Resettlement and villagization in Ethiopia has been an issue from the late nineteenth century up to the present, due to the overcrowded population of the Ethiopian highlands. As the population of Ethiopia has increased in the twentieth century, the need to move inhabitants has only increased as available cropland per family declined to its current level of less than one hectare per farmer.
The policy of encouraging voluntary resettlement and villagization in Ethiopia began in 1958, when the government established the first known planned resettlement in Sidamo Province.
Shortly after the 1974 revolution, as part of their policy of land reform it became Derg policy to accelerate resettlement. Article 18 of the 1975 Land Reform Proclamation stated that "the government shall have the responsibility to settle peasants or to establish cottage industries to accommodate those who, as a result of distribution of land . . . remain with little or no land." Accordingly, in 1975/76 there were eighty-eight settlement centers accommodating 38,818 households. The government conducted most of these resettlement programs under the auspices of the Relief and Rehabilitation Commission (RRC) and the Ministry of Agriculture and Rural Development. By 1982 there were 112 planned settlements populated by more than 120,000 people. The settlements were concentrated mainly in the south and southwest. In 1984 Addis Ababa announced its intention to resettle 1.5 million people from the drought-affected northern regions to the south and southwest, where arable land was plentiful. By 1986, according to Mulatu Wubne, the government had resettled more than 600,000 people. More than 250,000 went to Welega; about 150,000 settled in the Gambela area of Illubabor; and just over 100,000 went to Pawe, the largest planned resettlement in Gojjam and largely sustained by Italian financial support. In addition, another 78,000 went to Kaffa, Shewa, and western Begemder.