Manufacturing in Ethiopia
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Manufacturing in Ethiopia was, before 1957, dominated by
Five-year plans
In 1957, Ethiopia initiated a series of five-year development plans. Throughout much of the 1960s and early 1970s, manufacturing activity increased as the government's five-year plans diversified the economy by encouraging agro-industrial activity and by substituting domestically produced goods for imported items. Thus, according to the World Bank, manufacturing production increased at an annual rate of 6.1 percent between 1965 and 1973. During the same period, agriculture grew at an annual 2.1 percent rate, and services grew at an annual 6.7 percent rate. Despite this favorable growth rate, manufacturing in 1975 accounted for less than 5 percent of the gross domestic product (GDP) and employed only about 60,000 people. Handicrafts, such as weaving, pottery, blacksmithing, leather working, and jewelry making, along with other small-scale industries, accounted for another 5 percent of GDP. In 1984/85 manufacturing and handicrafts together accounted for 11.4 percent of GDP.[1]
Nationalization
In 1975 the
Exodus of foreigners
Following nationalization, there was an exodus of foreigners who had owned and operated the industrial enterprises. The
Economic dislocation
The economic dislocation that followed the revolution had a significant impact on the manufacturing sector. Private sector capital investment ceased, and labor's marginal productivity began to decline. In performance terms, the manufacturing sector's output after 1975 grew haltingly. Manufacturing had grown at an average annual rate of 6.1 percent between 1965 and 1973. A period of decline from 1974/75 to 1977/78 and an average annual growth rate of 18.9 percent for 1978/79 and 1979/80 were followed by a reduction of the growth rate to about 3.1 percent per annum between 1980/81 and 1984/85 and 3.8 percent per annum from 1985/86 to 1988/89.[1]
Manufacturing productivity
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Socialist economy
Finally, in March 1990 president
References
- ^ a b c d e Wubne, Mulatu. "Agriculture". A Country Study: Ethiopia (Thomas P. Ofcansky and LaVerle Berry, editors). Library of Congress Federal Research Division (1991). This article incorporates text from this source, which is in the public domain.[1].