CASE STUDY - are LIDCs likely to stay poor? ETHIOPIA Flashcards
Overview of the economic development of Ethiopia:
Political
Population
Society
Technology
- Political, population, society:
1974 *The Derg Military Governmnent: - was led by the dictator Mengistu who took control of the country which led to violent political conflict between the TDM and the rival communist group the Red Terrors. This resulted in 200k ppl including healthy workers being killed (so less workers in the economy, lower GNI etc).
1984-5*Due to political unrest, businesses closed so economy couldn’t fund those who had been affected by drought and famine (8m ppl affected and 1m ppl died)
up until 2003 - 2020 Ethiopia was in a. cycle of poverty.
2003-2020 Society, Technology and Population:
- In 2003 Ethiopia broke out the poverty trap and became the 2nd largest population in Africa.
- Healthcare has improved resulting in life expectancy increasing from 55 - 66 years between 2003 and 2020.
Stages of Rostow’s Model:
Stage 1 LIDCS- Traditional society - limited tech. and economy is mainly based on farming.
Stage 2 LIDCS - Preconditions for take-off - Due to technology improving farming also does (better for economy). Industries begin to extract more natural resources - so trade and communication improves.
Stage 3 EDC - Investment and the manufacturing industry increases
Stage 4 EDC - Drive to maturity - infrastructure and technology improves. International trade becomes more important.
Stage 5 AC - High mass consumption: consumer industries grow and so does personal wealth. People become more educated and trade continues to grow.
True or False, Ethiopia is in stage 2 and 3 of Rostow’s model?
True
stage 2 - preconditions for take-off, national and intl. connections begin to develop.
stage 3 - Take off investment and manufacturing industry increases
Why is Ethiopia in stage 2 of RM?
- Low GNI per capita 170/190 world countries rank.
- Not a member of World Trade Organisation
- New/improving infrastructure eg the new 750km railway from Addis-Ababa to Djibouti.
Why is Ethiopia in stage 3 of RM?
- Since 2010 it has been one of the fastest growing economies in the world due to investment and manufacturing industry increasing.
To what extent have MDGs been fulfilled in Ethiopia?
- Succeeded x2
- Failed x2
SUCCEEDED:
- Eradicated extreme hunger and poverty ^^ bc since 2010 it has been one of the fastest growing economies (stage 2 RM).
- Reduce in child mortality in 2001 immunisation for measles was 36% this rose to 90% by 2015
FAILED:
- Target was to reduce maternal mortality rates to less than 267 for 100k birth, but as of 2014, still at 450.
- Gender equality - only 38% women hold seats in parliament as of 2015.
What political factors have influenced Ethiopia’s development?
Government instability - the Derg military government.
What social factors have influenced Ethiopia’s development?
Due to the Derg military government and the conflict w the Red terrors where 1m died and 8m affected, less children received education during this period increasing the levels of illiteracy.
What environmental factors have influenced Ethiopia’s development?
Overuse of oil has led to soil degradation. This means soil is less fertile to grow crops for commercial use which has a negative impact on the economy.
How does Ethiopia’s international trade affect its development?
- The secondary industry accounts for 18% of its GNI, and it aims to become a global manufacturing hub for clothes and shoes.
Benefits and Problems of trade and TNCs investment for development of Ethiopia.
BENEFITS
- More young semi-skilled people are employed into ‘formal’ employment - less crime.
- Reduces extreme poverty.
DISADVANTAGES
- Robotics and AI may take the place of employment in the trade sectors.
Advantages and Disadvantages of international aid for Ethiopia’s development.
Ethiopia received 4B dollars of intl. aid yearly, and also remittances from Ethiopian’s families in diaspora account for 1% of the country’s GNI.
+ Enables Ethiopia to provide famine relief and emergency food aid etc - allows for decreased mortality rate so more workers.
+ Better quality of life
- Political corruption means money may not really get to those who need it.
- Creates dependency so government no longer enforces tax collection systems.
An example of a top-down and a bottom-up strategy in Ethiopia.
TOP-DOWN Grand Ethiopian Renaissance Dam (GERD)
BOTTOM-UP The Farm Africa Honey Production Project in NW Ethiopia.
Top down strat + and -
GERD
Was built in 2020 and the reservoir was filled up in 2023.
+ Provide 5.2 gigawatts of electricity doubling Ethiopia’s electricity production to power industries allowing it to moving into stage 3 of RM,
- 5000 people were relocated and displaced due to the construction of the dam.
- 2% of rural inhabitants have electricity, the remaining 98% don’t.
Bottom Up strat + and. -
The Farm Africa Honey Production Project in NW Ethiopia.
NGO working in Ethiopia since 1988.
- Allows farmers increase the quality and quantity of their honey through specialist training.
POS
- Each beekeeper produces 25-30kg of honey creating a source of income.
- By the end of 2020, £60k produced do to honey production.
NEG
- Farmers become dependent on aid from FarmAfrica, so positive impacts may cease when aid ceases.
- Other negative factors such as diseases cannot be solved with FarmAfrica. It is small-scale.
