Enhancing Shared Prosperity through Equitable Services

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The development objective of the Program for Results (PforR) Enhancing Shared Prosperity through Equitable Services Project for Ethiopia is to improve equitable access to basic services and strengthen accountability systems at the decentralized level. The operation supports the government’s system for the delivery of basic services, which is supported by the Federal Government through the intergovernmental fiscal transfer (IGFT) to the woredas - Ethiopia’s main instrument to finance decentralized service delivery. Under this program of support, the woredas are responsible for the delivery of basic education, primary health care, agriculture extension, water supply, and rural road maintenance. The government’s overall program of support is reflected in the current growth and transformation plan (GTP), which includes broad objectives for service delivery in each sector. The GTP aims to expand the coverage of basic services and improve their quality as a key mechanism to achieve the millennium development goals (MDGs). The PforR will prioritize local-level financing for education, health, and agriculture. The PforR beneficiaries are the whole population benefiting from basic service delivery, particularly the bottom 20 percent of income groups and most poorly performing woredas. The key challenges for maintaining the gains achieved so far include ensuring that IGFT grants follow predictable patterns by using regional fiscal distribution formulas, having adequate ground-level service delivery staff, and maintaining strong fiduciary controls.