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A state-led industrialization push inspired by the East Asian 'developmental state' model is at the centre of Ethiopia's recent economic success. This model has historically proved potent for achieving rapid industrialization, but the business-state alliance at the heart of the model generally aimed to curb the power of labour. Focusing on textile and leather manufacturing in Ethiopia, this article addresses two questions: are workers capable of extracting gains from the process of industrialization, and have the actions of workers affected global value chain integration in the two industries? Our data show that opportunities for collective voice among workers are limited. However, workers have expressed their discontent by leaving employers when working conditions fail to meet their expectations. The resulting turnover has generated significant obstacles for local and foreign firms attempting to participate in global value chains. In response, the Ethiopian state and employers implemented a number of measures, including restrictions on emigration and more generous non-wage benefits. Recent research on global value chains and labour highlights how workers are able to influence work practices through individual action. The present article builds on these ideas, but shows that firms and governments have the ability to respond and limit this power. [ABSTRACT FROM AUTHOR]

Highlights • We study the impact of improved land rights on children's schooling in Ethiopia. • Improved land rights decrease grade progress of oldest sons (likely to inherit) • School enrollment improves for all in the zone with fertile land. • School enrollment improves for oldest sons in the more draught-prone zone. Abstract Strong property rights have often been assigned a crucial role in economic development. Land certification programs are one way to address the problem of weak property rights. This paper investigates the impact of a rural land certification program on schooling in two zones of the Amhara region of Ethiopia. This is the first study on impacts of land titling on children's schooling and labor in a rural context. Since land is productive in rural areas the impact could differ from in an urban context. Using the variation in the timing of the arrival of the program at the local level, we investigate the link between land tenure security, schooling and child labor. The results show a positive effect of improved land rights on school enrollment for all children in one of the zones studied, and for oldest sons in the other. Grade progress of oldest sons, who are most likely to inherit the land, worsens. [ABSTRACT FROM AUTHOR]

Objective: Community based health insurance schemes are becoming recognized as powerful method to achieve universal health coverage and reducing the financial catastrophic shock of the community. Therefore, this study aimed to assess willingness to pay for community-based health insurance and associated factors among rural households of Bugna District, Ethiopia. Results: A total of 532 study participants were included in the study. The finding indicated that 77.8% of the households were willing to pay for the community-based health insurance. The average amount of money the households were willing to pay per household per annum was 233 ETB ($11.12 USD). The result of the study also revealed that attending formal education[ß = 3.20; 95% CI = 1.87, 4.53], history of illness [ß = 2.52; 95% CI = 1.29, 3.75], household size [ß = 0.408; 95% CI = 0.092, 0.724], awareness about the scheme [ß = 2.96; 95% CI = 1.61, 4.30], and wealth status [ß = 5.55; 95% CI = 4.19, 6.90] were factors significantly associated with willingness to pay. Therefore, enhancing awareness of the community about the scheme, considering the amount of premium as per household family size and wealth status might increase household's willingness to pay for community-based health insurance. [ABSTRACT FROM AUTHOR]

In recent years, Ethiopia has experienced fast economic growth and has been a major recipient of development and humanitarian aid. However, these developments were unsuccessful in eliminating food insecurity problems, and Ethiopia continues to be a considerably famine-prone country. The aim of this paper is to examine the applicability of Howe's framework of the six archetypal situations symptomatic to famines (watch, price spirals, aid magnet, media frenzy, overshoot, and peaks) to the 2015-2016 food crisis, which left an estimated 15 million Ethiopians in need of acute food assistance. This paper observes that the food crisis proved to have some of Howe's archetypes including watch, price spirals, and, to a lesser extent, media frenzy and peaks. Even though the aid magnet and overshoot were not recorded, the dynamics of the 2015-2016 food crisis confirmed Howe's argument that the current system of humanitarian assistance does not lead to timely and effective responses. In this paper, I also argue that the Ethiopian political context further exacerbates the food insecurity situation of the country. [ABSTRACT FROM AUTHOR]

While labor-intensive export-oriented industries typically bring positive economic benefits to countries through employment generation, the effects of employment in these industries on various aspects of workers’ welfare are less well-studied. This paper considers the case of the cut flower industry in Ethiopia to provide such quantitative evidences. We collected workers’ primary data and conducted incentivized experiments to measure their cognitive abilities, risk preference, and other behavioral characteristics. Based on propensity-score matching and doubly robust estimations to facilitate rigorous comparisons, we find that production workers in the cut flower sector earn significantly more than similar workers in other sectors, most probably due to the flower farms’ interest to reduce costly worker turnovers. In addition, workers in the sector save more regularly than workers in other sectors who have similar characteristics, and the amount saved relative to the income level is also higher, after controlling for the frequency of wage payment and employment status. The subjective valuation of their jobs is also higher in the cut flower sector, particularly in terms of the income level, stability, and future prospect, but workers in the sector are not necessarily more satisfied with the type of work they do. Unlike other sectors where wage payment decreases with worker’s age, wage in the flower sector does not vary with age. Risk-averse individuals are more satisfied in the cut flower sector, while work experience reduces the satisfaction level on future prospect more in this sector relative to other sectors. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to identify the contextual work factors in Ethiopia and to evaluate the relative influence of each of these factors on job satisfaction (JS) of employees.Design/methodology/approach The study draws on a sample of shop floor workers from the leather products manufacturing industry in Ethiopia. Data were collected using a structured survey questionnaire and focus group discussions. After testing scale reliability and validity, multiple linear regression was used for the analysis.Findings The study results suggest that the JS is mainly explained by extrinsic factors. Pay is found to influence overall job satisfaction (OJS) at least four times of other work factors. Training opportunity and ethnic diversity showed unexpected negative relationship with OJS.Originality/value Given the importance of understanding JS in labor-intensive industries, and paucity of research on the topic in Ethiopia, the study provides practical insights and groundwork that can guide practitioners to understand the drivers of JS in the region. Moreover, the study adds to the empirical literature that may yield important insights on organizational behavior for under-researched emerging economies, particularly for the eastern part of Africa, where nations share similar cross-cultural norms, economic and ethnic settings. [ABSTRACT FROM AUTHOR]

There is a common perception that Ethiopia is unusual in Africa in having a relatively uniform system of state land ownership. While highly influential, state ownership is not the only body of law with implications for land administration. This article argues that the institutionalization of ethnic federalism and the persistence of neo-customary tenure result in considerable ambiguity, particularly regarding the land rights of non-indigenous minorities. The analysis highlights tensions between these three sets of land tenure institutions—state ownership, ethnic federalism and neo-customary tenure—and their implications for minority land rights. A case study of land-based conflict in Oromiya region, based on fieldwork conducted in 2009 and 2010, demonstrates the continuing relevance of these land tenure institutions and associated ideas in land debates in Ethiopia, both in terms of the use of these ideas by protagonists as means of justifying land claims, and the ambiguous state response to the conflict, which goes well beyond the provisions of the land policy. As such, while there are certainly particular characteristics of the Ethiopian case, many of the key issues regarding ethnicity and land mirror debates taking place across the continent. [ABSTRACT FROM AUTHOR]

The category ‘middle class’ was used increasingly throughout the 2010s to identify social changes occurring in African countries, including Ethiopia. However, the category itself is hard to define and has been employed to describe very diverse socio-economic dynamics. This article offers an original way of considering the ‘middle class’, focusing on what the category is expected to produce for the different actors utilizing it. We argue that the debate on ‘middle class’ social composition cannot be undertaken before deconstructing and discussing why, how and by whom the category is being used. As the notion of the middle class is subjectively and locally produced in every country, we focus on the perceptions and narrative of the category by external and internal actors and the specific political implications of such views in the Ethiopian context. By analyzing the international discourses and the Ethiopian leadership’s views, we demonstrate the fluidity of a notion deeply rooted in and interpreted based on specific institutional, ideological, and social backgrounds, and at the same time serving specific economic and political ambitions. In this regard, the Ethiopian case reveals how divergent actors have been promoting that same category with great differences in their interpretation and expectations. We thus argue that the category ‘middle class’ remains analytically useful only if not considered as an objective socio-economic category, but rather as a politically constructed category. [ABSTRACT FROM AUTHOR]

This study analyzed the factors affecting smallholder farmers decisions to adopt livelihood strategy choices and its impact on rural households' livelihood outcomes in the Meta district, Eastern Ethiopia during the 2016/17 production year. The data used for the study were obtained from 180 randomly selected sample households. Multinomial logit model was employed to analyze the determinants of farmers' decisions to adopt livelihood strategies. The average effect of adoption on households' farm incomes was estimated by using propensity score matching method. The result of the multinomial logistic regression showed that age of the household head, distance from irrigation sources, social status, soil fertility status, education level, distance from Developmental Agents (DAs) office, economical active members, soil fertility status, soil conservation and transportation services were significantly affects households' adoption decision. Impact evaluation results showed that about 12.9, 45.2 and 41.9 percents of the sample households who using crop farming only, crop + livestock farming, and crop + livestock + off/non-farming strategies were non poor, respectively. Similarly, about 9.4, 30 and 19.4 percents of the sample households who using crop farming only, crop + livestock farming and crop + livestock + off/non-farming strategies were food secured, in that order. The estimation results provides a supportive evidence of statistically significant effect of livelihood strategies on rural households livelihood outcomes measured by food security status and poverty status. Therefore, policy makers should give due emphasis to the aforementioned variables to reduce households level food insecurity status and improve the livelihood of rural households. [ABSTRACT FROM AUTHOR]

Ethiopia provides one of the clearest examples of a 'developmental state' in Africa. Drawing on a deeply entrenched experience of statehood, the present Ethiopian regime has embarked on an ambitious programme, depending on the central capture of 'rents', to fund a massive expansion especially in communications, education, and hydroelectricity. High initial rates of growth have been achieved. However, the political setting is tightly constrained and the state has not allowed the private sector freedom of action to generate the required levels of production. Ultimate success will depend on the capacity to transform a state that has itself been central to the development process. [ABSTRACT FROM AUTHOR]

The article investigates the risk preferences of Ethiopia's rural population. Topics discussed include the reasons rural populations are considered more risk averse than urban populations, the gross domestic product (GDP) of the country in 2013 and a comparison of Ethiopian rural population's risk tolerance with typical student populations from Western countries.

This article identifies factors which contribute to households' willingness to pay for improving and protecting a multiple-use water scheme in Ethiopia. It does so through descriptive statistics, a probit model and contingent valuation methods complemented with qualitative data. Estimates suggest farmers' willingness to pay is based on gender, the prevalence of waterborne disease, the time to collect water, contact with extension services, access to credit, level of income and location. Respondents would pay 3.43 per cent of average income to participate. Consideration of how gendered norms influence women's access to extension, credit and local markets could extend the benefits of such schemes. [ABSTRACT FROM AUTHOR]

The practice of extensive herding through camp relocation allows pastoralists to track greener pastures while redistributing grazing pressure throughout the landscape, but the lack of intensive and continuous monitoring data on large-scale livestock movement results in limited understanding of this important practice. This article takes an integrated approach to understanding pastoral mobility and modeling extensive herding. The analysis is based on Global Positioning System (GPS) tracking of fifty-eight cows, as well as surveys, participatory mapping, and interviews with pastoralists in five study sites in southern Ethiopia. Linear mixed-effect models are used to examine the community- and household-level determinants of extensive herding. The findings suggest that resource conditions, resource users, and socioeconomic context play significant roles in affecting the practice of extensive herding. Compared to household herd size, community-level factors largely determine the feasibility of extensive herding. Future pastoral policymaking needs to facilitate the creation and maintenance of favorable herding context to encourage large-scale mobility as an adaptation strategy in the arid and semiarid environment. [ABSTRACT FROM AUTHOR]

We investigate the implication of farmers’ locus of control on their technology adoption decisions. Our empirical analysis is based on two longitudinal surveys and hypothetical choice exercises conducted on Ethiopian farmers. We find that locus of control significantly predicts farmers’ technology adoption decisions, including use of chemical fertilizers, improved seeds, and irrigation. We show that individuals with an internal locus of control have higher propensity of adopting agricultural technologies. We observe these empirical regularities in both datasets, and for both revealed measures of farmers’ technology adoption decisions as well as farmers’ hypothetical demand for agricultural technology. The results hold even in a more conservative fixed effects estimation approach, assuming locus of control as time-variant and dynamic behavioral trait. These findings provide behavioral and psychological explanations for the low rates of adoption of profitable agricultural technologies in Sub-Saharan Africa. Our results highlight that improving farmers’ non-cognitive skills (locus of control) may facilitate technology adoption and agricultural transformation. More generally, the results suggest that anti-poverty policies that only focus on relaxing short-term external constraints, including physical access to markets and technologies, may not sufficiently alleviate agricultural underinvestment. [ABSTRACT FROM AUTHOR]

This study examines the relative technical efficiency of 12 hospitals in Eastern Ethiopia. Using six-year-round panel data for the period between 2007/08 and 2012/13, this study examines the technical efficiency, total factor productivity, and determinants of the technical inefficiency of hospitals. Data envelopment analysis (DEA) and DEA- based Malmquist productivity index used to estimate relative technical efficiency, scale efficiency, and total factor productivity index of hospitals. Tobit model used to examine the determinants of the technical inefficiency of hospitals. The DEA Variable Returns to Scale (VRS) estimate indicated that 6 (50%), 5 (42%), 3 (25%), 3 (25%), 4 (33%), and 3 (25%) of the hospitals were technically inefficient while 9 (75%), 9 (75%), 7 (58%), 7 (58%), 7 (58%) and 8 (67%) of hospitals were scale inefficient between 2007/08 and 2012/13, respectively. On average, Malmquist Total Factor Productivity (MTFP) of the hospitals decreased by 3.6% over the panel period. The Tobit model shows that teaching hospital is less efficiency than other hospitals. The Tobit regression model further shows that medical doctor to total staff ratio, the proportion of outpatient visit to inpatient days, and the proportion of inpatients treated per medical doctor were negatively related with technical inefficiency of hospitals. Hence, policy interventions that help utilize excess capacity of hospitals, increase doctor to other staff ratio, and standardize number of inpatients treated per doctor would contribute to the improvement of the technical efficiency of hospitals. [ABSTRACT FROM AUTHOR]

This study explores the reflection of recorded economic growth on human development in Ethiopia. The principal puzzle the study unravels is if there is a positive co-variance between per capita income levels and achievements made in life expectancy, educational attainments and reduction in the levels of income poverty in the past decade. To put Ethiopia in a comparative perspective we have attempted to contrast Ethiopia with some of the Eastern African countries. The results of this exercise show that economic growth made in Ethiopia has contributed to human development. Income, life expectancy and school attainments move together; however, life expectancy progresses faster than educational attainments. [ABSTRACT FROM AUTHOR]

The hub of this study is investigating the forces behind the foreign direct investment inflow to Ethiopian economy in the long run as well as in the short run. To this end, the researcher has reviewed theoretical explanations relating to the determinants of foreign direct investment. The investigator has also reviewed relevant empirical literature pertaining to the determinants of foreign direct investment in the context of developing and developed countries and Ethiopia in particular. The review of the literature and the context analysis has culminated with a fundamental question what are the major determinants of foreign direct investment inflows in Ethiopia in both the long run and the short run? Methodologically, the researcher adopted empirical and quantitative analysis. To this end, a time series model was developed based on the critical synthesis of theoretical and empirical literature on foreign direct investment. The model is estimated using error correction model(ECM) formulation for the period 1991 to 2013 using annual data from World Bank world development indicators report after co-integrating relationship is proved with the Dickey Fuller residual based unit root tests. The tests for stationarity before the model developed was estimated proved that the variables in the model suffer from mixed order of co-integration at levels and hence the variables were differenced so as to alleviate that problem of mixed order cointegration. The result revealed that the determinants of foreign direct investment inflow are found to be consistent in the short and long run models. The most important forces behind foreign direct investment are found to be the GDP per capital, GDP growth rate, real interest rates, inflation rate, gross capital formation, adult literacy rate, Labor force growth rate, telephone lines per 1000 people and official exchange rate. In both models, Export of goods and services, and energy consumption per capita in transport sector are found to have insignificant impact on foreign direct investment inflow to Ethiopia. The policy implication of the result is that policy makers need to put in place policies congenial to pursue economic growth, macro-economic stability, human capital formation and fixed capital formation for attraction of foreign direct investment. [ABSTRACT FROM AUTHOR]

China's trade with Ethiopia currently at 1.3 billion USD annually is expected to rise to US$3 billion by 2015. This not only informs the level of bilateral trade ties that Ethiopia has had with China as compared to any other country in the region but also signifies the highest and the closest level of bilateral relations that Ethiopia has built upwith China over the past decade since the new government under Ethiopian People's Revolutionary Democratic Front (EPRDF) took over power in 1991. There have been extensive debates on China's role in Africa - whether it could be viewed as a constructive partner or otherwise. This essay puts forward the argument that while trade ties as one important channel of bilateral relations that China has embarked with the outside world and particularly with Africa is uneven and lop-sided. This is true of the Ethiopian context as well particularly when we look at the economic capacity, balance of trade and at the two countries relations with international trade regimes. While China is a full member of WTO for over a decade Ethiopia on the other hand has been aspiring to become a member for some time now and hence one of the important aspect of Ethio-China trade relations is the heavy reliance on bilateral/international trade regimes. Therefore, this research is aimed at unraveling the dynamics in Sino-Ethiopia trade relations with emphasis on the economic capacity of the two countries, balance of trade and explore whether Ethiopia's attempts to join WTO would lead to a more predictable trade relations between the two countries. In this attempt the research would largely rely on the analysis of relevant archival resources and literatures directly relating to the themes in this paper. [ABSTRACT FROM AUTHOR]

In this article we address the issue of language and globalization by focusing on the use of international brand names and English in the linguistic landscape of Addis Ababa, Ethiopia. Ethiopia has been at the margins of the world economy; however, in the past decade Addis Ababa has witnessed a promising emerging economy, with many new international corporations investing in the country. The linguistic landscape is increasingly marked by the use of English, not only in general signage but also through international brand names and advertising. Moreover, a curious phenomenon has evolved in which international brand names and logos are used locally and are imparted an Ethiopian identity. The article highlights a particular case of cloning an international brand that touches on the discourse of national identity and development. The use of both English and international brand names in the linguistic landscape is perceived by locals as prestigious, indexing their aspirations towards modernity in this capital of the global South, with the notion of mobility covering not only geographical movement but also movement on a social scale. In conclusion, we relate our findings to a theoretical approach that aims to capture language in late modernity. [ABSTRACT FROM AUTHOR]

Merchandise export is one of the means through which one country could attain foreign exchange. Export performance improvement has often been claimed to be a key element of development strategies for developing countries including Ethiopia. This study aimed to examine diversifications, compositions, growth, competitiveness, balance of trade and export performance with regard to GDP of merchandise export of the last 2 years (2010 and 2011) of current government. The study deals with trade policies towards export performance that has been pursued by the last past two different regimes. In addition, it also give emphasis on fluctuations of exchange rate of Ethiopian currency birr to US dollar and its implications to export performance over the last two years 2010 and 2011 has been mainly considered. Furthermore, data presentations, analysis and interpretations consider export performance of major items, balance of trades as well as export ratio to GDP and import values. Eventually, the research could suggest some ideas for policy makers so as to design balanced approach and policies. The policy implications have been drawn based on the data presentations analysis and interpretations, accordingly conclusions and findings of the study have been made. Hence, the researcher has drawn policy recommendations that have been made based on the findings of the study. [ABSTRACT FROM AUTHOR]

Since 1991, and more visibly in the last decade, Ethiopia has witnessed enormous economic growth accompanied by the development of infrastructure and growing demographic rates, as well as poverty, unemployment, inflation, and corruption. Twenty years of rule by Meles Zenawi, who died in summer 2012, have also brought several internal tensions and external challenges with which Ethiopia has to and will have to deal. Despite acclaimed double-digit economic growth in the last decade, millions of Ethiopians still live at a level of poverty more or less similar to that of the previous regime. Ethnic and religious tensions together with socioeconomic frustration are already contributing to a tense social atmosphere in Ethiopia. Relations with Eritrea, Ethiopian involvement in Somalia, and disputes over Nile waters that have impacted relations with Egypt are also in one way or another linked with these internal tensions. This article deals with all these aspects of the contemporary development of Ethiopia as a part of the legacy of the late prime minister Meles Zenawi. [ABSTRACT FROM AUTHOR]

Although there is much empirical evidence of the importance of agricultureled economic growth, there is a renewed emphasis in development circles on the industrial sector as the main driver of growth, even for the low-income countries of sub-Saharan Africa. This article applies a simplified model of agricultural growth linkages to illustrate the importance of agricultural growth for increasing employment and accelerating poverty reduction in Ethiopia. Achieving rapid agricultural growth, however, will require the engagement of small commercial farmers, large enough to adopt new technologies and produce significant marketed surpluses, but small and numerous enough to have spending patterns that drive a large, vibrant rural non-farm sector. [ABSTRACT FROM AUTHOR]

An analysis of panel data on individuals in a random selection of urban households in Ethiopia reveals large, sustained, and unexplained earnings gaps between public and private and formal and informal sectors over 1994–2004. At the same time, we find, first, that the rate of mobility increased in the two pairs of sectors. Sample transitions rates grew across survey waves, while state dependence in sector choice decreased. Second, the correlation between sector choice and earnings gaps increased over the same period. In particular, the correlation between comparative earnings and selection into the informal sector was high throughout the survey decade and increased in magnitude over the second half of the period. These results suggest that Ethiopia's urban labor markets might be integrating. [ABSTRACT FROM AUTHOR]

The article offers information related to the condition of the Horn of Africa. It mentions that Sudan, which is an integral part of the Horn of Africa, has played critical role in the lives of their neighboring countries, in which Sudan has allowed Eritreans and Tigrayan to operate in the country. It discusses the changes on the politics and economics in the Horn, particularly on the raid economic growth that was experienced by Ethiopia since 2004. It explores the significant role of the Horn on international politics particularly on its relation in the U.S. after the Cold War.

This paper investigates the relationship between government expenditure and economic growth in Ethiopia to test Wagner's Law which postulates that as real income increases there is a tendency for the share of public expenditure to increase relative to national income. Using the bounds test approach to cointegration, the paper finds robust evidence of a long-run relationship between government expenditure and GDP. Using four long-run estimators, we obtained elasticities ranging from 1.73 to 1.79, implying that a 1% increase in income leads to a 1.73-1.79% increase in government expenditure. Applying a modified version of the Granger causality test, we also found a unidirectional causality running only from GDP to government expenditure thus supporting the Wagnerian hypothesis of an expanding public sector. Since there was no causality running from government expenditure to income, the evidence suggests that the Keynesian view that government expenditure can be an effective policy instrument for promoting economic growth in Ethiopia was not supported. Therefore, there is a need for making fiscal policy as a stabilizer to enhance economic growth. [ABSTRACT FROM AUTHOR]

Ethiopia's Investment Proclamation states that accelerated economic development and improved living standards of the Ethiopian people are the objectives of investment promotion. Moreover, the 1995 Ethiopian Constitution guarantees "the right to improved living standards and to sustainable development." This paper deals with the ambiguities and inconsistencies in the path towards achieving one of the expectations enshrined in these laws, i.e., the aspiration to bring about development. It discusses the various notions of development that have influenced Ethiopia's policies and further examines the challenges thereof in clarity, consistency and effectiveness. [ABSTRACT FROM AUTHOR]

As part of a revisionist discourse, it has been contended that the core of Eritrea's political, cultural and economic identity is based on colonial premises and these three premises are false. As a result, Eritrea is in a dilemma. It is further contended that Eritrea's future lies in seeking unity with Ethiopia. This article is a rejoinder to the contention. It shows the truthfulness of the premises and argues that, save for the prevalent dictatorship, it was and it still is a correct decision for Eritreans to opt for an independent Eritrea. Avoiding the old talk, this rejoinder recommends that as sovereign states, Eritrea and Ethiopia should govern their relations by principles of civilised nations. [Rejeter: une mauvaise approche de l'union érythréenne/éthiopienne]. Dans le cadre d'un discours révisionniste, il a été soutenu que le noyau de l'identité politique, culturelle et économique de l'Érythrée est basé sur des prémisses coloniales et que ces trois prémisses sont fausses. En conséquence, l'Erythrée se trouve dans un dilemme. Il est aussi soutenu que l'avenir de l'Erythrée se situe dans la poursuite de l'unité avec l'Éthiopie. Cet article est une réponse à cet argument. Il montre la véracité des prémisses et affirme que, sauf pour la dictature courante, c'était et c'est encore une bonne décision pour les Erythréens d'avoir opté pour une Érythrée indépendante. Eviter les discours anciens, cette réponse recommande que l'Érythrée et l'Éthiopie, comme états souverains, devraient régir leurs relations par des principes des nations civilisées. Mots-clés: Érythrée; Éthiopie; sécession; indépendance; ghedli; économie politique [ABSTRACT FROM AUTHOR]

Ethiopia remains underdeveloped due to limitations in natural, human, social and built capital. A 2006 scientific atelier conducted in the city of Awassa, Ethiopia investigated investments in human and natural capital as a sustainable development strategy. Local stakeholders identified firewood shortages, degradation of croplands, rising lake levels encroaching on croplands and poor water quality as major impediments to development. They further identified ecological degradation as a key component of these problems, and they acknowledged multiple vicious cycles compounding the environmental and economic threats to the Awassa community. Proposed solutions included investment in natural capital in the form of reforestation activities, investment in human capital in the form of promoting more efficient wood stoves along with increasing public awareness of environmental threats, and investments in social capital in the form of inter-institutional coordination to address environmental problems. All recommended investments rely primarily on national resources, in distinct contrast to the extensive imports required for most built capital investments. Unfortunately, Awassa lacks the surplus necessary for major capital investments of any kind. The atelier therefore helped local participants identify potential funders and write grant proposals for various projects, though none have been funded so far. Reversing the ecological degradation on the scale necessary for sustained economic development in Ethiopia however will require a steady flow of substantial investments, and cannot rely solely on the short term generosity of funders. International payments for carbon sequestration and other ecosystem services could help provide the necessary resources. [Copyright &y& Elsevier]

The aim of this paper is to examine the impact of defence spending and income on the evolution of Ethiopia's external debt over the period 1970-2005. Using the bounds test approach to cointegration and Granger causality tests, we find a long run and a causal relationship between external debt, defence spending and income. Defence spending had a positive and a significant impact on the stock of external debt while income had a negative and a statistically significant impact on external debt. Our findings suggest that an increase in defence spending contributes to the accumulation of Ethiopia's external debt, while an increase in economic growth helps Ethiopia to reduce its external debt. [ABSTRACT FROM AUTHOR]