Blog #4: Poverty in Ethiopia

 Blog #4: Poverty in Ethiopia

By Halie Schuster

            The World Bank reports that “poverty rates are declining, and extreme poverty will soon be eradicated” (Hickel, 2014). The United Nations Millennium Campaign and governments of wealthy countries agree that western aid and the influence of free market capitalism have essentially resolved impoverishment and poverty in Sub-Saharan Africa. But this is simply just not true. Dr Jason Hickel writes in an article for Aljazeera that “poverty is not disappearing as quickly as they say – in fact, according to some measures, poverty has been getting significantly worse” (Hickel, 2014).

Ethiopia’s current circumstances revolving poverty mirror this same phenomenon. The World Bank reported in 2020 that “poverty decreased from 30 percent of the population in 2011 to 24 percent in 2016, the year of the most recent survey on household living standards” (World Bank, 2020). They reported that the national poverty rate declined significantly in the past two decades, despite challenging climatic conditions. Solid growth in employment resulted in an increase of urban poverty reduction while improved infrastructure, connectivity, and agricultural growth drove rural poverty reduction. Notably, the flagship Productive Safety Net Program (PSNP) was another key driver of rural poverty reduction. And while the report does touch on the fact that “progress has been uneven between urban and rural areas”, it fails to address the disparities and economic inequality that exists in Ethiopia. 

Despite the country’s rapidly growing economy, poverty is still a major issue for many Ethiopians. A combination of natural disasters and government interference are major factors driving poverty rates, but a significant cause of this issue revolves around agriculture. Brandi Gomez explains in an article for The Borgen Project that “about 80 percent of Ethiopia’s people work in agriculture and because it is the primary source for Ethiopia’s economy, most of its population takes up much of its rural areas than its urban” (Gomez, 2017). Rural farmers account for the largest group of citizens living in poverty in Ethiopia. They lack basic infrastructure, health care, and educational facilities. And because so many of these farmers live in poverty, they are unable to afford the technology and infrastructure to improve their crop yield. To make matters worse, Ethiopia is frequently plagued by natural disasters. Droughts, overgrazing and deforestation make it even more difficult to farm. “Natural disasters have become one of the main causes of poverty in Ethiopia because so many of the country’s inhabitants rely on the weather for their income” Gomez argues (Gomez, 2017). 

Now, Ethiopians are hurting from the COVID-19 pandemic. Elias Meseret and Cara Anna write in their article for AP News that “the country, along with Congo, Kenya, Nigeria, and South Africa, is expected to see half of sub-Saharan Africa’s new extreme poor” (Anna & Mesert, 2020). In fact, Ethiopian prime minister took the global lead and appealed to rich countries, begging them to cancel the debt of the poorer ones. As a result of the pandemic, Ethiopia saw a 61 percent decrease in employment and many of these job losses were closely tied to sectors that had once been contributing to the country’s growth – construction, hospitality, restaurants, and tourism. 

As Philip Alston explains in his article for Center for Human Rights and Global Justice, “rather than providing a roadmap for States to tackle the critical problems of our time, the energy surrounding the SDG process has gone into generating colorful posters and bland reports that describe the glass as one-fifth full rather than four-fifths empty. COVID-19 and the accompanying economic debacle should provide an impetus to revisit the framework of the 2030 Agenda” (Alston, 2020). What the world is doing is not enough, especially considering the current circumstances. Ethiopia has a long way to go in the process of eradicating extreme poverty, and the World Bank and UN need to adjust their policy and develop a more immediate and effective plan. 

 

Works Cited

Alston, Phillip (2020). Philip Alston Condemns Failed Global Poverty Eradication Efforts. CHR & GJ. Retrieved from https://chrgj.org/2020/07/05/philip-alston-condemns-failed-global-poverty-eradication-efforts/

 

Anna, Clara & Elisa Meseret (2020). Extreme Poverty Rises and a Generation Sees Future Slip Away. AP News. Retrieved from https://apnews.com/article/lifestyle-health-ap-top-news-addis-ababa-general-news-727c2dea29daed6e226b964f8caadfcf

 

Gomez, Brandi (2017). The Main Causes of Poverty in Ethiopia. The Borgen Project. Retrieved from https://borgenproject.org/main-causes-of-poverty-in-ethiopia/

 

Hickel, Jason (2014). Exposing the Great ‘Poverty Reduction’ Lie. Aljazeera. Retrieved from https://www.aljazeera.com/opinions/2014/8/21/exposing-the-great-poverty-reduction-lie/

 

The World Bank (2020). Ethiopia Poverty Assessment: Poverty Rate Declines, Despite Challenges. World Bank. Retrieved from https://www.worldbank.org/en/country/ethiopia/publication/ethiopia-poverty-assessment-poverty-rate-declines-despite-challenges