The Economy of Ethiopia

The Economy of Ethiopia is a comprehensive study of the economic changes that accompanied the social revolution of 1974. Based on data not readily available, the book documents the attempt to introduce a socialist pattern of development, analyzes the policies adopted by the revolutionary government and underlines the serious weaknesses in Ethiopia's development strategy. The initial land reform and subsequent efforts to collectivize peasant agriculture and create state farms were central features of agrarian transformation. Resources were squeezed out of the peasantry, traditional exports were damaged and the livelihood of the poor was depressed to such an extent that mass starvation became inevitable.

Several chapters focus on the rural sector. Others contain discussions of the role played by state enterprises, the opportunities missed by neglecting small-scale production and the serious problem of urban unemployment. Particular attention is drawn to the difficulties faced by women in obtaining employment and their need to rely on prostitution as a last resort. There are chapters on the essential public services and the role they could play in providing a floor to poverty, on education in a socialist society, on population policy and on the distribution of income.

Numerous policy suggestions are made with a view to promoting a more rapid accumulation of capital, more productive employment and a greater degree of equity within a more democratic socialist framework. This study ends in 1982, but the issues raised are likely to face Ethiopia for many years to come.