Ethiopia’s institutional environment is among the worst. Ethiopia ranks 78th in having insufficient property rights, 98th in Judicial independence and 101th in private institutions accountability. Ethiopia’s Marxist government carried out a wide range of political, economic and social reform that promised more than they could deliver. The economy was declining and the merchandise experts fell to their lowest. GDP has declined drastically and inflation soared. This has made Ethiopia one of the worst economically dependent countries. Defense expenditures accounted for 40 to 60 percent of the national budge and merchandise exports fell to their lowest since 1974. The countries raging hyperinflation has overtaken almost every nation in the world. And the economy recovery is difficult because of this.
- Ethiopia under the Tigrai Rulers continues to be among the lowest economies in the Global Competiveness Index ranking. This year the country ranked at 121th. As expected the government surplus spending /deficit has become (106th/134) and the countries raging hyperinflation has become unparalleled to almost any nation in the world (131th/134). Ethiopia’s institutional environment rulers is among the worst. The country ranks 78th in having insufficient property rights, 98th in Judicial independence and 101th in private institutions accountability.
- Between 1974 and 1975, Ethiopia's Marxist government carried out a wide range of political, economic, and social reforms. Unfortunately, these reforms promised more than they delivered. Gradually, the country's economy deteriorated. By 1990-91 Ethiopia's economy was in a steep decline, from which recovery will be difficult.
- During the last year of the military government, GDP declined by 5 percent in real terms, and inflation soared. Defense expenditures accounted for 40 to 60 percent of the national budget. Merchandise exports fell to their lowest level since 1974, and a collapse in international coffee prices (during the 1979-89 period, coffee accounted for an average of 55 percent of total exports) reduced foreign-exchange reserves to an all-time low.
“Achieve full and productive employment and decent work for all, including women and young people”- In 1995 the employment-to-population ratio was 72.4. In 2000 is was 75.0 and in 2005 it was 79.9. The ratio is rising but not very fast.(UN)
"Halve, between 1990 and 2015, the proportion of people who suffer from hunger.”- In 1991 the percent of people who were undernourished was 71.0%. In 2001 in was 50.0%, and in 2005 the percentage is 44%. Although Ethiopia is making progress in this section the numbers are still very extreme. (UN)
"Halve, between 1990 and 2015, the proportion of people whose income is less than $1 a day”- In 1995 the percent of people earning less than $1 per day was 60.5%. In 2000 the percent was 55.6%, and in 2005 it was 39.0%. So Ethiopia is on track for this goal but there is still work that needs to be done. (UN)
Although there has been progress made toward reaching this Millennium Development Goal, it seems unlikely that Ethiopia will reach its goals for ending poverty and hunger before 2015. (UN).
Source: All from Ethiopia Economic Prospects ." The Library of Congress Country Studies; CIA World Factbook. The Library of Congress Country Studies; CIA World Factbook, 10 11 2004, except where indicated. Web. 12 Nov 2010.
