Why is Ethiopia poor?

There are multiple factors that contribute to poverty in Ethiopia, including:

  1. Agriculture-dependent economy: Ethiopia's economy is largely based on agriculture, which is vulnerable to environmental factors such as drought and famine.

  2. Political instability: Ethiopia has experienced political unrest and conflict, which has disrupted economic growth and hindered foreign investment.

  3. Lack of infrastructure: The country faces a significant shortage of basic infrastructure such as roads, bridges, and access to electricity and clean water, which hampers economic development and limits access to basic services.

  4. Limited access to education and healthcare: Poor education and health outcomes also contribute to poverty as they limit the potential for individuals to improve their economic status.

  5. Corruption: Corruption and mismanagement of public resources further exacerbates poverty in Ethiopia.

  6. Trade deficit: Ethiopia relies heavily on imports. It has persistently high import bills, which are ultimately passed on to the consumer.

These are some of the key factors that contribute to poverty in Ethiopia, but there are many other social, economic, and political factors that play a role as well. 

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