Ethiopia - Economic sectors

Like most of the countries of the African continent, Ethiopia's economy is dominated by agricultural production. For many similar countries, this dominance is the direct result of the colonial period, which encouraged policies of agricultural exportation at the expense of industrial development. African territories were forced to export primary crops to their colonizing countries and to import higher value-added manufactured commodities. For Ethiopia, however, which was never a European colony, the agricultural predominance is in part a historical legacy of the feudalistic policies that prevailed throughout most of 20th century. These policies consisted of onerous (oppressive) obligations on the part of the peasantry, who were expected to provide high taxes and

agricultural surplus to sustain the livelihoods of the ruling classes (consisting of the royal family, government officials, and lords and nobles). In this system, which lasted until the mid-1970s, the government was more concerned with maintaining the rule of the status quo (the existing order) than in fostering industrial development, which resulted in the foreign domination of industry.

Industry still remains a relatively small aspect of the Ethiopian economy, though there is potential for growth in both manufacturing and mining. The service sector, which has become extremely important in terms

of contribution to the gross domestic product (GDP), is characterized by a strong financial system. Tourism is one area of the service sector that is currently marginal, though there is significant potential for commercial development.

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seid hussen
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Apr 12, 2012 @ 1:01 am
it is nice for my understanding in the knowledge of Ethiopian economy

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