ETHIOPIA'S CHRONIC UNDERPERFORMANCE.

Position:Brief Article
 
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Ethiopia has more than sufficient natural and human resources to be one of Africas most dynamic consumption hubs, but weak internal demand and a lack of industrial competitiveness will severely limit commercial activity for the foreseeable future.

On the surface, Ethiopias estimated GDP growth of 4.2 percent in 2003 and 5.9 percent in 2004 appears to be enough to improve the living standard of the average household, but that has not proven to be the case. The benefits of economic expansion are not trickling down to the average citizen. In fact, an unsavory mix of rising unemployment and deteriorating real income is eating into purchasing power.

Ethiopias purchasing power parity per capita of US$810 is among the worlds lowest and is indicative of a nation in which the great majority or households find it difficult to acquire even the basic necessities of life. About...

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