development.......................................................................................................12
2.6 Goals of economic development........................................................................................................13
CHAPTER THREE.....................................................................................................................14

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3. RESEARCH METHOD AND METHDOLOGY................................................................14
3.1. Research design................................................................................................................................14
3.2. Data Sources.....................................................................................................................................14
3.3. Instrument of Data Collection...........................................................................................................14
3.3.1. Questionnaires............................................................................................................................15
3.3.2. Interviews...................................................................................................................................15
3.4. Sampling Techniques and Sample Size............................................................................................15
3.5. Methods of Data Analysis.................................................................................................................15
CHAPTER FOUR........................................................................................................................16
4. RESULTS AND DISCUSSIONS............................................................................................16
4.1 Demographic Information of the Respondents..................................................................................16
4.2. Practices of Good Governance in Dire dawa administration in goro sabian kebele.........................18
4.2.1. Participation...............................................................................................................................18
4.2.2. Effectiveness and Efficiency......................................................................................................19
4.2.3. Accountability and Transparency..............................................................................................20
4.2.4. Combating Corruption...................................................................................................................21
4.3. Contribution of Good Governance in Promoting Economic Development......................................22
4.4 Major Challenges of Good Governance on Economic Developments of the Study Area.................24
4.4.1 Lack of Accountability and Transparency......................................................................................24
4.4.2 Poverty........................................................................................................................................25
4.4.3 Corruption...................................................................................................................................26
4.4.4 Lack of building Legal, Strong Political and Economic Institutions..........................................26
4.4.5 Less Public Participation.............................................................................................................27
4.4.6 Disrespect of Rule of Law..........................................................................................................28
CHAPTER FIVE.........................................................................................................................30
5. CONCLUSION AND RECOMMENDATION.....................................................................30
5.1 conclusion..........................................................................................................................................30
5.2. Recommendation..............................................................................................................................31
REFERENCE...............................................................................................................................32

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 LIST OF TABLES

Table 1. Gender status of respondents. 16

Table 2. Age of group of respondents. 16
Table 3. Educational statutes of the respondents. 17
Table 4. The years of services respondents. 17
Table 5. institutional framework in kebele. 18
Table 6. level of societal participation. 19
Table 7. service provision in the study area 20
Table 8. Transparency in the study area 20
Table 9. They challenge of good governance in promoting economic development. 22
Table 8. The relation between good governance and economic development. 22
Table 9. Actors in promoting economic development. 23
Table 10. The community participation on economic development. 23

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 ABSTRACT

The main objective of this study was to assess challenges of good governance on economic
development: The case of Dire Dawa Administration, goro sabian kebele, Ethiopia. In order to
conduct this research both primary and secondary data like questionnaire, interviews, books and
internet source were used and purposive sampling techniques have been applied. The state of
good governance versus economic development the case sabian kebele Administration has been
identified and interpreted. The principal of good governance matter, as government based on the
observance of equity, just equity, basic need provision, effectiveness and subsidiary. In the study
are good governance enhances considerable participation of community equal without
differentiation in their economic affairs. Its facilities economic development of community in the
study area contributed for peace full existence and coordination of the community for their
common goal. The study found that the kebele provide both financial and technical support for
vulnerable section of the society and change their economic status. Thus, good governance could
promote economic development of the community by the enabling them to participate in
economic activities and protect the properties all individuals and communities by initiating to
work hard. Besides the study identified and considered the existence of lack of commitment of the
employees, lack of standardized performance, lack of qualified man power and government
officials are majority challenges of good governance. It can then be concluded that good
governance in the study area was no alright. Thus, I recommended that the Kebele
administration should promote accountability, transparency rule of law to enhance economic
development of community in particular and nation in general

Keywords: Good Governance, Economic Development, Community, sabian kebele

Administration

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 CHAPTER ONE

1.1 Background of the study

Good governance is a concept that refers to the way in which a country or organization is
managed and controlled. It involves the processes, structures, and institutions through which
authority and decisions are made and implemented. Good governance is characterized by
transparency, accountability, participation, rule of law, and responsiveness to the needs of the
people. It is essential for promoting economic development, social welfare, and political
stability. Good governance ensures that decisions are made in the best interests of all
stakeholders, and that resources are used efficiently and effectively. It also promotes trust and
confidence in government or organizational institutions, which is critical for maintaining social
cohesion and stability.

In the Ethiopian context, good governance refers to a system of governance that is transparent,
accountable, participatory, and responsive to the needs of the people. It involves the effective
and efficient use of resources, the rule of law, and respect for human rights. Good governance in
Ethiopia also entails the promotion of social justice, equality, and inclusion, as well as the
empowerment of marginalized groups such as women, youth, and persons with disabilities.
Ethiopia has made significant strides towards achieving good governance in recent years, with
the government implementing a number of reforms aimed at improving transparency,
accountability, and responsiveness. These include measures such as the establishment of an
independent electoral board, the creation of a human rights commission, and the adoption of a
new media law aimed at promoting freedom of expression. However, challenges still remain in
areas such as corruption, access to justice, and the protection of human rights, which require
continued efforts to address.

Good governance the term that has become a part of the vernacular of a large range of
development institutions and other actors within the international arena. To promote the

1
economic development researchers have studied the application of good governance in many
developed and developing countries. Good governance is perhaps the single most important
factor in eradicating poverty and promoting development. Good governance addresses economic
institutions and public sector management including transparency and accountability, regulatory
reform and public sector skills and leadership United Nations Organizing (UNO, 2004)

The statistical argument of economic development indicates that the successful experience of
industrial countries on the operation of activity role of government directives and private
resources to change of the structure of their economy. Good governance is comprehensive
strategic planning process that includes political, social and economic institutional environment
of central and local government, but for this paper it is limited to see good governance in
economic aspect primarily with regarding economic development good governance used to
regulatory reforms in promoting economic growth of Firm competitiveness and consumer
welfare (AOKI, 2002).

The concept of good governance has received increasing attention at the end of the 1980s in
Africa, in its regional institutions as well as at country level. We observe since then an increasing
relevance of the concept for over all development policies, for all strategies to speed up
development processes for measures to change development institutions, and for the quality
enhancement of pectoral development interventions Dr.KUTAI tom LIOUS(2007). Although
good governance become a concept being increasingly important for donors in the context of
their development co-operation, it is the interest what the concept really means for development
management and state reform in African countries. According to an assessment by the African
Development Bank (ADB 1994, 176-191) the importance concept of African development is
related, first of all, the necessity to create the basic extra-economic conditions that are important
for the growth of African economies as for example an effective public administration,
functioning legal framework, efficient regulatory structures, transparent system for financial and
accountability. In this context, it is the issue of the quality of the public goods supplied at
country-level that makes good governance such an important concept (Africa development bank,
1994,). Secondly the concept of good governance refers to the developmentally potentials of the
democratic challenge in Africa as accountability, rule of law, freedom of expression, association
and public choice of governments are important elements of African renewals. Thirdly it also to

2
the consolidation of market reforms although quite different development path are possible
within the context of market oriented of economic systems, good governance market-oriented
systems in a specific Socio- economic context especially also in Africa. Ethiopia which is one of
the developing countries of the world, has experienced with three major government
systems .these are Monarchy ,Derg ,and current Federal Democratic Republic of
Ethiopia(FDRE) all of which have their own economic policies which contributed to the current
and future development of the country (Ayele,2006).

Good governance has resulted in important roles of regional and local government in the process
of economic development. Local official has become actively involved in economic development
promotion activities. They recognized many business development opportunities resulting from
changes in the advancement of communication technology and globalization of world economy
(Rubin, 2003). Good governance created and strengthens the relationship between citizens and
government. This means people and government of the country are able to work with each
other’s in order to bring above all community development in general sustainable economic
development that meet. The researcher interested to study the role of good governance in
promoting economies/ development (Ibid).

1.2 Statement of the Problem

For long period of time Ethiopian government is criticized as a one of the least developing state
in the world, especially within sub-Saharan African. The behind conclude Ethiopian country as
such is that political, social and economic status of the country was not satisfactory (Knife,
2001).

The governance means the process of decision making and the process by which decisions are
implemented or not implemented. Governance is used several contexts such as corporate
governance has been defined as network of private non-governmental bodies that have a role to
play in the formulation and implementation of public policy and the delivery of public services.
The main hindrance for development is lack of good governance’s we know, good governance
have vital role in economic development of state, So long as the Ethiopia is affected by lack of
good governance within country, and Ethiopia lacks democratic institutions due to facing of

3
shortage of these institutions, Ethiopia's administrative system faces such challenges. Lack of
good governance adversely affects the economic efficiency of the country, region, zone as well
as town. In Ethiopia, the practice of good governance is very low due to the above mentioned
challenges (Smith, 2007).Despite the progress made in recent years, Ethiopia still faces
significant challenges in terms of achieving good governance and promoting economic
development. One of the main challenges is corruption, which remains a major obstacle to
effective governance and economic growth. Corruption undermines public trust in government
institutions, diverts resources away from productive activities, and creates an uneven playing
field for businesses.

Another challenge is the lack of access to justice, particularly for marginalized groups such as
women, youth, and persons with disabilities. This can lead to a sense of injustice and frustration,
which can in turn fuel social unrest and undermine economic stability. In addition, there is a need
to improve the regulatory environment for businesses, particularly small and medium-sized
enterprises (SMEs). Many SMEs face significant barriers to entry and growth, including complex
regulations, limited access to finance, and a lack of infrastructure.

Despite these challenges, there are also prospects for improving governance and promoting
economic development in Ethiopia. The government has demonstrated a commitment to reform,
and has implemented a number of measures aimed at improving transparency, accountability,
and Responsiveness. These include efforts to modernize the tax system, improve public financial
management, and promote private sector development. In addition, there is significant potential
for Ethiopia to leverage its natural resources, including its agricultural sector and its abundant
renewable energy sources. By investing in infrastructure and creating an enabling environment
for business, Ethiopia can attract foreign investment and promote sustainable economic growth.

Ethiopia has a long tradition of various governments, it has given little attention to good
governance due to the orientation, attitude and work practices of the bureaucratic machinery
established to carry out centralized and control-oriented government. After the down fall of
socialist government in 1991, the political, economic and social changes have taken place in
Ethiopia since the establishment of the transitional government and later in the FDRE
constitution (Jemal Abagissa, 2019, p. 10). Thus, the researcher is motivated to conduct this

4
study in order to suggest some mechanisms for those problems in the cause study area in Dire
dawa administration in goro sabian kebele. Good governance is not only for a type of
government and its related political values but also for certain kinds of additional components it
implies government that is democratically organized within a democratic political culture and
with efficient administrative organization, plus the right policies, particularly in the economic
sphere (abid ,2010

1.3 Objectives of the study

1.3.1 General objective

The general objective of this study is to the challenges and prospects of good governance on
economic development in Ethiopia in Dire dawa administration in goro sabian kebele.

1.3.2 Specific objectives

The specific objectives of the study are as follows:

 To assess the practice of the good governance in the study area.

 To investigate the contribution of good governance in promoting economic development in
the study area.
 To identify the challenges of good governance in the study area.

1.4 Basic research questions

The researcher considered the following as the major research questions in the study:
1. What are the practices of good governance in the study area?
2. What are the actor of good governance can promote economic development in the
study area?
3. What are the challenges of good governance in the study area?

5
1.5 Significance of the study

This study is conducted primarily for the purpose of assessing the level of good governance
administration of study area and to describe the challenges and opportunities existed in the
administration. The study may create awareness about the challenge of good governance on
economic development and also challenges and prospects every selected sector are facing. It may
also help as the input for the poverty reduction sectors on how to reduce the challenges of good
governance. The study brings an opportunity in which the sectors are going to implement good
governance. The study may also indicate major challenges and prospects of good governance
economic development in study area. The study also provides an input to policy makers and
legislative bodies and leave ideas for further research who may conduct study on challenges of
and prospects of good governance of poverty reduction sectors It goes further; by determine the
problem, weakness and strength in the application of good governance of the country’s
administration sector. The study may help administration sector use as a reference of strength
its function that’s important for economic improvement.

1.6 scope of the study

Geographically, this study was conducted in Dire dawa administration. The study delimited only
to studying on assess the challenges and prospects of good governance on economic
improvement in goro sabian kebele. Hence, the result is not representative of the whole region
and country at large. Because it is difficult to cover the vast areas and in all other sector at one
time study. For this case the study to focused on the current good governance challenge on
economic development of goro sabian kebele Methodologically, this study was conducted using
descriptive research design. Therefore, this study was primarily focus on Dire dawa
administration in goro sabian kebele some selected administration office,

1.7 Limitation of the study

As the concept of governance is multidimensional that includes social, economic and political
aspects; it is difficult to draw inferences from political and administrative dimension, hence this
study gives more emphasis to the political and institutional scopes even though they are not
equally select. There are various factors that influenced and affected the research. Among these,

6
some of the respondents are unwilling to give reliable and valid data especially about their
personal information. Some of the respondent in the sectors and administration departments may
refuse to give information and turn back interview guides. The leaders of the sectors cannot
obtain by the reason of close meeting. Respondents may fear to tell the reality due to the political
nature of the case. Financial constraint during collecting sufficient data from extended number of
sample respondent, time and social constraints for data gathering and analysis.
1.8. Organization of the Study

This study is organized into five chapters. Chapter one incorporates an introduction, a statement
of the problem, research objectives and questions, the scope of the study, the significance of the
study, and the definition of key terms. Chapter two provides an overview of the existing
literature, which includes definitions of terms, a theoretical and empirically related literature
review.

Chapter three presents the methodology used in this thesis, which includes the research approach
as well as the data collection and analysis methods used. Chapter four analyzes and presents the
research findings obtained through the thesis methodology by showing how each of the research
questions would be answered and how these findings together contribute to the main purpose of
the study. Eventually, Chapter 5 culminates in the thesis with a summary, conclusions, and a set
of recommendations derived from the research findings and conclusions of this work. At the end
of the thesis document, references and a set of appendices was included that contain the
questionnaires of the survey forms used to collect primary data for the study and other
supplementary documents of the study.

7
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1. Conceptual framework: governance, good governance

Governance is a complex system of interactions among structures, traditions, functions

(responsibilities), and processes (practices) characterized by three values of accountability,
transparency and participation (USAID, 2002).

A cursory review of the literature on governance and good governance reveals lack of consensus
on its definition. Governance is a very broad concept and operates at every level, such as
household, village, municipality, nation, region or globe (Nzongola-Ntalaja, 2002). The present
study reviews the literature on the concept of governance when it is applied to the nation state.
Governance has come to mean different things to different people. Some view it as act of
governing others as empowering the civil society and yet other as the relationship between state
and civil society’’ (Balagon, 1998).

2.2 Good governance

Good governance is described elsewhere as the striving for rule of law, transparency,
responsiveness, participation, equity, effectiveness and efficiency, accountability and strategic
vision in the exercise of political, economic and administrative authority(UNDP,2002;2).

Recently, the concept of good governance predominates contemporary national and globally
political discussion. It is not a concept that is easy to define, as it requires a value judgment,
whether in socio-economic development or political administrative framework. It might entail
8
structure and processes that support the creation of a participatory, responsive and an
accountability policy embedded in a competitive, non-discriminatory, yet equitable economy
(UNDP, 2002). Good governance requires prudent allocation of resource generated by the people
to serve their basic human needs, which will in turn expand the opportunities open to them.

The concept of good governance emerged mainly because of practice of bad governance
characterized by corruption, accountable government and lack of respect and human rights. And
this had become increasingly dangerous, the need to intervene in such cases had become urgent,
and thus, the issue has become essential ingredient in any socio political agenda and
development discourse throughout the world. Good governance is defined as the exercise of
economic political an administrative authority to manage a countries affairs through
participatory, transparent, accountable, effective and equitable manner which promotes the rule
of law, ensures that voices of the poor and the most vulnerable are heard in decision making over
the allocation of development resources(Anowar,2010).

Good governance is perhaps the single most important factor in eradicating poverty and
promoting development. Economic development is the progressive change in socio economic
structure of country view in this economic development involves steady decline agricultural
share GDP and confidence increase in shares duties, trade and bank service. Good governance is
an indeterminate term used in the international development literature to describe how public
institutions conduct public affairs and manage public resources. Governance is the process of
decision making are implemented or not implemented. Governance can apply to corporate,
international national, local governance or to interactions between other sectors o society
(UNESCAP, 2009)

2.3 The Determinants of Good Governance

Good governance encompasses a set of principles and practices that contribute to efficient,
effective, transparent, and accountable management of public affairs. The determinants of good
governance are multifaceted and interrelated, reflecting principles of ethical leadership,
institutional integrity, and equitable service delivery. Here are some key determinants of good
governance:

9
2.3.1. Rule of Law and Legal Framework

 . Transparent Legal System: A clear, consistent, and transparent legal framework and
judicial system that upholds the rule of law and provides access to justice for all citizens.

 Accountability: Mechanisms to ensure that public officials and institutions are answerable
for their actions, decisions, and resource management, promoting transparency and probity.

 . Protection of Human Rights: Safeguarding and upholding the fundamental rights and
freedoms of individuals, ensuring fairness, dignity, and inclusivity for all members of
society.

2.3.2. Responsive and Inclusive Institutions

 Citizen Engagement: Inclusive and participatory governance that encourages active

engagement, representation, consultation, and involvement of diverse groups within
decision-making processes.

 Responsive Public Service: Efficient and effective public administration that delivers quality
services, responds to citizens' needs, and fosters citizen trust and satisfaction.

 Local Governance: Empowering local-level institutions, decentralization, and community

participation in the decision-making process, ensuring closer alignment with local needs and
aspirations.

2.3.3. Ethical Leadership and Integrity

 Ethical Conduct: A commitment to ethical standards, integrity, and moral conduct among
leaders, administrators, and public officials, promoting trust and credibility in governance.

 Elimination of Corruption: Efforts to combat and eliminate corruption, bribery, and

unethical practices within all levels of government and public institutions.

 Conflict of Interest Regulation: Institutional mechanisms to identify and manage conflicts of

interest among public officials and ensure transparency in decision-making processes.

10
2.3.4. Effective Public Management

 Strategic Vision: Clear and concise national development plans and policies, providing
direction and guidance for development efforts while considering long-term implications.

 Sound Financial Management: Transparent budgeting, fiscal responsibility, and effective

management of public resources, ensuring prudent financial practices and accountability.

 . E-Governance and Technological Innovation: Adoption of technology and e-governance

tools to enhance service delivery, data transparency, and public engagement.

2.3.5. Independent Media and Civil Society

 Freedom of the Press: A free, independent, and responsible media that provides checks and
balances, allowing for transparency, accountability, and open public discussion.

 Vibrant Civil Society: A strong civil society that serves as a watchdog, advocate, and
participatory partner in governance, contributing to social cohesion and policy dialogue.

 Open Information Access: Availability of information and data, promoting public access to
government activities, decisions, and policies.

2.3.6. Performance and Results Orientation

 Performance Measurement: Systems to measure the impact and outcomes of governance,

ensuring effectiveness, efficiency, and continuous improvement in public service delivery.

 Service Delivery: A focus on efficient and equitable public service delivery, benefiting all
citizens, including those from marginalized and vulnerable groups.

 Economic and Social Development: Governance processes that prioritize sustainable

economic growth, social equity, and environmental sustainability.

2.3.7. International Engagement and Cooperation

 International Commitment: Commitment to international conventions, agreements, and

principles that promote good governance, transparency, and accountability.

11
 Global Accountability: Participation in global governance initiatives, promoting adherence
to international standards and transparency in international engagements.

 Aid Effectiveness and Development Partnerships: Ensuring effective use of international

development assistance, fostering partnerships based on mutual respect and shared
development objectives.

These determinants, when implemented effectively, contribute to transparent, accountable, and

responsive governance, ultimately promoting sustainable social and economic development and
enhancing citizen well-being.

2.4 Good governance in Ethiopia

In case of Ethiopia good governance strategies and polices are prepared to facilitate basic
activities of good governance. To implement those policies and strategy there is responsible body
which is assigned by government. This responsible body is civil service minister and other
related branches. According to annual report of central government (2005) the implementation of
good governance is evaluated and identified the strength and weakness. Based on this report
specially deters which service majority of society have same limitation regarding the
implementation of good governance. These sectors were identified and evaluated based on their
performance. Good governance came after several movements, uprisings, resistances, good
governances, coup attempts and bloodshed wars by different peoples and parties in the past
regimes. In general the performance of good governance in Ethiopia is some problems. Some of
these problems are unfair services, lack of on time service and lack of transparency especially in
public service. Therefore it leads to lack of participation in developmental activities. To solve
these problem central governments prepares some new strategies and programs. Therefore it may
be solved for the future and minimized the gap in.

2.5 concept Economic development

Economic development has been defined by different scholars and by international institutions
from different dimension. According to Schumpeter, economic development refers to sustainable
increase in living standards. Economic development is the progressive change in socio economic

12
structure of country view in this economic development involves steady decline agricultural
share in GDP and confidents increase in shares duties, trade, banking, constitution and service.
Economic development involves change in composition output, shifting of accusation of
productive resource and eliminating or reduction poverty, inequality and unemployment
(Myrdal), 2005).

2.6 Goals of economic development

The goal of economic development in its simplest form is to create the wealth of the nation. Prior
to the 1970s, rapid economic growth has been considered a good proxy for other attributes of
development (Todaroand Smith, 2009). Economic performance is measured by an annual in
increase in Gross National Product (GNP) an alternative measure is Gross Domestic Product
(GDP).For the purpose of comparability

13
 CHAPTER THREE

3. RESEARCH METHOD AND METHDOLOGY

This chapter presents description of the area, the research design data collection and data
analysis.

3.1. Research design

Research design can be considered as the structure of research that holds all of the elements in a
research project together or, simply it is a plan of the proposed research work. Also, it can be
described as the plan, structure and strategy and investigation concaved so as to obtain ensured to
search question and control variance (Md. Inaam Akhtar, 2016, p. 68). In the study, as it
illustrates the challenges of good governance on economic development, in addition to
describing of the present state of affairs as it exist, To achieve this goal the researcher used
descriptive research design with mixed research approach that are both qualitative and
quantitative ones and explanatory design.

3.2. Data Sources

The researcher would be used both primary and secondary data sources to accomplish the
objective of this research. The primary data source would be collected from 30 selected
employees of the government officials through questionnaires and from 6 respondent of
government. Like primary data, secondary data are also important for the purpose of this
research. Secondary data will collect through review of related literature such as books, websites,
journal articles, magazine, internet and official report.

14
3.3. Instrument of Data Collection

The researcher would be used various data gathering tools. There are many data collection
techniques but questionnaire and interview would be selected as a method for the conduct of this
research purpose

3.3.1. Questionnaires

The questionnaires of this questionnaire are both open-ended and close-ended prepared in both
Oromic and Amaric language purposively selected respondent can the languages. The researcher
would be distributed questionnaires for both males and females based on the knowledge of
population and purpose of the study and who have the ability to provide the researcher with the
relevant and information about the issue of by using judgment of sampling techniques.

3.3.2. Interviews

The researcher would interview from the officials of the town in order to get key information.
Interview is a process of communication in which the interviewee gives the needed information
orally in face-to-face situation with the interviewer. The advantage of this data collection
instrument is that usually allowed face to face contact with the respondents, sampling techniques
based on the knowledge of the respondent and experience of them.

3.4. Sampling Techniques and Sample Size

The researcher would select 30 samples respondents from total employees of the goro sapian
Kebele administration purposively and randomly. From these, 30 respondents for questionnaires
and 6 respondents for interview selected. The rationale behind using non probability purposive
sampling techniques is based up on the variety of criteria which may include experience,
responsive, capacity, and who have the ability to assist with relevant information about the
issues.

15
3.5. Methods of Data Analysis

The analysis of this study would be used both qualitative and quantitative approach. The
qualitative data will analyze through description, interpretation and summarization. The
quantitative data will be analyzed through classification, tabulation and percentage.

CHAPTER FOUR

4. RESULTS AND DISCUSSIONS

This chapter deals with the data analysis, discussion, finding and interpretation of data gathered
through questionnaire, Interview and FGD on the challenges and prospects of good governance
on economic development in Ethiopia in Dire dawa administration in goro sabian kebele. The
chapter analyzes, discuss and present objectives of the research. In addition, the data collected
from different sources using different tools have consolidated as well as analyzed using SPSS
software package and other statistical tools and finally presented using graphs, charts,
percentages and tables.

4.1 Demographic Information of the Respondents

Table 1. Gender status of respondents.

No Item Alternatives Respondents

Number Percentage
1 Sex Male Female 16 55
14 45
Total 30 100
Source: questionnaire survey, 2024.

16
As indicated in above table, the higher percentage of the respondents are 16 males which account
55% of the total sample and the remaining 14 respondents are females which account 45% from
the total sample

Table 2. Age of group of respondents.

No Item Alternative Respondents

Numbers Percentages
2 Age 18-25 15 50%
of 26-30 13 40%
group 31-40 1 5%
41-50 1 5%
Total 30 100%
Source: questionnaire survey, 2024.

As presented in the above table, majority of the respondents are between the ages of 18-25 this
means they cover 50% of the total respondents. The age-group between 26-30% covers 40% of
the total respondents and remaining age-group between 31-40 and 41-50 which covers both 5%
of the total respondents respectively

Table 3. Educational statutes of the respondents.

No Item Alternatives Respondents

Numbers Percentages
3 Educational Certificate - -
status Diploma 2 10%
Degree 25 75%
MA degree 3 15%
Total 30 100%
Source: questionnaire survey, 2024.

As shown in the above table, the majority of the respondents or the 75% are qualified degree
15% qualified MA degrees as well as 10% qualified diploma from the total respondents in the
study area.

Table 4. The years of services respondents.

No Item Alternatives Respondents

Numbers Percentages

17
 4 Years of 0-5 5 15%
service 3-5 7 24.5%
6-10 15 50%
>10 3 10.5%
Total 20 100%
Source: questionnaire survey, 2024.

As shown in the above table the majority of the respondents are between 6-10 years of service
which cover 50% from the total respondents, between 3-5 years of service which covers 24,5%
from the total respondents, and the remaining between 0-5 and >10 years of services which cover
15% and 10.5% from the total respondents.

4.2. Practices of Good Governance in Dire dawa administration in goro sabian

kebele

This subsection of the paper dealt with the practice of good governance in the study areas using
the five core elements of good governance above mentioned.

4.2.1. Participation

Good governance to be prevailed, all men and women, majority and minority groups, old aged
and youngsters should have a voice in decision making either directly or through legitimate
intermediate institutions that represent their interests. Government alone cannot achieve good
governance. For governance to be good, citizens, community-based organization and civic
society organizations must actively claim and affirm rights and initiate efforts to stimulate broad
participation in governance process. Good governance requires collaboration with government to
create a meaningful role in public decision making. To assess the situations of citizens, civil
society and community-based organizations participation in the study area, the respondents were
asked varieties of questions and their response to questionnaires, interviews and focus group
discussions were interpreted together as follow:

As depicted in the table 5 out of the existing respondents 53.3% believe that there is institutional
framework for societal participation in decision making of their kebele while 46.7% of the
respondents respond that there is no any institutional framework for societal participation in local
government decision making.

18
Although the respondents are near to equal still majority of the respondents (more than 50%-
53.3%) of the respondent believe as there is institutional base for participation. In the same
manner participants of interviews responded that the institutional base for participation is lay
down by the government but it is not applied as expected. Therefore, the officials said that those
who say there is no institutional base for participation in local government decision making are
those citizens who are not aware of the existing institution.

Table 5. institutional framework in kebele.

Item Response Frequency Percentage

Is there institutional framework for societal yes 16 53.3
participation in decision making in your kebele no 14 46.7
Source: questionnaire survey, 2024.

Furthermore, respondents are asked question ‘what is the current level of societal participation in
your kebele?’ As the below Table 5 depicted majority of the respondents (40%) believe that the
current societal participation in Goro sabian kebele is medium while 10% and 6.7% of the
respondents see the current societal participation in their kebele as good and very good
respectively. It is 43.3% of the respondents are perceived the societal participation in their kebele
as poor

Table 6. level of societal participation.

Item Response Frequency Percentage

what is the current level of societal Very Good 2 6.7
participation in your kebele Good 3 10.0
Medium 12 40.0
Poor 13 43.3
total 30 100.0
Source: questionnaire survey, 2024.

However, the kebele civil service head, said that although the societal participation in local
government decision making is increasing from time to time, there is limitation in providing
inclusive participation. Specially, some husbands and fathers are still reluctant to send their
wives and girls for participation. Also due to highly rampant illegal migration, youth

19
participation in local government decision making is very low. Connecting with this the official
said that illegal migration is the main challenges of good governance in the kebele..

4.2.2. Effectiveness and Efficiency

given public institution is the major factor to indicate the status of good governance in the public
institutions. Concerning goro sabian kebele public institutions as the below table majority of the
respondents (40%) respond highly dissatisfaction while 26.7% respond dissatisfaction. Small
groups 20% and 13.3% respond satisfaction and high satisfaction. The quantitative data shows
that majority of the respondents are dissatisfied with the service provision in the kebele.

Table 7. service provision in the study area

Item Response Frequency Percentage

what is View on service highly dissatisfaction 12 40.0
provision in the kebele dissatisfaction 8 26.7
satisfaction 6 20.0
high satisfaction 4 13.3
total 30 100.0
Source: questionnaire survey, 2024.

data from interviews and focus group discussion also show the same finding. The elders
participating in the focus group discussion argued that the bureaucracies in the kebele are too
weak to provide up to time services to the society. The bureaucracy is too partisan in service
provisions. In the kebele people get service not through the civil service laws but through
informal attachments in terms of religious or friendship. In support of this the officials said that
the civil servants are reluctant to provide services as expected.

4.2.3. Accountability and Transparency

One major indicator of government institutions transparency is procedures of disclosing

procurement. As the below table shows majority of the respondents (56.7%) responded as they
have doubt on the transparency of procurement procurers in their kebele while 43.3% of the
respondents respond that the procurement procedures in their kebele is transparent.

Table 8. Transparency in the study area

20
 Item Response Frequenc Percentage
y
what is level of Transparency in your good 13 43.3
kebele poor 17 56.7
Total 30 100.0
Source: questionnaire survey, 2024.

As table 8 depicted majority of the respondents are believed as the procurement procedure is not
clear. In support of this the officials participating in interviews said that the procurement process
in their kebele lack transparency. The officials further argued that the main source of rent seeking
and petty corruption is the procurement procedures by citing some examples of currently
investigated corruption case in the kebele. Participants of focus group discussion also have the
same perception. The participants of focus group discussion have different views from the
majority of the respondents of questionnaires. The discussant argued that there is no
accountability of government officials by pointing to political appointees. The discussant said
that there are problem of good governance in the kebele like illegal immigration, petty corruption
and land related problems but the officials associated with these all problems of good governance
are not accountable. If the people request the government to question a given officials said the
discussant the only measure taken up on he/she is changing the individuals from one woreda to
another woreda or promoting to regional and federal level by naming some individuals who pass
through this track

4.2.4. Combating Corruption

Combating corruption is one of the pillars of good governance. The researcher also took
combating corruption as independent measurement as well as assessment of situations of
corruption as one specific objectives because of the Ethiopian good governance package took
corruption as the major challenging factor of good governance and combating corruption as
major measurement of Ethiopian good governance packages. Due to this combating corruption
dealt with separately in this sub-section. According to successive development plan of Ethiopia
one way of enhancing the effectiveness of anti-corruption policy is through developing the active
participation of society in monitoring and reviewing the implementation of anti-corruption
policy. Concerning this majority of the respondents (53.8%) answered, as there is no framework

21
for society to monitor and review the implementation of anti-corruption policy while 36.8% of
the respondents answered that the kebele has procedural frameworks through which the society
monitor and reviews the implementation of anti-corruption policy. The researcher also tried to
verify this finding by interviewing officials and reviewing some documents related to the issues.
The officials explain that there are different anti-corruption packages and different rules and
regulations established from federal to local government in order to enhance the participation of
community in monitoring and reviewing anti-corruption policies of the country. But the main
problem is corruption is a sophisticated practice which is beyond the communities monitoring
capacity

4.3. Contribution of Good Governance in Promoting Economic Development

The respondents said on the interview are that indicates and promoting the employees who
increase the performance of their efforts to create awareness and participation of community,
civil society, private self-profit or other valuing in economic development expending of
community system among the kebele are the major role of good governance in promoting
economic development

Table 9. They challenge of good governance in promoting economic development.

No Item Alternatives number percentage

5. What is the good Lack of community participation 7 20%
governance related Government policy 3 5%
challenges in promoting Lack of human and capital resource 9 35%
economic development Lack of community and government 11 40%
in Sabian kebele officials’ involvement in the promotion of
administration? good governance
Total 30 100%
Source: questionnaire survey, 2024.

As we can see from the above table, the respondents had been enumerated a multitude of good
governance related problems that can be an obstacle in attempt to promote economic
development in the study area. Accordingly, lack of human and capital resource and, lack of
community and government officials participating on good governance are the most important

22
challenges that hinder the concerned body in its attempt to bring about sound and equitable
economic development in Sabian kebele administration.

Table 8. The relation between good governance and economic development.

No Item Alternatives Respondents

number percentage
6 Do you think that, in Sabian Yes 20 75%
kebele administration the No 10 25%
government policy is Total 30 100%
explaining good governance
in with economic
development?
7 If your answer for question Lack of low interpret economic 3 15%
number 6 is yes or no, is development 7 35%
there any reason that may Lack of training of employees for
hinder the relation economic development
Source: questionnaire survey, 2024.

According to the above table, the majority respondents confirmed that in sabia kebele
administration, the government policies have a good governance is relation with economic
development. Based on the majority idea the researcher is also suggests that in the study area the
government policies are related with economic development. According to the employee’s
response that in the study area government policy to improve economic development is very
important because the kebele economic development like, progress of life styles of the
community more developed than before. Nevertheless, as shown in the above table, the majority
of respondents are replied the problems of human resources and capital managements are the
main problem of the government policy and economic development in the study area.

Table 9. Actors in promoting economic development.

No Item Alternatives Respondents

Number Percentage
8 Which of the following organs Government 7 20%
have a higher role in Civil society 4 15%
promoting economic The community 15 50%
development in Private sector 4 15%
Sabian kebele administration?
Total 30 100%
Source: questionnaire survey, 2024.

23
According to the above table, the majority of the respondents are replied that, the communities of
Sabian kebele administration have major roles in economic development. Based on the above
table the researcher also understands that, in Sabian kebele administration community have their
own role in promoting economic development rather than the government and the civil society.
According to the interviewers said that in the Sabian kebele administration the primary economic
activities are technological improvement to increase the productivity of industrial sector. That
means small scale industry and small business development and, small scale micro finance to
provide credit for the kebele residents that may promote economic development of societies.

Table 10. The community participation on economic development.

N Item Alternatives Respondent

o s
Number Percentage
9 Do you believe the communities have Yes 21 80%
participated on economic development in No 9 20%
Sabian kebele administration? Total 30 100%
10 If your answer for question number 9 is High 12 50%
yes how about level of participation in to Low 6 20%
economic development? Very low 5 15%
Very high 5 15%
Total 30 100%
Source: questionnaire survey, 2024.

As it is indicated in the above table, the majority of the respondents are agree on the community
have participation on economic development. According to the above data the majority of the
respondents are agree on high community participation on economic development

4.4 Major Challenges of Good Governance on Economic Developments of the

Study Area

4.4.1 Lack of Accountability and Transparency

The concept of accountability is so crucial to development even at the group level and in the life
of any nation to the extent that without it, society would perpetually remain underdeveloped.
According to the public administration dictionary, accountability is a condition in which
individuals who exercise power are constrained by external means and by internal norms. The
constrains engendered by these external means and internal norms could be seen as a watchdog

24
and protective devise, which helps to guide and modify the behavior of those saddled with the
responsibilities to manage governmental agencies for the good of the people in a society. The
FDRE Constitution, Article 12 incorporates transparency, accountability and responsiveness in
the affairs of government. Accordingly, Article 12(1) states that, the conduct of affaires of
government shall be transparent (Daniel E., Adeola I., Nchekwube. O., 2014, p. 82). Besides to
this, the findings of the study were illustrated that the existing accountability and transparency in
the public offices in the study area were low. Most of the public officers and managers are not
accountable and clear to the society in their doings and decisions. Even though the rule and
regulations of the government direct the officers to be accountable and transparent to the people,
in reveres to this, most of the time they are less responsible and transparent for the people they
are serving at the office. Accordingly, during the Focus Group Discussion, the respondents were
said that; in the study area, there is no Good governance as most of the public officers are not
accountable to the rule of law and hide the existing future plan and the past reports of what was
done to the public there. In addition to this, in the study, my key informants were replied as there
is less implementation of accountability and transparency and that is negatively contributing to
the lack of good governance and hindrance to socio-economic development. Therefore, based on
the findings of the study, it can be concluded that lack of accountability and transparency is the
major challenge to practice good governance which helps to enhance the society’s
socioeconomic development in the study area.

4.4.2 Poverty

A cross-cutting primary reason for the persistence of poverty and food insecurity traps in Africa
and Ethiopia is poor governance at both the macro and micro levels. A country can find itself in a
high fertility trap with rapid population growth that adds to problems of poverty. Population
pressures lead to a Malthusian trap, in which a society cannot escape from a subsistence
economy because of lack of additional resources necessary to maintain larger population sizes.
Ethiopia is the second-largest populated country in Africa; it has more than 90 Million people
and is growing at an annual rate of 3% (Sisay Asefa and Wei-Chiao Huang , 2015, p. 10-11).
According to Dr.Ram Prasad Pal(2017, p. 17), there is strong evident that governance and
institution matters in accelerating development and in reducing poverty in most developing
countries, with regards to this, since the ends of the 1980s, the issue of good governance has

25
been dominating the international discretion about development and international assistance to
developing countries. As the result, good governance become a buzz word in this era and has
swept public attention for the last decades. It has also become significant pillar in the
consideration of a state’s ability to confirm universally accept democratic standards and became
one of the major challenge for the socio economic development in developing countries. Also, as
the findings of the study revealed that, poverty is one of the crucial challenge that hinder the
implementation of socio economic development and good governance since the public office
holders tried to insure their personal need than public need. As Focus Group Discussion
participants responded that, the majority of the people are unable to meet their human basic
needs because of the existing extreme poverty in the study area. And the public servants are a
part of the society that shares the negative impact of poverty who was not meets their personal
need. Therefore, to meet their human basic needs they used the office they secured for fulfilling
their personal needs than serving the society as per the rule and regulation to ensure good
governance that leads to promote socio economic development of the study area Accordingly, as
my key informants, the socio economic background of the employee is a key challenge to
implement good governance to ensure better socio-economic development in the country
generally and in the study area particularly because most of the public servants come from
economically disadvantaged group that couldn’t meet its basic need and used the office as a good
opportunity to fill the economic gap they have. Thus, as to the findings of the study, the existing
extreme poverty in the study area is an obstacle to implement good governance which serves as a
tool for the socio-economic development the study area.

4.4.3 Corruption

Corrupt practices are not issues just beginning today in our society; its history is as old as the
world. The issue of corruption remains a challenge in the development of any society and has
been universally acknowledged as antithetical to any development that can be sustained.
Institutions of governance once created take a life of their own. Therefore, deliberate attempts
should be made to ensure that these institutions are built on sound ethical values and orientations,
their operators should be made to go through and imbibe enduring moral training and virtues that
can be passed on to future generations in order to guarantee rectitude, transparency and
accountability in public service. These can redress the decadence in agencies and organs of

26
government, especially watchdog institutions such as the judiciary, police and anti-graft bodies
(Okeke, E. 2010). As the findings of the study revealed that, corruption is the most challenge in
practicing good governance and the development of the society as the public officials are highly
engaging in looting the government and the society’s asset and used for their own purpose. Again
my key informants’ response showed that, many public leaders are using the government and
society capital for their personal interest by engaging themselves in corruption. At the same time,
while the researcher conducted focus group discussion with top leaders, their response revealed
that corruption is the one among these major challenges to implement good governance and
enhancing societal socio-economic developments.

4.4.4 Lack of building Legal, Strong Political and Economic Institutions

Effective and inclusive institutions provide “Rules of the political and economic game” of human
interaction. They provide foundations of a market economy, including secured property and land
rights, con-tract enforcement, economic coordination, restriction of coercive or fraudulent
behavior, and provision of access to opportunities for the broad participation of citizens. They do
this by constraining the opportunist power of elites through the use of checks and balances.
Successful governance includes managing conflict, providing social insurance, and fostering
predictable macroeconomic stability. The conditions of well-functioning, inclusive market
institutions for good governance were includes clear and secured property rights, effective laws
and courts, freedom to establish business, stable currency, public supervision of natural
monopolies to manage externalities, transparent provision of credible public information to
citizens, stable monetary and fiscal policy instruments, and social safety nets for those on the
street, such as the homeless and beggars (Sisay Asefa and Wei-Chiao Huang, 2015, p. 15). As of
the finding of my study shows that, the respondents; key informants and Focus group discussion
participants were strongly supports that lack of legal and strong political and economic
institutions for the implementation of good governance is a major challenge. It revealed that,
there is law that written on the paper which command the public servants to administer the
citizens by implementing a good governance for the wellbeing of the society, but the society is
suffering from the absence of implementation of good governance because of lack of strong and
legal political and economic institutions which can end the problem. Hence, with the accordance
of the findings of the study, the absence of legal and strong political and economic institutions is

27
the challenge of exercising good governance which is serves as a vehicle to the socio-economic
development of the study area.

4.4.5 Less Public Participation

Public participation is a process whereby stockholders and members of public provide input in to
law making so as to influence the outcome of their decisions. However, in contemporary
societies, public participation is yet to accomplish its target. The challenge in accomplishing its
target can be traced to the inefficiency of participatory practices in relation to the mechanisms in
facilitating citizens to participate (Jiman Chado and Foziah Bte Johar, 2015, p. 1). The notion of
public policy has emerged in the context of responding to a specific social struggle in relation to
a number of social issues such as inequality, poverty, social justice, human rights and obligations
of the state to ensure the welfare of citizens. The governments are established in order to secure
the rights of their citizens. It is stressed that the governments do not often act in accordance with
the mandate of their citizenry. This is partly due to, amongst others, negligence of the core
principles of democracy by adopting practices which are the opposite of what is required in
terms of democratic values (Clarence Itumeleng, 2019, p. 14). Besides, the findings of the study
were indicates that the existing public participation during decision making by the public bodies
in the study area is low. In most cases, the decisions are made alone by the officials without wide
public participation on the public issues while Good governance is participatory in its nature. In
addition to this, the participants of Focus Group Discussion were responded as they are not
actively participating in decision making because of the existing inappropriate bureaucracy and
in most of public offices, there is lack of invitation to be a part of decision making on the public
issues, planning of the future short term and long term plans by the concerned officers. That is
the reason why there is lack of Good governance and less accelerated socio-economic
development of the people. Accordingly, the key informants in the study were replied as there is
less public participation on decision making because of lack of awareness and motivation of the
society as it consumes time and costly. Also, even though the public officers invite the
surrounding society during decision making, the society is not developed the culture of
participating on decision making. Thus, based on the findings of the study, it can be deduced that
the presence of less public participation in decision making is among the major challenges of the

28
enforcement of Good governance that led to the low socio-economic development of the society
in the study area.

4.4.6 Disrespect of Rule of Law

As cited by Lubna Hasan (2010, p. 3), in Watson (2003) “Rule of law as a concept seeks to
ensure that government power is limited and that individual rights are protected. The essence of
the rule of law is the sovereignty or supremacy of law over people and governments. The rule
insists that every person, regardless of position or status in society, will be subject to the law and
will be dealt with equally. The rule of law is more than your regulation by law but a guarantee of
freedoms, human rights and equal treatment before the law”. All the organs of state, the
executive, legislature and judiciary have a shared responsibility for upholding the rule of law.
The rule of law will only have real meaning in practical terms in a society in which all organs of
the state are mindful of their obligations to respect it.” The judicial system in developing
countries faces problems of efficiency, transparency, accountability, independence and lack of
human, financial and technical resources. Massive backlog, long delays and expensive litigation
has diminished public trust in the justice system. Hence, my respondents responded that the
disrespect of rule of law by public officials as per the written rules and the inapplicability of the
rules on the law breakers motivated the public servants not to think of the goodness good
governance which in turn harm the socio-economic development of the study area. In addition to
that, my key informants confirmed that there is high disrespect of rule of law which challenged
the prevalence of good governance and better socio-economic development in the study area.
Adding to that, the member of focus group discussion responded as there is significant negative
impact of lack of rule of law on implementing good governance and good socio-economic
development of the study area. They insisted that, absence of rule of law and lack of enforcement
of judiciary pave the way for public servants not to serve the society by implementing good
governance and became a major significant challenge for better socio-economic development in
the study area.

29
 CHAPTER FIVE

5. CONCLUSION AND RECOMMENDATION

5.1 conclusion

The overall practices of good governance in sabian Kebele shows that institutions assessed have
not been found perfectly effective or totally failed in any of the five good governance yardsticks
used in this study. Instead, they were found effective in some of the sub-indices of the yardsticks
and ineffective in some other sub-indices. For instances, the Kebele record progress in
introducing rules, regulations and institutional frameworks. But, in practice the participation of
all society is not achieved as expected. Specially, women participation is not as expected. Youth
participation is also low due to rampant illegal migration. Concerning effectiveness and
efficiency of government works the research finding come across weak performances. As the
finding shows the societies, satisfaction in the Kebele government service is low. In addition,
there is a political influence on bureaucrats in the Kebele, which according to the finding hinders
some efficient bureaucrats to perform their activity freely good governance used to measure the
performance of good governance in sabian kebele is accountability. As the finding shows the
level of accountability of government officials is medium.

30
Meaning that there are some progresses in increasing official accountability in the Kebele but
still some political appointees are not accountable for the actions and decisions they made. The
fifth and last yardstick is combating corruption and concerning this indicator, the sabian kebele
records weak performances. As the finding shows, there is no improvement in combating
corruption in the Kebele rather petty corruption like favoritism, nepotism and abuse of power
become rampant.

According to this research, good governance has played a major role in promoting economic
development in the communities to work together for their common goals to sustainability as
well as healthily functioning of social structure.

In sabian kebele administration, administrative structural reforms become increases from time to
time to enabling communities participate in their development affairs. In the study area, there is
considerable participation of private sector and communities at large.

The Kebele administration was also provided different economic services. Unemployed youth
organizing themselves to form association and provide technical assistance in collaboration with
the Kebele. The Kebele governance has high role by doing and encouraging people’s
participation in economic activities, protection of individual property and industrial sector.
Nevertheless, in the study area some problems were persistent, these are:- lack of capital, lack of
training human resources, absence of skilled manpower and modern technology, low level of
infrastructure. These are the handicaps for economic development. These shows the result of
weak governance.

5.2. Recommendation

Based on the outcomes of the study, the following recommendations have been established. The
kebele administrations should develop and design several programs to enhance the small scale
and industrial sector as in the study are in order to improve the performance of the sector to
economic development. The administration should be organized, standardized in order to reveal
accountability and transparency among society, and the personnel should also train to improve
efficient and effective services to increase the Kebele economic level. The administration should
also play more attention and increase their role in attracting and initiating potential investor in
the Kebele to increase the investment. The communities also coordinate with the city

31
administration and other developmental organizations to enhance the economic development of
the Kebele. The administration of the Kebele

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