Dynamic Development: Ethiopia 2

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  • Dynamic Development: Ethiopia (Cont.)
    • The influence Ethiopia's international trade has on its development
      • Entire reliance on Primary Sector Exports
        • 28% coffee
        • 23% livestock - 170 mil animals
        • 15% vegetables
        • 15% Oilseeds
        • Makes it very hard to develop out of primary level economy - much of the economy is vulnerable to climate change
    • Using International Aid helping Development
      • Advantages
        • Helps create sustainable self help
          • E.g: Abyssinian Flight Services
        • Can be used for Top Down and Bottom Up Schemes
        • Debt Relief
          • 1995: Economy in debt by $10 bill ->2012: Economy in debt by $7billion
      • Disadvantages
        • Still depends on $550 mill a year of aid
    • TNCs in Ethiopia
      • Positives
        • Investment in hotel infrastructure increases tourism
        • Multiplier effect leads to greater development
        • Provides jobs and economic growth
    • Top Down and Bottom Up Schemes
      • BU: Goat Aid
        • Advantages
          • Nutrition improves
          • Money can be invested in education, food, clothing
          • Social status increases
            • SUSTAINABLE INCREASE IN WEALTH
        • Disadvantages
          • Slow improvements
      • TD: Wind Turbine Facility In Tigray
        • Disadvantages
          • Very Expensive - often requires foreign investment
          • 100s of farmers were evicted from the build site
        • Advantages
          • Helps a very large number of people
          • Sustainable Energy Production

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