1. Video Lesson

2. Competencies

By the end of this lesson, you will be able to:

• evaluate the essence of the major Socio-Economic developments in Ethiopia
• judge Ethiopia’s economic system during the government of EPRDF;
• appreciate the endeavors made by the EPRDF government for the prosperity of Ethiopia

3. Brainstorming Questions

• . Discuss the major tasks performed by the EPRDF government in expanding infrastructure.
• . Ethiopia claims that the purpose of her hydroelectric power development is based on the “no harm principle”. Elaborate it.

4. Key Terminology and Concepts

5. Lesson Presentation

A. From Command to free market Economy

Under the Marxist Derg regime, Ethiopia had a command economy with extensive government intervention. The private sector was seen as an adversary to national development, and the government even controlled small retail activities. The EPRDF government shifted away from this socialist command economy to a more market-oriented approach. It removed limits on private investment and encouraged private sector growth. Despite these reforms, the EPRDF continued to play an active role in the economy, not fully withdrawing from economic involvement.

B. The Land Issue and Agriculture

Under both the Derg and the EPRDF regimes, land remained state property, with the government maintaining control over land distribution and ownership. During the Derg period, land was redistributed to landless peasants, making them landowners but prohibiting land sales, thus creating a dependency on the state. The EPRDF continued this policy, retaining state ownership of land. Under the EPRDF, agriculture saw significant advancements. The government promoted agricultural development through the use of fertilizers, improved seeds, and extensive training for Agricultural Extension Workers. These measures increased agricultural yields, and the government supported model farmers with moral and material incentives.

C. Infrastructural Developments

After coming to power in 1991, the EPRDF prioritized infrastructure development, focusing heavily on road infrastructure and education from the mid-1990s. The 1995 economic development strategy, “Agricultural Development-Led Industrialization” (ADLI), emphasized the importance of improving infrastructure in areas such as electricity, roads, railways, telecommunications, and water supply to spur economic growth and engage the private sector. Key projects included expanding and rehabilitating rural roads and implementing the Universal Electrification Access Program (UEAP) for rural electrification. The government also aimed to expand telecommunications infrastructure, which primarily created employment in urban areas.

D. The Hydro-Politics of the Nile

In 1929 and 1959, Great Britain, Egypt, and Sudan signed treaties regarding the Nile River’s use, excluding Ethiopia, which contributes over 85% of the Blue Nile’s flow. The 1929 treaty was concluded without Sudan, and Ethiopia was not involved or allocated any share of the water. The 1959 treaty allotted Egypt 55.5 billion cubic meters and Sudan 18.5 billion cubic meters annually, effectively monopolizing the Nile’s waters for these two countries. Ethiopia did not recognize this colonial agreement.

Despite attempts to utilize the Nile’s waters since Emperor Haile Selassie’s reign, Ethiopia faced obstacles from international donors and organizations. In 2011, Prime Minister Meles Zenawi initiated the construction of the Great Ethiopian Renaissance Dam, which aims to generate 6000 MW of electricity, funded largely by Ethiopian citizens. Egypt and Sudan, supported by the USA, have opposed the dam’s construction, with Egypt even threatening military action.