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.
Wish you all the very best
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!
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.
Have a nice time
Btw for everyone claiming the growth figures are false only to serve domestic political means: the growth rates are backed by the IMF!