Poverty in Ethiopia

In 2000, an agreement was reached by 189 nations across the globe to improve lives and address multiple deprivations faced by the global community. This promise evolved in the United Nations Millennium Development Goals (United Nations Development Program 2014). The broad aims are broken into 8 goals to be reached by 2015, Goal one is to eradicate extreme poverty and hunger.

The underlying causes of poverty are not naturally occurring but are about skewed power bases, inefficient management of resources and lack of investment. Essentially where poverty exists there is an inequality in the distribution of resources and infrastructure.

Ethiopia in one of the world’s poorest nations with the second highest population in Africa (The World Bank Group 2014, World Health Organisation 2014). It is also one of the poorest countries in the world and the per capita income is lower than that of its neighbours. Ethiopia has experienced a doubling of per capita estimates in the last decade and when compared to its neighbours, Ethiopia seems to be doing well with a significant reduction in poverty in rural and urban areas since 1995. There has been a reduction in food poverty (United Nations Development Program 2012).

However, much of the growth is attributed to the growth of a wealthy middle class rather than any real increase in stand of living for the whole population and wealth gaps are widening as many groups remain unable to take advantage of improved economy (The World Bank Group 2014, Briggs 2012, p.39). It is estimated that 44% of Ethiopians live below the poverty line and 35 million people live in abject poverty.

About 50% of Ethiopia’s GDP comes from subsistence farming and agriculture accounts for 60% export earnings. The poor condition of many of the roads in Ethiopia means that there is inadequate distribution of food, agricultural equipment and other resources. This leads to low agricultural productivity and structural food insecurity as there are associated problems with storage of crops as well as aforementioned distribution and sales. It is noted (Poverties Org 2012)

that there is a risk future investment in infrastructure will focus on the areas in and around towns and cities neglecting rural areas thus further marginalising already poorly resourced communities. The Chinese are currently building reliable road networks in the country and it is hoped that Ethiopia will be able to maximize their rich mineral, gold and iron reserves as well as improving agricultural production.

Some of the conditions contributing to Ethiopia’s poverty are climatic. The periodic rainfall failures and localized famines, poor irrigation and access to potable water further complicate efficient agriculture. The Tigray region is prone to rainfall failures and has less reliable rainfall than other areas of the country. Political factors like the rule of the Derg, the war between Eritrea and Ethiopia have caused instability and adversely affected the economy by diverting possible funds into the military. It was a combination of rain failure and the tactics of Mengistu government that caused the 1985 famine.

Measuring poverty in terms of income, as the World Bank does, gives statistics about absolute poverty, living on less than $2 a day and relative poverty comparing one household to another in specific countries. These don’t give context about the reality for people. $2 in the US has far less value and buying power than $2 in a developing country. The Multidimensional Poverty Index reflects that people living with poverty are also affected by education, health and living standard deprivations. Poverty is assessed on an individual level via the range of deprivation directly. It is perhaps a more accurate reflection of the multidimensional aspect of poverty and can help to inform policy improvements and target interventions. The fact that Ethiopia is second only to Niger has led to some doubting official government growth figures (The African Economist 2013).

Being western European it is easy to think of poverty in terms of material goods. This, however, is a Western perspective. There is not the same emphasis on ‘things’ and people don’t lack what they don’t need. Poverty in Mekelle is evidenced by families living hand to mouth. If you don’t work today, you don’t eat tomorrow. Beggars are commonplace but I mainly saw kids asking for “monies” and chancing their arms. Ethiopian’s give money to genuine beggars and it’s difficult to know what the right response is. Generally, it seems best not give money as I don’t want to reinforce a culture of dependency. There is also the issue that some children choose to beg rather than attend school and this can be a form of child exploitation (Briggs 2012, p.108). It also contributes to relentless hassling of foreigners and tourists which is unpleasant and sours experiences for all.

Some improvements in poverty can be made through investment in irrigation and water harvesting projects to maximise the rainfall. Other strategies include reducing incidences of HIV/AIDS through education and prevention, reducing population and providing education and skills for women as much research shows that if you want to improve outcomes, you need to raise maternal education.

The World Trade Organistaions and other economist argue that “international trade liberalization needs to be complemented with redistribution mechanisms” (Poverties Org 2012). The IMF supported a program to reduce poverty by restoring macroeconomic stability through low inflation, stable currency markets and sustainable GDP growth. Ethiopia is very sensitive to world food pricing and climate change, especially droughts. The global economic crisis is predicted to bring a decline for export thus damage to economic growth (Poverties Org 2012). It seems that despite great improvements, Ethiopia is unlikely to achieve UN millennium development goals.

Thank you for supporting my volunteering in Ethiopia. If you would like to do more to make a lasting difference, donate to an organization that supports and facilitates change.

www.ethiopiaeducationaid.org

www.Plan-UK.org

www.vlm.ie

References

Briggs, P. 2012. Ethiopia. Bucks, England: Bradt Travel Guides Ltd

Poverties Org 2012, Poverty in Ethiopia: Roads and Food chains. [Online]. Available from: http://www.poverties.org/poverty-in-ethiopia.html 2012.

The African Economist. 2013, 10 Poorest Countries in the World (All in Africa). The African Economist. [Online]. 24 July. Available from: http://theafricaneconomist.com/10-poorest-countries-in-the-world-all-in-africa/#.VGS3lb9Qw7A

The World Bank Group 2014. Ethiopia Overview [Online]. Available from:http://www.worldbank.org/en/country/ethiopia/overview

United Nations Development Program 2012, Ethiopia [Online]. Available from: http://www.et.undp.org/content/ethiopia/en/home/mdgoverview/overview/mdg1/

United Nations Development Program 2014, Ethiopia [Online]. Available from http://www.undp.org/content/undp/en/home/mdgoverview.html

World Health Organisation 2014. Ethiopia[Online]. Available from: http://www.who.int/hac/donorinfo/callsformobilisation/eth/en/

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