Ethiopia

Ethiopia

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Ethiopia

The USA (along with Germany and Japan) were blocking debt relief that would make Ethiopia’s debt burden sustainable (by World Bank criteria!). Due to the collapse of coffee prices and changes in interest rates Ethiopia’s debt burden would be considered far too high (the debt to export ratio would be 220% against a maximum set by the WB of 150%). The USA was blocking the additional $700M debt relief recommended by WB/IMF.

After sustained campaigning the debt cancellation for Ethiopia and Niger was finally approved in April 2004. The campaigning secured a further $1.2bn of debt relief, a massive achievement.

Summary background

	Ethopia has a population of almost 70 million. Nearly half (44%), live below the poverty line
	The price of Ethiopia’s major export, coffee, has fallen 73 per cent in 20 years.
	The Ethiopian drought of 2003 was one of the worst in history and cut agricultural production and exports
	GDP per capita is as low as US$89 per year compared to US of US$36,300
	The country is almost bottom of the UNDP’s human development league: 169th out of 175.
	Infant mortality is as high as 116 per thousand
	47 per cent of children under five suffer from malnutrition
	Only 24 per cent of Ethiopians have access to clean water sources

Blocking the top-up funding will cost Ethiopia $35m/annum which could be spent on Poverty reduction programs.

For a full explanation see Jubilee Research http://www.jubileeresearch.org/analysis/reports/ethiopia130204.htm

last updated 11 Juni 2004