After World War II, Ethiopia began to receive economic development aid from the more affluent Western countries. Originally the United Kingdom was the primary source of this aid, but they withdrew in 1952, to be replaced by the United States. [1] Between 1950 and 1970, one source estimated that Ethiopia received almost US$600 million in aid, $211.9 million from the US, $100 million from the Soviet Union and $121 million from the World Bank. [2] Sweden trained the Imperial Bodyguard and India at one point contributed the majority of foreign-born schoolteachers in the Ethiopian educational system. [3]
This aid dried up under the military regime that followed the Ethiopian Revolution, except for food aid during the early- to mid-1980s famine. While the Soviet Union provided extensive amounts of aid, either directly or through its allies like East Germany [4] and South Yemen, this was predominantly in the form of either military aid, or ideological education; these ended with the close of the Cold War. Large aid inflows resumed in the early 1990s aimed at reconstruction and political stabilization but declined during the war with Eritrea. The post-2000 period, however, has seen a resumption of large disbursements of grants and loans from the United States, the European Union, individual European nations, Japan, the People's Republic of China, the World Bank, and the African Development Bank. These funds totaled US$1.6 billion in 2001.
In 2001 Ethiopia qualified for the World Bank-International Monetary Fund-sponsored Highly Indebted Poor Countries (HIPC) debt reduction program, which is designed to reduce or eliminate repayment of bilateral loans from wealthy countries and international lenders such as the World Bank. In Ethiopia's case, the program aims to help stabilize the country's balance of payments and to free up funds for economic development. A noteworthy advance toward these goals came in 1999, when the successor states to the former Soviet Union, including Russia, cancelled US$5 billion in debt contracted by the Derg, a step that cut Ethiopia's external debt in half. HIPC relief is expected to total almost US$2 billion.
In November 2007 the magazine The Economist reported that there was tangible evidence that the foreign aid given to Ethiopia reaches the people it is meant to, based on a visit to the south of the country. Roads, schools and water systems are being built and "there are few complaints about corruption, a fact that continues to make Ethiopia popular with foreign donors". However, the article also notes that, despite almost a decade of well-intentioned development policies, Ethiopians remain mired in the most wretched poverty. [5]
In March 2010, the BBC claimed that it had evidence that millions of dollars earmarked for victims of the Ethiopian famine of 1984–85 went to buy weapons. Rebel soldiers apparently diverting the funding to their organisation in an attempt to overthrow the government. [6] Their data were confirmed by participants and eye-witnesses of the time. However, following a complaint from the Band Aid Trust, the Editorial Complaints Unit of the BBC carried out "an investigation" and concluded that the reporting had no evidence to support it, and the BBC apologized to the Trust for the "misleading and unfair representation it created". [7]
On 8 June 2023, the US Agency for International Development announced a temporary suspension of food aid to Ethiopia because its supplies are being diverted. [8] One day later, the UN World Food Program also announced a suspension of aid citing the same concerns. [9]
This article incorporates text from this source, which is in the public domain . Country Studies. Federal Research Division.
The economy of Cuba is a planned economy dominated by state-run enterprises. Most of the labor force is employed by the state. In the 1990s, the ruling Communist Party of Cuba encouraged the formation of worker co-operatives and self-employment. In the late 2010s, private property and free-market rights along with foreign direct investment were granted by the 2018 Cuban constitution. Foreign direct investment in various Cuban economic sectors increased before 2018. As of 2021, Cuba's private sector is allowed to operate in most sectors of the economy. As of 2023, public-sector employment was 65%, and private-sector employment was 35%, compared to the 2000 ratio of 76% to 23% and the 1981 ratio of 91% to 8%. Investment is restricted and requires approval by the government. In 2021, Cuba ranked 83rd out of 191 on the Human Development Index in the high human development category. As of 2012, the country's public debt comprised 35.3% of GDP, inflation (CDP) was 5.5%, and GDP growth was 3%. Housing and transportation costs are low. Cubans receive government-subsidized education, healthcare, and food subsidies.
The economy of Ethiopia is a mixed and transition economy with a large public sector. The government of Ethiopia is in the process of privatizing many of the state-owned businesses and moving toward a market economy. The banking, telecommunication and transportation sectors of the economy are dominated by government-owned companies.
The economy of Nicaragua is focused primarily on the agricultural sector. Nicaragua itself is the least developed country in Central America, and the second poorest in the Americas by nominal GDP. In recent years, under the administrations of Daniel Ortega, the Nicaraguan economy has expanded somewhat, following the Great Recession, when the country's economy actually contracted by 1.5%, due to decreased export demand in the American and Central American markets, lower commodity prices for key agricultural exports, and low remittance growth. The economy saw 4.5% growth in 2010 thanks to a recovery in export demand and growth in its tourism industry. Nicaragua's economy continues to post growth, with preliminary indicators showing the Nicaraguan economy growing an additional 5% in 2011. Consumer Price inflation have also curtailed since 2008, when Nicaragua's inflation rate hovered at 19.82%. In 2009 and 2010, the country posted lower inflation rates, 3.68% and 5.45%, respectively. Remittances are a major source of income, equivalent to 15% of the country's GDP, which originate primarily from Costa Rica, the United States, and European Union member states. Approximately one million Nicaraguans contribute to the remittance sector of the economy.
The gross domestic product (GDP) of Niger was $16.617 billion US dollars in 2023, according to official data from the World Bank. This data is based largely on internal markets, subsistence agriculture, and the export of raw commodities: foodstuffs to neighbors and raw minerals to world markets. Niger, a landlocked West African nation that straddles the Sahel, has consistently been ranked on the bottom of the Human Development Index, at 0.394 as of 2019. It has a very low per capita income, and ranks among the least developed and most heavily indebted countries in the world, despite having large raw commodities and a relatively stable government and society not currently affected by civil war or terrorism. Economic activity centers on subsistence agriculture, animal husbandry, re-export trade, and export of uranium.
A famine is a widespread scarcity of food, caused by several possible factors, including war, natural disasters, crop failure, widespread poverty, an economic catastrophe or government policies. This phenomenon is usually accompanied or followed by regional malnutrition, starvation, epidemic, and increased mortality. Every inhabited continent in the world has experienced a period of famine throughout history. During the 19th and 20th century, Southeast and South Asia, as well as Eastern and Central Europe, suffered the greatest number of fatalities. Deaths caused by famine declined sharply beginning in the 1970s, with numbers falling further since 2000. Since 2010, Africa has been the most affected continent in the world by famine.
The economy of Mozambique is $14.396 billion by gross domestic product as of 2018, and has developed since the end of the Mozambican Civil War (1977–1992). In 1987, the government embarked on a series of macroeconomic reforms, which were designed to stabilize the economy. These steps, combined with donor assistance and with political stability since the multi-party elections in 1994, have led to dramatic improvements in the country's growth rate. Inflation was brought to single digits during the late 1990s, although it returned to double digits in 2000–02. Fiscal reforms, including the introduction of a value-added tax and reform of the customs service, have improved the government's revenue collection abilities.
A widespread famine affected Ethiopia from 1983 to 1985. The worst famine to hit the country in a century, it affected 7.75 million people and left approximately 300,000 to 1.2 million dead. 2.5 million people were internally displaced whereas 400,000 refugees left Ethiopia. Almost 200,000 children were orphaned.
The heavily indebted poor countries (HIPC) are a group of 39 developing countries with high levels of poverty and debt overhang which are eligible for special assistance from the International Monetary Fund (IMF) and the World Bank.
The debt of developing countries usually refers to the external debt incurred by governments of developing countries.
The Derg, officially the Provisional Military Administrative Council (PMAC), was the Marxist–Leninist military dictatorship that ruled Ethiopia, then including present-day Eritrea, from 1974 to 1987, when the military leadership or junta formally "civilianized" the administration but stayed in power until 1991.
The People's Democratic Republic of Ethiopia was a socialist state that existed in Ethiopia and present-day Eritrea from 1987 to 1991.
In international relations, aid is – from the perspective of governments – a voluntary transfer of resources from one country to another.
The World Bank’s assistance program of foreign aid to Vietnam has three objectives: to support Vietnam's transition to a market economy, to enhance equitable and sustainable development, and to promote good governance. From 1993 through 2004, Vietnam received pledges of US$29 billion of Official Development Assistance (ODA), of which about US$14 billion, or 49 percent, has been disbursed. In 2004 international donors pledged ODA of US$2.25 billion, of which US$1.65 billion was disbursed. Three donors accounted for 80 percent of disbursements in 2004: Japan, the World Bank, and the Asian Development Bank. During the period 2006–10, Vietnam hopes to receive US$14 billion–US$15 billion of ODA.
Nepal relies heavily on foreign aid, and donors coordinate development aid policy through the Nepal Development Forum, whose members include donor countries, international financial institutions, and inter-governmental organizations. Japan is Nepal's largest bilateral aid donor, and the World Bank and Asian Development Bank are the largest multilateral donors. Donors have been reported as losing confidence in Nepal as a result of political interference and corruption in poverty relief efforts as well as the country's apparently poor capacity to utilize aid. According to World Bank figures, official development assistance increased from US$8.2 million in 1960 to US$369 million in 2003 and then fell to US$177 million in 2004. According to Nepal's Ministry of Finance, total foreign aid committed in fiscal year (FY) 2003 was US$555 million, with 63.3 percent in grants and 36.7 percent in loans. In FY2004, total foreign aid committed was US$320 million, of which 37.7 percent was grants and 62.3 percent, loans. In June 2004, active World Bank credits totaled US$302 million, with the greatest portions allocated to the financial sector and to energy and mining. By the end of 2012, the outstanding World Bank IDA loan totaled $ 1.48 billionArchived 2015-05-05 at the Wayback Machine.
Multilateral Debt Relief Initiative (MDRI) was approved on June, 2005, by the finance ministers of the G8 during the 31st G8 Summit, held at Gleneagles, Scotland. MDRI is different to HIPC, but operationally related. Countries in the termination point get full relief of their debt with IMF, International Development Association (IDA) and the African Development Bank (AfDB). MDRI was approved for encouraging debtor countries to continue their political reforms. For reasons of equal treatment of Low Income Countries (LIC) the relieved debts were counted when new ancillary remedies were guaranteed by IDA and AfDB. G8 members committed themselves to compensate IDA and AfDB refluxes with further remedies. These compensations will be shared among IDA and AfDB beneficiary countries according to the efforts they make.
The International Monetary Fund (IMF) has operated in Malawi since 1965.
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