Ethiopia Economic Conditions

Ethiopia Economic Conditions

The country’s secular, archaic socio-economic framework received a decisive blow in 1974 by the military revolution which, after the emperor was deposed, set a new course inspired by principles of progress within the framework of ‘Ethiopian socialism’. Until that historical turning point, despite partial and sporadic attempts at renewal, the country had remained almost a prisoner of its anachronistic social structures, anchored to deep class traditions and ancient tribal privileges. The first truly revolutionary act of the Marxist-inspired regime was agrarian reform (1975), the results of which were on the whole disappointing, partly due to the extremely low standard of living and cultural level of the peasant masses. Even the nationalization of industries, tending to involve the worker component in the management of enterprises, it did not produce the leap in quality that was expected. The new post-revolutionary government, which had already converted to the market economy in 1991, launched a program of reconstruction and revitalization of the economy, in agreement with the international financial institutions. But the new war with Eritrea (1998-2000), the constant tensions on the Somali border and the recurrent droughts have hampered development programs and aggravated the structural problems of the Ethiopian economy: the excessive dependence on the agricultural sector, the food insecurity, the inadequacy of structures, the consequent high degree of dependence on international economic support. having already converted to the market economy in 1991, he started a program of reconstruction and revitalization of the economy, in agreement with the international financial institutions. But the new war with Eritrea (1998-2000), the constant tensions on the Somali border and the recurrent droughts have hampered development programs and aggravated the structural problems of the Ethiopian economy: the excessive dependence on the agricultural sector, the food insecurity, the inadequacy of structures, the consequent high degree of dependence on international economic support. having already converted to the market economy in 1991, he started a program of reconstruction and revitalization of the economy, in agreement with the international financial institutions. But the new war with Eritrea (1998-2000), the constant tensions on the Somali border and the recurrent droughts have hampered development programs and aggravated the structural problems of the Ethiopian economy: the excessive dependence on the agricultural sector, the food insecurity, the inadequacy of structures, the consequent high degree of dependence on international economic support.¬†For Ethiopia 2008, please check payhelpcenter.com.

The economy remains essentially founded on the agricultural sector, which contributes 42% to the formation of the gross domestic product and 60% to the total value of exports, and which employs the vast majority (80%) of the workforce. Pastoral nomadism and sedentary agriculture (with or without breeding) divide the territory unequally. 48% is considered agricultural, but only 11% is actually cultivated, while the remainder is left to natural pasture. Crops dominate the mountain ranges, while the surrounding plains and plains are the realm of transhumance. Agriculture focuses on two different objectives: the cultivation of subsistence products and that of products intended for marketing. Subsistence crops concern cereals, such as sorghum, tef (a kind of millet) and, from recent times, wheat and corn, whose productions remain modest. Add, again for local food, a whole range of vegetable products (legumes, potatoes), together with numerous oil plants, including oil palm and sesame. Commercial agriculture remains, however, the backbone of the entire sector, the government intervenes on it with the introduction of modern methods and innovative techniques. Among the plantation crops, coffee dominates, widespread mainly in Harar, alongside cotton and sugar cane (the former above all in the irrigated areas of Rift Valley ; the second especially in the Awash valley, where the Koka dam supplies water for irrigation). Livestock farming is, alongside agriculture, the second occupation of the residents. The cattle herd prevails but there are also many sheep and goats, while donkeys and mules are still widely used in transport. The entire agricultural sector is heavily affected by recurrent droughts: on the occasion of that of 2002-03, the survival of 13 million residents was only possible thanks to food aid, until normal weather conditions were restored.

Among the African states, Ethiopia it is one of the poorest from a mining point of view, although deposits of platinum, gold, iron, copper, zinc and lead have been identified. The situation is also critical as regards energy resources, as both coal and hydrocarbons are absent; they make up for the good availability of water, towards the optimal use of which the efforts of the government tend.

The conditions of the industrial sector are characterized by mostly artisanal structures; the main plants involve the food, textile, leather, cement and pharmaceutical sectors, located in the major urban centers; a steel mill is in operation in the capital (in Akaki) which ensures basic internal needs.

Communications are also affected by the general backwardness and are inadequate, as well as hampered by the tormented morphology of the territory. Serious difficulties derive from the lack of sea view, so Ethiopia it depends on the port of Djibouti and on Eritrean and Somali ports. The trade balance is clearly passive, with exports (coffee, leather, oil seeds) far lower in value than imports (food products, chemicals, fuels, manufactured goods). The main partners are the countries of the European Union, Japan, the Arab oil states.

Ethiopia Economic Conditions