History, Politics and Economic Review of Ethiopia

Brescia University

Arega Getaneh

Geography

Area 1,104,300 sq. km, which makes it

approximately as big as France and Spain

combined.

Capital city Addis Ababa (2,355m altitude;

making it the 3rd highest capital city in the

world.

The birthplace of Pan-Africanism (a united

Africa). Hailed by Emperor Haile Selassie I, it

led to the birth of the African Union.

It is also the diplomatic capital of Africa.

More than 70% of Africa's mountains are

found in Ethiopia.

Known by long distance runners.

Political map of Ethiopia

Lake Tana is the source of the Blue Nile River, which meets the

White Nile River in Sudan to form the Great Nile River.

Lake Tana supplies 85% of the water to the Great Nile River.

The Danakil Depression is home to one of the lowest points on

the African continent - Dallol, at 116m below sea level - and one

of the only lava lakes in the world - at Erta Ale volcano.

The Great Rift Valley, the most significant physical detail on the

planet that is visible from space, cuts through Ethiopia from the

northeast to the south of the country

Culture

There are more than 80 different ethnic groups in Ethiopia with just as many languages and over 200 dialects are spoken throughout the country.

Ethiopia is the only country in Africa with its own unique script.

Ethiopia claims to hold the Ark of the Covenant as well as a piece of the True Cross on which Jesus was crucified.

Ethiopia is known as the Cradle of Mankind, with some of the earliest ancestors found buried in the soil.  Lucy (3.5 million years old), the most famous fossils found, were unearthed in Hadar.

Ethiopia remains one of the only nations in Africa never to be colonized.  It was occupied briefly by the Italians from 1936 to 1941.

Ethiopia is home to 9 UNESCO World Heritage sites, more than any other country in Africa.

Religion

Ethiopia is the home of the Black Jews, known as the Falashas, or Beta Israel.

Ethiopia adopted Christianity in the 1th century, making it one of the oldest Christian nations in the world.

Islam also appeared early in Ethiopia, during the time of Mohammed, when his followers fled persecution in Arabia and sought refuge in Ethiopia.

Emperor Haile Selassie, the last emperor of Ethiopia, is worshipped by Rastafarians as a divine being.  In fact, their name comes from Haile Selassie's birth name, Ras Tafari, which means "Prince Tafari".

Food & DrinkCoffee, one of the world's most popular beverages, was discovered in Ethiopia, in the region of Kaffa.

Ethiopia has the largest per capital density of cattle in Africa and the 10th largest in the world.

Teff, the grain used to make the Ethiopian staple injera, is an ancient grain believed to have originated in Ethiopia between 4000BC and 1000BC.

 It is the smallest grain in the world and is rich in calcium, phosphorous, iron, copper, aluminum, barium and thiamine and is a good source of protein, amino acids, carbohydrates and fiber.  It is a great gluten-free option.

Nature

There are 279 species of mammals found in Ethiopia, of which 5 are critically endangered, 8 are endangered, 27 are vulnerable and 12 are near-threatened.  There are 31 endemic mammal species found in Ethiopia.

There are 924 species of birds found in Ethiopia, making Ethiopia a bird-watchers paradise.  Of these, 23 species are endemic to Ethiopia.

There are 175 species of fish found in Ethiopia, 40 of which are endemic.

Politics

Feudal system ended in 1974

The military junta took power and the country divided

ideologicaly

The military group submmited to USSR and the oppositions got

support from US.

Finally the Derg regime eradicated for once from Ethiopia and

replaced by anather US backed minorty groups.

They prepared a new Constitution so called democratically

participated many representatives of ethinic groups.

Ethnic makeup!

Parliamentary system

The ruling party: EPRDF

Almost one party rule.

No opposition party representative in the parliament recently (0 out of 547)

The now constitution is written in 1994 based on Bicameral parliamentary system.

The president is head of the state and his role is role of ceremonial

The political framework is governed by the federal parliamentary republic headed by

the Prime minister

The executive power is kept by Ethiopian government

HPR has 547 seats and HF has 108 seats. Members are elected by direct election.

Elections in a nutshel

After Ereteria separeted from Ethiopia, the country had the first so

called fair, free and democratic election in 1994

The third election, 2005, was historical in Ethiopian politics. Here the

incumbent lost all seats in major cities of the country including the

capital.

After the elections; things changed,EPDRF party got 327 seats, oppositions won 220.

Only 1 person was in the parliament and the government declared as it won 99.6%

of the seats in 2009

They won 100% in the recent election

The claim of the people

Three months later public protests erupted near the capital.The protests accompanied with government crack downs.Anti-government gesture used by protesters in the Oromia region used by popular figures like athletes.

Reasons for protests

There has not been a specific trigger and what we are seeing is an accumulation of years of frustration from ethnic groups who say they have been marginalized by the government.

Demonstrations began in Oromia November 2015. Protests have also sprung up in July in the Amhara region.

Oromia and Amhara are the homelands of the country's two biggest ethnic groups.

New York-based Human Rights Watch says that more than 1000 people have been killed in clashes with the security forces in Oromia.

Down down Woyane the final showdown (Weyane is mocking name of the regime)

As a result the government declared a state of emergency since last

October .

Economic HistoryBefore 1991

After King Haile Sillassie I returned from exile (from England in 1942), the country started to establish 3G (Good Governance Government).

The commercial code, industries, banks and economic sectors

New parliament, civil code

Ministerial structures

Education, health, transportation etc.

However, the first mafias emerged in the country and disturbed the systems from being established.

Finally, the Military group took power and introduced socialism, which destroyed the previous established systems.

This tyranny regime also was not free to do whatever it liked. Other warlords emerged in the North and fought for 17 years.

With the help of USA they came to power and launched market economy.

The main economy of the country is agriculture

Export Performance and Economic Growth In Ethiopia

Trade Balance (using recent data)

Ethiopian export in Kind

Public investment in Ethiopia

Developmental state economy and Ethiopia

Developmental state, or hard state, is often associated with the type of economic policies followed by East Asian governments in the second half of the twentieth century and, in particular, with the post World War II Japanese economic model. It could be understood as referring to a state that intervenes to guide the direction and pace of economic development In this model of capitalism (sometimes referred to as state development capitalism), the state has more independent, or autonomous, political power, as well as more control over the economy. Governments in developmental states invest and mobilize the majority of capital into the most promising industrial sector that will have maximum spillover effect for the society. Cooperation between state and major industries is crucial for maintaining stable macro economy.

Features of developmental statesInterventionist

Vision oriented

Effective planning and coordination

Committed to building human capital

Efficient and autonomous bureaucracy

Strong executive, weak legislative

Nature of the Ethiopian developmental stateIts interventionist tendency is too much to the extent of being market unfriendly.

There has been a lot of criticism that the GTP is too ambitious considering the economic situation of the country at the starting point, the institutional capacity already in place and the fact that the country is substantially dependent on foreign aid.

Effectiveness in planning and coordinationThe domestic saving practice is not that much reliable to generate the required amount of capital for investmentThe setting institution in charge of planning and coordinating long term development as an ad-hoc body outside the regular hierarchical government structure is very in efficient, as economists criticized.

Commitment to building human capitalachievements is in the expansion of education is remarkable while in expense of quality.Until the quality of education is fit to the demand of the economy it is not possible to say that the need for human capital has been satisfied, only by counting numbers. Efficiency and autonomy of the bureaucracy The institutions in which the functionaries operate are strongly influenced by the ruling elite since the higher positions in many governmental departments are assigned according to an ethnic based quota system to meet equal representation. This results in bureaucratic institutions and functionaries that are not disciplined, exhibiting high level of inefficiency, rent seeking behavior and rampant corruption at a system level. Executive-legislative relation Currently having a majority of 100% of the parliamentary seats, the ruling party practically makes the laws, executes them and controls the execution. The parliament and other independent controlling institutions such as the Auditor General, the judiciaries are usually described by critics as a ‘toothless lion’ that cannot bite.

Challenges of the Ethiopian developmental stateThe Ethiopian developmental state is challenged in its move forward by both internal and external forces. the existence of chronic political difference impeding the possibility of consensus on major issues. Years after Ethiopia has officially claimed to have adopted the developmental state model, there is still fierce debate and disagreement continuing on such basic issues as:

what is a developmental state? Is developmental state relevant for Ethiopia? What type of developmental state should Ethiopia follow? Which country should be a model for Ethiopia to learn from?

Losing trust on five years term electionEthnic federalismThe corrupt system Marginalization of majority groups from politics and economic inequalityState capture, patronage groups and the inefficiency of government structuresMedia sansuring and bubble propaganda

Concerns: Property Rights, Corruption, and Regulatory Efficiency

Weak rule of law and lack of effective implementation undercut policies aimed

at promoting open markets.

Endless red tape and an underdeveloped financial sector continue to deter

investors and prevent the emergence of vibrant entrepreneurial activity.

The informal economy provides most jobs for the relatively unskilled labor force.

Economic freedom in Ethiopia

In conclusion

Ethiopia is a country;

Rich in history, culturally decorated multi-ethnic as well multi-religious,

Agriculture led economy and majority rural,

Recently, is achieving fastest economic growth but no fair economic distribution,

Mafia economy is in control of the whole system,

Due to incompatible system of the government and chronic corruption, ongoing protest is leading the state to declare state of emergency

Human rights and democratic rights are threatened

The death toll rises on daily bases while the government pretends as democrat

Activists and diaspora based politicians are highly in disagreement on what to do

The west shut up in order to use the country’s strategic position.

References

Kefale, A. (2011, June 15-18). Narratives of developmentalism and development in Ethiopia: some

preliminary explorations. Paper presented at the 4th European Conference on African Studies,

Uppsala, Sweden.

Tegegn, M. (2008). The EPRDF vis à vis Ethiopia's development challenges. African Identities, 6(4), ‐ ‐445-475. DOI: 10.1080/14725840802417992

Senait G. (2011) The Contribution of Export Earnings to Economic Growth of Ethiopia: a Trend

Analysis

World Bank, 2015. World Development Indicators.

http://www.heritage.org/index/country/ethiopia

https://youtu.be/juHvTV9J_zY

For your attention

Thanks