Ethiopia case study

Where is Ethiopia located?

On the Horn of Africa

What are some of the barriers to Ethiopia's development?

The country is landlocked, natural disasters (e.g. droughts, famine) happen frequently, their history, their government, and previous war with Eritrea

How has being a landlocked country restricted Ethiopia's development?

Because they are landlocked, it is harder to receive goods from trade/export goods because they either have to drive through other countries or fly the goods in, which is more expensive.

How has their past restricted Ethiopia's development?

Ethiopia was colonised by Italy from 1935 - 1941. Upon independence, their government was left very unstable and communism gained popularity due to people having to go through famine, unrest and droughts. This led to a successful military coup in 1974. Ethiopia was under the communist Derg government from 1974 - 1991. They grabbed tracts of land and evicted the owners, which caused migration, refugees and economic decline.

How have natural disasters restricted Ethiopia's development?

Ethiopia frequently suffers from droughts and famines. During these times, farmers cannot grow any crops to sell, so they cannot trade with other countries.

How has the government restricted Ethiopia's government?

The government is still not perfect (although fairly stable) and due to their history of corrupt and unstable governments many years of development have been lost.

What are the 5 stages of Rostow's Model?

The traditional society, the preconditions for takeoff, the takeoff, the drive to maturity, and the age of mass consumption

What happens at the Traditional Society stage of Rostow's Model + give an example of a country in this stage

Most people are working in the primary sector (mostly in agriculture), local trade happens (no international trade), an example of this is Burkina Faso

What happens Precondition for Takeoff in Rostow's Model + give an example of a country in this stage

The industrial and manufacturing society begins, agriculture is commercialised and trade expands overseas, an example of this is Ghana

What happens at Takeoff in Rostow's Model + give an example of a country in this stage

Substantial manufacturing sectors become developed, there is a technological breakthrough, an example of this is Thailand

What happens at the Drive to Maturity in Rostow's Model + give an example of a country in this stage

The economy is steadily growing, more modern technology, workers in agriculture drastically decrease, workers gain greater skills and are paid more, an example of this is China

What happens at the High Mass Consumption stage of Rostow's Model + give an example of a country in this stage

High value goods are normalised for purchase, consumers are beyond their basic needs, many people are living in cities (urban society), most people are working in the tertiary sector, an example of this is the US

What are some of the TNCs in Ethiopia?

Hilton Hotels, Siemens, General Electric (GE), Atriflora, Dow Chemicals, H&M, Huajian Shoe Factory,

What are some of the advantages to TNCs in Ethiopia?

• Products are tailored to African customers

• New and improved infrastructure

• Helped build new dams are trade links to other countries

• TNCs invest in development, causing economic growth

What are some of the disadvantages to TNCs in Ethiopia?

• Locals are only employed in low-paying jobs

• Highly qualified Ethiopians who are capable of taking up higher positions within TNCs are not given these jobs

• The government takes out massive loans, and cannot pay this debt

• Concerns about sustainability, some of the roads are deteriating

What are the Millennium Development Goals?

1. Eradicate extreme poverty and hunger

2. Achieve universal primary education

3. Promote gender equality and empower women

4. Reduce child mortality

5. Improve maternal health

6. Combat HIV/AIDS, malaria and other diseases

7. Ensure environmental sustainability

8. Develop a global partnership for development

How much does Ethiopia export every year?

3 billion USD

How much does Ethiopia import every year?

11 billion USD

How much debt is Ethiopia in?

8 billion USD

What are Ethiopia's main exports?

Coffee, vegetables and legumes, pulses and oilseeds, flowers, livestock

What are Ethiopia's main imports?

Petroleum, trucks, fertilisers, construction, wheat

How much did the tourist sector in Ethiopia grow by in 2018, and how much did it contribute to the economy?

48.6%, contributed 7.4 billion USD (9.4% of total economy)

How many people are employed in the tourist sector in Ethiopia?

Over 2.5 million people

What percentage of visitors to Ethiopia are tourists?

79%

What percentage of visitors to Ethiopia are international?

77%

How many visitors does the Addis Ababa Bole International Airport attract every year?

22 million people

How many people need food aid in Ethiopia?

8 million people

What is Direct Foreign Investment?

Active ownership of a foreign company or of overseas manufacturing or marketing facilities

Which country funded the first 6 lane highway in Ethiopia?

China

Because China has been demanding repayments, what has the Ethiopian government resorted to, and how does this cause further problems for the country?

Borrowing from the World Bank and IMF, which causes more debt

What are some of the benefits of Goat Aid in Ethiopia?

• The manure can be used for crops

• Goats are cheap

• Can breed more goats

• Use goat fur for clothes

• Can get milk and meat

What are some of the problems of Goat Aid in Ethiopia?

• Can be hard to transport

• Diseases can spread

• People have to be educated on looking after the goats properly

• Veterinary bills can be expensive, sometimes vets are inaccessible

• Goats need to be fed

What is a bottom up development strategy + give an example

These strategies focus on the needs of individual communities, and are funded by charities or NGOs. An example is when the charity Farm Africa trained locals to be better farmers so that they can sell their goods and provided them with animals that they can breed and make money from.

What is a top down development strategy + give an example

These strategies are large scale projects, funded by the government and have an impact on many people, not just certain communities. An example is the Gibe III dam on the Omo River, which provides many people with electricity, and also makes the water safer so that it can be stored in case of droughts.