Ethiopia

 

Type of Government: Federal Republic

Independence: Never colonized – one of the oldest independent nations in the world

Head of State: Prime Minister Meles Zenawi (since August 1995)

2007/2008 UN Development Index ranking (out of 177 countries): 169

2007 TI Corruption Perception Index (out of 179): 138

Political Development: In 1974, a military junta, the Derg, deposed Emperor Haile Selassie (who had ruled since 1930) and established a socialist state.  Torn by bloody coups, uprisings, wide-scale drought, and massive refugee problems, the regime was finally toppled in 1991 by a coalition of rebel forces, the Ethiopian People’s Revolutionary Democratic Front (EPRDF).  A constitution was adopted in 1994, and Ethiopia’s first multiparty elections were held in 1995.  A border war with Eritrea late in the 1990’s ended with a peace treaty in December 2000.  Final demarcation of the boundary is currently on hold due to Ethiopian objections to an international commission’s finding requiring it to surrender territory considered sensitive to Ethiopia.  The 2005 election of Meles Zenawi as bitterly contested and not entirely accepted by the opposition.  Independent journalism has largely been silenced in recent years.

Adult HIV Rate: 4.4%

Life Expectancy: 49.23

GDP: $13.32 billion

Inflation: 13.5%

Poverty: 38.7%

Petroleum: N/A

Leading Export Partner: China (11%)

Economic Note: Ethiopia ‘s economy is based on agriculture, accounting for almost half of GDP, 60% of exports, and 80% of total employment. Coffee is critical to the Ethiopian economy with exports of some $350 million in 2006, but historically low prices have seen many farmers switching to qat to supplement income.  Ethiopia qualified for debt relief from the Highly Indebted Poor Countries (HIPC) initiative, and in December 2005 the IMF voted to forgive Ethiopia’s debt to the body.  Under Ethiopia’s land tenure system, the government owns all land and provides long-term leases to the tenants; the system continues to hamper growth in the industrial sector as entrepreneurs are unable to use land as collateral for loans.