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Poverty in Ethiopia: An Overview

Poverty in Ethiopia
Like many of the African nations that have gained their independence from a European power, poverty in Ethiopia has been exacerbated by regional conflict that caused widespread poverty to infect communities across the country.

Ethiopia was one of the first countries to claim their independence in 1896 after the Italians were rejected from the nation. Unfortunately, geopolitical conflict continued to plague the nation as the neighboring Eritrea staked a claim to its own independence in the late 20th century. The tension culminated in a border war at the turn of the century.

The social malady that most affects Ethiopia is malnourishment. In 1984, famine struck the nation which required a huge foreign aid response from the Western world. Ever since then, the Ethiopian government has had trouble feeding its large population of over 86 million. The nation remains reliant on Western nutritional support as their developing economy starts to emerge from its fledgling status.

Ethiopia’s GDP per capita began an early improvement in the 1990s, as the country began its recovery from conflict and famine in the 1980s. The Eritrean dispute forced GDP per capita down once again until the mid-2000s. Since then, Ethiopia’s growth has exploded to $541.87 up about 400 percent. The progress in the economy has helped reduce poverty rates significantly.

According to data from the World Bank, poverty in Ethiopia fell from 44 percent in 2000 to 30 percent in 2011. Fertility rate, which is highest in the poorest countries, fell from 7.0 in 1995 to 4.6 in 2011. Undernourishment, one of the biggest issues in Ethiopia, dropped from 75 percent in 1990-1992 to 35 percent in 2012-2014. These are just a few of the signs of an improving society.

Even so, there is still a long way to go. Based on the United Nations Development Programme’s Human Development Index, Ethiopia ranks 174th out of 187 countries. In order to improve that statistic and further fight hunger, the East African country needs to improve its use of its valuable arable land. The Rural Poverty Portal estimates that “only about 25 percent of its arable land is cultivated.”

Expanding Ethiopia’s agricultural base is, perhaps, the most efficient way of reaching the population spread out over the country. In 2014, it was estimated that over 78 million people live in rural areas, while the remaining are concentrated in urban hubs. Providing better technology for food production and better infrastructure for distribution could be an ideal way to attack malnutrition.

The International Development Research Center conducted a case study called “Ethiopia: Breaking the Cycle of Poverty in Ethiopia.” The author, Mike Crawley, investigated deeper into the “simple problem” that plagues the population, “not enough food.” His research found that individual farmers are limited in their production abilities by “too small landholdings, poor agricultural practices, and lack of potable water.”

The solution? Change the way these individual farmers operate so that they can help themselves and their community. The organization’s team sought to convince “farmers to think about whether they could begin to make some positive changes on their own rather than wait for assistance from outside.” The mentality that helping the community is not outside the purview of helping oneself is one that will be essential in the fight against poverty in Ethiopia.

– Jacob Hess

Photo: Flickr

How Ethiopia Reduced Poverty

EthiopiaEthiopia is the second most populous country in Africa, with 94.1 million people. Poverty has long been an issue for Ethiopia, and while many remain under Ethiopia’s poverty line of earning $1.25 a day or less, the nation has made great strides in the past 10 years to reduce poverty and improve health.

Ethiopia’s economy has been thriving in the recent past. Between 2004 and 2011, the economy grew at a rate of 10.6 percent per year. Ethiopia increased exports in order to help it account for this economic growth, and that has led to more prosperity throughout the country.

This decrease in poverty can also be attributed to strides in agriculture. In 2005, Ethiopia introduced new agricultural practices which resulted in increased production. As The World Bank states, this agricultural growth has allowed for a 4 percent reduction in poverty each year. The use of fertilizer, along with high food prices and good weather, has given poor farmers with access to markets a higher income.

Ethiopia also instituted the Productive Safety Net Program (PSNP). The World Food Program writes that there are 7.4 million people participating in the PSNP. The program works to end chronic food insecurity through transfers of food or cash (or a combination of both).The PNSP asks that those who are able-bodied in the households who receive their help participate in activities which will help them have more resilient livelihoods and less chance of food insecurity. These activities include building community infrastructure, such as building schools, roads, and hospitals, and rehabilitating land and water resources. The PSNP has helped 1.5 million people who were in poverty to be lifted out of poverty.

Economic growth, an increase in agricultural production, and programs such as the Productive Safety Net Program have paid off. From 2000 to 2011, poverty in Ethiopia declined from 44 percent to 30 percent. As the World Bank says, this “translates to a 33 percent reduction in the share of people living in poverty”.

This decrease in poverty has helped the health of Ethiopians as well. From 2010 to 2015, the level of child mortality has been lowered by two-thirds. The average lifespan has also increased by about an year annually from 2005 to 2011, making an Ethiopian’s lifespan 63. Malnutrition rates have come down as well. 75 percent of the population was malnourished in Ethiopia in 1990, while today it has fallen to 35 percent.

Since 2004, four million Ethiopians have been able to rise above the poverty line. However, there is still work to be done. 25 million people in Ethiopia are still suffering from poverty. The World Bank suggests that in order for the trend of a decrease in poverty to remain, ongoing efforts to promote self-employment have to continue. Firms have to enter Ethiopia, and urban migration has to be encouraged.

– Ashrita Rau

Sources: The WFP, World Bank 1, World Bank 2, The Sudan Tribune, Voice of America, BBC
Photo: Needpix.com

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10 Facts About Poverty in Ethiopia

Poverty in Ethiopia Poor Facts
Poverty in Ethiopia remains a major concern, but the country has also seen great progress. Ethiopia has the second largest population of all African countries and has only once, for a brief period of time, been colonized. One of Africa’s oldest independent countries, Ethiopia has a rich culture and long history. However, it is currently considered one of Africa’s poorest countries despite a rapid population boom in recent decades. Read how Ethiopia reduced poverty.

 

10 Key Facts on Poverty in Ethiopia

 

  1. Ethiopia is located in East Africa and is historically a rich country.
  2. Agriculture accounts for more than half of its economy, and employs 80% of its population.
  3. With an estimated population of 86 million people, 78% of Ethiopians struggle with an income below US$2 a day.
  4. The life expectancy of the average Ethiopian was 59 years old in 2011.
  5. The State Health expenditure is approximately $3 per person in Ethiopia.
  6. For every 1,000 children five years old and younger, there are 166 deaths.
  7. Preventable diseases, including Malaria, account for at least 60% of health problems in the country.
  8. Approximately 34% of the rural population in Ethiopia has access to an improved water source.
  9. Ethiopia’s main exports are coffee, hides, oilseeds, beeswax and sugarcane. Ethiopia’s main source of income comes from its agricultural economy that is often affected by drought.
  10. Almost two-thirds of its people are illiterate.

– Kira Maixner

 

Source: The World Bank , Merlin USA , BBC
Photo: World Vision

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