Ethiopian Economy Growth – Term Paper

Economic change

The park management process and the new Japan manufacturing methods that were borrowed and employed by the government played a significant role in the service industry. Manufacturing and production processes had to be changed from the traditional expensive methods to the current inexpensive and convenient methods that suit various processes. The state had to come up with good measures to deal with the farming communities and the pastoralists so that feuds that would result between them would be managed and reduced. Despite the differing desires of the various cultural groupings, the government through collaborative efforts of the devolved leadership system has been able to control the better part of the problems. To some extent, the pastoral communities remained victims to state developments since the better part of the land that they used traditionally had to be taken away for other development agenda such as conversion into agricultural fields to enhance the growth of food to reduce shortages and poverty that faced the people. 

Another important step that the state was able to realize is the mobilization for better pay and welfare of the peasants that worked in various plantations and industries. The state was able to argue for the better living condition of the same and resettlement of the local people in much better ways than the previous forceful evacuation of the people from their lands. The state also embarked on nation building by sparing lands for parks that were later promoted to attract tourists for the economic gain (Bernstein and Woodhouse 284). The direct ties that were initiated by the APF and the government in the year 2004 ensured that people were peacefully resettled and left space for the parks so that the territory could be marked and fenced. Another method that the government was able to use to promote tourism was through the promotion of various cultures in the country to the world. Various traditions and norms were practiced by the Ethiopian people and to market the nation for economic wellbeing, the government created a platform that enhanced upholding of cultures without undermining or degrading the lifestyle of any single culture grouping. 

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Since the independence of the nation, the people decided uniformly to take part in the nation building. The nation, in particular, has been interested in building a strong security to its wellbeing, property, boundaries and fro its people both internally and internationally (McMichael 2451). This could be done through collaboration and integration of efforts in various positions and categories. The people, under the leadership of Meles, have been able to defend their nation through authorship of policies that foster growth and promote independence. Decentralization of work both in the public platforms and the manufacturing sectors have been encouraged through participation leadership and education systems. The people have the right to give and provide their ideas and opinions over the nation building process 

Eliminating Poverty in Ethiopia

The greatest challenge that the nation has experienced since the introduction of the new government systems was the elevation of poverty and gaining self-reliant state. The government has over the years tried to come up with structures that can help the nation in building a framework where it can trade and invest in building the economy other than rely on donations and giving by much richer nations like the US.  The strategy that was outlined by the prime minister helped outline the desire for the government to bring a permanent solution to famine and poverty. In response to the same, humanitarian crisis warning solutions were introduced in areas that were more indigenous.  The desire to promote such economic building faced challenges. Many people lived in the rural places and had very poor spending habits. The nation then resorted to building more health facilities to take care of its populations from dangers of the diseases and illness. This helped to reduce sanitation and malnutrition problems that for a long time were a threat to the peace of the people.  Food, being one of the life necessities was given priority in the nation building. The program that was introduced by the prime minister was an eye opener, and many people were encouraged to produce their food so that they were not hunger stricken because the land had been given to the rightful owners. Peasants were settled and housed well, and the farmers in large plantations were also encouraged to grow food crops. This helped reduce the poverty level with some margin in comparison to the previous traditional governance systems that was expensive and famine stricken. 

Ethiopian economic growth and development

The growth in the economy could be witnessed by the improving infrastructure and the continued development of the same. The enhancement and creation of international trade brought good ties with international investors that played a critical role in the nation building. Domestic direct investments increased. Agriculture and manufacturing increased because of the increasingly good infrastructure that saw the nation record increased growth then. Its improving economy made it appear among the fastest growing nation globally coupled with its sudden rise in GDP. 

Agriculture being one of the chief sources of wealth creation, it demanded improvements and use of modern methods. Presently the country has been able to major on using modern tools and fertilizers to foster its economic prosperity and yield per hector.  The country’s diverse weather pattern and topography can support farming throughout the year. The coffee production increased for instance to respond to the world increasing demand thus fostering economic progression.  Building a strong manufacturing industry has also been one of the goals of the country. This helped spread the risk and increase employment to the Ethiopian population. Private sector development and ease of advancements of loans helped the nation promote entrepreneurship and introduction of new systems that contribute a share in the economic cake of the nation (Rodriguez and Rodrik, 261). The country has also been able to form part of the East African trade association that has enhanced direct trade partnerships. As a focus to take part in the world trade organizations, it has also commenced ties with other nations so that it can mutually benefit from products produced in nations that it cannot produce while at the same time selling those that she produce. 


Ethiopia has seen economic progression since she attained the economic independent from the previous regime of the tyranny and dictatorship leadership. The transformation process has never been smooth. Obstacles existed, and many lives have paid to the constitution that has finally resulted in peace within the many cultures in the country and international dealings. The economy of the nation has been catapulted by agriculture and the transformation manufacturing sector. Its main source of revenue results from the agricultural produce ranging from growing food crops to cash crops. The government has been able to take a role in this by the provision of fertilizers and encouragement of the use of modern tools in farming t increase output. Other service industries such as the manufacturing and tourism sectors have also boosted the economy positively. The country, for it to remain competitive in the global front, has to continue producing products that will maximize its benefits while developing relations to get those that it does not produce. Giving the power to the people through the constitution has helped to foster democracy and good governance. However, the government needs to do more research and develop policies that promote better governance, domestic and international trade and enhance better relation with direct foreign investors to fund these projects. 

Work cited

Abbink, Jon, and Tobias Hagmann, eds. Reconfiguring Ethiopia: the politics of authoritarian reform. Routledge, 2016.

Bernstein, Henry, and Philip Woodhouse. “Telling Environmental Change Like It Is? Reections on a Study in SubSaharan Africa.” Journal of Agrarian Change 1.2 (2001): 283-324.

Debelo, AsebeRegassa. “Contesting views on a protected area conservation and development in Ethiopia.” Social Sciences 1.1 (2012): 24-43.

Hagmann, Tobias, and BenediktKorf. “Agamben in the Ogaden: Violence and sovereignty in the Ethiopian–Somali frontier.” Political Geography 31.4 (2012): 205-214.

McMichael, Philip. “Contemporary contradictions of the global development project: geopolitics, global ecology and the ‘development climate’.” Third World Quarterly 30.1 (2009): 247-262.

Rodriguez, Francisco, and Dani Rodrik. “Trade policy and economic growth: a skeptic’s guide to the cross-national evidence.” NBER Macroeconomics Annual 2000, Volume 15. MIT Press, 2001. 261-338.