Amhara National Regional State Parks Development and Protection Authority

Project Proposal

Development of Alternative Livelihoods for the Population of the

Simen Mountains National Park, Ethiopia

Prepared in cooperation with the

ANRS Bureau for Culture and Tourism and the

ANRS Agency for the Promotion of Micro and Small Trade and Industry Enterprises

November 2006

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Contents

Table of Contents 2 Project Data Sheet 4 Executive Budget 5 Acronyms 6

1. History and Background 7

1.1. The Simen Mountains National Park and its History 8 1.2. Institutional Framework and Management Structure 10 1.3. Current Problems 10 1.3.1. Deforestation 10 1.3.2. Cultivation 11 1.3.3. Livestock Grazing 11 1.3.4. Human Population and Livestock 12 1.4. The Park Population 13 1.5. Conclusion 14

2. Socio-Economic Situation 16

2.1. The Alternative Livelihood Options Study 17 2.1.1. Socio-Economic Survey 17 2.1.2. Investigation of the Business Environment in the Simen Mountains Region 18 2.2. General Economic Assessment 19 2.2.1. Macro-economic and Socio-political Context of Amhara State 19 2.2.2. Regional Policies and Strategies 21 2.2.3. Characteristics of the Simen Mountains Region 22 2.3. An Alternative Livelihoods Strategy 26 2.3.1. Remove the Park Population 26 2.3.2. Establish New Businesses 26 2.3.3. Increase Cash Flow 27

3. Project Rationale 29

3.1. Justification 30 3.2. Objectives 30 3.3. Benefiting Groups and Benefiting Area 30 3.3.1. Benefiting Groups 30 3.3.2. Benefiting Area 31 3.4. Approach and Methodology 31 3.4.1. Creating Incentives 31 3.4.2. Business Development 31 3.4.3. Participatory Approach 33 3.4.4. Gender 33

4. Project Components 35

4.1. Project Coordination Unit 36 4.4.1. Personnel 36 4.4.2. Buildings 38 4.4.3. Vehicles 40 4.2. An Overview of Business Options in the Simen Mountains Region 44 4.2.1. Producing Sector 48

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4.2.1.1. Poultry Farms 48 4.2.1.2. Sisal Plantation 55 4.2.1.3. Honey Farm 60 4.2.1.4. Apple Plantations 68 4.2.1.5. Fruit Plantation 74 4.2.1.6. Vegetable Farm 80 4.2.2. Processing Sector 87 4.2.2.1. Cotton Weaving Cooperative 87 4.2.2.2. Basketry Cooperative 92 4.2.2.3. Leatherworks Cooperative 96 4.2.3. Trade and Services Sector 101 4.2.3.1.-3. Supermarkets for Household Items, Food & Drugs and Mixed Supermarket 101 4.2.3.4. Fruit & Vegetable Stores 113 4.2.3.5. Bakery 117 4.2.3.6. Shop for Printed Matter, Office, Computer and Photo Supplies 122 4.2.3.7. Arts and Crafts Shops 127 4.2.3.8. Wholesale and Transport Company 132 4.2.3.9. Construction Workers Cooperative 139 4.2.3.10. Shower Houses 143 4.2.3.11. Laundry 147 4.2.3.12. Local Tour Operator in Debark 152 4.2.3.13. Hotel in Mekane Berkhan 157 4.2.3.14. Tourist Caf in Debark 164 4.2.3.15. Roadside Caf in Limalimo 169 4.2.3.16. Cultural Night Bars 174 4.2.3.17. Traditional Music and Dance Group 179 4.2.3.18. Simen Mountains Museum 182 4.2.4. Financing Sector 182 4.2.4.1. Simen Mountains Trust Fund 187 4.2.4.2. Simen Mountains Soft Loans Program 191 4.3. Park Population Removals 196

5. Project Implementation 198

5.1. Risks and Assumptions 199 5.1.1. General Economic Development 199 5.1.2. Acceptance 199 5.1.3. Business Risks 199 5.2. Project Management 200 5.3. Monitoring and Evaluation 200 5.4. Time and Activity Plan 201

6. Appendices 202

6.1. Map of the Simen Mountains National Park and Region 203 6.2. Map of Simen Mountains National Park and Villages 204 6.3. Simen Mountains Region Population Figures (by Kebele) 205 6.4. Costs of Vehicles 206 6.5. Costs of Printed Matter 207 6.6. Costs of Trainings 208 6.7. By-Laws of the Grant Program 209 6.8. By-Laws of the Soft Loans Program 214

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Project Data Sheet

Submitting and Implementing Agency

Amhara National Regional State Parks Development and Protection Authority P.O. Box 1317 Bahr Dar Ethiopia Tel +251 (582) 22-10-50 Fax +251 (582) 22-18-34 E-mail: padpa@ethionet.et Contact: Mr. Mulugeta Woubshet, General Manager

Name of Project Development of Alternative Livelihoods for the Population of the Simen Mountains National Park, Ethiopia

Location North Gondar Zone, Amhara National Regional State, Ethiopia Project Budget USD 8.708,708 Beneficiaries The 586 households residing in Simen Mountains National Park Project Duration Five Years Problems Addressed

The impoverished and rapidly growing population living in extremely remote areas of the Simen Mountains National Park is engaged in unsustainable livelihoods such as overgrazing of livestock, ploughing steep slopes and cutting of native forests for firewood. Because of their location in the park, they have no possibility to either expand the land they are using, to increase productivity or to introduce technical infrastructure. At the same time, UNESCO has mandated a significant and sustainable reduction of their number in order to remove the Park from the List of World Heritage in Danger. Thus the only long-term option for the park population is to relocate to areas outside the Park.

In addition to addressing the problems of the Simen Mountains National Park itself, the newly-established businesses and related financing schemes will greatly improve the wider Simen Mountain Regions food security, cash flow, economic infrastructure and attractiveness for tourism, and will thus boost its general economic development.

Project Summary The overall aim of the project is to contribute to the re-building and safeguarding of the integrity of the Simen Mountains National Park.

It plans to achieve this by creating pull factors attracting the parks resident population to remove to locations outside the park. The project will establish altogether 29 different private businesses and cooperatives (43 companies) through which all 586 households living in the Park can find sustainable alternative livelihoods. In addition, the project will provide for the park populations removal and new housing. The project will provide all investments, including necessary trainings, as well as start-up assistances where necessary due to the nature of the business. Furthermore, the project will provide continuing technical assistance to the fledgling businesses throughout its five-year duration. In addition, the general purchasing power in the area will be increased through the establishment of Grant and Small Loans Programs for the general population of the Simen Mountains Region. The grants and loans will be given only for activities which will contribute to the objectives of the Park and its Buffer Zone.

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Executive Budget

Costs Totals 1. Project Coordination Unit

1.1. Personnel 1.389.950 1.2. Buildings 181.142 1.3. Office 260.830 1.4. Travel 72.000 1.5. Accommodation 53.513

Sub-Total Project Coordination Unit 1.957.435

2. Business Investments 2.1. Production of Raw Materials

2.1.1. Poultry Farms (3) 1.007.403 2.1.2. Sisal Plantation 234.951 2.1.3. Honey Farm 346.631 2.1.4. Apple Plantations (2) 536.878 2.1.5. Fruit Plantation 342.207 2.1.6. Vegetable Farm 309.168

2.2. Production of Processed Goods 2.2.1. Cotton Weaving Cooperative 71.431 2.2.2. Basketry Cooperative 30.454 2.2.3. Leatherworks Cooperative 46.757

2.3. Trade and Services 2.3.1. Supermarket for Household Items (2) 65.168 2.3.2. Supermarket for Food & Drugs 35.520 2.3.3. Mixed Supermarket (2) 68.546 2.3.4. Fruit & Vegetable Stores (3) 85.332 2.3.5. Bakery 53.807 2.3.6. Store for Office and Photo Supplies 30.046 2.3.7. Arts and Crafts Shops (2) 88.284 2.3.8. Wholesale + Transport Company 170.474 2.3.9. Construction Workers Cooperative 19.125

2.3.10. Shower Houses (5) 164.155 2.3.11. Laundry in Debark 20.079 2.3.12. Tour Operator in Debark 100.772 2.3.13. Hotel in Mekhane Berkhan 89.998 2.3.14. Tourist Caf in Debark 49.304 2.3.15. Roadside Caf in Limalimo 29.686 2.3.16. Cultural Night Bars (3) 171.114 2.3.17. Traditional Music and Dance Group 35.793 2.3.18. Simen Mountains Museum 54.792

2.4. Financing Instruments 2.4.1. Simen Mountains Trust Fund 106.166 2.4.2. Soft Loans Program 266.223

Sub-Total Business Development 4.630.264

3. Park Population Removals 3.1. Transport 586 households 71.118 3.2. New Housing 586 households 1.635.190

Sub-Total Housing for Removing Households 1.706.308 Intermediate Total 8.294.007

4. Contingency

4.1. General Contingency Fund 5% of Total 414.701

Grand Total (USD) 8.708.708

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Acronyms

ANRS Amhara National Regional State AProMSTIE Agency for the Promotion of Micro and Small Trade and Industry Enterprises asl above sea level BoARD Bureau of Agriculture and Rural Development BoCult Bureau of Culture and Tourism BoFED Bureau of Finance and Economic Development CSA Central Statistics Authority EPLAUA Environmental Protection Land Administration and Use Authority EGS Employment Generation Scheme ETB Ethiopian Birr GDP Gross Domestic Product IDP Integrated Development Project (of the Austrian Development Agency) IUCN International Union for the Conservation of Nature PaDPA Parks Development and Protection Authority SMBS Simen Mountains Baseline Study SMNP Simen Mountains National Park SWC Soil and Water Conservation TLU Tropical Livestock Unit UNCDF United Nations Capital Development Fund UNDP United Nations Development Program UNESCO United Nations Educational, Scientific and Cultural Organization USD United States Dollar

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1. History and Background

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1.1. History of the Simen Mountains National Park

The Simen Mountains National Park (SMNP), which is part of the high mountain massif of northern Ethiopia with altitudes ranging from 1.900m to 4.543m asl, covers an area of 205 km and experiences temperatures between -5C t o +18C. The scenery is highly spectacular, composed of a vast undulating plateau dissected by deep vertical cliffs and forested rocky valleys, and dominated by the rugged peaks of the Simen Mountains, including the highest peak in Ethiopia, Ras Dejen (4,624 m), situated to the east of the park.

The park is home to a number of threatened and endemic species. Of the 21 large mammal species that can be found in the park, three are locally endemic (Walia ibex) or endemic to Ethiopia (Ethiopian wolf and Gelada baboon) these are the flagship species of SMNP. The Walia ibex (Capra walie) and the Ethiopian wolf (Canis simensis; also called Simen fox) are considered critically endangered and endangered, respectively (IUCN 2006 Red List). The Walia ibex can only be found in the Simen Mountains, where its current population is estimated at 623 individuals (November 2005). The Ethiopian wolf is the rarest canid in the world, with a total population estimated at less than 500 animals (IUCN 2006 Red List). A census carried out in 2005 estimated the population in the Simen Mountains at 78 animals. Other large mammal species include the Anubis baboon, Hamadryas baboon, klipspringer, leopard and golden jackal. The mountains are also home to 5 small mammal species and 16 bird species endemic to Eritrea and/or Ethiopia as well as an important population of the rare lammergeyer. The Simen Mountains are part of the Afro-alpine centre of plant diversity and are characterized by a high but yet unquantified level of plant endemism.

The SMNP was one of the first properties inscribed on the World Heritage List in 1978. The property was inscribed on the basis of its importance for biodiversity (criterion iv) and its exceptional natural beauty (criterion iii). At the time of its creation in 1969, a number of villages and important tracts of land used by the local communities were included within the boundaries of SMNP. This situation had not changed at the time of inscription of the park on the World Heritage List. In fact, the nomination document mentions that 80% of the parks territory was subjected to human use, in particular livestock grazing, agriculture and human settlement, leaving only 20% undisturbed and available for the Walia ibex. It further specifies that the plateau was over-run by domestic livestock, resulting in erosion and reduction of the habitat available for the Ethiopian wolf. It points out that the central area of the park around the village of Gich had been under excessive agricultural cultivation for a long time, leading to erosion, and that agriculture was expanding into the middle terraces, leading to deforestation of the giant heath vegetation and further reduction of the habitat available for the Walia ibex.

The nomination explains that the provincial government planned the resettlement of the human inhabitants and an extension of SMNP to include more critical habitat of the Walia ibex. At the time of World Heritage nomination, the population of Walia ibex was estimated at 250 animals in the park, and a further 50 animals outside the park, while the population of Ethiopian wolf was estimated at only 20 remaining individuals.

Shortly after the inscription of the park in the World Heritage List, the political conflict in the country escalated in a civil war and in 1983, the Ethiopian government (the State Party) reported that park staff was forced to abandon the property, which was occupied by rebels. There is evidence that the Walia ibex was heavily poached during this period and that part of its population moved into less poached areas to the east of the park. In 1991, at the end of the conflict, the State Party submitted a report on the state of conservation of the property, noting that while all park infrastructure had been destroyed

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during the conflict, the natural resources and values of the property had not been significantly affected. Following reports on the deterioration of the Walia ibex population, UNESCO fielded a monitoring mission in November 1996. The mission noted the decline in populations of the flagship species Ethiopian wolf and Walia ibex, the continued human pressure on the park, with 60% of the park subjected to human use, over 4,500 people living in the park and a further 30,000 living in its immediate vicinity, the increased use of the remaining wildlife habitats by livestock, the expansion of agricultural fields in the park and the on-going construction of the Debark Mekhane Berkhan road through the property. On the basis of this report, the World Heritage Committee at its 20th session (Merida, 1996) decided to inscribe the property on the List of World Heritage in Danger. The inscription on the Danger List more or less coincided with a transfer in 1997 of the responsibility for the management of the site from the national level to the Amhara National Regional State Government.

In 2000 the regional authorities organized a fact-finding mission in which high level officials of the Amhara Regional State Government, representatives from different government agencies and local administrations as well as experts of the Centre for Development and Environment of the University of Berne participated, to study the threats to the property and develop recommendations to address these threats. The recommendations included the creation of a steering committee to co-ordinate the conservation efforts by the different levels of administration, the realignment of the road, the realignment of park boundaries by excluding villages situated on the edge of the park and at the same time including further key habitats of Walia ibex and Ethiopian wolf, the relocation of 4 villages in the park (Gich, Islam Debir, Adarmaz and Muchila) and the development of a project to support sustainable development activities in the buffer zone.

In October 2000, during a UNESCO workshop on The Role of World Heritage in Danger listing in promoting international cooperation for the conservation or World Natural Heritage organized in the framework of the World Conservation Congress in Amman, a representative of the State Party presented a paper justifying opposition to the Danger listing and requesting a monitoring mission to the property. This mission took place in April 2001 and concluded that although the Amhara Regional State Government was demonstrating a commitment to address the threats to the values and integrity of the World Heritage property, and that the situation with regard to the management of the park was improving, the results on the ground were not yet sufficient to consider the property out of danger. Upon recommendation of the mission, the World Heritage Committee adopted the following benchmarks, largely based on the recommendations of the 2000 high level mission, to guide a removal of the property from the List of World Heritage in Danger: (1) Realignment of the parks boundary to exclude the villages along the boundary; (2) Extension of the park to include at least Mesarerya and Lemalino Wildlife

Reserves; (3) Significant and sustainable reduction in the human population density

within the park, especially within the core area; (4) Effective conservation within the extended national park of a larger population

of Walia ibex and Ethiopian wolf.

Since 2001, the State Party has provided regular reports on the state of conservation of the property and progress towards achieving the above mentioned benchmarks. In February 2005, the State Party report announced that considerable progress was achieved towards 3 of the 4 benchmarks but that it was unable to achieve the benchmark referring to the reduction of the human occupation within the property. As a result of the ensuing considerations, the State Party requested international assistance from UNESCOs World Heritage Fund for developing a strategy for alternative livelihood options for the population outside of the park.

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1.2. Institutional Framework and Management Structure

In 1997, the responsibility for the management of SMNP was transferred by the Ethiopian Government from the Ethiopian Wildlife Conservation Organization to the Amhara Regional National State. Subsequently, the Amhara Regional Government established the semi-autonomous institution known as the Parks Development and Protection Authority (PaDPA), which took over the management of SMNP from the Bureau of Agriculture. The new arrangement affords the park to interact with grassroot stakeholders including neighbouring communities (Kebeles) and districts (Woredas). It has to a large degree brought in shared decision-making on park management issues. Park budgets for both development and running costs are now provided by the Amhara Regional Government. A major international donor to SMNP has been the Austrian Government, through the joint Austrian-Ethiopian Integrated Development Project (IDP), which has given substantial financial assistance to support the park and local communities.

The above has streamlined administrative bureaucracy as the park warden and other park staff have a direct link with decision-makers, and there is now an improved decision-making process through streamlined and structured accountability and ownership among the stakeholders at all levels (from the Amhara Regional National State President to the Head of PaDPA, from PaDPA to the park warden and other park staff).

This is enhanced by regulations enacted in January 2001 that attribute roles and responsibilities between PaDPA and the Amhara Bureau of Agriculture. The regulations emphasize an integrated development planning and management approach involving the neighbouring communities, districts, park administration, the Amhara Bureau of Agriculture and other stakeholders. This approach, if put into good practice, could promote a dialogue leading to the harmonious coexistence of SMNP and its neighbouring communities. However, although important progress was made, there is still a long way to achieving the objective of preserving the natural resources and values of SMNP while promoting sustainable livelihoods for the neighbouring communities, mainly because of the long history of people in the park and the still high dependence of local communities on park resources.

1.3. Current Problems

The main impacts of the villages inside the park are related to the intensive use of its natural resources, in particular deforestation from cutting of firewood, and soil degradation from cultivation and grazing, all exacerbated by a dramatic increase in human population.

1.3.1. Deforestation

In the past, deforestation has resulted in a serious degradation of natural resources in and around SMNP, leaving the area susceptible to soil erosion by water and wind. Extensive areas both within and outside SMNP are almost devoid of native woody vegetation. The degradation and its ecological impacts have forced both the Walia ibex and Ethiopian wolf to vacate some of their original ranges and to move further up into the less disturbed highlands.

It seems that the spatial distribution and area coverage of forests has not changed since 1994. What has continued unchanged, however, is the overuse, especially of the highland Erica / Hypericum forests. To tackle the issue of deforestation, a ban was imposed by the National Park on felling Erica trees, and plantations of fast growing species, mainly Eucalyptus, have been put in place in the villages in and around the park.

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Because of this, in theory, local communities are apparently no longer dependent on the native woody vegetation for fuel wood. Nevertheless, there is still some deforestation for fuel wood - in spite of heavy punishment such as imprisonment if caught -, as villagers prefer to sell the Eucalyptus as construction wood instead of using it for their fuel needs.

1.3.2. Cultivation

Cultivation inside the park remains a serious concern. This form of land use is incompatible with the conservation objectives of the park and therefore will have to be phased out in the future. For the moment the park authorities are enforcing a ban on further extensions of the areas cultivated in the park, and this seems to be well respected. However, as villages in the park depend on the cultivated land for their livelihoods, it will be difficult to phase out cultivation in the short term.

Soil degradation has been identified as a major problem on cultivation land inside and around the SMNP. Based on the SMBS findings it was concluded that soil erosion not only leads to diminishing soil depth and physical alteration of the soil, but also to selective removal of specific nutriments, thereby causing chemical degradation and loss of soil productivity. It was also estimated that soil erosion rates in some areas are 20 times higher than annual soil formation rates.

Of special concern are highland areas where fallow cycles are a maximum of 1 year far too short for soil regeneration. Discussions held with farmers in 1994 revealed that they were aware of the problem and also had some knowledge on possible solutions. When asked why they do not construct stone or earth bunds, their usual answer was that they are too poor to do it on their own, but they would nevertheless start to construct soil and water conservation (SWC) structures in the future. Ten years later, the answers are the same and the amount of SWC structures has increased only to a very limited degree.

1.3.3. Livestock Grazing

Livestock grazing is probably the most damaging resource use in the park, given the extensive area that is used for grazing, and the current overstocking. There are no recent reliable data available about the number of livestock in the park and their impact. The 1996 survey work in SMNP estimates that of the 900ha of Afro-alpine vegetation in the park (before the current and proposed extensions), 25% are heavily overgrazed and 60% are heavily grazed, leaving only 15% in a more or less natural status. Overgrazing is resulting in a deterioration of the quality of the grazing lands with an increase of unpalatable grasses. This has negative consequences for the vegetation cover and composition, and for soil preservation. Livestock is in direct competition with Walia ibex for grazing areas, confining the Walia ibex to the steeper and less accessible areas, and is also impacting on small mammal populations, which are the major food source for the Ethiopian wolf. Contact between wildlife and livestock are also increasing the risk for transmission of diseases. Of particular concern is the pressure on the grassland between 3.600m and 3.800m asl (timberline, above the climatic limit for barley cultivation) and about 4.200m. This grassland is intensely used as grazing area. A survey of the Gich plateau conducted in 1996 concludes that totally eroded and heavily overgrazed areas have doubled between 1973 and 1996. Observations made by Prof. Bernhard Nievergelt in November 2004 suggest that the area of heavy grazing or serious overgrazing has again increased since then. Instead of a mix of short and long grass, in large areas only short grass types exist anymore. Only in the most distant areas (Set Derek, Imet Gogo, Inatye), still a less disturbed vegetation pattern can be found although even these areas are used for grazing. If this grassland area should in future again serve as a habitat for herbivores such as Walya or Klipspringer or carnivores depending on grass rats, such as the

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Ethiopian Wolf, then far-reaching measures excluding domestic animals from considerable areas must be considered.

Soil erosion rates were estimated by the SMBS team to be around 85 t/ha*year in highland villages and 65 t/ha*year in lowland villages. It must be expected that no major change has taken place during the last ten years. This would mean that in the highlands the soil depth was reduced by almost 8 cm and in the lowlands by 5 cm. Considering the low soil formation rates of 3-12 t/ha* year, depending on altitude, the destructive process of soil erosion becomes even more apparent. Although the use of manure and compost is promoted, and more artificial fertilizer is available than 10 years ago, soil productivity still declines, as soil erosion continues almost uncontrolled, nutrient mining takes place unchecked, manure is collected as a substitute for fuel wood, and fallow periods are shortened. It is alarming to see how little investments in soil conservation and soil productivity improvements have been made in some areas, despite available technologies and the general awareness regarding the seriousness of the problem within parts of the administration.

On the other hand, in some villages considerable efforts have been undertaken with regard to initiating SWC. Besides offering various technologies, currently used approaches for SWC implementation are awareness creation, mass mobilisation, or activities within the Employment Generation Scheme (EGS). Furthermore, more flexibility is envisaged by considering small-scale site-specific needs of the land and the land users before recommending SWC measures to be implemented.

1.3.4. Human Population and Livestock

Especially for highland villages, where crop production reaches its limits because of altitude and land degradation, relying more on livestock for securing the household income becomes a strategy of growing importance. Although many people recognize that the grazing land on the Gich plateau is heavily overgrazed, they nevertheless aspire to increase their herd size. During a count on one evening of all animals returning to Gich from the Saha Imet Gogo area, a total of 1,200 animals - cattle, equines, sheep has been counted, equalling roughly 600 Tropical Livestock Units (TLU), representing about 60% of the total livestock number reported for Gich. The grasslands not including forests, which are also used for grazing, or the cropland stretching from Gidr Got to Imet Gogo covers about 9 km. With the total livestock number of Gich estimated at 1,000 TLU, the number of TLU is more than 1 per ha. For highland areas, a maximum stocking density of only 0,5 TLU is recommended. Overstocking on the Gich plateau is thus a very serious problem.

For the village of Gich, the annual population growth rate between 1994 and 2004 is calculated at 2% - unchanged to the one calculated for the previous period from 1975 1994. An annual growth rate of 2% leads to a doubling of the population about every 35 years. As alternatives to farming are very few even the tourism sector offers only few additional income sources as it is not large or stable enough to fully rely on it it must be expected that the majority of the population will continue to depend on the agricultural sector, thus further aggravating land degradation and pressure on remaining wildlife habitats.

With increasing numbers of households, the total number of livestock is likely to increase as well, although the number of animals per household is likely to decrease. The number of oxen, for example, in Gich has slightly decreased from 140 to 135, although the number of households has increased from 222 to about 320, reducing the average number of oxen per household from 0.63 to 0.49. As crop yields are nowhere sufficient anymore to sustain a household for one year, more animals have to be sold to meet

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immediate household needs. Farmers reported that deficits have become so big that since recently more and more heifers and steers have to be sold to raise sufficient cash for meeting household demands.

Socio-economic problems related to such a high human pressure on available natural resources become visible by the extremely high dependency of several villages on outside assistance. Taking the village of Argin as an example, in 2002/03 80kg of maize and wheat per household were distributed in a food-for-work campaign this would be about the amount a family of 6 would need in 1,5 months. Gich needs food aid for even 5-6 months. Such dependencies on outside assistance are very dramatic and a clear indicator of the unsustainability of the present livelihood.

1.4. The Park Population

The issue of people living inside the park dates back to the time of its creation, as several villages and land used for agriculture and livestock grazing were included in the protected area. This problem remained unresolved at the time of the inscription of SMNP on the World Heritage List in 1978. In fact, the nomination mentions that the provincial authorities were committed to resettle the villages situated in the park to address this threat. This proposed resettlement has not been completed, however, because of the lack of alternative livelihood options and space elsewhere and, hence, the unwillingness of the villagers to move.

There are no accurate estimates on how many people were included in the park at its creation in 1969. However it is clear that substantially more than half of the parks territory was under human use at the time of its inscription in the World Heritage List in 1978. One year later, 7 villages were relocated from the northern slopes of the escarpment, reducing the extent of human use to 33% of the park surface (4,000 ha for grazing and 2,000 ha for cultivation). This forced resettlement resulted in tensions between the local communities and the park management authorities. Based on a 1994 population census, the number of people living within the park was estimated at 11,000, whilst a 1996 IUCN report quotes 30,000 people living in the park area and depending on the use of its natural resources and 4,500 people living inside the park. The 1994 Simen Mountains Baseline Study conducted by the University of Berne concluded that 3,286 ha in the park were under cultivation.

The realignment of the park boundary (see benchmark 1) resulted in the exclusion of numerous villages from the park and, thus, in an important reduction in the number of people living in the park. According to a rapid assessment carried out in October 2005, 582 households were found living in the park (amounting to 3.173 people), whilst 1.477 households living in its immediate vicinity are cultivating plots inside the park. The total area under cultivation in the park was estimated at 2.281 ha.

This leaves however still a significant population inside the new park boundaries, most notably the village of Gich, which is situated in the middle of the core area and accounts for about half of the remaining households in the park. In 2003 the park authorities organized a number of meetings with village representatives to discuss voluntary resettlement to a site identified in the lowland, some 300 km away from the park in West Gondar. However, the inhabitants of Gich village categorically refused the proposed resettlement. A forced relocation would lead to renewed conflicts with the local communities and is difficult to defend because the villages were already established when the park was created.

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1.5. Conclusion

In view of all the factors and dynamics discussed above, two tendencies can be observed which exacerbate each other: A sharply declining resource base is available for a sharply increasing population. Few options remain.

Increase of utilized land base Appropriating more land for production would allow to use the land more sustainably while maintaining the product output. However, this is impossible because of 1) the status of the land as a National Park and 2) the natural terrain. No additional land can be found which could be considered for agricultural purposes.

Reduction of area under cultivation In order to return to a sustainable use of natural resources in the park, theoretically the population would have to reduce the land under cultivation and either appropriate more land for grazing or reduce the number of livestock. Because of the limited land base available, extreme poverty and food insecurity, however, to reduce the land under cultivation is possible only when increasing the number of livestock, which is not an option.

Reduction of number of livestock To reduce the number of livestock is possible only by intensifying animal husbandry through additional feed and forage. However, firstly, the grasses or hay to provide such fodder are simply not available (on the contrary - the vegetation cover is declining), and secondly, a more intensified animal husbandry would require technical infrastructure incompatible with national park regulations.

Reduction of population A significantly smaller number of people living inside the Park would open up opportunities for soil reclamation and conservation as well as for introducing sustainable ways of land use. However, even supposed that part of the present population would be willing to move away and greatest efforts would be taken to reduce soil degradation and pressure on the land, the continuing population dynamics will render all such efforts meaningless within a decade or so, and the problems would present themselves only with more urgency and less options for a way out. Any state policy trying to bring the population increase to a halt will take decades to succeed unless it will conflict with human rights, and in any case, a regulation limiting the number of people allowed to live in the Park would be next to impossible to enforce.

More realistically, it must be expected that the situation of the park population will deteriorate dramatically over the next ten years, leading to sharpened conflicts with the administration of the park over the use of its natural resources.

As a result, by logic there is no hope for the park population to continue their present way of life for any lengthier period of time.

The only option through which a) the long-term livelihoods of the park population can be ensured, b) the degradation of the natural resources of the park can be halted or reversed and c) the population of the park can be significantly reduced (fulfilling the third benchmark set by UNESCO for its removal from the List of World Heritage in Danger) is to cooperate with the park population in their voluntary removal from the park, encouraged by providing them with new housing and alternative and acceptable livelihoods in the wider Simen Mountains Region.

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The government of ANRS is well aware of this problem and has conducted a study to identify alternative livelihood options for the park population and, based on this, demonstrate concrete and realistic options on how to address this issue in the medium term. The approach and results of this study are explained in further detail in the following section and constitute the basis for this proposal.

This section has made extensive use of the following literature:

Ludi, Eva 2005 Simen Mountains Study 2004. Intermediate Report on the 2004 Field Expedition to the Simen Mountains in Northern Ethiopia. Dialogue Series. Berne, NCCR North-South.

UNESCO / IUCN Joint Monitoring Mission Report: Reactive Monitoring Mission to Simien Mountains National Park, Ethiopia, 10 17 May 2006. UNESCO / World Heritage Centre / IUCN. Paris / Gland

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2. Socio-Economic Situation

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2.1. The Alternative Livelihoods Options Study

2.1.1. Socio-Economic Survey

In order to determine potentially viable business options for the population of the SMNP, an in-depth investigation was carried out by a team of three officials of PaDPA, the BoCulT and the BoSTIP on the general economic environment of the Simen Mountains Region as well as the capacities and priorities of the population of SMNP.

The investigation included the following activities: 1. Reviewing secondary literature on the general economic situation, potentials and

constraints of the Simen Mountains Region. 2. Assessing and reviewing the economic activities and the socio-economic characteristics,

problems, needs, potentials, plans and priorities of SMNP residents in the small business sector.

3. Studying other projects presently being implemented in the region in order to draw inspirations, to avoid duplications and to build on existing achievements.

1. A number of secondary literature (existing plans, reports and studies) were reviewed which could provide an outlook and serve as basic, theoretical and practical guidelines for the study. The team studied the following relevant documents. Building on Progress: A Plan to Accelerate Sustainable Development and End Poverty

(PASDEP); From 2005/06 - 2009/10); Federal Government of Ethiopia; Enterprise registration list of North Gondar Zone; from AProMSTIE; SMNP management plan Reconciling Conservation With Sustainable Development, Hans Hurni and Eva Ludi,

2000, University of Berne Project Proposal for Relief through Cash by Save the Children UK.

The study of these documents was helpful to design the content, methodology and detailed schedules of the investigation before embarking to the field survey. They provided necessary data and information regarding demographic, socio-economic activities and potentials. Secondary information was collected first at regional level and then proceeded to Zone, Woreda, and Kebele levels with increasing detail.

In addition to the literature, discussions were also held with the three Woreda Administrations, Kebele leaders & Development Workers, scouts of the SMNP and representatives of the Park communities in order to prepare the fieldwork. The main objective of these discussions and/or briefings was to obtain their views, to exchange ideas about the quality and success of the work, and to stress their critical role and responsibility for achieving the objectives of the study before sending enumerators to the target areas for implementing the field survey and collecting relevant information.

2. Primary data were obtained through a comprehensive field survey covering all Park households. They provided first hand information on the park populations characteristics, and social, economic, tourisms and natural features of the niches in which small scale business can flourish. The data were obtained through the following questionnaires: A. Woreda Questionnaire: to collect information from City and Woreda administrations,

various sector offices, cooperatives, associations and private enterprises, related to the general characteristics and situations of the Woreda, existing and potential economic activities such as agriculture, irrigation, livestock, cottage industries, small enterprises and other employments, as well as facilities such as marketing and credit institutions. The Woreda Questionnaires were completed at the Woreda centers through discussions with responsible officials and by visiting various institutions.

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B. Kebele Questionnaire: developed to collect specific information from key informants of each targeted Kebele/village. The information to be collected includes Kebele-specific characteristics, potentials and priorities such as agricultural and non-agricultural functions and facilities. The Kebele questionnaires were completed through discussions with key informants from the Kebeles who were invited to the Woreda centers for discussions after consultation with Woreda officials.

C. Household Questionnaire: A 17-page questionnaire including 50 questions (each with sub-questions) was designed to collect information from the 586 households within the SMNP. The questionnaire covers the following subjects: - General household characteristics - Agriculture - Off-/non-farming activities - Trainings - Saving and credits - Marketing - Food supply The household questionnaires were completed by a group of 13 data collectors dispatched to the villages in small groups for several days.

D. Checklist for Focus Group: was used to discuss and collect information from various community members. The focus group discussions were facilitated by the study team members, and the major points of each local community which need attention were identified and analyzed. The focus groups consisted of 6 - 10 members of each Kebele.

The field survey further helped to map the various villages and hamlets and provide reliable information about their location vs. the Park boundary. As a result of the survey, it was found that only 586 households remain inside the Park after its re-demarcation instead of 722 as previously assumed.

3. The two major projects implemented in the region were studied thoroughly: the SMNP Integrated Development Project (ADA) the North Gondar Zone Local Development Project (UNCDF) Several meetings held with representatives of these two projects, and the project documents studied in order to avoid a duplication of efforts and to create synergies as much as possible As a result, tourism development in the SMNP and the dairy sector were excluded from this proposal because extensive activities in this field are carried out by ADAs IDP. At the same time, it was found that there exists a good basis for the intensification of the agricultural sector since IDP is providing trainings and establishing demonstration projects in this field.

The project proposal received further important information and inspirations from GTZs Sustainable Use of Natural Resources Project (SUN) in Amhara, and from the German Foundation for World Populations cooperation with Farm Africa.

2.1.2. Investigation of the Business Environment in the Simen Mountains Region

In addition to determining the potentials of the Simen Mountains Region and the population of the SMNP, available information on the existing businesses and employments between Gondar and the Simen Mountains Region was collected and analyzed.

The key questions to be investigated were the following: What is the number of businesses in the Simen Mountains Region? What are the kinds of businesses in the Simen Mountains Region? What are sizes of businesses in the Simen Mountains Region? How are the businesses distributed over the region? What kind of demands do they meet?

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The information providing the basis for this analysis was obtained through various methods: The list of registered and licensed enterprises of the Small Scale Trade and Industry

Promotion Agency was evaluated. Town walks to identify and list existing shops were conducted in Debark, Adiarkay and

partially in Gondar. An inventory of goods which can be bought in Debark was compiled.

The answers to these questions were used to serve as a guideline and provide important clues for the selection and distribution of the new businesses which are proposed in this project in a way that they would have a maximum chance of success. Obviously it is only the customer who will finally decide about the success of a business. However, through identifying economic niches the project did its utmost to minimize entrepreneurial risks.

2.2. General Economic Assessment

2.2.1. Macro-economic and Socio-political Context of Amhara State

The Amhara National Regional State (ANRS) covers a total area of 161,828 km2, out of which 53% is covered by cultivated land, grazing land and woody vegetation. The average land holding of a household is 1 to 1.5 ha, usually divided in 3 to 4 plots. The region is characterized by a high rate of population growth. The total population of the region, which was about 14.2 million in 1994 (1988 E.C.), has grown to 17.7 million in 2000 (1994 E.C.). According to CSA (2002) the average annual growth rate of the region is 3% and 4.5% in rural and urban areas respectively, which is far beyond the carrying capacity of the economy. The North Gondar Zone stands first in terms of population size (estimated to be 2.9 million) in the Amhara region (CSA 2002).

About 27% of the population lives under conditions of extreme food poverty with less than 1,650 calories per adult per day. Food poverty is 52% in rural areas, where the overwhelming proportion of the Ethiopian population lives (BoFED 2002). Food insecurity is a major phenomenon of rural areas in the region. The average annual per capita income of the region is 1.088 ETB. The socio-economic situation of the project Woredas indicate that the poverty has been intensifying over the years, and its causes and consequences are much beyond simple input - output relations in production and consumption. The agricultural sector cannot meet the food demands of the rapidly increasing population as a result of its low productivity.

The population of cattle, sheep, equines and poultry is high in the region in general and in the highlands in particular. Farmers have large numbers of low productive animals, however - the numbers of livestock and the feed resources often do not match. The major source of feed is natural grazing in communal lands, teff, barley and wheat straw supplemented with crop residues. Poultry is kept at a low level for egg production, home consumption and as a source of household cash. The use of improved animals and feed is marginal in the region.

Unsustainable use of natural resources in terms of deforestation, overgrazing and ploughing on steep slopes has caused soil erosion and land degradation, which are serious threats to agricultural productivity. The ever-growing population together with the traditional land management system exert heavy pressure on the existing natural resources. Though the region has a rich bio-diversity, the fragile nature of the ecosystem in general calls for urgent protection. There is a high rate of deforestation to meet the growing demand for fuel wood, construction and expansion for farming.

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Biomass is the main energy source of the households in the Amhara Region. A study undertaken by the Bureau of Agriculture and Rural Development (BoARD) in 56 Woredas of the Region in 2003 revealed that wood, dung, branches, leaves and twigs are the major traditional fuels (in this order of priority). From the total sampled households in the 56 Woredas only 0.2% have access to light from electricity. It is also known that about 93% of the households own open fire (three stone) stoves, which have recorded very low efficiency. Traditional enclosed and modern enclosed stove users were 3% and 0.2%, respectively. Only 20.7% of the households were found to be aware of the existence of improved stoves that could save fuel in the 56 Woredas.

In the region, industry is found to be at a very low level of development and hence cannot complement the agricultural sector in output production and employment creation. The contribution of industry to GDP and employment opportunity is 21.3% and 4.7%, respectively (BoFED 2003). Economic diversification of the ANRS is crucial for development as the available farmland is insufficient to satisfy household income. As the population is increasing, it is necessary to develop non-farm income to absorb people who cannot make their livelihoods from farming. Economic diversification requires skill, capital and market among others, and yet, these resources are scarce as the region is characterized by low infrastructure development.

The other important area of economic diversification is the emergence and strengthening of cooperatives. Most of the service cooperatives as well as urban saving and credit cooperatives were organized 25 years ago. However, the organisation of these cooperatives was not in line with the international principles of cooperative formation such as freedom of any external influence, internal autonomy etc. As a result, efforts are being made to restructure and register these cooperatives based on international cooperative principles. These cooperatives, which are being restructured, are diverse. They engage in different activities; the main being input supply and agricultural marketing. They play an important role in agricultural development through providing packages of inputs, marketing and credit services. Dairy processing and marketing, incense marketing and irrigation cooperatives are emerging in many parts of the region.

The development and expansion of the road network is vital for technological infrastructure, market development and modernization. Despite the significant role of infrastructure in the development of the region, road construction and maintenance have been neglected for so long that the existing road network is far from satisfying the transport needs of the population. The total road network of the region is about 5,358 km, out of which 45% account for major roads and 55% are rural roads. The road density of the region per 1.000 people is 0,32 km2 and 33,07 km per 1.000 km2. Therefore the density and distribution of the all-weather roads network in Amhara National Regional State is inadequate as compared to both area and population.

Women constitute half of the population and labour force with their three distinctively important roles (productive, reproductive and community), working 16-18 hours per day. However, they have low access to and control over resources and benefits, as well as little voice in decision-making within the household, the community and the society at large. As a result, they are maintaining a subordinate position in all aspects of life.

A high illiteracy rate as well as a lack of physical infrastructure such as telecommunication, electricity, roads and means of transportation are the main constraints for communication between communities, organizations, and various levels of local and central government. The estimated literacy rate for ANRS is 17.7% with the urban population having better literacy rates than rural dwellers and males having better literacy rates than females.

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2.2.2. Regional Policies and Strategies

Food Security Program

The objectives of the Amhara Region Food Security Programme Coordination Office are: Improve production and productivity of rural households Develop the contribution of the livestock sector in food security Expand and strengthen water harvesting and irrigation schemes Implement sustainable land-use practices Build human and institutional capacity Improve provision of adequate and potable water Promote and expand rural credit services Facilitate and expand rural market services Expand and strengthen off-farm employment opportunities Implement resettlement programme.

Employment Generation Schemes (EGS) constitute also an important food security strategy in the region. They provide food assistance to the needy members of the population enabling communities to participate and benefit from development activities. They also provide income generation opportunities for families with food shortage while making communities less vulnerable to the effects of drought and famine by concentrating on mitigation measures, which include road construction, soil and water conservation, water harvesting techniques, tree planting and other associated operations.

Environmental Protection

The Land Use Policy was issued in 2000 along with a proclamation to determine the administration and use of the rural lands in the region. In order to implement the regional conservation strategy and the land use policy, the region has established the Regional Environmental Protection, Land Administration and Use Authority (EPLAUA) with a principal objective of creating a conducive environment in which the use of rural lands could be appropriately managed and administered under the Federal and Regional Constitutions.

Development of Micro and Small Enterprises

The ANRS places a very high priority on the development of Micro and Small Enterprises (MSE), as reflected in the fact that a separate Bureau (equivalent to a regional ministry) has been established in order to promote them. Priority sectors to be developed are

o Agroindustry o Textile and Cottage Industries o Handicrafts o Construction

In particular, the MSE development promotes trainings and the introduction of new technologies.

Tourism Development Strategy

The ANRS has adopted a five-year Strategic Plan for Culture and Tourism (2005 - 2009) which lists the following six main fields of activities: o Capacity-building to increase the contribution of culture and tourism to the regional

economy; o Provide a conducive environment for the development of cultural centers and sectors for

protecting and promoting the culture and traditions of the region; o Improve the quality of tourist services and expand their coverage;

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o Develop an information system for tourism and culture and improve the collection and analysis of data;

o Eliminate bad traditional habits through mobilizing the community; o Mobilize communities to protect, manage and properly use cultural values, natural

heritage and attractions.

Over the five years of the plan, the ANRS has allocated the amount of almost 90 Million ETB (ca. 10,58 Mio. USD) for its implementation. According to this plan, the Simen Mountains National Park and Region is one of the four major tourist areas of ANRS, with a fifth one to be developed.

2.2.3. Characteristics of the Simen Mountains Region

North Gondar, one of the eleven zones of the ANRS, covers 62,020 km and is one of the largest zones in the region. The zone has 18 Woredas, with a significant area in high altitudes. The topography of the zone is mostly extremely rugged with deep gorges, very steep slopes, dissected plateaus and very dramatic escarpments that make the area significant as a tourist attraction.

The Simen Mountains Region, located in the three Woredas of Debark, Adiarkay and Janamora, encompasses 17 Kebele Administrations (KA) (as per the new re-demarcation). The total population residing in the 17 Kebele is estimated to be about 16.964 households with a total population of 84.801, including the new park extension area (IDP, 2004). The population living inside the park, which was estimated to be about 5,000 (2002), has now increased by 22.5% in two years time. This indicates that the population of the area is growing alarmingly.

The region can be differentiated into four distinctive geomorphic units (Hurni 1986): (a) the deeply incised lowland valleys below 2.000m asl, (b) the lowland terrace-like steps (roughly at 2.000m asl), which comprise the main cultivation and settlement belt in the area, (c) the steep escarpment between 2.000 and 4.000m asl, extending in a SW-NE direction, which forms the main wildlife habitat; and (d) the highland plains and valleys south of the escarpment, a densely settled and cultivated area.

Agriculture and Animal Husbandry

A characteristic of the farming system in the Simen Mountains is the integration of livestock and crop cultivation. In order to meet all the different household needs, a household needs a balanced herd composition, including cattle, sheep or goats and transport animals. However, a growing number of households has no animals at all for Gich, a village in the center of the Park, the percentage of households without any animals is estimated at about 15%.

The main criterion for wealth differentiation is the number of livestock, as during the land distribution land was distributed according to family size. In Wezahila, one of the four hamlets of Gich village, households are considered rich if they have 2 oxen, 2-4 cows, 3 horses, mules or donkeys and as many as 30 sheep. Poor households are those with at least a few sheep, some might even have a horse or a donkey. The very poor or destitute households are those without any animals. Often, such households are female-headed or are short on manpower/labour force. Households without any animals are in a downward spiral of impoverishment. They were forced to sell their livestock one by one in order to meet other household needs. Very often these poor households have to lease out their land to other farmers in return for 50% of the yield.

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For Wezahila, the distribution of oxen and equines (horses, mules, donkeys) is as follows: 10 households have 2 oxen (14.3%) 4 households have 4 equines (5.7%) 21 households have 1 ox (30%) 6 households have 3 equines (8.6%) 39 households have 0 ox (55.7%) 10 households have 2 equines (14.3%) 18 households have 1 equine (25.7%) 32 households have 0 equine (45.7%). This shows that in Wezahila the vast majority of households have less than two oxen and less than two equines, and about half of all households have no oxen or equine at all, indicating the level of poverty.

Trade and Services

Number and distribution of businesses

In the six Woredas of the target area, a total of 6796 business were registered in 2006. Table 1 shows that by far the highest number is found in Gondar with 5.205 businesses, representing 76% of all businesses in the region. The other Woredas are insignificant; only Debark and Adiarkay play a relative role due to their central role for wide geographic areas. Table 1: Number and distribution of small businesses in the Simen Mountains Region

No. Area Number of businesses Percentage 1 Gondar Town 5205 76 2 Wegera Woreda 240 3.5 3 Dabat 237 3.4 4 Debark 592 8.7 5 AdiArkai 424 6.2 6 Janamora 98 1.4 Total 6796

Diversity of businesses

Table 2 shows that business activities in the region are concentrated on very few activities, with retail trade occupying 61 % of the total and dominating in each of the six Woredas. Service businesses constitute 33% of the total business activities whereas the number of entrepreneurs engaged in production or processing of raw materials is significantly low or negligible. Out of the 44 business activities listed under the retail trade category, the overwhelming majority of them specialize on four types of goods: consumables (including supermarkets) (40,52%), grain (13,93%), clothes (7,36%) and garments (4,0%).

Table 2: Diversity of businesses in the Simen Mountains Region

Business category Target area Retail trading

Services Production and Processing

Not specified

Total

Gondar town 3036 1868 291 10 5205 Wegera 202 38 0 0 240 Dabat 163 68 6 0 237 Debark 409 170 11 1 591 Adiarkai 290 131 3 0 424 Janamora 83 15 0 0 98 Total 4183 2290 311 11 6795

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Equally, in the service sector transport businesses (goods, taxis, public buses), hospitality (bars, cafes and restaurants), and grain mills take shares of 22,22%, 24,97% and 10,39% of the sector respectively. These three types of services amount to 58.12% of the total sector. In the production and processing sector, the market is again dominated by only two different types of businesses: furnitures and edible oils.

The example of the town of Debark, which is the administrative and economic center for most of the Park population, exhibits a big and growing number of petty traders (small kiosks) and small shops or open-market stands with a very limited set of goods on offer. The selection of packed foods is limited to the cheapest and most common, and fruit are virtually unavailable. There are no shops for either office supplies or for electrical appliances. Technical services such as repairs or laundry are not available. Although Debark is the gateway to the SMNP, there are no facilities for tourists - no cultural facilities, arts and crafts shops, tour operators, and even no hotels of a minimal standard acceptable for international visitors.

In contrast to the unequal distribution of types of businesses, there is a proportional representation of all businesses across the Woredas of the target area.

Table 3: Percentage distribution of major business activities; by Woreda

Target area Total Major business occupation types Gondar Wegera Dabat Debark Adiarkay Janamora

A. Retail Trade 1. Consumable item trader 42.26 31.19 31.29 35.45 42.07 31.19 40.52 Small consumables 33.47 31.19 16.56 28.12 37.24 31.19 32.49 Supermarkets 8.79 0 14.72 7.33 37.59 0 8.03 2. Grain trade 11.17 30.2 20.25 16.87 24.83 30.2 13.94 3. Ready-made clothes 10.8 0.5 3.07 6.85 3.07 0.5 8.94 4. Garments 5.83 6.44 6.75 6.85 6.75 6.44 6.67 B. Service providers Transporters 26.82 0 1.47 3.53 0.76 0 22.23 Bars 11.4 13.6 27.94 18.82 3.82 6.67 13.49 Cafes and Restaurants 10.49 2.63 20.59 17.06 16.79 6.67 11.48 Grinding Mills 7.87 42.11 25 11.76 22.14 60 10.39 C. Production and Processing Furniture (incl. metal workshops) 69.07 0 50 81.82 0 0 68.49 Edible oils 11.68 0 33.3 0 0 0 23.15

Size of businesses

The number and distribution of businesses alone do not provide sufficient information about the actual economic significance of those businesses. A more reliable picture only emerges when their size is taken into account, measured here by the amount of investment. Table 4 shows that the overwhelming majority of businesses - 5577 or 82,06% of 6796 - are in the range of very low investment costs (up to 10.000 ETB), and 4.000 businesses are even below 3.000 ETB, representing family-based micro-businesses characterized by self-employment or employment of unpaid family or unskilled labour with no specific work relations.

This makes very clear that the level of the private economy in the region is exceedingly low, mainly due to a lack of investment capital. For this reason, businesses which require a higher capital investment for buildings or machinery such as hotels, transport companies, intensive agriculture or processing, are underrepresented in the economy of the region. The lack of medium-sized businesses again explains why there is virtually no accumulation of capital and thus no reinvestment and no economic development in the region.

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Table 4: Capital investment for small businesses, by business categories

Category No. Investment cost (in ETB) Retail

trade Services Production and

processing Unspecified

Total number of businesses

1 300 - 1000 388 109 2 1 500 2 1,001 3,000 2638 788 76 3 3505 3 3,001 5,000 586 262 81 0 926 4 5,001 10,000 318 263 64 1 646 5 10,001 20,000 179 244 24 0 447 6 20,001 50,000 68 314 18 0 400 7 50,001 100,000 11 229 33 1 274 8 100,001 500,000 10 48 9 0 67 9 500,001 and above 1 6 5 0 12 10 Unstated budget 4 4 0 8 16 Total 3041 1862 292 10 6796

Tourism

The Simen Mountains National Park has a huge but largely untapped tourism potential. Its spectacular landscape can be compared only to very few similar places in the world such as the Grand Canyon (USA), which has more than one million visitors per year. However, unlike such places it is virtually unknown in the world, and efforts must be made to establish the SMNP among the top natural destinations in the world.

The SMNP also benefits from the fact that it is located on the Historic Route including other World Heritage Sites such as Gondar, Axum und Lalibela which are the prime tourist destinations of the country and visited by probably around 90% of all tourists coming to Ethiopia.

Over the years, services provided to tourists in SMNP have been improved, and the number of people employed in the tourism sector has increased. Revenues to local people - guides, cooks, mule-owners, etc. are estimated for 2003/04 to be more than 500.000 ETB. Infrastructure development, however, has not kept pace with this growth. Hotel accommodation in Debark is still very limited and of low quality a high-standard lodge at the park boundary is under construction now and will be opened in the near future. There are no shops or restaurants/cafes catering particularly to the needs of tourists, and no facilities exist for public education, cultural events or entertainment of visitors either. In summary, there is practically no tourist infrastructure in Debark and the park itself, and thus the overall revenues from tourism remain very far below their potential.

Table 5: Expected Number of Visitors of SMNP (according to PaDPA counts/estimates)

Year Visitors (real/expected) per day (210 days season) 2002 3.489 16,61 2003 3.769 17,95 2004 5.074 24,16 2005 6.090 29,00 2006 7.359 35,04 2007 10.000 47,62 2008 14.000 66,67 2009 18.800 89,52

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Still, since 2000 tourist numbers have steadily increased. Although the annual growth rate has declined from around 40% (00/01 to 01/02) to 8% from 2002/03 to 2003/04, it has surged again since then and can be expected to grow further, especially since a growing number of tourists can now be observed also in the rainy season. Obviously, however, tourism development in the Simen Mountains National Park will also depend on general political and tourism development in Ethiopia as a whole. From this perspective, it is very encouraging that governments on both the national and the state levels place a high priority on this sector.

Assuming that the maximum number of visitors which the park could sustain per day is no less than 200, there is a large potential of growth well beyond the year 2009. This implies an equally high potential of growth in tourist infrastructure such as hotels, transportation, shops, food supply and services.

2.3. An Alternative Livelihoods Strategy

The investigation of the economic environment of Amhara National Regional State in general and the Simen Mountains Region in particular, as elaborated above, leads to the adoption of the following Alternative Livelihoods Strategy for the population of the Simen Mountains National Park:

2.3.1. Remove the Park Population

Acknowledging that present livelihoods in the Park are not sustainable in the long-term, and there are no alternative options within the Park, there is no alternative to attracting the population out of the Park by offering new livelihoods.

This will be a be a process which will continue over a period of several years, starting with those villages and sectors of the population which are most willing to relocate (probably small villages and young men), creating positive examples and an effect of a pull factor on the less willing, and reducing the social cohesion of the villages until those who are unwilling to relocate will eventually realize that their numbers are too small to keep up viable villages.

At the same time, the most senior elders and one of their children (with their core families) should be allowed to remain in the Park until the end of their lives. Children will have to move out when elders die.

Since a significant number of the Park population is illiterate or has only insufficient basic education, additional efforts should be undertaken in order to improve their education in order to improve their job chances and thus facilitate out-migration.

In some cases - such as possibly Limalimo - the population can possibly continue to live in their present village and only shift livelihoods from agriculture to types of income which do not involve land use. For a few families who are involved in Park activities and tourism, there may even be a necessity to continue to live inside the Park. It should be made sure, however, that such families will keep only a very small number of livestock for their own consumption.

2.3.2. Establish New Businesses

A strategy for developing alternative livelihoods for the population of the Simen Mountains National Park must be based on the following facts and considerations:

The economic life of the region is at an extremely low level. There is virtually no investment capital available.

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The purchasing power in the region is minimal, reduced to only the most essential goods. Outside the towns, the overwhelming majority of the population lives on a subsistence basis way below the line of absolute poverty.

Businesses are mostly extremely small, and profit margins are so small that no capital can be accumulated for (re-)investment. As a result, there is an economic standstill unless for investments from outside the region.

The Park population has a background and history of extremely remote mountain villagers living on a subsistence basis from animal husbandry and agriculture, supplemented by handicrafts and some tourism-related activities for household cash.

A resettlement of the Park population as farmers based on household economies would require making available a total land area of about 586 ha, calculating that the minimum land base per household is 1 ha. This amount of land is not available in the region, and the Park population has consistently refused to resettle in the lowland areas further away from the region.

For these reasons, only the following types of new livelihoods can be established: Agricultural plantations based on intensified land use and hired labour Labour-intensive processing of agricultural goods Small urban trade and service businesses Tourism-related goods and services enterprises Financing businesses.

Such businesses must meet the following requirements: Goods produced and services offered must either be in the lowest price range or target

the growing number of foreign visitors. Businesses must offer as much as possible jobs for unskilled and mostly illiterate

labourers with a rural background. In the face of a shortage of land available, businesses must use only a minimum of land

or significantly improve the lands productivity, or be of paramount importance for the development of the region as a whole.

In addition, the newly-established businesses should have an innovative character and contribute to the general economic development of the region, in particular to the following: Intensification of land use (increasing productivity) Diversification of goods and services available in the region Tourism development Cultural life Increase attractiveness of urban livelihoods Creating synergies with other businesses in order to spur economic development.

2.3.3. Increase Cash Flow

In order to raise the chances of success for the newly-established businesses, the general purchasing power in the region must be increased. For this purpose, it is vital that cash must be injected into the local economy. Since there is no capital available on the local level, it must be brought in from outside, and two sources of outside capital are tapped as part of this strategy which will directly increase local purchasing power: 1) The local expenditure of foreign tourists will be increased through offering new services (cafs, tour operator, laundry, night bar, print media) and an increase of Park entrance fees. 2) A Trust Fund and a Small Loans Program will be set up which will extend grants and loans to the local population and their organizations, using in part revenues from the Park operation. The funds obtained through these micro-financing institutions will be spent for welcome small investments and thus be fed into the local cash flow.

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Literature

ANRS BoCulT 2005 Strategic Plan for Tourism and Culture. Amhara National Regional State Park Bureau of Culture and Tourism. Bahr Dar

ANRS BoFED 2004 Rural Households Socio-Economic Baseline Survey of 50 Woredas in Amhara Region. Bureau of Finance and Economic Development. Bahr Dar

ANRS PaDPA (n.d.) SImen Mountains National Park Integrated Development Project October 2005 March 2007 Amhara National Regional State Park Development and Protection Authority. Bahr Dar

Hurni, H 1986 Management Plan Simen Mountains National Park and Surrounding Rural Area. Ministry of Agriculture, Natural Resources Conservation and Development Main Department, Wildlife Conservation Organization, UNESCO. Ethiopia

Hurni, H. and E. Ludi Reconciling Conservation with Sustainable Development. Centre for 2000 Development and Environment, Berne

Ludi, Eva 2005 Simen Mountains Study 2004. Intermediate Report on the 2004 Field Expedition to the Simen Mountains in Northern Ethiopia. Dialogue Series. Berne, NCCR North-South.

UNDP UNCDF 2005 Local Development Project North Gondar Zone, Amhara National Regional State. Project Document. Addis Ababa

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3. Project Rationale

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3.1. Justification

The impoverished but rapidly growing population living in extremely remote areas of the Simen Mountains National Park is engaged in unsustainable livelihoods such as overgrazing of livestock, ploughing steep slopes and cutting native forests for firewood. Because of their location in the park, they have no possibility to either expand the land they are using, to increase agricultural productivity or to introduce technical infrastructure.

At the same time, UNESCO has mandated a significant and sustainable reduction of their number in order to remove the Park from the List of World Heritage in Danger. Thus the only long-term option for the park population is to relocate to areas outside the Park.

Because villages which are now inside the Simen Mountains National Park have been in existence when the park was established, and at that time they had no opportunity to voice their opinion about being included in the park, both the Ethiopian government and the international community have an obligation to provide the park population with new acceptable and sustainable livelihood options outside the park. Such new livelihoods must be adapted to the past ways of life and capacities of the park population on the one hand, avoiding cultural shocks and an overstretching of their ability to cope, and must be feasible on the other hand within an economic environment characterized by extreme poverty, a lack of technical infrastructure and minimal purchasing power.

The project represents a realistic, concrete and detailed blueprint for achieving this task which benefits not only the primary beneficiaries, but brings a leap in economic development to the Simen Mountains Region as a whole.

3.2. Objectives

The overall aim of the project is to contribute to the re-building and safeguarding of the integrity of the Simen Mountains National Park.

Specific aims of the project are: To create new acceptable, feasible and sustainable livelihoods for the park population

through the establishment of private businesses and cooperatives; To provide new and acceptable housing for the park population in the locations of their

new livelihoods; and thereby To attract people out of the park and thus pave the way for the rehabilitation of degraded

areas; To contribute to fulfilling UNESCO benchmarks for removing the Simen Mountains

National Park from the list of World Heritage in Danger, in particular benchmark 3; To obtain experiences and models which can be applied to the Buffer Zone of SMNP as

well as to other Protected Areas in Ethiopia.

3.3. Benefiting Groups and Benefiting Area

3.3.1. Benefiting Groups

The people directly benefiting from the project will be the 586 household heads presently residing in Simen Mountains National Park. As each household has an estimated average number of 5,5 members, an additional number of 2.637 individuals will benefit from the project, bringing the total number of beneficiaries to 3.223.

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The table below lists the villages presently within the park and their respective numbers of households, thereby indicating the distribution of the beneficiaries. The figures are based on the Alternative Livelihoods Assessment Study of 2006 and differ somewhat from previous figures. This is because a detailed investigation on location has revealed that a number of households previously thought to reside inside the park actually live outside its boundaries. As mentioned above, the number of individuals has been estimated based on an average rate of 5,5 per household.

Gott (Village) Kebele (County) Households Individuals Limalimo Debre 27 148,5 Michibigny Adisghie Miligabssie 81 445,5 Kebero Adisghie Miligabssie 15 82,5 Megordemiya Adebabay Tsiyon 65 357,5 Kidan Mado Argenjona 19 104,5 Getabit Argenjona 15 82,5 Key Afer Argenjona 135 742,5 Gich Abergina 360 1980,0 Daliya Agdamiya 4 22,0 Total 586 3.223,0

The table indicates clearly that the village of Gich, being located in the center of the park and accounting for more than 60% of all park residents, is of crucial importance for the success of the project.

3.3.2. Benefiting Area

The Simen Mountains National Park will benefit from the project through a far-reaching reduction of pressure from human use, thereby rebuilding its natural integrity, creating necessary preconditions for an expansion of critical wildlife habitat, and resulting in an increased attractiveness for tourists.

Economically, the entire Simen Mountains Region, including the three Woredas of Debark, Adiarkay and Janamora will benefit from the project, and to a lesser extent also the Woredas of Dabat and Wogera to the south of that region.

3.4. Approach and Methodology

3.4.1. Creating Incentives

The project approach represents a marked shift from the resettlement practices which have been implemented in the country so far. Instead of simply relocating people, offering them new housing and small plots of land, and then essentially leaving them to their fate, the project pursues an approach of creating attractive and irresistible incentives for voluntary relocation, and turning the duty to provide for new livelihoods into an opportunity to make a systematic effort to promote private business and spur economic development, poverty alleviation and food security in the Simen Mountains Region as a whole.

3.4.2. Business Development

In an economic environment which is characterized by widespread absolute poverty, extremely low purchasing power and a lack of capital and investment, the project, rather than just buying the population out through a compensation payment and then leave them without

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economic perspectives, is taking a more productive approach by turning the duty of caring for individual households into an opportunity for economic development of the region.

The project will provide new livelihoods for the entire population now residing in the park through creating new private businesses and cooperatives. This will contribute to the general development of the Simen Mountains Region essentially in two ways:

(a) The project constitutes in essence a big public investment program - only that the jobs created will not be public jobs but private ones. Such a massive investment cannot but have considerable impact in boosting the regional economy.

(b) On the demand side, not only will 586 households have a much bigger purchasing power than before, but the grant and Soft Loans programs will inject additional capital into the regional economy and increase cash flow and purchasing power.

Through these two impacts, synergizing with improved technical infrastructure and growing tourism, it can be expected that primary accumulation of capital will be enhanced and a noticeable development leap will take place in the Simen Mountains Region. Improved food security and variety as well as a more efficient and diversified economic infrastructure will improve the regions attractiveness for tourism, and increasing numbers of tourists will in turn spur economic development.

The proposal explicitly does not consider opportunity costs to be a significant criterion for this project since its main objective is to provide new livelihoods for a certain group of people and essential economic improvements for the region, not to maximize anyones profit.

In selecting the businesses to be developed, next to economic feasibility, the proposal has been guided by the following considerations:

Taking into account that a significant number of households living in the park have been unwilling to move far away, especially to the western lowlands, businesses have been designed in particular which can be located in the Simen Mountains Region.

Attempts have been made to identify businesses which are related to the present ways of life of the Park population as well as indigenous skills and knowledge in order to increase the adaptability of the project.

The potential and capacities of the target population must be considered to be very limited: most of them have a very low level of education, they are adjusted to an extremely remote high mountain environment with little exposure to the modern world, they are familiar with agriculture, livestock and tourism, and are used to livelihoods in the open air, but must be assumed to be unfit for office and urban livelihoods.

The businesses selected reflect the extremely low purchasing power of the general population. Accordingly, items to be sold will be in the lowest price range. Only such businesses for which visitors will be a significant part of their customers are calculated to sell items in the medium and higher price ranges.

In the absence of sufficiently detailed economic statistics for the three Woredas, and with a lack of resources, no market studies could be carried out for the various businesses proposed here. However, feasibility in most cases is obvious given the lack of existing businesses. In other cases it has been determined through qualitative surveys in Debark, Adiarkay and Gondar.

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Businesses have been calculated to be on the smallest economy of scale and over 5 years. By principle investment costs will be provided as a grant and not as a credit. The proposal assumes that the population removing from the park will face serious difficulties in adjusting to the money economy and cannot be expected to handle large and long-term credits successfully. In addition, the muslims among them - more than half of their overall number - are forbidden to extend or accept credits for religious reasons.

Moreover, profits in almost all cases are too low to allow any chance to repay credits in any reasonable period of time. Again in order to avoid the necessity of taking credits, investment costs also include a non-repayable first set of goods and a start-up assistance.

Only in those cases where quite sizeable profits can be expected, the project shall make legal arrangements with the business owners to retain those profits in order to cover some of the admittedly substantial investment costs. The remaining profits should be paid into the Simen Mountains Trust Fund.

Greatest possible scrutiny has been applied at making correct calculations and avoiding any non-essential costs, and at the same time improving general standards over existing levels in order to set positive examples by which the general population can appreciate the potentials and advantages of development.

3.4.3. Participatory Approach

The project has been prepared using a participatory approach as much as this was possible under prevailing conditions (limited time and resources, but mainly extreme inaccessibility of the villages, and partly a reluctance to cooperate because of historically strained relationships).

Participation has been achieved foremost through repeated village meetings and discussions with village leaders, as well as obtaining detailed information from the households through the questionnaire which has been described in section 2.2.1 of this proposal. This questionnaire specifically asks the park residents about their talents, preferred activities and ideas and plans for their future livelihoods.

The individual businesses have been developed in consultation with a wide range of civil servants from various governmental agencies, state and private enterprises.

In addition, the draft project proposal has been presented to, and accepted by, the local population on public meetings in the four villages primarily affected (Limalimo, Michibigny, Gich, Argenjona).

Through the project staff (mainly the Human Resources & Training Manager and the Business Development Advisor) and close cooperation with local Kebele Development Agents and Woreda Agricultural Officers, the project will ensure that tailor-made solutions will be found as far as possible for each removing household in terms of their future employment and location of residence as well as the time and circumstances of their removal.

3.4.4. Gender

The project fully takes gender issues into consideration by having made explicit efforts to create businesses which would provide job opportunities for women. A sizeable number of park households are women-led, meaning that in those cases women have to care for whole families.

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Only very few of the jobs to be created would seem to be unfit for women, such as construction workers, truck drivers or guards. Businesses may be particularly fit for women which allow groups of them to come together, bringing their small children with them and organize child care and cooking in common and parallel to their work. Such businesses will primarily be handicrafts workshops, but also the poultry and vegetable farms. In addition, service and tourism-related jobs will be particularly well-suited for women, such as cafs and shops.

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4. Project Components

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4.1. Project Coordination Unit

4.1.1. Personnel

In this project proposal, only the main duties and responsibilities of each professional staff can be described. Elaborating full job descriptions and requirements of qualification will be the task of the implementing agency of the project.

Proj