capacity to withstand the impact of natural hazards at the national, local, community and household level, and to significantly reduce the damages associated with disasters by 2023. The NPDRM is organized around the Hyogo Framework for Action’s priority areas and promotes an integrated, multisectoral approach in the context of broader sustainable development efforts in Ethiopia. The DRM-SPIF is a tool to facilitate the National Policy and Strategy on DRM by addressing existing gaps and limitations in Ethiopia’s DRM capacity and establishing an integrated DRM system. The DRM-SPIF is also envisaged to contribute to Ethiopia’s ambitious Growth and Transformation Plan II (GTP II<sup>20</sup> ), which sets forth goals to enable Ethiopia to become a middle-income, carbon-neutral, and climate-resilient economy by 2025 with growth rates of at least 11 percent per annum during the planning period. To achieve the GTP II goals and objectives, GoE has followed a “developmental state” model with a strong role for the government in many aspects of the economy. It has prioritized key sectors such as industry and agriculture as drivers of sustained economic growth and job creation<sup>21</sup> .

# III. Drought response within Ethiopia

Against the policy and institutional backdrop outlined above, Ethiopia currently relies mainly on the Productive Safety Net Programme (PSNP) and humanitarian appeals to address drought risks<sup>22</sup> . The need to develop systems and institutions to respond to drought has been recognized in Ethiopia at least since the 1970s and 1980s, when two major droughts caused widespread food insecurity and mortality. The catastrophic drought of 1983 caused 300,000 deaths and affected 7.75 million Ethiopians<sup>23</sup> . The severity of the crisis necessitated large-scale international humanitarian assistance, underscoring the importance of establishing a sound drought response framework. To manage drought risks systematically, in 2005 the GoE began implementing jointly with its DPs the Productive Safety Net Programme to respond to food insecurity and droughts, and has established a seasonal needs assessment process to monitor food security and issue humanitarian appeals where necessary.

## III.1 The Productive Safety Net Programme (PSNP)

The PSNP represents the second-largest social safety net in Sub-Saharan Africa<sup>24</sup> , and provides cash or food assistance, depending on availability of food in the market, to chronically food insecure households in chronically food insecure _woredas_ (districts). Since 2005, transfers have been made for six months in a given calendar year, and are equivalent in value to 15 kg of cereals per household member per month, or its cash equivalent. Under the current PSNP IV, which commenced in 2015, the transfer value will be adapted to 15 kg of grain and 4 kg of pulses in order to increase the nutritional value of the transfer. Beneficiary selection within the PSNP is completed based on geographic and community targeting. Based on a history of emergency food needs, the GoE identified the most food insecure _woredas_ . As a second step, beneficiaries are selected within communities according to pre-identified criteria.

> 20 FDRE (2015).

> 21 World Bank (2014b).

> 22 Additionally to the PSNP and humanitarian appeals to address drought risks, the GoE’s GTP II includes objectives to enhance resilience to drought risks. These include, for instance, initiatives to strengthen natural resource management and watershed development, as well as scaling up best practices to help mitigate vulnerability to drought. Furthermore, the GTP II envisages reducing the vulnerability to drought risks through small and large scale irrigation development (FDRE, 2015).

> 23 Guha-Sapir, Below and Hoyois, EM-DAT database.

> 24 Following South Africa’s Child Support Grant, see World Bank (2014a).

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