Background information on Ethiopia

History

Ethiopia is a land-locked country bordered by Eritrea, Sudan, Kenya, Somalia and Djibouti.

Credit: WaterAid / Caroline Irby

The ancient Ethiopian monarchy was independent and maintained its freedom from colonial rule except during the Italian occupation of 1936-41.

In 1974 Emperor Haile Selassie, who had ruled since 1930, was deposed by a military junta, the Derg, who established a socialist state.

The following years were torn by bloody coups, uprisings, wide-scale drought, and massive refugee problems, before the regime was finally toppled by a coalition of rebel forces, the Ethiopian People's Revolutionary Democratic Front (EPRDF), in 1991.

In 1994 a constitution was adopted, with the country's first multiparty elections held in 1995. A two and a half year border war with Eritrea ended with a peace treaty on 12 December 2000.

Economy

Sieving teff, a staple grain used to make bread.

Credit: WaterAid / Julie Weston

Ethiopia is land-locked between Eritrea, Sudan, Kenya, Somalia and Djibouti. It consists of a central, vast highland region of volcanic rock forming a watershed, and surrounded by hot, arid, inhospitable desert. Lake Tana in the north of the country is the source of the Blue Nile.

The economy is based on agriculture, which accounts for half of GDP, 85% of exports, and 80% of total employment. The agricultural sector suffers from frequent drought and weak cultivation practices.

In recent years as many as 4.6 million people have needed food assistance annually. Coffee is critical to the economy with exports of some $260 million in 2000. Other important exports include qat (a mildly stimulating leaf that is chewed), live animals, hides, and gold.

Both the 1999-2000 war with Eritrea and recurrent drought have severely affected the economy, which remains poverty-stricken. In November 2001 Ethiopia qualified for debt relief from the Highly Indebted Poor Countries (HIPC) initiative.

Growth is expected in the near term as better rainfall, the cessation of hostilities, and renewed foreign aid and debt relief push the economy forward.

Nevertheless, there is still much to be done to utilize the country's water resources by carrying out water management schemes and introducing irrigation systems to avert drought.