Economy of Ethiopia
The Zenawi policy of favoring the Tigrean ethnic group has witnessed an ever widening gulf between the various ethnic communities of Ethiopia with resentment burning within the side-lined.
The prolonged war with Eritrea, constant uprisings against the government, the internal struggles and upheavals and the unilateral policy of the government has had a crippling effect on the economy of the country with it being one of the poorest countries of the world and one of the largest debtors. Poverty in urban as well as rural areas strangles the growth of economy.
Though the country has recorded notable growth in the past few years, the GDP per capita still remains one of the lowest in the world. In spite of having the biggest water reserves in Africa, Ethiopia has been unable to use its water resources to its full potential.
Debilitated agriculture despite it being the largest service provider and foreign currency earner. Coffee is its largest export. But, when compared to neighboring countries, Ethiopia’s export is much less. Though blessed with large mineral resources, the political unrest in these regions has hampered growth in this sector.
The two year war with Eritrea in the late 1990s and the concentration of the fast dwindling finances in strengthening the defense further worsened the economy. Once an effective means of harnessing its abundant water resources is done to tackle the drought, the economy can probably prosper.
Though with a current economic growth of 7-8% per year – one of the highest in all of Africa, gives promise of a brighter future and the Ethiopians are happily taking use of the new opportunities.
Shops shoot up almost everywhere in the urban areas and clothing stores with trendy styles of famous brands made in China and Thailand offers a wide variety of clothes and styles. Also computer stores and cyber café’s are common nowadays in bigger towns.