Special report | Ethiopia and Kenya

Doing it my way

An ideological competition between two diametrically opposed economic models

Ethiopia ploughs on with state control

ETHIOPIAN BORDER GUARDS at the arrivals terminal in Metema check every passport against a handwritten list of undesirables to be kept out. This a country in which the state knows best. That may be tiresome for visitors, but it has made Ethiopia one of Africa’s development stars. A newly built road leading away from the border is surrounded by intensively farmed fields of sesame, Ethiopia’s second-biggest export after coffee. Golden bundles of harvested stalks sit on fields flanked by streams. It is a long time since famine-struck 1984, when Bob Geldof sang about the country “where nothing ever grows / No rain or rivers flow / Do they know it’s Christmas time at all?”

Now it is Christmas time in Ethiopia, up to a point. The country has a state-backed policy of boosting the economy and alleviating poverty, carried out by officials with near-dictatorial powers. Markets and foreign investors are allowed but mistrusted. The model borrows from China and is conceived as a rejection of Western free-for-all capitalism. It claims to nurture local employers and protect them from Wall Street predators. The government talks vaguely about moving to a liberal democracy in the future, but that is a long way off. The economy comes first. Meles Zenawi, the country’s late prime minister, developed a vision for the country of 85m that focuses mainly on improving its agriculture, which accounts for 46% of GDP and employs 79% of the workforce.

This article appeared in the Special report section of the print edition under the headline "Doing it my way"

Send in the clowns

From the March 2nd 2013 edition

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