Ethiopia - Economic development



The policy of the Ethiopian government is to create the conditions necessary for sustained economic growth. Farmers have reacquired the economic freedom of price, of production, and of settlement. The government aspires to an agriculture-led industrialization and focuses its attention on food security, rural savings, and labor formation issues. The government holds all land and issues long-term leases to tenants. The 1996 economic reform plan promoted free markets and liberalized trade laws as essential to economic growth. Increased military expenditures during 1999 and 2000 largely due to the war with Eritrea threatened stability.

Ethiopia's per capita income is the second lowest in the world, according to the International Monetary Fund (IMF), at about $100. In 2001, Ethiopia reached its decision point under the IMF/World Bank Heavily Indebted Poor Countries (HIPC) initiative, and was to receive $1.9 billion in debt relief. Also in 2001, Ethiopia negotiated a three-year $115 million Poverty Reduction and Growth Facility (PRGF) Arrangement with the IMF, due to expire in March 2004. Although there was a bumper crop in 2000–01, the prices of coffee and cereals fell in 2001–02, and agricultural output was lower. Since July 2002, a severe drought affected Ethiopia; over 15 million people in Ethiopia and Eritrea alone were at risk of starvation in 2003.

User Contributions:

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Nov 10, 2010 @ 12:00 am
Is there any legal basis for this plicy of ethiopian government to creat condition necessary for sustained economic growth? what is its legal basis to follow agriculture - led industrialization?
Getachew
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Feb 22, 2011 @ 6:06 am
Hi, Melat what kid of legal basis should he government of Ethiopia present for the existing economic strategy? If you are here in Ethiopia I hope you will be one of the witnesses who can prove that the strategy is working. And please refer PM Melese's PhD dissertation which says "African Economy from dead ends to new beginnings" this is an extract it will help you as to why the country is following the perfect I could say the perfect direction do not forget that Ethiopia is the fifth fastest growing country in the world!

Wish you all the very best

Getachew
Koonii
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Apr 11, 2011 @ 12:00 am
Dear Getachew!
Can anybody conclude that the economy is booming by only watching three or four new biuldings constructed on the main road, just like J.Stiglitz? I am here in ethiopia and can be a witness that the economic conditions of the society is getting worse and worse.Ethiopia is the fifth fastest growing economy... well said. After all there are amble reasons not to believe the statistics published by the state agent, CSA. I am claiming that there is no economic progress in the country. But it is not that much exaggreted so that the government can use it for different agenda!

Enjoying!
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Apr 16, 2011 @ 12:12 pm
Hi Koonii.I have read your comment & you say I am in Ethiopia but your comment is far from true.If you are Ethiopian please remember the time before PM Meles Zenawi how much it was bad.So please think globally.
Afarman
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Jun 27, 2011 @ 1:13 pm
Ethiopia is developing fast, its not just the construction sector, even other sectors of the economy are developing fast. The education and health services, rural electrification, construction of roads, export, services like the hotel industry, the manufacturing sector and all is being moving forward.
Ethiopia had only 41 manufacturing industries in 1991, now the number of manufacturing industries in the country has reached 1960. Is is not a progress..? the country is diversifying its exports, in addition to Coffee the country is becoming the biggest exporter of sesame, finished leather products, textiles, gold, and flower. New addition to the export sector now is electricity, ethiopia has already started to export electricity to Djibouti as of may-2011.
The face of addis ababa is now changed,high rise buildings are now mashrooming in the city.
I feel sorry for those who deny the development the country is enjoying now, slowly the country will manage to throw poverty into the dustbin of history.
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Aug 2, 2011 @ 5:05 am
really we have wide range of resources but we r "wera" why?
Dale .D
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Jan 7, 2012 @ 1:13 pm
It is easy to comment than to try to change Ethiopia most of the time in particular by Ethiopians who are out of the country . If we comment on what we see the real situation of Ethiopia the economy is in progress.other wise we are saying that the say of the others who are not in positive side of our country. That we including you must change or accelerate the economy. So lets work hard to change our motherland together so unite and then we can make difference.
Getachew
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Jan 22, 2012 @ 1:13 pm
I think it is high time that we all Ethiopians to come together and make the growth and development plan be a reality. I am sure that we will do it. God bless you all. God bless Ethiopia. Very few of you who fell that there is no development in Ethiopia is so unrealistic and please do try to look inside and try to identify why you are felling the wrong way? there could exist many reasons for it which might need internalizing own wrong feelings.

Have a nice time
munier
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Apr 25, 2012 @ 1:13 pm
ethiopia one of themost populest coutry if she use her resouce wisely she can achive developmen in oreder to do this she need good government&strongworker people. inshalla!!
Birhanu
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Jul 13, 2012 @ 1:13 pm
Ethiopia is the most popular country and at this it develops quikly
TILA
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Jul 14, 2012 @ 10:22 pm
Ethiopia is very very poor. Just to reach south africa's level Ethiopia needs a 10% annual growth for 33 years. To reach USA levels it needs this kind of growth for 52 years! So Ethiopia is far far behind and is still terribly poor, but with persistence and good governance the future is bright. And with smart entrepreneurship, you can make millions of dollars over there.

Btw for everyone claiming the growth figures are false only to serve domestic political means: the growth rates are backed by the IMF!
awelom
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Aug 17, 2012 @ 3:03 am
ETHIOPIA IS NOT POOR.IF THE STRUCTURE AND GOOD GOVERNANCE THEFUTURE IS BRIGHT AND WITH SMART ENTREPRENEURSHIP
Menker
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Dec 24, 2012 @ 8:08 am
It is undeniable that there is some economic change in Ethiopia for the last 21 years. I would like to know that this change is based on an equitable and sustainable economic policy that would allow for further progress in away each and every citizen could participats based on his/her merits and enjoy the benefited the outcome?
tesfaye chekole
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Apr 10, 2013 @ 2:02 am
definitely there is economic change in Ethiopia but i don't think so the change is enough and the change is not balanced the gap between the poor and the rich is very wide. if we work in collaboration we can own amlerative development in instantaneous period of time.
endale
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Jun 10, 2014 @ 8:08 am
DON,t forget Ethiopia is a country that passed through consecutive war that ate its economy .so that we are poor really poor. But with out postpone we should work day and night to change our bad history.to build our reputation.If you agree with what I suggested please come together and by being patient straggle to positive change.

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