Ethiopian Economies
A brief economic history of Ethiopia and its earlier political states.
Trade and Commerce in Historic Ethiopia
For thousands of years, Ethiopia has occupied an important role connecting the economies of Sub-Saharan Africa to the Red and Mediterranean Seas. Its kingdoms and empires were historically built on trading state foundations. While its average people lived as farmers, Ethiopia possessed many valuable resources like ivory, salt, gold, gems, iron, slaves, and myrrh. The major trade routes of Aksum moved by water, traveling either down the Nile or along the coast of the Red Sea. This gave it easy access to the markets of Egypt, Rome, Persia, Alexandria, India, and the later Byzantine Empire. Axumite kings began minting their own coins in the 3rd century CE.
As the empires of antiquity faded, Ethiopia found itself in a somewhat tenuous position. A Christian kingdom neighboring the birthplace of Islam, it sat at the heart of a much wider and more costly conflict. The early rulers of the Solomonic dynasty did not settle into a capital but instead traveled the country in vast, nomadic tent cities. Wherever they went, local lords and peasants were expected to host them, sometimes at ruinous expense. More difficulties arose as new populations moved into the area, raiding and disrupting local trade in the process. As mercantile activity shifted from the Silk Road to the New World and Atlantic Ocean, Ethiopia’s economy entered a period of stagnation.
Coffee in Ethiopia
Alongside grains, the major agricultural export of Ethiopia since antiquity has been its coffee. The coffee tree originated in Ethiopia and has since spread from the region. Coffee beans found a market during the medieval era, particularly in the Arabian Peninsula. They were introduced to the wider world mainly through Yemeni monasteries from the 15th century on. The drink gained favor everywhere from Cairo to the courts of Europe. Coffee is still a major industry in Ethiopia and its largest export. The effects of global competition and climate change, however, have raised new challenges for the coffee growers of Ethiopia.
Modern Economies of Ethiopia
Through the 19th century, Ethiopia’s economy functioned on an essentially feudal system. Wealth moved upward from an agricultural peasant base to merchants, tradesmen, the military, and the aristocracy. Despite periodic efforts at modernization, Ethiopia remained a rural society at heart. It worked with European colonial powers to build new infrastructure networks while at the same time maintaining its own independence.
These efforts proved successful until 1936, when Italy conquered and occupied the region. The brief colonial era saw further infrastructure improvements, at the cost of Ethiopian independence and stability. Soon after the end of World War II, Ethiopia regained its sovereignty and its last king, Haile Selassie, returned to his throne. Over the next few decades, agrarian traditions became a liability as droughts and famines increased. Social unrest grew into 1974’s coup, installing a militaristic socialist government in place of the monarchy.
This period saw the nationalization of land and industry across Ethiopia, as well as violent clashes with Eritrean independence movements and the government’s own political opponents. Continued drought and famine only worsened the plight of average Ethiopian people. In 1993, Eritrea formally gained its independence, making Ethiopia the most populous landlocked nation in the world. After the fall of the Derg, the common name for the socialist government, Ethiopia reformed under the Ethiopian People's Revolutionary Democratic Front, which has focused on economic growth.
Today, Ethiopia represents a growing economy and a center of industry in Africa. Opportunity and income vary around the nation, which is still heavily rural. Poverty, while still an issue, is gradually lessening. According to the CIA World Factbook, the nation currently experiences some of the lowest income inequality in the world. Its major industries today include mining, coffee, textiles, and agricultural exports.
References
Addis Getahun, Solomon and Wudu Tafete Kassu. Culture and Customs of Ethiopia. ABC-CLIO. 2014.
Briggs, Philip and Brian Blatt. Ethiopia. Bradt Travel Guides. 2009
De Waal, Alexander. Evil Days: Thirty Years of War and Famine in Ethiopia. Human Rights Watch. 1991.
Gish, Steven, Winnie Thay, and Zawiah Abdul Latif. Ethiopia. Marshall Cavendish. 2007.
Lemma, Misael. “Ethiopia: Economic Growth Behind Ethiopia's Rapid Urbanization.” AllAfrica, AllAfrica, 2 Mar. 2018, allafrica.com/stories/201803010493.html.
Marcus, Harold G. A History of Ethiopia. University of California Press. 2002.
“The World Factbook: Ethiopia.” Central Intelligence Agency, Central Intelligence Agency, 1 Feb. 2018, www.cia.gov/library/publications/the-world-factbook/geos/et.html.
Uhlig, Siegbert, David Appleyard, et. al. Ethiopia: History, Culture, and Challenges. LIT Verlag Münster. 2017.
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