About the CBI

October 2005
Background Note: Ethiopia

Flag of Ethiopia is three equal horizontal bands of green (top), yellow, and
red with a yellow pentagram and single yellow rays emanating from the angles
between the points on a light blue disk centered on the three bands.

PROFILE

OFFICIAL NAME:
Federal Democratic Republic of Ethiopia

Geography
Area: 1.1 million sq. km (472,000 sq. mi.); about the size of Texas,
Oklahoma, and New Mexico combined.
Cities: Capital--Addis Ababa (pop. 2.6 million). Other cities--Dire Dawa
(237,000), Nazret (189,000), Gondar (163,000), Dessie (142,000), Mekelle
(141,000), Bahir Dar (140,000), Jimma (132,000), Awassa (104,000).
Terrain: High plateau, mountains, dry lowland plains.
Climate: Temperate in the highlands; hot in the lowlands.

People
Nationality: Noun and adjective--Ethiopian(s).
Population (2003 est.): 70.5 million.
Annual growth rate: 2.7%.
Ethnic groups (est.): Oromo 35%, Amhara 30%, Tigre 6.3%, Somali 6%, Sidama
6%, Gurage 4%, Wolaita 4%, Afar 2%, other nationalities 6.7%.
Religions (est.): Ethiopian Orthodox Christian 45%, Sunni Muslim 40-45%,
Protestant 5%, remainder indigenous beliefs.
Languages: Amharic (official), Tigrinya, Arabic, Guaragigna, Oromigna,
English, Somali.
Education: Years compulsory--none. Attendance (elementary) 57%.
Literacy--35%.
Health: Infant mortality rate--97/1,000 live births.
Work force: Agriculture--80%. Industry and commerce--20%.

Government
Type: Federal Republic.
Constitution: Ratified 1994.
Branches: Executive--president, Council of State, Council of Ministers.
Executive power resides with the prime minister. Legislative--bicameral
parliament. Judicial--divided into Federal and Regional Courts.
Administrative subdivisions: 9 regions and 2 special city administrations:
Addis Ababa and Dire Dawa.
Political parties: Ethiopian People's Revolutionary Democratic Front (EPRDF),
the Coalition for Unity and Democracy (CUD), the United Ethiopian Democratic
Forces (UEDF), and other small parties.
Suffrage: Universal starting at age 18.
Central government budget (2004): $2.4 billion.
Defense: $348 million (5.6% of GDP FY 2003).
National holiday: May 28.

Economy
Real GDP (2004): $8.1 billion.
Annual growth rate (2004): 11.6%.
Per capita income (2004): $116.
Average inflation rate (2004): 7%.
Natural resources: Potash, salt, gold, copper, platinum, natural gas
(unexploited).
Agriculture (47% of GDP): Products--coffee, cereals, pulses, oilseeds, khat,
meat, hides and skins. Cultivated land--17%.
Industry (12% of GDP): Types--textiles, processed foods, construction,
cement, and hydroelectric power.
Trade (2004): Exports--$563 million. Imports--$2.1 billion; plus
remittances--official est. $400 million; unofficial est. $400 million.
Fiscal year: July 8-July 7.

GEOGRAPHY
Ethiopia is located in the Horn of Africa and is bordered on the north and
northeast by Eritrea, on the east by Djibouti and Somalia, on the south by
Kenya, and on the west and southwest by Sudan. The country has a high central
plateau that varies from 1,800 to 3,000 meters (6,000 ft.-10,000 ft.) above
sea level, with some mountains reaching 4,620 meters (15,158 ft.). Elevation
is generally highest just before the point of descent to the Great Rift
Valley, which splits the plateau diagonally. A number of rivers cross the
plateau--notably the Blue Nile flowing from Lake Tana. The plateau gradually
slopes to the lowlands of the Sudan on the west and the Somali-inhabited
plains to the southeast.

The climate is temperate on the plateau and hot in the lowlands. At Addis
Ababa, which ranges from 2,200 to 2,600 meters (7,000 ft.-8,500 ft.), maximum
temperature is 26o C (80o F) and minimum 4o C (40o F). The weather is usually
sunny and dry with the short (belg) rains occurring February-April and the
big (meher) rains beginning in mid-June and ending in mid-September.

PEOPLE
Ethiopia's population is highly diverse. Most of its people speak a Semitic
or Cushitic language. The Oromo, Amhara, and Tigreans make up more than
three-fourths of the population, but there are more than 77 different ethnic
groups with their own distinct languages within Ethiopia. Some of these have
as few as 10,000 members. In general, most of the Christians live in the
highlands, while Muslims and adherents of traditional African religions tend
to inhabit lowland regions. English is the most widely spoken foreign
language and is taught in all secondary schools. Amharic is the official
language and was the language of primary school instruction but has been
replaced in many areas by local languages such as Oromifa and Tigrinya.

HISTORY
Ethiopia is credited with being the origin of mankind. Bones discovered in
eastern Ethiopia date back 3.2 million years. Ethiopia is the oldest
independent country in Africa and one of the oldest in the world. Herodotus,
the Greek historian of the fifth century B.C. describes ancient Ethiopia in
his writings. The Old Testament of the Bible records the Queen of Sheba's
visit to Jerusalem. According to legend, Menelik I, the son of King Solomon
and the Queen of Sheba, founded the Ethiopian Empire. Missionaries from Egypt
and Syria introduced Christianity in the fourth century A.D. Following the
rise of Islam in the seventh century, Ethiopia was gradually cut off from
European Christendom. The Portuguese established contact with Ethiopia in
1493, primarily to strengthen their influence over the Indian Ocean and to
convert Ethiopia to Roman Catholicism. There followed a century of conflict
between pro- and anti-Catholic factions, resulting in the expulsion of all
foreign missionaries in the 1630s. This period of bitter religious conflict
contributed to hostility toward foreign Christians and Europeans, which
persisted into the 20th century and was a factor in Ethiopia's isolation
until the mid-19th century.

Under the Emperors Theodore II (1855-68), Johannes IV (1872-89), and Menelik
II (1889-1913), the kingdom was consolidated and began to emerge from its
medieval isolation. When Menelik II died, his grandson, Lij Iyassu, succeeded
to the throne but soon lost support because of his Muslim ties. The Christian
nobility deposed him in 1916, and Menelik's daughter, Zewditu, was made
empress. Her cousin, Ras Tafari Makonnen (1892-1975), was made regent and
successor to the throne. In 1930, after the empress died, the regent,
adopting the throne name Haile Selassie, was crowned emperor. His reign was
interrupted in 1936 when Italian Fascist forces invaded and occupied
Ethiopia. The emperor was forced into exile in England despite his plea to
the League of Nations for intervention. Five years later, British and
Ethiopian forces defeated the Italians, and the emperor returned to the
throne.

After a period of civil unrest, which began in February 1974, the aging Haile
Selassie I was deposed on September 12, 1974, and a provisional
administrative council of soldiers, known as the Derg ("committee") seized
power from the emperor and installed a government, which was socialist in
name and military in style. The Derg summarily executed 59 members of the
royal family and ministers and generals of the emperor's government; Emperor
Haile Selassie was strangled in the basement of his palace on August 22,
1975.

Lt. Col. Mengistu Haile Mariam assumed power as head of state and Derg
chairman, after having his two predecessors killed. Mengistu's years in
office were marked by a totalitarian-style government and the country's
massive militarization, financed by the Soviet Union and the Eastern Bloc,
and assisted by Cuba. From 1977 through early 1978 thousands of suspected
enemies of the Derg were tortured and/or killed in a purge called the "red
terror." Communism was officially adopted during the late 1970s and early
1980s with the promulgation of a Soviet-style constitution, Politburo, and
the creation of the Workers' Party of Ethiopia (WPE).

In December 1976, an Ethiopian delegation in Moscow signed a military
assistance agreement with the Soviet Union. The following April, Ethiopia
abrogated its military assistance agreement with the United States and
expelled the American military missions. In July 1977, sensing the disarray
in Ethiopia, Somalia attacked across the Ogaden Desert in pursuit of its
irredentist claims to the ethnic Somali areas of Ethiopia. Ethiopian forces
were driven back deep inside their own frontier but, with the assistance of a
massive Soviet airlift of arms and Cuban combat forces, they stemmed the
attack. The major Somali regular units were forced out of the Ogaden in March
1978. Twenty years later, development in the Somali region of
Ethiopia lagged.

The Derg's collapse was hastened by droughts and famine, as well as by
insurrections, particularly in the northern regions of Tigray and Eritrea. In
1989, the Tigrayan People's Liberation Front (TPLF) merged with other
ethnically based opposition movements to form the Ethiopian Peoples'
Revolutionary Democratic Front (EPRDF). In May 1991, EPRDF forces advanced on
Addis Ababa. Mengistu fled the country for asylum in Zimbabwe, where he still
resides.

In July 1991, the EPRDF, the Oromo Liberation Front (OLF), and others
established the Transitional Government of Ethiopia (TGE) which was comprised
of an 87-member Council of Representatives and guided by a national charter
that functioned as a transitional constitution. In June 1992 the OLF withdrew
from the government; in March 1993, members of the Southern Ethiopia Peoples'
Democratic Coalition left the government.

In May 1991, the Eritrean People's Liberation Front (EPLF), led by Isaias
Afwerki, assumed control of Eritrea and established a provisional government.
This provisional government independently administered Eritrea until April
23-25, 1993, when Eritreans voted overwhelmingly for independence in a
UN-monitored free and fair referendum. Eritrea was with Ethiopia's consent
declared independent on April 27, and the United States recognized its
independence on April 28, 1993.

In Ethiopia, President Meles Zenawi and members of the TGE pledged to oversee
the formation of a multi-party democracy. The election for a 547-member
constituent assembly was held in June 1994, and this assembly adopted the
constitution of the Federal Democratic Republic of Ethiopia in December 1994.
The elections for Ethiopia's first popularly chosen national parliament and
regional legislatures were held in May and June 1995. Most opposition parties
chose to boycott these elections, ensuring a landslide victory for the EPRDF.
International and non-governmental observers concluded that opposition
parties would have been able to participate had they chosen to do so. The
Government of the Federal Democratic Republic of Ethiopia was installed in
August 1995.

GOVERNMENT AND POLITICAL CONDITIONS
Ethiopia is a federal republic under the 1994 constitution. The executive
branch includes a president, Council of State, and Council of Ministers.
Executive power resides with the prime minister. There is a bicameral
parliament; national legislative elections were held in 2005. The judicial
branch comprises federal and regional courts.

Political parties include the Ethiopian People's Revolutionary Democratic
Front (EPRDF), the Coalition for Unity and Democracy (CUD), the United
Ethiopian Democratic Forces (UEDF), and other small parties. Suffrage
is universal at age 18.

In 2003, Ethiopia continued its transition from a unitary to a federal system
of government. The EPRDF-led government of Prime Minister Meles Zenawi has
promoted a policy of ethnic federalism, devolving significant powers to
regional, ethnically based authorities. Ethiopia today has 9 semi-autonomous
administrative regions and two special city administrations (Addis Ababa and
Dire Dawa), which have the power to raise their own revenues. Under the
present government, Ethiopians enjoy wider, albeit circumscribed, political
freedom than ever before in Ethiopia's history.

Principal Government Officials
President--Girma Wolde-Giorgis
Prime Minister--Meles Zenawi
Deputy Prime Minister and Minister of Rural Development and
Agriculture--Addisu Legesse
Minister of National Defense--Abadula Gemeda
Minister of Foreign Affairs--Seyoum Mesfin

Ethiopia maintains an embassy in the U.S. at 3506 International Drive, NW,
Washington, DC 20008 (tel. 202-364-1200) headed by Ambassador Kassahun
Ayele. It also maintains a UN mission in New York and consulates in Los
Angeles, Seattle (honorary), and Houston (honorary).

ECONOMY
The current government has embarked on a cautious program of economic reform,
including privatization of state enterprises and rationalization of
government regulation. While the process is still ongoing, so far the reforms
have attracted only meager foreign investment.

The Ethiopian economy is based on agriculture, which contributes 47% to GNP
and more than 80% of exports, and employs 85% of the population. The major
agricultural export crop is coffee, providing 35% of Ethiopia's foreign
exchange earnings, down from 65% a decade ago because of the slump in coffee
prices since the mid-1990s. Other traditional major agricultural exports are
hides and skins, pulses, oilseeds, and the traditional "khat," a leafy shrub
that has psychotropic qualities when chewed. Sugar and gold production has
also become important in recent years.

Ethiopia's agriculture is plagued by periodic drought, soil degradation
caused by inappropriate agricultural practices and overgrazing,
deforestation, high population density, undeveloped water resources, and poor
transport infrastructure, making it difficult and expensive to get goods to
market. Yet agriculture is the country's most promising resource. Potential
exists for self-sufficiency in grains and for export development in
livestock, flowers, grains, oilseeds, sugar, vegetables, and fruits.

Gold, marble, limestone, and small amounts of tantalum are mined in Ethiopia.
Other resources with potential for commercial development include large
potash deposits, natural gas, iron ore, and possibly oil and geothermal
energy. Although Ethiopia has good hydroelectric resources, which power most
of its manufacturing sector, it is totally dependent on imports for its oil.
A landlocked country, Ethiopia has relied on the port of Djibouti since the
1998-2000 border war with Eritrea. Ethiopia is connected with the port of
Djibouti by road and rail for international trade. Of the 23,812 kilometers
of all-weather roads in Ethiopia, 15% are asphalt. Mountainous terrain and
the lack of good roads and sufficient vehicles make land transportation
difficult and expensive. However, the government-owned airline's reputation
is excellent. Ethiopian Airlines serves 38 domestic airfields and has 42
international destinations.

Dependent on a few vulnerable crops for its foreign exchange earnings and
reliant on imported oil, Ethiopia lacks sufficient foreign exchange earnings.
The financially conservative government has taken measures to solve this
problem, including stringent import controls and sharply reduced subsidies on
retail gasoline prices. Nevertheless, the largely subsistence economy is
incapable of meeting the budget requirements for drought relief, an ambitious
development plan, and indispensable imports such as oil. The gap has largely
been covered through foreign assistance inflows.

DEFENSE
The Ethiopian National Defense Forces (ENDF) numbers about 200,000 personnel,
which makes it one of the largest militaries in Africa. During the 1998-2000
border war with Eritrea, the ENDF mobilized strength reached approximately
350,000. Since the end of the war, some 150,000 soldiers have been
demobilized. The ENDF continues a transition from its roots as a guerrilla
army to an all-volunteer professional military organization with the aid of
the U.S. and other countries. Training in peacekeeping operations,
professional military education, military training management,
counter-terrorism operations, and military medicine are among the major
programs sponsored by the United States. Ethiopia now has two peacekeeping
contingents in Burundi and Liberia.

FOREIGN RELATIONS
Ethiopia was relatively isolated from major movements of world politics until
Italian invasions in 1895 and 1935. Since World War II, it has played an
active role in world and African affairs. Ethiopia was a charter member of
the United Nations and took part in UN operations in Korea in 1951 and the
Congo in 1960. Former Emperor Haile Selassie was a founder of the
Organization of African Unity (OAU), now known as the African Union (AU).
Addis Ababa also hosts the UN Economic Commission for Africa. Ethiopia is
also a member of the Intergovernmental Authority on Development, a Horn of
Africa regional grouping.

Although nominally a member of the Non-Aligned Movement, after the 1974
revolution, Ethiopia moved into a close relationship with the Soviet Union
and its allies and supported their international policies and positions until
the change of government in 1991. Today, Ethiopia has very good relations
with the United States and the West, especially in responding to regional
instability and supporting war on terrorism and, increasingly, through
economic involvement.

Ethiopia's relations with Eritrea remained tense and unresolved. Following a
brutal 1998-2000 border war in which tens of thousands died on both sides,
the two countries signed a peace agreement in December 2000. A five-member
independent international commission--Eritrean Ethiopia Boundary Commission
(EEBC)--issued a decision in April 2002 and follow-up observations in March
2003 delimiting the border between the two countries, but thus far the
parties have not agreed to final demarcation. The United Nations Mission in
Ethiopia and Eritrea (UNMEE) peacekeeping mission patrols a 25-kilometer-wide
Temporary Security Zone (TSZ) within Eritrea separating the two countries; a
few minor incidents of violence have occurred, all between local villagers
and militia or armed opposition groups supported by the other side. Both
countries insist they will not instigate fighting, but both also remain
prepared for any eventuality. Regarding its neighbor Somalia, the lack of
central government and factional fighting in Somalia contributes to tensions
along the boundaries of the two countries. Ethiopia has recently entered into
a loose tripartite (nonmilitary) cooperation with Sudan and Yemen.

U.S.-ETHIOPIA RELATIONS
U.S.-Ethiopian relations were established in 1903 and were good throughout
the period prior to the Italian occupation in 1935. After World War II, these
ties strengthened on the basis of a September 1951 treaty of amity and
economic relations. In 1953, two agreements were signed: a mutual defense
assistance agreement, under which the United States agreed to furnish
military equipment and training, and an accord regularizing the operations of
a U.S. communication facility at Asmara. Through fiscal year 1978, the United
States provided Ethiopia with $282 million in military assistance and $366
million in economic assistance in agriculture, education, public health, and
transportation. A Peace Corps program emphasized education, and U.S.
Information Service educational and cultural exchanges were numerous.

After Ethiopia's revolution, the bilateral relationship began to cool due to
the Derg's linking with international communism and U.S. revulsion at the
Derg's human rights abuses. The United States rebuffed Ethiopia's request for
increased military assistance to intensify its fight against the Eritrean
secessionist movement and to repel the Somali invasion. The International
Security and Development Act of 1985 prohibited all U.S. economic assistance
to Ethiopia with the exception of humanitarian disaster and emergency relief.
In July 1980, the U.S. Ambassador to Ethiopia was recalled at the request of
the Ethiopian Government, and the U.S. Embassy in Ethiopia and the Ethiopian
Embassy in the United States were headed by Charges d'Affaires.

With the downfall of the Mengistu regime, U.S.-Ethiopian relations improved
dramatically. Legislative restrictions on assistance to Ethiopia other than
humanitarian assistance were lifted. Diplomatic relations were upgraded to
the ambassadorial level in 1992. Total U.S. government assistance, including
food aid, between 1991 and 2003 was $2.3 billion. During the severe drought
year of FY 2003, the U.S. provided a record $553.1 million in assistance, of
which $471.7 million was food aid. U.S. development assistance to Ethiopia is
focused on reducing famine vulnerability, hunger, and poverty and emphasizes
economic, governance, and social sector policy reforms. Some military
training funds, including training in such issues as the laws of war and
observance of human rights, also are provided.

Principal U.S. Officials
Charge d'Affaires--Vicki Huddleston
Acting Deputy Chief of Mission--Brian Moran

Chiefs of Sections
Management--Brian Moran
Consular (Acting)--Julie Stufft
Political/Economic--Kevin Sullivan
U.S. Agency for International Development (USAID)--William Hammink
Defense Attaché Officer--Col. Richard Orth
Public Affairs--Anthony Fisher

The address and telephone/fax numbers for the U.S. Embassy in Ethiopia are
P.O. Box 1014, Entoto Street, Addis Ababa, Ethiopia (tel: 251/1/517-40-00;
fax: 251/1/517-40-01). The U.S. Embassy's Washington address is: 2030 Addis
Ababa Place, Washington, DC, 20521-2030. Embassy website: http://
addisababa.usembassy.gov/.