A government’s main purpose is to protect its citizens and provide essential services that allow them to live and thrive. Ethiopia is often cited as a country with a history as an organized state spanning over 3,000 years, though some historians dispute this, arguing the state is only a few hundred years old. Regardless of the exact timeline, it’s clear that the people of Ethiopia have experienced leadership for a significant period. Consequently, their leaders have had time to develop the skills, knowledge, and behaviors necessary to govern and prioritize key aspects of leadership. As the Sudanese saying goes, “A large chair does not make a king”. It is true that a title or position of power doesn’t automatically confer wisdom or the ability to lead; rather true leadership is earned through character and action, not just a seat of authority.
Throughout history, some nations have successfully lifted their populations out of poverty as one of the key aspects of effective leadership, while others have done the opposite One of the most notable examples of poverty reduction is China, which, according to a 2022 World Bank report, has lifted more than 800 million people out of extreme poverty (living on less than $2 a day) over the past few decades. This remarkable achievement is largely attributed to a sustained period of economic growth and targeted government policies. Ethiopia has also made strides in poverty reduction, with its poverty rate decreasing from 44% in 2000 to 33% in 2014. However, this progress has not been consistent. Some of these gains have been reversed, with a key factor being the nation’s leadership. A reluctance to listen to citizens and consider diverse perspectives has been cited as a reason for this reversal, making the country more vulnerable to poverty, disease, and conflict. This disregard for different viewpoints has led to preventable loss of life and instability. Likewise, the life expectancy of people improved to 64 from 52 in the same period.
Currently, indicators of poverty assessment are feared to show a reversal on the gains of the previous decades for issues related to the impact of COVID-19, the war in Amhara, Oromia, Tigray etc. While the incumbent government of Ethiopia finds no clear solutions to critical issues of peace and stability in the country, the government seems to find itself off track and talking about mini city level renovation and renewal project as a major macroeconomic direction as the government calls ‘corridor development’ as a significant development strategy to uplift population free from poverty. This agenda has not been what the government has been calling as a home-grown economic development.
Recent economic development theories emphasize knowledge and technology as key drivers of growth in addition to land, labor and capital. While it’s difficult to quantify the role of knowledge in Ethiopia’s economic development, the country’s abundant natural resources are clearly critical to its prosperity. Policy makers in Ethiopia are heard talking about land, labor as major abundance in the nation if not capital. The then EPRDF which is the parent of the present prosperity party was bold, claiming the land belongs to the state and citizens can lease from the government for housing or any other services including farming. While statistics indicate that 34-36% of Ethiopia’s land is suitable for agriculture, the sector’s output is hampered by a prevalence of subsistence farming, which diminishes the potential collective return on this land. Compounding this challenge, rapid urbanization is leading to the conversion of fertile agricultural land into housing and other developments. This trend further pressures the country’s agricultural productivity, which is already struggling to meet demand.
Ethiopia’s vast and young population is frequently hailed as a critical resource, but its potential is being squandered. With nearly 70% of the country’s 135 million people under the age of 35, this demographic should be a powerful engine for economic growth. However, a disconnect between national policy and reality is creating a crisis.
The country’s strategies for training and employment are failing, as evidenced by a growing number of educated young people who can’t find work in their fields. This widespread unemployment is eroding the aspirations of the youth and discouraging them from investing in their education. Compounding this issue is the staggering failure of the education system itself. In the past three years, less than 5% of the one million Grade 12 students have qualified for tertiary education, pointing to a catastrophic loss of future talent. This systemic failure will undoubtedly intensify the nation’s already high youth unemployment rate of nearly 27%
Finance is a critical driver of economic development, and its recent handling in Ethiopia is a major contributor to the nation’s unemployment crisis. In a determined effort to expand its tax base, the government has aggressively implemented new taxes and regulations, with a particular focus on Addis Ababa. Policies such as new property and rental taxes, as well as stricter conditions for renting properties, are placing significant financial pressure on citizens and disincentivizing business activities.
This difficult business climate is corroborated by a recent IMF report, which concluded that Ethiopia is not a conducive country for business due to the heavy tax burden levied on its citizens. This reliance on domestic taxation is likely intensified by a sharp decline in foreign support. A recent report by Reuters highlighted that international aid to the Ethiopian economy has plummeted from 12% to a mere 4%, signaling that the government is attempting to close this substantial funding gap by placing an unnecessary and detrimental tax burden on its populace.
To make the matters worse, Ethiopia is currently characterized by ethnic profiling with consequences on investment, development and chances of prosperity. While Article 39 of the Ethiopian constitution is celebrated as a mark of freedom for ethnic groups, it has also been wrongly understood as a direction to shelter ethnic favoritism among those assuming power. Merit is then not a criterion to govern people and resources but ethnic profile continues to outshine. For an individual to invest or work in a region other than his own, it is a 50-50 chance of success or failure and assured long-term distraction
Poverty in Ethiopia is no longer declining at the rate it was a decade ago. The country’s future now appears distressing due to an ethnocentric leadership that lacks both knowledge and a positive attitude. Policies on land use, a lack of training for the youth, and widespread corruption are contributing to extreme poverty and a sense of hopelessness among citizens, who believe the situation will not improve as long as the Prosperity Party remains in power.
Editor’s Note : Views in the article do not necessarily reflect the views of borkena.com
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