The economy of Ethiopia is basically based on agriculture. The major agricultural export crop is coffee which takes up about 65-75% of how much money they make in exports. They export about 105,000 metric tons of coffee each year. Currently coffee contributes 10% of Ethiopia’s GDP. Other exports include live animals, gold, hides, pulses, oilseeds, barley, wheat, corn, peas, potatoes, cotton and khat. Ethiopia’s agricultural problems include drought, soil degradation which is caused by overgrazing, deforestation, and poor infrastructure which is when it’s expensive to get goods to the market. Gold, marble, limestone and small amounts of tantalum are mined in Ethiopia. Some other resources in Ethiopia that could develop into major exports are potash deposits, natural gas, iron ore and possibly petroleum.
Ethiopia depends highly on oil that it imports even though it has good hydroelectric resources. Since the war between Ethiopia and Eritrea has landlocked Ethiopia, it relied heavily on the seaports from Assab and Massawa which are in Eritrea. Ethiopia currently uses the ports of Djibouti which is connected to Addis Ababa. Since Ethiopia has mountainous territory and the roads aren’t very sufficient it makes land transportation very difficult.
The values of imports are more important than exporting. Ethiopia depends on other countries for economic aid so that their able to feed all the people in their country. The major imports are good, petroleum and petroleum products, machinery, motor vehicles, chemicals and manufactured consumer goods. The leading trade partners with Ethiopia are Germany, Saudi Arabia, Italy and Japan.
Discussion Questions:
- What do you think could improve the economy of Ethiopia?
- Should they really rely on other countries for economic aid?
- What would be some good reasons for Ethiopia to stop the war with Eritrea?
- Imports are very important to Ethiopia but the transportation makes it very difficult. Discuss about why Ethiopia should work on their countries transportation to make it easier and more efficient.
- If Ethiopia has many agricultural problems, then why is agriculture their main source of money? Should they try a new way of making money in the country?
Links:
1. “Economy.” Infoplease. 10 October 2006.
2. “Economy of Ethiopia.” Wikipedia. 10 October 2006.
3. “Ethiopia: Country Overview.” World Geography. 26 September 2006.
-Christina Newsome
4 responses so far ↓
1
globalspartan
// Oct 16, 2006 at 11:53 am
#1. I think one of the biggest issues in the economic efforts in Ethiopia is based on the poor government. I think the government should provide a lot more supervision over the country and become more away of the economic issues. I think as a government they should provide people with support and supply to help build their lifestyles and get out of this poor economy.
2
globalspartan
// Oct 16, 2006 at 11:54 am
Alex S.
3
globalspartan
// Oct 16, 2006 at 12:04 pm
I think that the economy in Ethiopia could be improved if the government would focuss on it more. They should build more stores. They need to give more to the people instead of the government just taking all of their taxe money.
- Torri C
4
globalspartan
// Oct 17, 2006 at 8:07 am
2. They should not rely on other countries for economic aid because their is no guarentee that anyone will help them out. If any country can give their word that they will aid them then it is ok to rely.
-Dylan L.
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