News

    Ethiopia Hails Poverty Reduction

    A woman walks with her children to a transit center in the Dolo Ado refugee camp in southern Ethiopia, July 19, 2011.
    A woman walks with her children to a transit center in the Dolo Ado refugee camp in southern Ethiopia, July 19, 2011.

    Ethiopia, one of Africa's poorest countries, is heralding great strides in eradicating poverty. The number of Ethiopians living in poverty has dropped below one-third of the total, despite population growth and soaring inflation.

    Finance Ministry officials told donor organizations Friday that about 25 million of Ethiopia's 80 million people live below the poverty line.  That figure represents a reduction of four million since 2004, even as the population has grown at a rate of more than two and a half percent a year.

    Economists say the poverty line is based on a complex formula including food consumption. Ethiopia's poverty line is well below the internationally accepted rate of $1.25 a day.

    Considering that the current rate of inflation is about 35 percent, Minister of State for Finance and Economic Development Abraham Tekeste called the decline in poverty a “remarkable achievement."

    "The report has shown that poverty has declined overall in the country in spite of the global and national shocks that Ethiopia experienced in terms of increases in prices, drought in some pockets of the country despite all these shocks, [and] the financial and economic crisis in the world," Abraham said.

    International economists attending the briefing called the figures encouraging.  But World Bank Country Director for Ethiopia Guang Chen expressed concern that inflation is undermining further progress.

    "The trend is very positive, but at the same time, as the state minister says, still we're talking about 30 million people below the poverty line, and this is a very poor country, and when we're talking about rural poverty line, their poverty line is actually below the world accepted average. So there's still a lot of work to be done," Chen said.

    The World Bank's lead economist on poverty reduction in Africa, Chorching Goh, cautioned that while Ethiopia's growth figures over the past decade are impressive, they start from a very low statistical base.  She said the Human Development Index that ranks countries by living standards still shows Ethiopia near the bottom.

    "We have to commend efforts of the people and government.  However, HDI, in 2011, out of 187 countries, Ethiopia we are at 174, and ten years ago out of 163 countries were are 159, so in terms of our relative position, we haven't moved forward that much.  What does that say?  It just says other countries are progressing very rapidly, too,
    Goh said.

    Goh noted that Ethiopia is still in an early stage of development, with per capita income below $400 a year.

    She and other economists are urging Ethiopian policy makers not to focus too much on closing the gap in income inequality.

    Finance Ministry officials said Friday they had made progress in narrowing the inequality gap.  But Goh noted that the history of developed countries teaches temporary inequality is a necessary result of growth.  She urged Ethiopian officials to be patient when it comes to inequality, and impatient when it comes to the eradication of poverty.

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Slow Rebuilding Amid Boko Haram Destruction in Nigeria’s Northeasti
    X
    June 29, 2016 6:15 PM
    Military operations have chased Boko Haram out of towns and cities in Nigeria’s northeast since early last year. But it is only recently that people have begun returning to their homes in Adamawa state, near the border with Cameroon, to try to rebuild their lives. For VOA, Chris Stein traveled to the area and has this report.
    Video

    Video Slow Rebuilding Amid Boko Haram Destruction in Nigeria’s Northeast

    Military operations have chased Boko Haram out of towns and cities in Nigeria’s northeast since early last year. But it is only recently that people have begun returning to their homes in Adamawa state, near the border with Cameroon, to try to rebuild their lives. For VOA, Chris Stein traveled to the area and has this report.
    Video

    Video Clinton Leads Trump, But Many Voters Don't Like Either

    In the U.S. presidential race, most recent polls show Democrat Hillary Clinton with a steady lead over Republican Donald Trump as both presumptive party nominees prepare for their party conventions next month. Trump’s disapproval ratings have risen in some recent surveys, but Clinton also suffers from high negative ratings, suggesting both candidates have a lot of work to do to improve their images before the November election. VOA National correspondent Jim Malone has more from Washington.
    Video

    Video New US Ambassador to Somalia Faces Heavy Challenges

    The new U.S. envoy to Somalia, who was sworn into office Monday, will be the first American ambassador to that nation in 25 years. He will take up his post as Somalia faces a number of crucial issues, including insecurity, an upcoming election, and the potential closure of the Dadaab refugee camp in Kenya. VOA’s Jill Craig asked Somalis living in Kenya’s capital city Nairobi how they feel about the U.S. finally installing a new ambassador.
    Video

    Video At National Zoo, Captivating Animal Sculptures Illustrate Tragedy of Ocean Pollution

    The National Zoo in Washington, D.C., is home to about 1,800 animals, representing 300 species. But throughout the summer, visitors can also see other kinds of creatures there. They are larger-than-life animal sculptures that speak volumes about a global issue — the massive plastic pollution in our oceans. VOA's June Soh takes us to the zoo's special exhibit, called Washed Ashore: Art to Save the Sea.
    Video

    Video Baghdad Bikers Defy War with a Roar

    Baghdad is a city of contradictions. War is a constant. Explosions and kidnappings are part of daily life. But the Iraqi capital remains a thriving city, even if a little beat up. VOA's Sharon Behn reports on how some in Baghdad are defying the stereotype of a nation at war by pursuing a lifestyle known for its iconic symbols of rebellion: motorbikes, leather jackets and roaring engines.
    Video

    Video Melting Pot of Immigrants Working to Restore US Capitol Dome

    The American Iron Works company is one of the firms working to renovate the iconic U.S. Capitol Dome. The company employs immigrants of many different cultural and national backgrounds. VOA’s Arman Tarjimanyan has more.
    Video

    Video Testing Bamboo as Building Material

    For thousands of years various species of bamboo - one of the world's most versatile plants - have been used for diverse purposes ranging from food and medicine to textiles and construction. But its use on a large scale is hampered because it's not manufactured to specific standards but grown in the ground. A University of Pittsburgh professor is on track to changing that. VOA’s George Putic reports.
    Video

    Video Orphanage in Iraqi City Houses Kids Who Lost their Parents to Attacks by IS

    An orphanage in Iraqi Kurdistan has become home to scores of Yazidi children who lost their parents after Islamic State militants took over Sinjar in Iraq’s Nineveh Province in 2014. Iraqi Kurdish forces backed by the U.S. airstrikes have since recaptured Sinjar but the need for the care provided by the orphanage continues. VOA’s Kawa Omar filed this report narrated by Rob Raffaele.
    Video

    Video Re-Opening Old Wounds in a Bullet-Riddled Cultural Landmark

    A cultural landmark before Lebanon’s civil war transformed it into a nest of snipers, Beirut’s ‘Yellow House’ is once again set to play a crucial role in the city.  Built in a neo-Ottoman style in the 1920s, in September it is set to be re-opened as a ‘memory museum’ - its bullet-riddled walls and bunkered positions overlooking the city’s notorious ‘Green Line’ maintained for posterity. John Owens reports from Beirut.
    Video

    Video Brexit Resounds in US Presidential Contest

    Britain’s decision to leave the European Union is resounding in America’s presidential race. As VOA’s Michael Bowman reports, Republican presumptive nominee Donald Trump sees Britain’s move as an affirmation of his campaign’s core messages, while Democrat Hillary Clinton sees the episode as further evidence that Trump is unfit to be president.
    Video

    Video NASA Juno Spacecraft, Nearing Jupiter, to Shed Light on Gas Giant

    After a five-year journey, the spacecraft Juno is nearing its destination, the giant planet Jupiter, where it will enter orbit and start sending data back July 4th. As Mike O'Sullivan reports from Pasadena, California, the craft will pierce the veil of Jupiter's dense cloud cover to reveal its mysteries.
    Video

    Video Orlando Shooting Changes Debate on Gun Control

    It’s been nearly two weeks since the largest mass shooting ever in the United States. Despite public calls for tighter gun control laws, Congress is at an impasse. Democratic lawmakers resorted to a 1960s civil rights tactic to portray their frustration. VOA’s Carolyn Presutti explains how the Orlando, Florida shooting is changing the debate.

    Special Report

    Adrift The Invisible African Diaspora