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Sustainable Development » Development Example: Ethiopia

What you'll learn this session

Study time: 30 minutes

Cambridge spec: 8.3.4

Where Ethiopia is and what level of development it has reached
The reasons for its current level of development
The strategies and techniques used to raise development
How well they have worked, and what still holds Ethiopia back

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Where is Ethiopia?

Ethiopia is a country in East Africa, in the region called the Horn of Africa. Its capital is Addis Ababa. It has no coast, so it is landlocked. It lost its sea ports when Eritrea became independent in 1993, and now sends most of its trade through the port of Djibouti.

More than 120 million people live there. It is the second most populous country in Africa.
Most people live in the countryside and farm for a living.
The World Bank classes Ethiopia as a low-income country (LIC), with income per person still very low.

Key terms:

Horn of Africa: the region of north-east Africa that includes Ethiopia, Eritrea, Djibouti and Somalia.
Growth and Transformation Plan (GTP): Ethiopia's five-year national development plans, run from 2010 to 2020.
Industrial park: a zone with factories, power and transport links built to attract manufacturing companies.
Grand Ethiopian Renaissance Dam (GERD): a huge hydroelectric dam on the Blue Nile.
Productive Safety Net Programme (PSNP): a scheme that gives food or cash to poor rural households in return for work.
Health extension worker: a trained, salaried villager, usually a woman, who gives basic healthcare in her community.

Key dates

1983-85: drought and famine kill about 1 million people.
1993: Eritrea becomes independent and Ethiopia is landlocked.
2003: the health extension programme begins.
2005: the PSNP begins.
2010-2020: the two Growth and Transformation Plans.
2018: the Addis Ababa to Djibouti railway begins commercial service.
2025: the GERD is officially opened.

Reasons for its level of development

Several causes combine. These are the ideas from Why Development Is Uneven applied to one country. For example, drought destroys crops, so families cannot save, so they cannot invest in better farming.

💧 Drought and famine

Rain is unreliable in many regions. The drought and famine of 1983-85 killed about 1 million people, and another drought in 2015-16 left about 10 million needing food aid. Crops fail, so families lose income and savings.

💣 Conflict

A long civil war ended in 1991. A border war with Eritrea followed from 1998 to 2000, and fighting in the northern region of Tigray lasted from 2020 to 2022. Wars kill people, destroy roads and clinics and scare off investors.

🌍 Landlocked position

Without its own port, Ethiopia pays Djibouti fees and depends on one long route to the sea. This makes imports and exports slower and more expensive.

☕ Farming and coffee

Around two thirds of workers are farmers, many on small plots using simple methods. Coffee is the biggest export, so prices on the world market change the country's income. Primary products earn little compared with manufactured goods.

👶 Rapid population growth

The population grew from about 40 million in the 1980s to more than 120 million. Schools, jobs, food and land are all under pressure.

📈 Fast growth, from a low start

The economy grew by about 10% a year from 2004 to 2019. But it began so low that income per person is still small.

Strategies and techniques to raise development

Remember, strategies are the action plans and techniques are the methods used. Ethiopia's government has led most of them, with aid and loans from other countries.

Strategy or technique	What it is	Aim
Growth and Transformation Plans	Two five-year plans (2010-2015, 2015-2020) that put money into roads, power, farming and factories	Raise economic development
Industrial parks	Zones such as Hawassa Industrial Park, opened in 2017 in the south for textiles and clothing	Create jobs and exports beyond farming
Grand Ethiopian Renaissance Dam	Hydroelectric dam on the Blue Nile in the Benishangul-Gumuz region, started in 2011 and opened in 2025, producing more than 5,000 megawatts	Power homes and industry, and sell electricity abroad
Productive Safety Net Programme	Started in 2005 and helps about 8 million people. Payments in food or cash for work such as building terraces and ponds; free support for people who cannot work	Reduce hunger without selling off assets
Health extension workers	More than 40,000 trained women placed in villages since 2003, giving advice on hygiene, nutrition, vaccines and childbirth	Improve quality of life
Roads and railways	New roads and the electric Addis Ababa to Djibouti railway of about 750 km (stopping at Dire Dawa), mostly built and funded with Chinese loans	Link farms, factories and the port

How well has it worked?

Use the evaluation points from Sustainable Development Strategies and Trade, Aid and Debt Relief: strengths, weaknesses, cost, who benefits and how sustainable.

✅ Strengths

The economy grew fast. Under-five deaths per 1,000 children about halved between 1990 and 2009. Health workers and the PSNP reached remote villages. Roads, power and the railway improved links and attracted jobs.

❌ Weaknesses

Many projects were paid for by loans. In 2023 Ethiopia failed to make a payment on one loan and asked lenders to restructure its debt. The GERD upset Egypt and Sudan, who rely on Nile water. Factory wages are low. Conflict has damaged progress.

Overall, Ethiopia shows that rapid growth is possible for an LIC, but a strong economy does not automatically give everyone a better quality of life. Top-down projects such as the dam benefit the country as a whole, while bottom-up ones such as health workers help poor families directly. Progress is only sustainable if there is peace, if debts are manageable and if farming copes with drought.

Common mistakes

Writing only general causes such as "poor government" without naming Ethiopia's own facts. Always name places and projects: PSNP, GERD, Hawassa, the Djibouti railway. Another mistake is to say all strategies have succeeded. Always give a strength and a weakness.

Exam-style question

(a) Identify two reasons why Ethiopia has a low level of economic development. [2 marks]

(b) Explain how the Productive Safety Net Programme helps to improve standard of living. [3 marks]

Model answer

(a) Droughts and famine destroy crops (1). It is landlocked, so trade is slow and costly (1). [Also accept conflict, reliance on farming and coffee, or rapid population growth.]

(b) Poor families get food or cash for work (1). So they can feed themselves without selling land or animals (1). The work builds terraces and ponds that improve farmland and water supply for the village (1).

(c) A top-level answer (5-6 marks) names several strategies, gives strengths and weaknesses and reaches a judgement. Ethiopia has used many strategies. The Growth and Transformation Plans helped the economy to grow by about 10% a year, and industrial parks such as Hawassa have created factory jobs. The PSNP gives food or cash for work, and health extension workers have helped to cut child deaths, so poor families benefit directly. The railway from Addis Ababa to Djibouti links the capital to the sea. However, there are weaknesses. Many projects were paid for with loans, which has caused debt problems. The GERD has caused disputes with Egypt and Sudan, and factory wages are low. Overall, the strategies have raised the standard of living for many people, but progress depends on peace and on managing debt, so they are only partly sustainable.

Exam tip

For a 6-mark "Evaluate" answer on an example, name at least three real strategies, give one strength and one weakness, and finish with a judgement about how sustainable they are.

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