Ethiopia Landlocked Country

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This paper explores the economic factors of the developing country of Ethiopia. Ethiopia is a landlocked country and know as the Federal Democratic Republic of Ethiopia. “The legendary Ark of the Covenant, the relic said to hold the 10 Commandments, is claimed to be housed in a church in Ethiopia. Only one man, the guardian, is actually allowed to see the ark, so whether or not it is actually there remains a mystery.” Populated by 102,374,044 citizens, Ethiopia is considered a country of impoverishment due to war, famine, and drought. Ethiopia concentrates the majority of its economic resources on its agricultural production. This causes for there to be a lack of education, health issues, poverty, and undeveloped technology, which can be the …show more content…
Most of the population in Ethiopia earn an income that is considered low by farming fields, livestock, or coffee. Because there is limited prosperity within careers the majority of the population lives uncomfortably and in living standards that are inhuman, with all the income going to the necessities. That forces less investing and less capital, which is a main reason to why the economy in Ethiopia is not thriving. In addition, their existing technology is old and unproductive. Therefore, farmers have more children to improve their farming because there is no new machinery available to assist with the jobs. “Child labor ages from five to fourteen years old and is fifty-three percent.” This than requires there to be more people to be fed. The increase in people causes the Gross Domestic Product to rise and also the standard of living. The poverty rate in Ethiopia is thirty percent. “Population living on a dollar a day is 26.3 percent.” Families are not able to support the necessary means to live. Leaving people to die of hunger. Which in turns the government trying to improve the living standards. “The government puts 65-70 percent into a pro-poor development budget that funds activities such as agriculture, health, education, and infrastructures, which is movement to create more jobs and …show more content…
Many other economic activities depend on agriculture, including marketing, processing, and export of agricultural products. Production is overwhelmingly of a subsistence nature, and a large part of commodity exports are provided by the small agricultural cash-crop sector. One of the most important cash crop in Ethiopia was coffee. Approximately twenty-five percent of the population depended directly or indirectly on coffee for their survival. Ethiopia is Africa 's second biggest maize producer. Agriculture accounts for 46.3 percent of the nation 's Gross Domestic Product, 83.9 percent of exports, and 80 percent of the labor force. Having agriculture being the main export many opportunities for income and capital provided themselves like leasing land. “There are income tax exemptions, corporate tax exemptions, access to land, and start up fees of $200,000 can be waived if companies reinvest profits back into the Ethiopian economy.” Unfortunately, in 2015 a drought hit the country causing the economy to shift its exports to textiles, service sectors, and industrial product. Currently Ethiopia exports about $5.56 billion. First being refined petroleum, coffee, oilseed, and agriculture. “Exports go to Kuwait- 14 percent, Saudi Arabia- 10 percent, China - 9.5 percent, and the United State- 3.27 percent”. Ethiopia imports are from China- 30 percent, Kuwait- 10

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