Bereket Gebru
Although
it has been quite a few years now since Ethiopia started to receive rave
reviews about its economic wonders from international organizations, media and
non-state actors, the trend still feels fresh for Ethiopians as they had been
plagued with negative reports for so long. The graphic images of Ethiopians
dying of hunger broadcasted by Western media still haunt the county’s image in
the eyes of the international community.
For
the last two decades, however, rapid economic growth and its manifestations
have brought sunshine back on to the country scaring off the darkness that
seemed to have engulfed it. With international and regional organizations highlighting
the miraculous turnarounds in Ethiopia’s economic performance in their regular
reports, the Western media started to address these positive reports about the
country. The rising number of such reports and the tangible mega-projects on
the ground seem to have pushed these media into taking a closer look at the
country. Such a move has diversified their reports a bit as they got more than
they bargained for once they actually set their feet on to the country.
The
media fatigue by the international audience on how certain countries and
regions are portrayed might have also contributed to the change. The portrayal
of Africa as a place of hungry, poor and backward people living along some of
the most dangerous wildlife in the world can no longer be sold as easily as it
used to because of the proliferation of information and communication
technology. Therefore, these media outlets have been forced to engage
themselves with economic, social and political developments in the continent as
the audience has grown sick of the old sporadic reports of hunger, wildlife,
armed conflict, HIV/AIDs and the likes.
As
one of the champions of the African cause, Ethiopia has risen to become the
front runner in painting a positive image of the continent. The long sought
marvel and pride at the international stage has been steadily building for
years now that the country is mostly associated with progress and a bright
future.
In
the last three years alone, the country has been recognized as the third
fastest growing economy in the world, trailblazer of the Millennium Development
Goals (MDGs) and the World's Best Tourism Destination for 2015. Its capital
Addis Ababa has also been acknowledged as the third biggest United Nations hub
following New York and Brussels. Prime Minister Hailemariam Desalegn has also
been named ‘Man of the Year’ 2015 by Africa World News newspaper for sustaining
the country’s rapid economic growth.
A
report by the World Bank Group entitled “Ethiopia’s Great Run: The Growth
Acceleration and How to Pace it” stated that the country is on track to achieve
its goal of becoming middle income status by 2025. The report applauded the
uniquely Ethiopian policies that ensured sustainable economic growth for over a
dozen years.
Dr. Carlos Lopes, former Executive
Secretary of the UN Economic Commission for Africa (UNECA) argued that Ethiopia
would become Africa’s biggest economy by 2050. Dr. Carlos weighed prospects and
challenges for Nigeria, South Africa-current economic giants in Africa, with
resource rich DR Congo and fast growing Ethiopia to reach to the conclusion
that Ethiopia would come out as top performer in Africa by 2050.
The Executive Secretary said:
“At nearly 100 million, Ethiopia is Africa’s third most populous, and has
posted blistering economic growth in the past decade or so. More importantly,
it is fast closing the infrastructure gap, laying down a flurry of roads,
railways and power projects, which would give it a competitive advantage in the
region, particularly over DR Congo that is notoriously poorly connected.”
The Executive Secretary Carlos
Lopes took his own parameters to arrive at his conclusion. However, it seems
like Ethiopia awaits a daunting task to turn his prophecies into reality. After
all, Nigeria and South Africa are the biggest economies in Africa with DR Congo
mustering one of the richest resources a country can have.
Therefore, let’s take a look at
what sort of capacities Ethiopia has been projected to overtake in the coming
thirty-five years. To have a better understanding of where Ethiopia is currently
and where it has been tipped to get in the coming 35 years, let’s just take a
brief look at the World Bank data for Ethiopia.
Ethiopia is the second-most
populous country in Sub-Saharan Africa with a population of 96.5 million, and
population growth rate of 2.5% in 2014. One of the world’s oldest
civilizations, Ethiopia is also one of the world’s poorest countries. The
country’s per capita income of $550 is substantially lower than the regional
average (Gross National Income, Atlas Method). The government aspires to reach a
middle income status over the next decade.
Some sources put the country’s
GDP at just over $47 billion in 2013. The economy has experienced strong and
broad based growth over the past decade, averaging 10.8% per year in 2003/04 -
2013/14 compared to the regional average of 4.8%. Expansion of the services and
agricultural sectors account for most of this growth, while manufacturing
sector performance was relatively modest. Private consumption and public
investment explain demand side growth with the latter assuming an increasingly
important role in recent years.
Economic growth brought with it
positive trends in reducing poverty, in both urban and rural areas. While 38.7%
of Ethiopians lived in extreme poverty in 2004-2005, five years later, this was
29.6%, which is a decrease of 9.1 percentage points as measured by the national
poverty line, of less than $0.6 per day. Using the Growth and Transformation
Plan (GTP), the government’s goal is to reduce this further to 22.2% by
2014-2015.
Ethiopia has achieved the Millennium Development Goals (MDGs) for
child mortality and water. There has also been encouraging progress,
particularly in gender parity in primary education, HIV/AIDS, and malaria. Positive
results have also been achieved in universal primary education. Ethiopia has
now taken on the Sustainable Development Goals.
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