Ethiopia case study

Political - past

• 1935-1941 colonised by Italy then rebels and British troops claimed back independence – profits going to Italy and not Ethiopia itself - also left an unstable government

• 1941-71 included WW2 conflict, civil unrest – more money on weaponry so less on services – less healthcare, less education – people fighting so out of work and not contributing to economy + loss of life

• 1974-1987 Derg government killed thousands and terrorised people – many fled as refugees

• Now has a stable government after becoming a republic in 1991

Social - past

• 1984-5 famine killed 1 million – fewer people working, GDP decreased, less trade + investment, also great humanitarian effect and higher death rate

• 1974-87 1.4 million die in a civil war

• Still food deficient

• Still continued population growth

• Limited free speech – less chance for a democratically elected government to gain power

Technological - past

1935-41 Italians invested in highways, rail and power – easier for people to commute – people pursuing better jobs further away – boosted GDP

Economic - past

• $2000m in food aid from NGOs in 1980s – reliant on aid, not looking to create trade links more vital for development

• Around 2012 – Growth and Transformation Plan and more support from USA – agriculturally can develop – higher yields – vital as 80% industry agriculture

The traditional society of Rostow’s model

• Stage 1

• Subsistence farming, fishing, forestry (primary sector)

• Little trade internationally

Pre-conditions for take off

• Manufacturing starts to develop

• Infrastructure built e.g. roads and power networks

• International trading begins

Take off

• Rapid, intensive growth. Large scale industrialisation

• Increasing wealth

The drive to maturity

• Economy grows so people get wealthier

• Standards of living increase

• Widespread tech use

High mass consumption

• Lots of trade

• Goods mass produced

• People wealthy so high levels of consumption

Ethiopia is in stage 2 - pre-conditions for take off

Does fit:

• Agriculture accounts for 80% exports and Africa’s 2^nd biggest maize producer

• Trade deficit (importing more than exporting)

• Landlocked – more expensive to transport goods into and out of country

• Not trading secondary goods yet

Doesn’t fit:

• Still food deficient – stage 1

• Limited free speech

How has Ethiopia met MDG: eradicate extreme poverty and hunger

-          Population living in poverty went from 49% - 29%

-          Unemployment high

-          40% children malnourished

How has Ethiopia met MDG: achieve universal primary education

-          96% children enrolled primary education

-          Literacy rate only 36%

-          More males than females in schools, very few females secondary schools

Promote gender equality

-          Unemployment higher for women and required to do traditional roles

-          93% girls now in primary school

-          More women working in government

Reduce child mortality

-          Infant morality rate reduced from 97/1000 to 45/1000

-          65% children receive vaccinations

-          Malaria and diarrhoea account for a large proportion of deaths in children

Improve maternal health

-          55% women access to contraception

-          Maternal mortality dropped to 23%

Combat diseases

-          New cases HIV declined

-          But still 1.1 million adults living with it

-          100% access a malaria net

-          89% access to a doctor within 10km but each doctor shared between 3000 patients

-          Access to save drinking water increased but waterborne diseases still very common

Ensure environmental sustainability

-          Hydroelectric power has risen to 41% energy

-          Desertification and soil erosion risen

Develop a global partnership

-          National debt 21% GDP

-          Reliant on international aid -> 50% aid food

-          Still receives Development Assistance every year

Climate and relief in Ethiopia

Western Highlands:

• Very wet due to relief rainfall

• Steep relief

• Temp. 25-30 degrees also good for crop growth

• Steep land - agriculture difficult

Eastern Lowlands:

• Two rainy seasons and two dry seasons → reliable crop growth DIFFICULT → only 0-300mm rain yearly, hard for crops to grow

• 30-40 degrees temp - desertification potentially - growing crops hard

• Flatter land for machinery however

Central area:

• Two rain and one dry season

• Unreliable rainfall - not good for crop growth

• 25-40 degrees

• Flatter land → better for farming

Social factors impacting development

• Just under 52% literacy rate due to lack of education - fewer pursuing well-paid jobs

• Sparse secondary school coverage

• Wars e.g. 1974 civil war time out of children’s education

• Only 42% population access to clean water - health problems

• HIV/AIDS pandemic - almost 1% 15-49

Technological factors affecting development

• 17% population are internet users - limited access

• Previously limited agricultural technology - famines e.g. 1984

• 2012 farmers learning new skills

• As 80% population work in AGRICULTURE

Political factors affecting development

• 1941-74 WW2 and political instability set back Ethiopia

• Limited free speech current day - can’t express opinions to aid development

• But does have a stable government - not corrupt so money spent on development

Population factors affecting development

• Rapid population growth - stress on food production

• Quite low life expectancy of 63 years - children may lose parents early, homelessness for family members

• Higher birth rate than UK - health risks for children and mothers - approx 30/1000

• Higher death rate than UK due to insufficient healthcare and services - approx 6/1000

Ethiopia exports

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

• Largest export of these is coffee (28%)

• All RAW MATERIALS → sold for less than manufacture good, yield dependent on climate and demand so not consistent

Ethiopia is in a trade _______

DEFICIT → imports more than exports

Main imports

• Petroleum, trucks, fertilisers, construction, wheat

• Petroleum → manufacturing, aid trade deficit

• Fertiliser → most of exports based on farming

TNCs (trans national companies) positives

• New job opportunities

• New technology and skills brought to poorer countries

• Local infrastructure improved

TNCs negatives

• Not always secure jobs - can be relocated

• Money goes back to AC headquarters

• Low wages

• Long hours

• Poor conditions

Hilton Ethiopia (TNC) - positives

• 2024 could be over 1 million jobs created in tourism → 1.4 million young Ethiopians looking to work each year

• Claims all employees have opportunities such as a free gym membership, two weeks of paid time off for holidays, etc.

• Over 800,000 tourists expected by 2024

• Tourists expected to contribute over 2 billion dollars to GDP - no longer 80% dependent on primary products

Hilton negatives

• Many profits LEAKED back to HQ in USA

• Infrastructure underdeveloped - only 3 five star hotels at the moment, no similar facilities except Hilton hotel → much more investment required for profit

• Jobs mainly seasonal, low paid and long hours and unskilled

• Cultural clashes with too rapid an increase in tourists

AID??

ASSISTANCE GIVEN FROM ONE COUNTRY TO ANOTHER - money, equipment, training and loans

Advantages of aid

• Repayment for benefits ACs got from COLONIALISM

• Rights of people to essentials of life

Disadvantages of aid

• Discourages self-sufficiency

• Donors may be ones to decide what aid to give - may not be most needed

• Corrupt gov may spend it wrong

Ethiopia AID

• 5 million people receive food aid each year

• Oxfam → ‘Goat Aid’ → sustainable and targeted at young women → the ‘girl effect’, idea that if young girls can be supported to receive income, education, etc., issues such as forced marriage and prostitution will be avoided

• Through this, a pair of goats is given to young girls, which are bred and the milk is used for various things (increases nutrition, surplus sold)

• ‘Goat Aid’ sustainable but time-consuming and a lot of money spent on looking after goats

Ethiopia DEBT RELIEF

• 2006 Ethiopia benefitted from debt relief

• 1995 Ethiopia in debt by 155%

• But by 2012 this decreased to 21% national economy

• But still depends on international aid of 550 million dollars a year

• VERY RELIANT THEREFORE

TOP-DOWN DEVELOPMENT STRATEGY - GIBE III DAM ON THE OMO RIVER → positives

• Will expand rural electricity access so reduces inequality

• Predicted over 400 million dollars a year from electricity power exports → boosts GDP

• Reduces impact of droughts

• Will prevent floods → protection of people and livestock and no money spent on repairs

Gibe III negatives

• Indigenous people rely on subsistence farming along riverbank → dam may decrease yield leading to chronic hunger and malnourishment

• Inter-ethnic conflict as 8 distinct indigenous communities compete for scarce resources → they also won’t have a say in this matter

• Fisheries downstream destroyed

• Spending 1.8 billion dollars on this for so many negatives

• Impact on ecosystem by altering seasonal flooding of the Omo river → destroys animal habitats

BOTTOM-UP DEVELOPMENT → FARM AFRICA (GOATS, BEEHIVES AND IRRIGATION) - positives

• 7000 woman-strong goat scheme - each woman who gets 3 goats provides 3 does to another vulnerable woman - lifting each other out of poverty

• Small-scale irrigation - year-round water access and yield increases - Farm Africa provided a water lifting motor pump and farming tools to serve 15 very poor farmers for example

• Goats generate income - feed a family all year and cover school costs

• 540 Tigrayan farmers with beehive kits - income

• Land is more productive and a lot can be produced on a small plot of land

Farm Africa negatives

• Time consuming looking after goats or bees

• Goat food costs money

• Take up space

• Run-off of fertiliser → pollutes bodies of water

Ethiopia GNI per capita

$1020

LANDLOCKED COUNTRY and has 6 neighbouring countries

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.

Birth rate

almost 30 births per 1000 population

Death rate

5.6 deaths per 1000 population