Poverty in Ethiopia, 2000–11

Abstract

Since the beginning of the twenty-first century, the Ethiopian economy has experienced strong economic growth and structural improvements. Rapid infrastructure growth, increased agricultural production and commercialization, better-functioning food markets, and a strong social safety net programme are all part of the changing economic landscape that is paying dividends in terms of poverty reduction. Yet measuring these dividends in Ethiopia is complicated by conceptual and practical data-related issues. This is not surprising, given the complexity of measuring poverty in a manner that is consistent over time and space, yet is also sensitive to local conditions. In this chapter a utility-consistent approach to calculating poverty lines is used to analyse poverty in Ethiopia. Poverty reduction has been steady but uneven. Although data comparability issues warrant care in determining the degree to which monetary poverty fell, the broader body of evidence paints a picture of substantive welfare improvements.