Contents The Benishangul Aboriginal Community, Economic Profile .......................................................... 5 Institutions and Aboriginal Community ........................................................................................... 6 Common Resources and Institutions ................................................................................................... 8 A Development Issue: Benishangul Aboriginal Prospects............................................................. 10 Social Capital Development as a Base for Economic Developments ............................................ 13 Development of Mineral Resources ................................................................................................. 15 Environmental Issues........................................................................................................................ 17 Rural Leasehold, Land Strategy and Future Benefits ................................................................... 19 Land Tenure and Land Management ............................................................................................. 20 Policy for Agriculture as the Engine of Development.................................................................... 23 Poverty Cases in Developing Country ............................................................................................. 25 Adopting Sustainable Land Management: Alleviating Poverty ................................................... 27 Conclusion ......................................................................................................................................... 30 Policy Recommendation ................................................................................................................... 33 References .................................................................................................................................................. 34 Acknowledgements I would like to express my gratitude and great thanks to my creator ALLAH, by his power I have come to start and complete my manuscript, the next gratitude goes to my beloved wife Gizema Ahmad for her unlimited home care, she has given me during my manuscript task. Those individuals who made this manuscript possible. List of Acronyms’ and abbreviations CR common Resource CA Conserve Agriculture FDRE Federal Democratic Republic of Ethiopia NGOs Non-Governmental Organizations SLM Sustainable Land Managements UNCCD United Nations Convention to Combat Dissertation USA United State of America USD United State for Development Introduction I felt dissatisfaction that in any session at each yearly conference her in Assosa College, any investigate program at the territorial level or policy-related occasions where the speakers put forward their thoughts around the major inquire about and approach issues to be handled by the callings, there was no specify of the issues confronted by Native communities in Benishangul. There's no question that Native communities and most Natives are altogether impeded with regard to most other Benishangul in particular and Ethiopia communities – the impediment that I would contend is essentially due to need of financial improvement. I accept that the agrarian and asset financial matters calling can make a significant commitment to the advancement of their circumstances through the exhortation, it can give financial advancement. Our inquire about and viable encounter in ranges such as agrarian approach and cultivate administration, characteristic asset administration, and regulation advancement, and the incrGiven the enormity of the situation, there has been surprisingly little work by the wider economics profession on issues related to Aboriginal disadvantage in Ethiopia. I suspect that this reluctance has stemmed in part from the fact that it is a politically sensitive area and also one that is subject to academic jealousy. However, if this is the case, such sensitivities should be ignored in the interests of the Aboriginal peoples, especially if, as I believe, economists, and agricultural and resource economists, in particular, have so much to offer. Also, I can argue that development cannot begin without any alarming events, that event it might be negative or positive. The question of compensation of Farmer’s, for their contribution to the goals of maintenance of biodiversity, and the given their control over such vast areas of land, consideration has to be given to the involvement of Aboriginal communities in the management of environmental issues Given the extensive areas of land that Aboriginal groups have gained control over in one form or another in recent years, there are very important questi ons about how this land will be managed, whether for agricultural or other activities. Agricultural and farm management economists can contribute a great deal through advice on how best to manage these lands. Most times, these lands are highly susceptible to environmental problems and natural resource economists can help with advice on that topic. There is a high probability that they will discover further mineral resources on Aboriginal land, which has implications for the management of the resource rents accruing from mining projects.(Agterberg&Bonham-Carter,2005). Resource economists can advise on the design of mining contracts, mineral taxation policy, and management of resource revenues such as through trust funds. The form of land tenure under which we hold most of this land is customary ownership or common property.(Wily, 2011). In recent years, we have learned a great deal about the management of common property resources, and when collective action may be the best way to manage externalities. Land tenure has developed in all societies, and it will be no different in Ethiopia, the tenure over considerable areas of land has changed from crown land, individual leasehold, and individual freehold to common property under Aboriginal ownership.(Greller, 2015). However, common property tenure and management has not proved to be the best form of management for growth in productivity. Therefore, as in other countries, over time there will be pressure for change to some form of individual land title. This kind of change is a basic form of institutional change. Agricultural and resource economists have largely led the way in Ethiopia in analyzing how the new institutional economics can assist in creating a better basis for economic development in lower-income countries, and this knowledge can be very usefully applied in Ethiopia. The developing country faces many challenges in order to make an improvement in its development of the economy. Many developing countries have tons of population but their per capita income is low. A low level of national income may affect the process of the development of the country The political and domination strategies of changes needed for pro-poor growth strategies. One of the important lessons cultured is that political change cannot be calculated and forced from the outside. Creating the proper amalgam of norms, values, and rules to reduce uncertainty and transaction costs is a critical factor in accelerated growth and development. The creation of such social values and norms is called social development or social capital accumulation(Krause, Handfield, & Tyler, 2007). The Benishangul Aboriginal Community, Economic Profile Rain fed subsistence agriculture and mining is the livelihood fore community, shifting field cultivation and use of hoe based farming. Only 44.5% of the farmers use animal power for traction. Unlike other part of country, rainfall is not a major limiting factor for agriculture production in the community, except very few marginal areas bordering the Sudan (BG, BoFED, 2008). Sorghum and maize are the adopted crop by the community, the average productivity of maize and sorghum 12 & 9 quintals per hectare, respectively, where the community are located has a high potential for growing fruit crops and coffee. Mango is one of the dominants and important grown. Additionally, the Benishangul Aboriginal community is endowed with potential natural resources that can be tapped for the well-being of the people. The region has large cultivable land and rich water resource potentials. There are many perennial rivers such as Abay (Blue Nile), Dabus, Beles, Dedessa and others that can be used for large, medium and small scale irrigation developments. It is estimated that there is about 1 million hectare of potentially irrigable land in the region. Rivers like Gilgel Beles and Hoha can be used for hydroelectric power generation. Various types of minerals are found in many places. The major ones include: Gold, Marble, Limestone, Cobalt, Copper, Zinc, Lead, Tantalum, Sulphite and Nedium. About 55% of the total land area of the region is covered with different vegetation and forests. Bamboo, incense and gum trees are the major forest types. Forests are important sources of construction material, fuel wood and food, particularly for the indigenous communities. Beekeeping and fishery are also very promising potentials that could play vital roles in supporting food security in the region. Institutions and Aboriginal Community In recent years, there has been a rise in interest in the study of institutions in economics. This is because of the inadequacy of the neoclassical theory in dealing with a set of issues like the uneven performance of economies in space and time, the persistence of inefficient institutions, the role of ideology in the choice determination of individuals, and the rationale and effect of the rule observing behavior, etc (Whitehead & Russell, 1997). These inadequacies were attributed to both conceptual and methodological frameworks utilized in the neoclassical theory. Further, the neoclassical economics does not deal with the incentives and behavior of political actors, or the influence of the political process on target for growth, stability, and pollution abatement regulation in agriculture or the division of public investment among sectors and enterprises (Eggertsson, 1997). Neoclassical economics completely ignores the “power” dimension in policy-making (Franke, Schmid, Osborn, & Weber, 1978). The framework is also being criticized for its isolated nature in that it does not encompass the reality and efficacy of transaction costs (Hart, Tirole, Carlton, & Williamson, 1990). This is due to a greater focus on a few key variables like price, quantity, etc. Further, the framework offered no scope to integrate politics into economics to capture the real-time phenomenon of the economic outcome as influenced by political institutions. Institutions are taken for granted for observing the social rules, conventions, and other elements of the structural framework of social interaction in mainstream economics. They are often pushed so much into the background that many of their central propositions are sometimes stated with a false notion of institutional neutrality(Bardhan, 1989). These inadequacies led economists to look for an alternative framework for analyzing economic phenomena with explicitly studying the interaction of institutions with these phenomena. So having the above institutional facts, Aboriginals communities, have their own indigenous or cultural guideline, for their life cycle and strong informal institutions which have a drive them up to the modern institutions. However, to compete with a new one historical things should be taken into the account. Because it can play a great role in setting the genuine plate form for the new economic or development institutions. Nevertheless, the fact and figure which we are observing from the recent living standards of the Aboriginals community are, the potential of natural resources is hugely available however it lacks compatible institutions to come up with the potential to actual. Someone can observe many institutions are newly introduced; unfortunately, the institutions are imported that totally are not much with the reality of aboriginals in Benishangul. Surely, I believe that only researches are required not importing institutions and the trustfulness in most cases of least developing like the Aboriginal community in Benishangul, they are laky of having a huge potential of resources while being economically disadvantageous and the guidance institutions are imported, Daly. Of course, it may require robust economic data to say that until the beginning of the FDRE government Aboriginals community have had used natural resources, so many livestock’s, mineral, and agricultural production efficiently, however, the day forward things come to changes. I can argue because of the institutional dilemma of modern and the previously informal one and I would like to make it open for interesting research, truly, my Argument can be supported by the Path dependency theory. This theory insists that it's of decisive importance to explicitly model the method from which an establishment emerges. In other words, the idea says that ‘history’ matters within the emergence of an establishment. Path dependency theory is a cumulative process where random events in the opening phase of the process determine the outcome in the long-term. It is therefore with good reason that these processes are termed ‘historical’ (Gerbing & Anderson, 1988). Common Resources and Institutions Common assets of arrive, water, timberland, Mining, natural life, and farming constitute an imperative component of community resources in Benishangul, and they essentially contribute to the business of individuals, in spite of their fast consumption and decay in physical efficiency. All-natural assets, counting CRs, are amendable to administration beneath different property districts, viz. state, private and collective community, etc. Indeed a specific asset may be held beneath more than one property administrations or can be overseen beneath a distributed/shared administration framework (Marothia,2003). There is nothing inherent during a resource itself to work out the character and sort of the ownership , but it's determined by social and institutional arrangements evolved and enforced by the community to protect the resource ((Bromley, 1992);( Jodha, 2005); and Martha 1993 &2002). Institutional arrangements play an important role in the management of natural resources, in general, and CRs in particular, under any property right regime. In the context of CRs, institutions are defined as “collective action in control, liberation, and expansion of individual action”(Commons, 2001). Thus, institutions express the value system of society and enforce it in the form of working rules. In other words, institutions are ‘working rules’ to order relationship among individuals within a society, and structure incentives in human exchange, whether social, economic, or political(Milgrom, North, & Weingast*, 1990); Weimer 1995; Williamson 1994; and Dasgupta and Maler 1994). The property rights or institutions are part of the `cultural capital’ by which resource user communities convert the `natural capital’ (resources and ecological services) into `human-made capital’ or inputs of production. The cultural capital comprising social and institutional capital ((Coleman, 1988); and Ostrom 1992) indicates how people in any society view the utilization of natural resources and associated values and ethics, including customs, norms, religion, and culturally transmitted knowledge ((Berkes, Colding, & Folke, 2000)). The standards of working rules are basic to shaping social connections, choice of elective approaches, and administration in overseeing characteristic assets in common, and CRs in specific. I accept that Organization courses of action play an critical part within the administration of natural assets particularly within the case of common assets. To know the impact of the Need of organization courses of action within the Aboriginals community in Benishangul, would not be as it were with observational information, the awful and backward saving propensity and the need of legitimate utilization of non-renewable assets within the Native community in Benishangul can be taken as popular pieces of prove. I contend that The Aboriginal community does not think that common assets can completely be extricated or severely exhausted particularly within the case of mining and agrarian lands (Hanna, Folke, & Mäler, 1995). So, as I mentioned above, the institution which comes out from the mixture of two namely historically or informal institutions, and newly emerged institutions which supported by technologies timely needed. Briefly, the government should intervene with the strong institution, which proves them that future generation has right to calm on the current extraction and the future generation is nothing but their offspring, of course, I can argue that the lack of suitable institution even I can tack it as one the symbol of being economically disadvantageous, that means coming out with inclusive and making them economically active can tackle the above-mentioned resources related problem. A Development Issue: Benishangul Aboriginal Prospects As I said, the basic premise of this paper is that the terrible state of Aboriginal community living standards, particularly in rural areas (as shows up in social indicators such as life expectancy, infant and maternal mortality, and the incidence of disease), is primarily the result of a lack of economic development in these communities. Further, I believe that the best means of substantially improving their welfare will be through economic development in their communities. This is a contested premise. ‘Developmentalism’ is almost used as a term of abuse in some social science quarters in Ethiopia in discussions about policies relating to Aborigines. Nevertheless, the past emphasis on welfare policies has not led to any significant improvement in their well-being –Some may wish to argue that different welfare policies would lead to substantially better. I disagree. To some extent, rural Aboriginal communities have a choice as to whether they wish to undertake economic development; those in urban areas do not. However, the choice appears highly constrained by the freedom of people to leave rural communities, the availability of information about what is happening in the wider world, and the continuous comparisons of their welfare with that of the rest of Benishangul and other societies. Globally, the evidence is that substantial improvement in the welfare of poor societies only occurs through, initially, provision of clean water and sanitation and control of pests and diseases, and later, through greater access to income-earning assets such as education and land, and opportunities to access other markets. Nevertheless, these are direct and more highly visible relationships. The important question is how to set these processes in place and sustain them? It is of interest why the approach to improving the welfare of rural Aboriginal communities in Benishangul has been so different from that adopted in what is termed the developing countries? As with other societies in Ethiopia, Native Africans Indians in the USA, the Aboriginal population in Benishangul regional state makes up a high percentage of the total population. For this reason, there is a tendency towards adopting the seemingly ‘easy’ solution to their problems through income redistribution measures, but which creates difficult-to-overcome problems of welfare dependency, as so well described by Noel Pearson. This tendency is underpinned in Ethiopia by the predominance of a Military regime of derg socialism and the recent governments of FDRE that gives preference to government-based solutions over solutions relying on individual effort and enterprise. I would argue, however, that even these other factors are not sufficient for economic development to take place. Over the past 50 years, the theoretical understanding of the economic growth process and the implementation of economic development strategies have undergone huge changes(Pollard et al., 2002). Following growth theorists such(Harrod, 1939), (Domar, 1946) and Solow (1956), development assistance for many years (and still, in some agencies) was based on the notion that the lack of financial and physical capital was the main reason for countries being poor. Hence, the multilateral lending agencies and aid agencies in high-income countries were set up to transfer savings from rich to poor countries. Later, following(Becker, Spencer, & Swartwood, 1964), economic growth theory and developmental practice focused also on health and education to build human capital. By the early 1980s, the realization that so many of the projects that they had funded had failed saw the multilateral agencies adopt so-called Structural Adjustment Programs, based on the premise that the policy environment in the developing countries was not conducive to project success. However, Structural Adjustment Programs have not led to much better growth performance(Burnside & Dollar, 1997). In the 1990s, following North (1990), and more recently (Olson, 1996) and(De Soto, 1989), the focus of developmental assistance has shifted – at least in some quarters – to the creation of institutional frameworks in which physical and human capital and innovativeness will flourish. Nevertheless, changing and creating basic economic and social institutions within a society is very difficult. Both North and Olson were pessimistic about the likelihood of such change, implying, as it does, change in the political power balance within the society. The political status quo is what it is for good reason, and changing it to provide enhanced possibilities for the poor to participate in economic activities is threatening to the ruling interests. Looked at from this angle, promoting economic development and reducing widespread poverty is a very complex and difficult process. The transfer of capital to poor countries or regions and its transformation into roads and dams or schools and medical centers is, by comparison, a simple task. Nevertheless, without institutional changes in areas such as constitutions (to provide equal opportunity), judiciaries (to ensure impartial treatment), social capital (to generate trust throughout the community), rights to education (to provide equal access for the disadvantaged), or land titles (to provide security for investors), the provision of roads, schools, and hospitals is likely to have little impact. Agricultural and resource economists have embraced the New Institutional Economics more enthusiastically than the general economics profession in the LeastDeveloping region. This may be because they are doing more work in developing countries where they are forced to think more deeply about the process of economic development. For these reasons, agricultural and resource economists are in a position to make a contribution to the kinds of institutional developments that I see as necessary in Benishangul for economic development in Aboriginal communities. Social Capital Development as a Base for Economic Developments The capitalist paradigm which suggests a non-activist and non-interventionist government, a door watchdog government as conducive to economic growth bases such conclusions on two pillars. One pillar has got to do with the assertion that competitive markets are both pervasive and Pareto efficient. The second pillar has got to do with the capitalist economics supported the idea of socially wasteful exploiters activities and therefore the rational choice theory of solely self-interest maximizing individuals. Government created product doesn't necessarily need to be socially wasteful. It becomes wasteful as long as exclusively self-interest maximizing individuals use it to make wealth at the expense of society and as long as the state is incapable of improving on the market- i.e. there are no market failures. The theory of exclusively self-interest maximizing individuals doesn't stand up . History, common everyday observation, and theoretical analysis supported the 2 suggest that an economy supported complex economic interaction like a free enterprise requires an amalgam of self-interested and non-self-interesting behavior: an amalgam of social and individual norms that maximize survival potential within an appropriate social context. In the absence of such norms, the govt , if it can exist as a coherent corporate entity for any period, becomes predatory. A properly behaved a door watchdog government populated by exclusively interest maximizing individuals is thus a practical and theoretical impossibility. Only individuals with an amalgam of self-interested and non-self-interested behavior can create a door watchdog government, and such people are equally capable of creating a government that intervenes in the economy in the larger interest of society. Creating the proper amalgam of norms, values, and rules to reduce uncertainty and transaction costs is a critical factor in accelerated growth and development. The creation of such social values and norms is called social development or social capital accumulation (Krause, Handfield, & Tyler, 2007). I can privilege that, Social development is thus not only an essential element of development but also a critical instrument of accelerated economic growth. The accumulation of social capital, which plays such a critical role in accelerating economic process , may be a public good, which has increasing returns to scale. It is, hence, undersupplied by the market and is subject to vicious and righteous cycles. It is created by group action by civic engagement within the context of horizontal and dense networks, inculcated, and sustained through modeling, socialization, and sanctions. The government plays a critical role in social capital accumulation through undermining patronage networks and promotion of fairness and equity, through the promotion of participation and democracy, and thru appropriate sanctions and efforts at socialization. Even though to tackle the bad leadership strong informal institutions and civic engagement may be a need among the poor community or the community who claim developments. Development of Mineral Resources As owners of around 65 percent of Benishangul land, Aboriginal groups are already owners of the land from which significant mineral resources are being exploited. The chances are high that further mineral discoveries will be made on their land. The development of these resources can make an important contribution to their welfare, but as seen in so many resource-rich developing countries, it is difficult to achieve improved welfare for the majority of the population from such developments. Of course, there is a growing Aboriginal recognition that the payment of royalties to incorporated bodies in areas affected by mining can result in excessive regional politicking for these sums of money, with a concomitant lack of attention to longerterm economic opportunities and an inability to accumulate venture capital for investment. (Traditional gold digging: Benishangul Community) Avoiding such ‘rent-seeking’ behavior and ensuring that mineral discoveries make the best possible contribution to the welfare of Aboriginal communities involves negotiating effective contracts with mining companies and the effective management of the share of mining revenues accruing to the communities. The mining contracts negotiated and the relationships between mining companies and the owners of the lands being mined have improved considerably over the past 30 years, especially in developing countries. However, contract disputes are still a frequent occurrence in Ethiopia and elsewhere. As Duncan and Duncan (1997) have shown with respect to mining in Papua New Guinea, contract disputes between customary landowners and mining companies may arise because of asymmetry of information between developers and the mining companies, the time inconsistency of contracts, and the incompleteness of contracts. These problems may arise in respect of the size of the mineral reserves, the mineral prices to be expected over the life of the project, and the project’s likely environmental impacts. Duncan and Duncan suggested that better design of contracts could ameliorate these problems and reduce the likelihood of contract disputes that reduce investor confidence and the economic benefits from such developments. The insecurity of the contract leads to reduced exploration and development and to short-run exploitation of resources through reduced fixed investment and increased fly-in/fly-out activity and ‘high-grading’ of ore bodies. It appears that contract theory has much to offer with respect to the design of better mining contracts and better outcomes for the people directly involved – as well as those indirectly involved. Indirect effects which need to be addressed are the environmental impacts outside the mining lease area, and the distribution of benefits from mining projects to Aboriginal groups that no longer have a direct association with the land. The sustainability of regional economies following mine closures is an issue that has not yet been confronted but which also needs to be thought about. The institutional environment in which contract negotiations take place also needs to be considered. has pointed out, with respect to mining contract negotiations in Papua New Guinea, how the order in which agreements between landowners, the mining companies, and the government are agreed affects the balance of power between the different parties. He argues that in Papua New Guinea the obligation for a landowner compensation agreement to be in place before the developer can begin any work approved by the government, along with problems in the approval process itself, undermines the State’s ownership right to the resource and also undermines its ability to enforce this right. As with the management of government revenues from mining projects in developing countries, the management and distribution of the landowner benefits from mining projects have proven problematic the world over. Various forms of trust funds have been established to handle these funds. Environmental Issues Sustainability of land management has also been raised by Altman (2002). He argues that the wider social benefits that Farmer is generating (and will generate in the future) through their management of the considerable land area now under their control are not being recognized. Altman also makes the point that the popular expectations for Farmer advancement from their gaining control over land (which is often ‘remote, commercially marginal and, at times, ecologically degraded’) are generally far too high. Introduced land uses have been hugely subsidized over the years in other developing countries others than Ethiopia, often with the result being the destruction of bio-diversity and adoption of environmentally unsustainable and unprofitable practices. It seems reasonable, therefore, for society to recognize the contributions that Farmer is making to Ethiopia national and international obligations. If this social benefit is recognized, economists can contribute to the valuation of the externalities that could be generated by sustainable management of the extensive land now under Benishangul Aboriginal control. As always, a key issue will be the design of a payment mechanism that cannot easily be corrupted and that does not lead to welfare dependency. Altman (2002) is also critical of the lack of contribution of environmental agencies to the effort being made to the wider good through Farmer land management. The lack of appreciation of national and state agencies of the positive contributions by Farmer to land management, the inappropriateness of the land management programs developed by these agencies for farmland, and the ineffectiveness of communication with them, are concerns raised widely by social scientists. I privilege that, Benishangul Aboriginals are forced to rely on mainstream programs, that have emphasized upcoming technologies, land and environmental cultures which do not suitable for their existing land and indigenous knowledge, which lead them to only subsistence production rather than commercial production; that communication of information about these programs is culturally inadequate, taking little account of their limited literacy and numeracy skills and technological understanding; and that government agencies take little account of the lack of capital and know-how of financial aspects of land management of Aboriginal peoples (e.g., Young et al. 1991; Orchard et al. 2001). The question of compensation of Farmer’s, for their contribution to the goals of maintenance of biodiversity, and the given their control over such vast areas of land, consideration has to be given to the involvement of Aboriginal communities in the management of environmental issues. Integrated water management, for instance, involving as it does the management of private, public, and common property issues and use of both market-based and regulatory instruments, needs to involve a mix of federal, state, regional, and community-level responsibilities. The role of community groups in this integrated activity has not been well developed. In building on the ideas of Marshall (2001) and Musgrave (2002) for better involvement of regional and local communities, thought should be given to the integration of Aboriginal communities and their collective action role. Rural Leasehold, Land Strategy and Future Benefits This proposed strategy is a framework for managing and using rural leasehold land sustainably by protecting its environmental, social, and economic values. It gives priority to managing rural leasehold land in a way that recognizes economic pressures, environmental necessities, and the declining condition of the natural resource and the hazard of increasing climatic variability. The approach of the strategy is long term and linked to natural resource management outcomes. It builds on and, while it does not rely on any substantial changes, it does provide a major shift from the current rigid approach to land administration, to a performance-based and outcomes-focused approach. Many landholders already use property level planning because it is good practice and profitable to do so. The leasehold strategy takes a similar systematic approach to property management. A land management agreement which includes the resource and land attribute information integral to property planning systems is proposed to be a minimum requirement for all new long term agricultural leases. It will describe the natural resource attributes of the land, identify inherent environmental and cultural values, establish their condition, and identify all significant natural resource management issues. It also will set out the agreed natural resource management outcomes and the associated performance indicators. In short, the land management agreements demonstrate the ‘outcomesbased’ philosophy adopted in the strategy. Land Tenure and Land Management Discussion of the management of land held by Farmer has been largely dominated by political scientists, sociologists, human geographers, environmental and biophysical scientists, and urban and regional planners. Agricultural and resource economists have had little involvement in the debate. The decision and subsequent Commonwealth legislation, together with State and private investors, has meant that increasing areas of land are coming under the control (in various forms) of Aboriginal groups. Without a doubt, the ways in which this land is managed will determine to a very large extent the future economic development of Benishangul Aborigines. The most widely accepted position among economists with respect to the relationship between land tenure, economic development, and environmental sustainability is that secure, individualized land tenure is essential for robust economic development and environmental sustainability. Secure, individualized land tenure means that individuals hold the right to use the land for whatever purposes they wish, except for illegal activities and activities that attenuate the rights held by others, including the state. The title may be freehold or it may be leasehold, but to give leaseholders the incentive to develop the land to its full potential the lease should be sufficiently long. To be secure, the property right must have the full backing of the government. Three very important consequences flow from such rights. First, the holder of the right to the land knows that he/she will be able to receive the benefits of any investments made in the land. Because investments such as buildings or fences last for many years, leases have to be long-term. Second, as the secure, individual land title is the main form of collateral taken by banks as security for loans, loans for investment, and consumption purposes can be raised by mortgaging the land. As , says, ‘land that cannot be mortgaged is dead capital’. If a country cannot provide such security for loans, it is unlikely that it will be able to develop a mature financial sector. People will be limited to intra-family credit or to borrowing at very high-interest rates and only for very short periods from informal lenders. Third, if individuals have secure property rights over land, they will be likely to take care of it. It is an asset that they will be keen to see an increase in value in order that it will generate a higher income stream for themselves and their heirs. For all these reasons, secure, individual property rights to land are likely to lead to increased productivity, which means economic growth and development. It is also likely to ensure the sustainability of the land. When no one has rights over the land – a situation of ‘open accesses – none of these conditions hold. The land cannot be used as security for credit, people are not willing to invest in it to improve its productivity because they will not be able to gain the benefits of their investments, and everyone who can gain access to it will exploit the land to the maximum, which will lead to its deterioration. But there are few instances of open access as far as land is concerned. Where land is not held under freehold, it is under some form of ‘common property’ ownership. Either the state controls it and manages it as a state enterprise or leases it out to individuals on long-term leases, or land is held as common property (‘customary ownership’) by groups of people (such as tribes or clans). The question arises whether land held under forms of common property is managed in as productive and environmentally sustainable a manner as land held under individual tenure. The most dramatic comparison between the two forms of tenure has been seen in China and Vietnam, where land under state control and earlier farmed by collectives was subsequently leased on a long-term basis to individual farm households. The difference in productivity between the case where individuals did not hold rights to the land and therefore had no stake in its performance, and where farmers now have the right to the output from the land, in both countries has been breathtaking. In a period of a few years, Vietnam moved from having to import over one million tons of rice a year to where it is now the second-largest rice exporter in the world. An agricultural revolution of nearly similar magnitude took place in China. Customary ownership of land is not always clearly common property, as individuals within the ownership group are often given certain rights such as rights to farm or to erect housing. However, because these rights are not such that a bank can take a mortgage over a title to the land, and individuals cannot be sure that they will be able to reap the benefits of any investments they may make, it is unlikely that the land will be utilized in as productive a manner as to where there is secure, individual tenure. There may well be an investment in the land but it is likely to be at a suboptimal level. A surprising point about the agricultural revolutions in China and Vietnam was that they took place in the absence of clarity about the farm households’ rights to mortgage, sell, or inherit the land. It may well be that agricultural production increased so dramatically because the countries were well inside their transformation frontier, and while farmers had sufficient security of tenure to provide incentives for increased effort on their part, production is still suboptimal because their land rights are not fully secure. In fact, there has been little in the way of long-term investments by farmers in China and Vietnam. Most of the gains in productivity appear to have come from improved farming practices and increased farmer effort. Clearer and more secure rights to land could lead to even greater production. Policy for Agriculture as the Engine of Development The theoretical and historical analysis presented has shown that the engine of development in its initial phases is and has got to be agriculture which this is often so not only because growth within the relatively massive agricultural sector will have bigger impacts on the entire growth of the economy directly but also because agricultural growth accelerates non-agricultural growth and structural transformation even more. The market support school of thought is thus absolutely correct in taking agriculture because the engine of the first phases of development. Market failures associated with technology, capital markets, weak and absent markets are even more prominent in agriculture than within the other sectors resulting in variety of malicious circles and poverty traps(Cortez, 1999). A door watchdog government, a government whose intervention within the economy is extremely limited would be unable to beat the malicious circles and poverty traps. The market support paradigms advocacy of such a government in developing countries is thus likely to stay such countries hindered in poverty traps. The market support school's specialize in resource transfer because the key linkage between agriculture and non-agriculture is erroneous. Moreover, its specialize in the worth mechanism to carry-out this resource transfer is additionally erroneous. The neo-liberal assertion that getting prices right is an efficient way of completing the transfer which getting prices right means opening agricultural products markets is fundamentally wrong. Getting prices right means getting the non-market determinants of agricultural prices right. Once the determinants of agricultural prices are right various price and non-price mechanisms are often wont to perform the transfer without negatively affecting the incentives to farmers. If the determinants of agricultural prices (non-market determinants) are wrong, the opening of agricultural prices won't make sure the right prices. The single willing specialize in the liberalization of agricultural prices at the expense of handling the important non-market determinants of those prices will cause the continuation of the universal market failures in agriculture(Bogucki, 2000). A door watchdog government, a government whose intervention within the economy is extremely limited would be unable to beat the malicious circles and poverty traps. The market support paradigms advocacy of such a government in developing countries is thus likely to stay such countries hindered in poverty traps. The market support school's specialize in resource transfer because the key linkage between agriculture and non-agriculture is misplaced. Moreover, its specialize in the worth mechanism to carry-out this resource transfer is additionally misplaced. The neo-liberal assertion that getting prices right is an efficient way of completing the transfer which getting prices right means opening agricultural products markets is fundamentally wrong. Getting prices right means getting the non-market determinants of agricultural prices right. Once the determinants of agricultural prices are right various price and non-price mechanisms are often wont to perform the transfer without negatively affecting the incentives to farmers. If the determinants of agricultural prices (non-market determinants) are wrong, the opening of agricultural prices won't make sure the right prices. The single willing specialize in the liberalization of agricultural prices at the expense of handling the important non-market determinants of those prices will cause the continuation of the universal market failures in agriculture(Moore, 2010). The view that the savings rate of a rustic is higher when wealth distribution is skewed has been and may be contested empirically. But albeit this were to be true there's no theoretical reason why piling up savings where social capital is low and opportunistic behavior, viciousness, and Engagement are prevalent, where technological diffusion and adoption is severely retarded, where market supporting institutions are absent or non-existent, and where the multiplier effect of agricultural growth on nonagricultural is severely curtailed will accelerate growth. It is impossible to convincingly argue that increasing savings has such an awesome impact on growth on predominate all the checking effects of inequitable distribution of wealth on development(Gallo, 2002). Poverty Cases in Developing Country The developing country faces many challenges in order to make an improvement in its development of the economy. Many developing countries have a lot of population but their per capita income is low. A low level of national income may affect the process on the development of the country. This circumstance can give many problems to a developing country that has many populations because they cannot provide enough facilities and basic needs that the citizen demanded. An inequality problem will occur due to the low level of infrastructure because not all people can enjoy the facilities provided by the government. There are many problems that developing countries cannot be resolved and it is contributing to an increase in the level of poverty. Firstly, developing countries cannot provide proper education to their citizen. They may have provided school but many of the schools are located in urban places. The government also provides a school in a rural area but not enough to use it by all of them. For rural students, they face many problems in order to get a proper education. Facilities and teaching tools in school is not enough and sometimes it is in bad condition. There are insufficient of total teacher that teaching in school. So, the students are unable to get much education because they are not provided with textbooks the environment of the school is bad. Low level of education may cause the people in rural cannot develop themselves and their condition may constant in order to get out from that poverty gap. Secondly, the government cannot provide enough health facilities to people. The government only build hospital and clinic in an urban area that located far from a rural area. The people that living in rural areas cannot go to check up on their health care frequently because the hospital and clinic are far from their place. This problem can affect their standard of living because they do not have any medicine to cure for their illness if they got that. Lack of health care will cause to increase in the spreading of dangerous diseases among communities like malaria and dengue that can lead to an increase in mortal rate. If this problem is not solved by the government, development for a rural place will go down and they cannot get out of poverty condition. Then, people in developing country are having the problem of insufficient of food. Many developing countries having many problems in order to produce enough food for their people. There are many factors that affect short of the food supply in the country. Several countries might have a natural disaster problem like a long-term drought for many months and floods. Due to these problems, a crop that the farmers planted is totally destroyed. The food supply in-country will become low and the government had to constrain it. In another situation, the suppliers who sold the food might take a high price for that food and it cannot afford by low-income people. So, they cannot get enough food for daily use, and sometimes they are not eating at all. This problem will increase the level of poverty. So to tack-out, the root of poverty in a developing country or community like Aboriginal in Benishangul, the policymaker of the country should re-check the working culture, the way the local community-centered the natural resources that exist on them and the way they think for their future generations. Because I can argue that no one has enough resources on his nearby and still he is poor, unless the guys center the future situation wrongly, or the guys have uneconomic thinking ability for both saving and consumptions. The above arguments can hold true for the community in the least developed. Adopting Sustainable Land Management: Alleviating Poverty Global evidences The realization that land has actually been neglected is belatedly starting to gain traction, especially following the recent food crises. Between 10 – 20 you look after dry lands are degraded and 24 you look after globally usable land on Earth is degraded at an estimated economic loss of USD 40 billion per annum . This includes a startling loss of grain worth USD 1.2 billion yearly. By 2050, a minimum of a 70 – 100% increase in food production from existing natural resource could also be needed so as to be ready to feed current and future generations. If agricultural land productivity remains at its current levels, an estimated 6 million hectares (ha) of land (roughly like the dimensions of Norway) would wish to be converted to agricultural production per annum until a minimum of 2030 to satisfy this growing demand. Thus, awareness of the seriousness and extent of land degradation is gradually reversing the normal disregard for its impacts on both economic and social development in affected countries. The combination of land prices that are increasing since 2007/2008 and therefore the proliferating rush of foreign investors seeking to shop for or lease land may be a signal that the world is awakening to threats from land degradation and shutting frontiers. Despite this interest, levels of investment in land remain far below those needed to satisfy the rising demands for food and land related services. Agricultural investments to the order of USD 30 billion per year are needed to feed our growing global population Answering the economic questions of land degradation and providing integrated frameworks for informed action are particularly important in the context of increasing land scarcity(Thibon et al., 2019). Globally, the human population has reached a stage where cultivated areas can no longer be expanded except in limited areas of South America and Sub-Saharan Africa, and even then the geographical extent of exploitable land may be over-estimated Furthermore, land degradation most directly impacts one of the most vulnerable human populations – the rural poor. More than 1.2 billion people live on fragile lands in developing nations, where they are clustered in fragile environments, remote areas, and/or on marginal lands, and depend directly upon the most degraded land for his or her sustenance and income. Poverty and land degradation have a mixed relationship, as examined in Barbier and described by Braun and Gerber and Barbier, and may either increase the impact of or be one of the drivers of land degradation. Under certain conditions(Wang et al., 2010), the rural poor can find themselves perpetuating patterns of land degradation, because they have no alternative ways to ensure their survival in such hostile environments. These “asset-less” poor are presumably to suffer from extreme land degradation, leading to a “poverty-environment trap”. Better land management must provide immediate beneficial impacts to household livelihoods so as to alleviate poverty, especially for the agricultural poor. Provided that they are rewarded for their maintenance of/contribution to the services that land can provide which are beneficial at the global level (such as carbon storage) or regional level (such as water purification), fostering the adoption of sustainable land management by the poor could enable the greatest and most efficient rewards in achieving food security and global land restoration. However, if the poverty-environment trap does not close up on them, the poor naturally act as caretakers of the land they depend upon, as they are the first to most directly benefit from good land management. Through this, they effectively limit land degradation. In this case, scaling up practices adopted by the poor and establishing an enabling environment could bring the greatest and most efficient rewards in achieving food security and global land restoration. As part of discussions focused on the post Rio+20 sustainable development goals, the United Nations Convention to Combat Desertification (UNCCD) has proposed a target of zero net land degradation. In order to attract the necessary investments to prevent and/or reverse land degradation, this goal will require a focus on the economic value of land and the economics of land degradation. The provision of monetary figures reflecting these assessments and potential returns on investment are extremely valuable tools when presenting sustainable land management options to investors. For example, closing yield-potential gaps and reaching 95 you look after potential maximum crop yields (assuming the adoption of sustainable land management) could create a further 2.3 billion plenty of crop production per year19, like a possible gain of USD 1.4 trillion. Furthermore, when the various values of other and complementary land uses are added in, it's quite clear that there are huge investment opportunities for those committed to achieving improved land management which will not end in environmental degradation. Despite the worldwide evidence, the threats’ development situation of the smallest amount developed communities like Benishangul, alarm for an enormous , sustainable, and poverty root removing policy design. I can claim that, having a possible of resources without development thinking would begin with two ending points. Firstly if the owner of the resources starts economizing it, for the very fact that, it'd ends poverty. Secondly, the unused potential resources would fascinate external demands then the conflict would begin. Conclusion The article has discuses and clarifies so diverse, financial matters and organization financial matters speculations, case ponder, and a few experimental pieces of proving. In addition, I can conclude that the financial disadvantageousness of the Native community in Benishangul, have the room and logical arrangement, in any case, it requires detail and assets examinations, as concern the assets potential and the Native mental make-up. Of courses, Ethiopia policymakers recommend so money developmental policy yearly. However, the routinely recommended policy cannot understand the Benishangul Aboriginal community real situation, because of the Political coverage’s and I can claim that most of the Ethiopian policymaker underestimate; the Benishangul Aboriginal community indigenous knowledge, traditional economic managements, informal institutions, and the psychological attachments they have with their natural environment. The Native communities in Benishangul have involved gigantic and huge assets of arrive, they account for expansive populaces from the entire populace of the locale. Be that as it may, inside all of the over openings, fundamental advancements drop beneath a extraordinary address. Is this since of the more noteworthy reliance on welfare-type arrangements and the moo dependence on the advancement of person business and financial advancement in Native communities? Let me take off this address open for research. How to fortify financial improvement within the community proceeds to be a fervently challenged subject. Be that as it may, how to do it within the setting of Benishangul Aboriginal communities could be a point that has barely been tended to. The need of intrigued within the address from Ethiopia financial specialists is obscure. It would be seen as a issue of such size that it would rank at the beat of most inquire about motivation. The as it were contrast from this theoretical circumstance is that the Native populace in a few cases are dispers. Within the general discussion of economic development, there has been a marked shift away from the idea that physical capital is the main ingredient missing from the recipe to promote economic development and that government has an important role in production activities. Clearly, there are important roles for the government in promoting economic development in general and in promoting economic development in Aboriginal communities in Benishangul: particularly in the provision of basic health and education services and access to markets. Nevertheless, just as important, or perhaps even more important, there is a complex task for governments of providing the necessary institutions to ensure that Aboriginal communities and individuals can have the opportunity to participate as fully in economic growth and development as the rest of Ethiopia society. In this respect, I argue that there is a case for not neglecting the possibility that special institutions may be needed to assist them to overcome their disadvantage within Ethiopia society, given the history of prejudice against them. I can argue that the poor are not passive in the face of political pressure, although they often face major sprints and opposition, nevertheless, it considers a period of course. Much can be cultured from processes where they themselves have introduced political strategies to demand a share of benefits from natural resources. Because of their special skills and experience agricultural and resource economists have much to offer in developing these special institutions – particularly in respect to land tenure. Agriculture and resource economists also have much to contribute with respect to the development of contracts for mining of Aboriginal lands to maximize the benefits to Aborigines, as well as to the rest of Benishangul. We can also contribute to the management of the natural resource revenues accruing to Aboriginal communities to help avoid rent-seeking behavior and maximizes the benefits to Aborigines from these revenues. Equitable distribution of assets in rural areas plays a critical role in accelerating agricultural development and overall development and structural transformation. Equity accelerates the adoption and diffusion of agricultural technology. Equity plays an important role within the establishment and strengthening of market support and other rural organizations and institutions. Other challenges to the profession are often envisaged within the development of land management practices that take under consideration the near subsistence existence of some Aboriginal communities, their knowledge of their country, their levels of skills and technical knowledge, and their access to finance. Given their control over increasingly larger areas of land and water, there should also be close involvement of Aboriginal communities in the development of environmental management policies. I hope to see the profession take up these challenges in the years ahead. Social development is thus not only an important element of development but also a critical instrument of accelerated economic process . The accumulation of social capital, which plays such a critical role in accelerating economic process , may be a public good, which has increasing returns to scale. So to tack-out, the basis of poverty during a developing country or community like Aboriginal in Benishangul, the policymaker of the country should re-check the working culture, the way the local community-centered the natural resources that exist on them and therefore the way they think for his or her future generations. Because I can argue that no one has enough resources on his nearby and still he is poor, unless the guys center the future situation wrongly, or the guys have uneconomic thinking ability for both saving and consumptions. The above arguments can hold true for the community within the least developed. Policy Recommendation Having the above so many discussions, For least developed countries, especially the Aboriginal communities in Benishangul, Ethiopia, to overcome their Economics disadvantageous the following recommendation it is better if it has been taken in to the account: 1. Special institutions may be needed to assist them to overcome their disadvantage society, given the history of prejudice against them; the institutions that I am talking about are essential institutions that directly assist them to participate in economic activities. Institutions which Taking little account of their limited literacy and numeracy skills and technological understanding; and that government agencies take little account of the lack of capital and expertise of financial aspects of land management of Aboriginal peoples 2. Avoiding such ‘rent-seeking’ behavior and ensuring that mineral discoveries make the best possible contribution to the welfare of Aboriginal communities involves negotiating effective contracts with mining companies and the effective management of the share of mining revenues accruing to the communities. 3. The institutional environment in which contract negotiations take place also needs to be considered, trust fund should be organized to tack care of the contracts and to run the issues according to existing environments of the Aboriginal community. 4. So, Benishangul Aboriginal community need latest research base technologies to boost their backward developments. 5. Even though to tackle the bad leadership strong informal institutions and civic engagement is need for the community who claim developments. 6. 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