EconomyMain article: Economy of Ethiopia See also: Foreign aid to Ethiopia
Ethiopia was the fastest-growing non-oil-dependent African economy in the years 2007 and 2008. In spite of fast growth in recent years, GDP per capita is one of the lowest in the world, and the economy faces a number of serious structural problems. There have been efforts for reform since 1991, but the scope of reform is modest. Agricultural productivity remains low, and frequent droughts still beset the country. The effectiveness of these policies is reflected in the 10% yearly economic growth from 2003–2008. Despite these economic improvements, urban and rural poverty remains an issue in the country.
Ethiopia is often ironically referred to as the "water tower" of Eastern Africa because of the many (14 major) rivers that pour off the high tableland, including the Nile. It also has the greatest water reserves in Africa, but few irrigation systems in place to use it. Just 1% is used for power production and 1.5% for irrigation.
Provision of telecommunications services is left to a state-owned monopoly. It is the view of the current government that maintaining state ownership in this vital sector is essential to ensure that telecommunication infrastructures and services are extended to rural Ethiopia, which would not be attractive to private enterprises.
The Ethiopian constitution defines the right to own land as belonging only to "the state and the people", but citizens may only lease land (up to 99 years), and are unable to mortgage or sell. Renting of land for a maximum of twenty years is allowed and this is expected to ensure that land goes to the most productive user.
Agriculture accounts for almost 41% of the gross domestic product (GDP), 80% of exports, and 80% of the labor force. Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. Production is overwhelmingly by small-scale farmers and enterprises and a large part of commodity exports are provided by the small agricultural cash-crop sector. Principal crops include coffee, pulses (e.g., beans), oilseeds, cereals, potatoes, sugarcane, and vegetables. Recently, Ethiopia has had a fast-growing annual GDP and it was the fastest-growing non-oil-dependent African nation in 2007. Exports are almost entirely agricultural commodities, and coffee is the largest foreign exchange earner. Ethiopia is Africa's second biggest maize producer. According to a UN report the GNP per capita of Ethiopia has reached $1541 as of 2009. The same report indicated that the life expectancy had improved substantially in recent years. The life expectancy of men is reported to be 56 years and for women 60 years.
Read more about this topic: Ethiopia
Other articles related to "economy":
... The war furthered the decline of the Iranian economy that had begun with the revolution in 1978–79 ...
... During its history Quincy has been known as a manufacturing and heavy industry center, with granite quarrying dominating employment in the 19th century and shipbuilding at Fore River Shipyard and Squantum Victory Yard rising to prominence in the 20th century ... The recent decades have seen a shift in focus to several large employers in the financial services, insurance and health care sectors of the economy ...
... Interest and Money that lower aggregate expenditures in the economy contributed to a massive decline in income and to employment that was well below the ... In such a situation, the economy reached equilibrium at low levels of economic activity and high unemployment ... fully employed, governments have to run deficits when the economy is slowing, as the private sector would not invest enough to keep production at the normal level and bring the economy out of recession ...
... Scotland has a western style open mixed economy that is closely linked with the rest of Europe and the wider world ... Traditionally, the Scottish economy has been dominated by heavy industry underpinned by the shipbuilding in Glasgow, coal mining and steel industries ... and 1980s saw a shift from a manufacturing focus towards a more service-oriented economy ...
... Copper mining is an important part of the economy of Katanga province ... Cobalt mining by individual contractors is also prevalent ...
Famous quotes containing the word economy:
“Cities need old buildings so badly it is probably impossible for vigorous streets and districts to grow without them.... for really new ideas of any kindno matter how ultimately profitable or otherwise successful some of them might prove to bethere is no leeway for such chancy trial, error and experimentation in the high-overhead economy of new construction. Old ideas can sometimes use new buildings. New ideas must use old buildings.”
—Jane Jacobs (b. 1916)
“The counting-room maxims liberally expounded are laws of the Universe. The merchants economy is a coarse symbol of the souls economy. It is, to spend for power, and not for pleasure.”
—Ralph Waldo Emerson (18031882)
“Even the poor student studies and is taught only political economy, while that economy of living which is synonymous with philosophy is not even sincerely professed in our colleges. The consequence is, that while he is reading Adam Smith, Ricardo, and Say, he runs his father in debt irretrievably.”
—Henry David Thoreau (18171862)