Advances in the theory and practice of smart specialization, 2017. The role of agriculture in economic development and. From subsaharan africa, ethiopia is compared with rwanda and uganda, which have. Economic reform incorporating private sector is expected to help the economy grow faster. To conduct this study the data was collected from secondary sources.
Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise. However, the banking, telecommunication and transportation sectors of the economy are dominated by governmentowned companies. For development of any country the role of women education is the crucial one, especially for third world countries like ethiopia. The gtp recognizes that sustainable development in ethiopia can only be achieved if development is pursued in the social, economic and environmental areas in a balanced manner and ensuring that benefits accrued are equitably shared among the citizens of the country. The government of ethiopia is in the process of privatizing many of the stateowned businesses and moving toward a market economy. Ethiopia is a pilot country for the organization for economic cooperation and development assistance committee harmonization agenda, and for the european unions initiative on donor division of labor. Sustainable development and poverty reduction program. Ethiopias national development plans place emphasis on promoting exportled industrialization with a focus on light manufacturing.
Ethiopia economic outlook african development bank. Financial support was provided by the world bank, undp and development assistance group. The relationship between infrastructure development and economic growth is investigated for ethiopia during the. However, the contribution of the industrial sector to gdp, employment and exports remains low. Ethiopia has experienced strong economic growth in recent years. However, basic challenges such as unskilled labor, high transport costs.
Ethiopias economic growth performance african development bank. Ethiopias history is full of conflicts, drastic policy changes and reversals. Why is this important for the united states ethiopians view the united states as a world leader that is committed to assisting other countries to improve their economic security and increasing global prosperity by sharing our values and economic ideas. There is scope for increasing donor investments in womens economic empowerment. Economic vulnerability was driven by an unfortunate. Before 1974, the macroeconomic policy was largely informed by a market oriented economic system. Required growth to meet millennium development goals mdgs 5. With real gdp growth at or near double digit levels since 200304, the country. Ethiopia is a fascinating country to use as a case study in economic growth and development according to a recent editorial in the financial times, ethiopia has transformed in 20 years from a famineravaged nation into a destination for savvy and wellknown private equity groups such as kkr. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established. National report of ethiopia sustainable development. Partners are currently considering how to build on this progress in light of the accra agenda. From subsaharan africa, ethiopia is compared with rwanda and uganda, which have hdis ranked 157 and 159 respectively see table b. Economic reforms and structural changes in ethiopia since.
The report includes countryspecific threeyear forecasts for major macroeconomic indicators, including commodity and financial markets. At the same time it is about rights and equitable societies. It is an increase in a countrys real level of national output which can be caused by an increase in the quality of resources by education etc. Ethiopias economy is concentrated in the services and agriculture sectors. Growth should benefit from the homegrown economic reform program, which seeks to address macroeconomic imbalances and unlock structural. Overview of ethiopia s development goals, policies, strategies, and targets.
The manufacturing sector is seen as the success of ethiopia s growth. But a new ethiopia is emerging from troubled times and the latest international monetary fund imf forecast says ethiopia will be the fastestgrowing economy in subsaharan africa in 2018. Ethiopian economic growth compared to sub saharan africa. The article used the report published in 2014 by international monetary fund imf, world bank wb, africa development bank adb, world health organization who, and organization for economic cooperation and development oecd. Ethiopias reform agenda is expected to support growth that is projected to be slightly below or above 8% in the near term.
Ethiopias economic growth has been remarkably rapid and stable over the past decade. Federal democratic republic of ethiopia growth and transformation. Addis ababa, may 16, 2019 ethiopias economic performance in the 201617 financial year was robust, albeit slower than in the previous years, and it is set to continue along positive path leading to further poverty reduction, according to the latest world bank group economic update the seventh ethiopia economic update, poverty and household welfare in ethiopia 20112016, finds that the. Since the start of the modern economics in 1776, many counties used all their resources and efforts to. Infrastructure development and economic growth in ethiopia. Farmers have reacquired the economic freedom of price, of production, and of settlement. Pdf infrastructure development and economic growth in ethiopia. Request pdf economic growth and development in ethiopia sustained and inclusive economic growth has gained much attention in recent years acemoglu in introduction to modern economic growth. Pdf infrastructure development and economic growth in. The manufacturing sector is seen as the success of ethiopias growth, and its development to a. Productive capacity and economic growth in ethiopia. Economic developments in ethiopia economic development shows the change in economic growth and at the same time change in the living standard of the people. Industrial policy and development in ethiopia brookings institution.
Ethiopia is africas fastestgrowing economy world economic. Ethiopias national development plans, including the current growth. The ethiopian economics association eea was established as a nonprofit making, nonpolitical and nonreligious. The role of agriculture in economic development and poverty. The major thrust of ethiopias development and poverty reduction strategy. Over the last ten years, the country has achieved doubledigit growth in real terms, averaging 10. The governments of ethiopia over the years tried to get foreign companies to develop these ore deposits but the political instability of ethiopia has interfered. Pdf determinants of food security in the oromiya region of ethiopia. Selection of key themes for ethiopia developmental state via 5 year plans rapid industrialisation strategy key role of logistics infrastructure in growth building tourism around ethiopian airlines fragile state political unrest emergency rule o. Economic growth, development and poverty in ethiopia by teshome a. The country is a net importer of fuel, which accounts for onefifth of goods imports. The effect of the political turmoil of ethiopia on the functioning of the economy can be read in the statistics below on the value of exports in 1978 as compared with 1974.
There has also been tremendous growth in the number, diversity and market share of private businesses in the ethiopian economy. Economic development is a process of structural transformation with continuous technological innovation and industrial upgrading, which increase labor productivity, and accompanied improvements in infrastructure and institution, which reduce transaction costs. The manufacturing sector is seen as the success of ethiopias growth, and its development to a large extent the product of an activist developmental state. Journal of economics and sustainable development iiste. Achieving broadbased, accelerated and sustained economic growth so as to eradicate poverty has been and is a key objective of the government of ethiopia. The main purpose of this brief article is to present the recent economic development in ethiopia. Growth and development in ethiopia economics tutor2u. The paper starts with an overview of ethiopia s economic growth and the change in the domes tic economic structure. Economic growth and development in ethiopia springerlink. Ethiopias steady economic growth leads to poverty reduction. In developing countries like ethiopia economic growth is one of the preconditions for economic development. Following the adoption of the 2030 agenda for sustainable development and the sustainable development goals sdgs in september 2015, ethiopia has proactively mainstreamed, aligned the sdgs with the second growth and transformation plan gtp.
The tenth annual conference focusing on the amhara regional state social and economic development was organized by eea in collaboration with its bahir dar chapter on november 30, 2019 at homeland hotel conference hall, bahir dar. This strong economic performance has given ethiopia an excellent platform from which to pursue its national development agenda. The ethiopian government has developed comprehensive agricultural and economic development plans that have contributed to the countrys substantial growth in agriculture, industry and services. Federal democratic republic of ethiopia sustainable development. Economic development vs economic growth difference and. Ethiopia is a nation with a long, venerable and complex history. Pdf the paper performs a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of. Economic growth and development in ethiopia request pdf. Ethiopia economic development the policy of the ethiopian government is to create the conditions necessary for sustained economic growth. Effects of tax and government expenditure on economic growth in ethiopia. Womens economic empowerment is a prerequisite for sustainable development, propoor growth and the achievement of all the mdgs.
The ethiopia ppa 200405 was conducted by the welfare monitoring unit wmu of the development planning and research department of the ministry of finance and economic development mofed, under the guidance of ato getachew adem. Ministry of finance and economic development mofed. The potential for development is shown by the high productivity of the eucalyptus plantations that were established in the late nineteenth century in the vicinity of cities to provide raw material for poles, furniture. Economic development is the sustained increase in income of all members of society so as to be free from material want. Opportunities and challenges of tourism development in the addis ababaupper rift valley corridor tadesse kidanemariam professor, department of geography, edinboro university of pennsylvania, edinboro, usa abstract in spite of a long history of promotion and development, ethiopias tourism industry is in its initial stages of. Following the adoption of the 2030 agenda for sustainable development and the sustainable development goals sdgs in september 2015, ethiopia has proactively mainstreamed, aligned the sdgs with the second growth and transformation plan gtp ii which spans from 201516 to 201920 and implementing. Ethiopia aims to achieve middleincome economy as of 20202023 while.
The paper starts with an overview of ethiopias economic growth and the change in the domes. Economic and social development an overview sciencedirect. Especially after world war ii, tourism, banking, insurance, and transport began to contribute more to the. Ethiopias growth miracle, coupled with its large population and significant land mass, has attracted. Introduction any country or government in the world works day and night to achieve economic development to improve the welfare of its nation. Ethiopia global economic prospects examines trends for the world economy and how they affect developing countries. The economy of ethiopia is a mixed and transition economy with a large public sector. Thus, the main purpose of this study is to examine the impact of women education on economic development in ethiopia. Economic development ethiopia issues, growth, economic. Objectives of the development and poverty reduction strategy. Not in its fundamental goals or objectives, but surely in the tools and tactics employed. Iv development and poverty reduction challenges 33 v overview of ethiopia s development goals, policies, strategies, and targets 36 5. Nov 10, 2010 ethiopia economic development the policy of the ethiopian government is to create the conditions necessary for sustained economic growth. Sustainable development goals united nations in ethiopia.
New jobs are the lifeblood of any thriving region and can ensure economic health and prosperity for years to come. Economic growth is a narrower concept than economic development. Ethiopia sustainable development and poverty reduction. Opportunities and challenges of tourism development. Achieving womens economic empowerment is not a quick fix. The period 1974 1991 witnessed a centralized economic system socialism, where the state is given a significant role in all spheres of economic activity. Oct 26, 2017 ethiopias economy is concentrated in the services and agriculture sectors. The recent fall in global oil prices is expected to have a positive economic impact on ethiopia.
Economic growth, development and poverty in ethiopia. We see economic policy shifting its focus in three areasfrom public to private activities, from capital to current spending, and. Ethiopias new prime minister has promised to jumpstart serious economic reforms. Furthermore, the study assessed the economic structural changes at national level as well as the strengths and weaknesses and elaborated regional and structural strategies for ethiopia.
Ethiopia a growth miracle ethiopia investment commission. Overview of main policy instruments to achieving the objectives of. One aspect of that challenge is to achieve development in an interdependent world, that is a world in which goods, services. Productive capacity and economic growth in ethiopia the united. The economic outlook is positive, and real gdp growth is projected to stabilize at 7. Despite the major economic and social improvements over the last decade, some 25 million ethio pians currently remain trapped in poverty and vulnerability. Apr 12, 2017 ethiopias national development plan ethiopias economic policy is guided by the second phase of the growth and transformation plan 201516 202021.
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