Undoubtedly, Ethiopia has passed a long way of the state formation, and today, it continues to fight for its development and better living conditions. For a long time, this country has been a territory of the various military operations, which greatly slowed down its development. In addition to the external political problems, Ethiopia also has a number of the internal problems, which primarily relate to its political system and climate-related disasters. After the Second World War, has begun to restructure the pre-existing political and economic systems, which caused its general instability and socio-economic backwardness. In addition, a crucial factor of its instability is the longest drought that has led to a critical increase in hunger among the local population and has exacerbated the living conditions. The existing problems of the various spheres of government are responsible for the backwardness of Ethiopia. After determining the most important of these problems, it is necessary to find out the right policy prescriptions that would help stabilize the situation and lead the country to a higher level of development.
The Problems Of Ethiopia's Development. Precisely, a large number of problems in various spheres of state activity prevent the progress in Ethiopia. However, the main problem is the inability of the government to create the most effective political program. This problem can be regarded as one of the main ones because it gives rise to many other problems that degrade its complex social, economic, and political relations. In addition, another crucial problem of the state is the climate problem; thus, "30-year drought and a shortage of energy resources have led to rapid growth of hunger and poverty level" (Block and Strzepek 478). In addition, there are huge military expenditure that absorb a significant portion of the proceeds. As in many African countries, "Ethiopia's economy is growing fast enough (10% per year)" but unevenly (Orlowska 299). Therefore, these growth rates are insufficient to solve the basic problems even population. Having survived many years of droughts and military conflicts, which were solved only partly, Ethiopia has entered a new age quite confidently. Nevertheless, the country is heavily dependent on the "primary sector, which accounts for 45% of GDP and 90% of exports" (Logan, Owusu, and Kalipeni 94). According to Logan, Owusu, and Kalipeni, although this sector "generates more than 80% of jobs", it also slows down the process of modernization and creates serious environmental problems. For instance, the soil is gradually becoming less fertile, and the forests are disappearing at a tremendous speed, which is partly due to the drought and partly to their "mass deforesting by both immigrants and refugees from neighboring countries" (Block, and Strzepek 479).
Therefore, the emergence of a large number of problems caused the Ethiopian leadership to make some soul-searching, more realistic approach to the problems of industrialization, "focusing on the size and role of large public and small private production" (Logan, Owusu, and Kalipeni 95). The government partially blocked the development of foreign investment in Ethiopia, while investments are the basis of industrial growth. Unfortunately, "the policies aimed at blocking foreign direct investment and foreign ownership nationalization seriously affected the development process of industrialization and braked the overall economic development of the country" (Logan, Owusu, and Kalipeni 96).
The problems of industrial production technologies in recent years has become the object of increasingly intense interest on the part of economists who study the problems of Ethiopia. The reason is that "technological dependence is gradually becoming one of the central and most profound forms of dependence of developing countries from the industrially developed countries" (Van Blerk 247). Indeed, even creating a state industry, "Ethiopia is forced to buy technology from TNCs that have the exclusive rights to it" (Van Blerk 247). Therefore, the preference in Ethiopia is given to the use of labor-intensive technology in terms of unemployment and "lack of resources to import modern capital-intensive technology" (Brems, Beken, and Yimer 111). Such technology is well adapted to the social organization of the country and has "considerable absorption abilities in relation to the excess labor force" (Brems, Beken, and Yimer 111). According to Brems, Beken, and Yimer, on the other hand, this technology is mainly concentrated in the sectors of light industry and can lay the groundwork for the country's industrial development and production of high-quality sophisticated products. "Labor-intensive technologies in all its positive qualities lead to slower economic growth, preservation of the backward social and economic structures" (112).
Thus, the capital-intensive technologies based on the achievements of modern science and technology can lay the foundation for the development of technically modern industrial sector in case of harmonious exploitation. However, its use is hampered by the fact that it requires significant financial resources, and Ethiopia does not dispose of such. In addition, "if the labor-intensive technologies implies a wide use of workers without qualifications, the development of capital-intensive technology in employment increases the proportion of qualified personnel" (Brems, Beken, and Yimer 114). This creates difficulties, since the number of highly skilled workers in the country is low. It can thus be concluded that the existence of technology that would fully meet all the parameters of the specific conditions of a country like Ethiopia is quite problematic.
It is necessary to mention the problems of medicine and health care with regard to the social problems of the state. Ethiopia's health system is called one of the worst in the world, and this is despite the fact that the country has carried out a series of reforms and innovations. According to the Ministry of Health, "more than 4.4% of the adult population in Ethiopia are infected with HIV", while "thousands of people die of AIDS every year" (Orlowska 305). According to recent data, "one-third of all deaths among young people is due to this disease"; thus, "Ethiopia ranks fourth" among other countries of the world in the number of infectious diseases (Orlowska 305). Unfortunately, the constant drought and poor sanitation contribute to the development of these diseases. It is also necessary to pay attention to the problem of transport routes in the country, as they are highly underdeveloped, which leads to the "inability to transport a variety of cargo and internal movement of the local population" (Block and Strzepek 482). Moreover, "Ethiopia has one of the highest levels of corruption", which is a cause of other problems (Van Blerk 248).
Policy Prescriptions for Elimination of Problems. Ethiopia is a developing country, and a large part of its population lives below the poverty line. The above-listed main problems of the state hamper the development of the country and lead to numerous victims among the local population. It is necessary to create a set of policies that would address these problems so that the country can continue to evolve for the better. It can be stated that Ethiopia would be in a critical situation without a creation of the effective policy prescriptions, as it would result in numerous casualties among the local population and development of dangerous epidemics. "For over 30 years, Ethiopia is dependent on international aid", which mainly lies in the "cancellation of the external debt" (Brems, Beken, and Yimer 123). However, the aid usually does not reach the destination due to the corruption level and the "depletion of funds that were poured into the purchase of arms at the end of the 20th century": i.e. the government did not provide the food and the basic necessities of the population that lived below the poverty line (Brems, Beken, and Yimer 123). The situation began to change in 2000, and recently, the international observers finally got confirmation that the international community's assistance was used for its intended purpose, i.e. "schools building, asphalt works, and provision of drinking water" (Brems, Beken, and Yimer 124). Although there are favorable changes in the country in the last decade, "a significant proportion of Ethiopians still live in extreme poverty and starve" (Brems, Beken, and Yimer 125).
The first step is the transformation of the mechanisms of regulation of economic and social processes. Thus, it is necessary to create a reliable and efficient planning system. The public authorities should develop this strategy in the first place. Hence, a defined territory with the infrastructure facilities and the consumers of these services should be considered as a control object. Therefore, the programs designed to initiate or accelerate the development of even just aimed at one element (for example, support for entrepreneurship), should take into account wider social and cultural contexts. Such planning should provide the most beneficial effect on the current lack of development and the future of entrepreneurship in the country. At the same time, Ethiopia in its transformation strategy should base not on "borrowing foreign models, but on the creative processing of the most important scientific achievement and experience", taking into account the specifics of the country and its national and traditional features (Orlowska 307).
According to Block and Strzepek, the authorities of the state and large companies need to focus all their efforts on the hydropower sector, but its development requires large investments (481). Moreover, their involvement requires a complex foreign policy strategy. Unfortunately, "the absence of agreements with the countries with the origins or the mouths of rivers" flowing through the territory of Ethiopia complicates this task (Block and Strzepek 482). Furthermore, the state needs to upgrade ground transportation system, because "only 15% of roads with a total length of 20 000 km are asphalted" (Orlowska 309). It is a fact that the peculiar topography of the country does not facilitate travel. As regards the area of services, "the demand for tours to Ethiopia fell to almost zero during the war with Eritrea" (Orlowska 311). It results from this that it is necessary to create favorable conditions for attraction of tourists, which would revive the economy and reduce unemployment. The problems of development of the country's transport network are the most pressing issues in terms of the economic and social development of the country. The authorities should implement some reforms related to the construction and expansion of transportation routes.
Therefore, the Ethiopian government should reduce the cost of military defense and increase spending on the human factor (health, education, housing, etc.) and the development of the productive sectors in order to ensure the growth of the economy. The government should help the activities of small and medium enterprises in the sphere of industrial production, aimed at the domestic market service in particular. Firstly, the state should implement the protectionist measures in order to strengthen national ownership and protect it from large, including multinational, corporations. Secondly, these companies are in need of loans, but "banks prefer to lend to large projects using a complex methodology to assess profitability" (Logan, Owusu, and Kalipeni 106). Obviously, the state should promote a creation of special banks that would carry out lending to small and medium-sized enterprises. Thirdly, according to international standards, the production of competitive products requires a strict control over its quality. This adjustment to every enterprise is quite complicated and expensive, so the government agencies that monitor the quality of goods produced at the enterprises of specific industries could assist greatly (Van Blerk 251).
However, the prospects for the development of small and medium-sized enterprises cannot depend only on the state, as it "cannot sign on the dotted line of supporting this kind of business" (Van Blerk 251). Therefore, the entrepreneurs can resolve many problems themselves. For example, they can work together in order to create an organization that would carry out consulting and marketing services to acquire modern technology and conduct training courses in different specialties. In addition, it is necessary to pay particular attention to the climate issues, which are the cause of the deadly, long-term drought. Ethiopia's government should identify the causes of this disaster and attract professionals who can change the situation with the supply of fresh water. This may require the creation of special committees or state organization, which will deal exclusively with this problem. The solution to this problem will take some time, but "the fresh water problem can be solved with the start of exports from neighboring countries", or by means of a filtration system (Block and Strzepek 487). The solution of the problem of fresh water can significantly improve the standard of living of the local population.
Conclusions
It can be stated that the Ethiopian authorities, taking into account the analysis of Ethiopia's problems that inhibit its development, should implement the policy prescriptions in order to eliminate the current problems of the state. Ethiopia is an underdeveloped country that has many problems in politics, economy, and social welfare. Unfortunately, the existing problems have worsened in recent years, and the reason for this is the long-term drought, which caused the growth of hunger and poverty throughout the country. One of the most important aspects of the elimination of Ethiopia's problems is the foreign investments. Still, the main problem of the state development is its own authorities that introduce incorrect management strategy.
Works Cited
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Brems, Eva, Christophe Van der Beken, and Solomon Abay Yimer. Human Rights and Development: Legal Perspectives from and for Ethiopia. Leiden, NL: Brill | Nijhoff, 2015. ProQuest ebrary. Web. 16 March 2016.
Logan, B. Ikubolajeh, Francis Y. Owusu, and Ezekiel Kalipeni. "Introduction: Beyond The ‘Post’ And Revisionist Discourses In African Development: Exploring Real Solutions To Africa’s Problems." Progress In Development Studies 12.2/3 (2012): 93-98. Business Source Alumni Edition. Web. 17 Mar. 2016.
Orlowska, Izabela. "Forging A Nation: The Ethiopian Millennium Celebration And The Multiethnic State." Nations & Nationalism 19.2 (2013): 296-316. SocINDEX with Full Text. Web. 17 Mar. 2016.
Van Blerk, Lorraine. "Poverty, Migration And Sex Work: Youth Transitions In Ethiopia." Area 40.2 (2008): 245-253. SPORTDiscus with Full Text. Web. 17 Mar. 2016.
