Updated November 27, 2018
Ethiopia
Ethiopia is Africa’s fastest growing economy, its second
Figure 1. Ethiopia: Key Facts
most populous country, and its oldest independent state. It
plays a key leadership role in the region. For the United
States, Ethiopia is an important development and regional
security partner, but it has also been a source of concern
regarding human rights and political freedoms. Relations
have centered on efforts to alleviate humanitarian crises and
endemic poverty in the country as well as to respond to
instability and terrorist threats in the region. Ethiopia has
been plagued by recurrent drought and food insecurity, and
the United States is its leading humanitarian aid donor.
Ethiopia hosts the African Union (AU) and is the world’s
largest troop contributor to U.N. peacekeeping operations.

Its peacekeepers play a lead role along the volatile Sudan-
Source: CRS map. Facts from CIA and IMF reference databases.
South Sudan border and in the U.N. Missions in Darfur and
South Sudan. Ethiopia also plays a critical role in efforts to
EPRDF leader Meles Zenawi, head of state from 1991 until
counter the Al Qaeda-linked group Al Shabaab in Somalia.
his death in 2012, was a powerful figure in Ethiopian and
As a member of the East African Intergovernmental
regional politics. He was credited with spearheading
Authority on Development (IGAD), Ethiopia has hosted
Ethiopia’s rapid economic growth over the past 15 years.
various regional peace negotiations. It hosts one of Africa’s
However, as leader of both the EPRDF (now an alliance of
largest refugee populations: almost a million refugees from
four ethno-regional parties) and one of its components, the
South Sudan, Somalia, Eritrea, and Sudan.
Tigray Peoples’ Liberation Front (TPLF), he also was
accused by critics of stifling dissent and ensuring that his
Ethnic and political tensions have spurred concerns about
minority Tigray ethnic group dominated the government.
Ethiopia’s stability in recent years. A violent crackdown on
protests in its populous Oromia and Amhara regions that
Current Political Context
began in late 2015 resulted in hundreds of deaths. The
Meles’ successor, Hailemariam Desalegn, surprised many
government placed additional restrictions on expression and
when he resigned in early 2018, to pave the way for
assembly under a state of emergency imposed from October
reforms. Abiy Ahmed was elected in late March to replace
2016 to August 2017; over 20,000 people were detained.
him, both as EPRDF chairman and as prime minister. At
The protests quieted briefly but surged again in late 2017,
42, he is Africa’s youngest leader. An ethnic Oromo and
increasing pressure on the government. Ethnic violence also
military veteran, Abiy has announced a range of initiatives
flared in parts of the country: over two million people have
to reduce divisions, both within the county and with
been displaced by conflict since mid-2017. The government
neighboring Eritrea. Even many critics of the EPRDF have
pledged reforms and in early 2018 released hundreds of
responded with cautious optimism to the release of
jailed regime critics. The pace of change quickened after
hundreds of political opponents from prison, changes to the
the election of a new prime minister, Dr. Abiy Ahmed, who
leadership of the security services, an end to the state of
has commenced political and economic reforms and
emergency, and Abiy’s outreach to opposition groups.
diplomatic efforts that could be transformative for the
Civic activists argue, though, that substantive reforms are
country. Resistance from hardliners and simmering ethnic
needed before elections, scheduled for 2020, are held.
tensions pose potential challenges to his reform agenda.
A tradition of authoritarian rule has impeded participatory
Background
democracy in Ethiopia, despite regular elections since the
Diplomatic relations between the United States and
overthrow of the Derg. The EPRDF has dominated
Ethiopia, one of two African countries that avoided colonial
elections since 1995. Polls in 2005 were marred by
rule, date back over one hundred years. In the 20th century,
violence, with an estimated 200 people killed by security
Ethiopia’s politics were largely dominated by three leaders.
forces during post-election protests and the detention of
Emperor Haile Selassie ruled from 1930 to 1974, when he
thousands of opposition members, journalists, and civic
was deposed by a socialist military junta known as the
activists. In 2010, the EPRDF won 99.6% of the votes in
Derg. Led by Mengistu Haile Mariam, the Derg was
elections that were generally peaceful but deemed unfair by
implicated in massive human rights abuses and policies that
U.S. and European monitors and governments. The EPRDF
contributed to a famine in which hundreds of thousands
won all 546 legislative seats and all but 21 of 1,987 regional
died. In 1991, the Ethiopian Peoples’ Revolutionary
state council seats in the most recent polls, in 2015. AU
Democratic Front (EPRDF), a coalition of ethnically based
observers called them technically “satisfactory” but noted
opposition groups, overthrew the Derg and took power.
concerns with laws limiting civic participation.
https://crsreports.congress.gov

---

Ethiopia
Critics contend that the EPRDF has stifled dissent through
signed in 2000 with Eritrea and cede disputed territories;
laws and electoral regulations that have given it a major
the countries have since taken steps to restore ties.
political advantage. The 2009 Charities and Societies
The Economy
Proclamation imposed stringent government oversight of
civil society groups, limiting foreign funding and restricting
Ethiopia has had one of the world’s fastest growing
activity aimed at promoting human and political rights. An
economies for over a decade. Its per capita income,
anti-terrorism law, also enacted in 2009, has been criticized
however, remains among the world’s lowest, and
for its expansive definition of terrorism, harsh penalties,
unemployment is high. Development indicators—literacy
and low standards for evidence. Ethiopia ranked among the
levels, rates of birth and infant mortality, life expectancy—
world’s most censored countries until 2018, with opposition
are improving. Ethiopia struggles with severe drought: 7.9
activists and journalists jailed on national security charges,
million Ethiopians face acute food insecurity in 2018.
amid reports of torture and other abuses by security forces.
Agriculture accounts for 70% of employment and a third of
Efforts to suppress dissent intensified in late 2015, as
GDP. Coffee is the largest export. The EPRDF has sought
protests over the perceived marginalization of the Oromo
to transform the economy through large-scale infrastructure
(the largest ethnic group) and the Amhara (second largest)
and electricity production projects, with the aim of making
escalated. The government responded with force and large-
Ethiopia a manufacturing hub, and by leasing large swaths
scale arrests. Ethnic clashes along the border of Oromia and
of agricultural land to foreign investors. It argues that the
Somali states in 2017 spurred large-scale displacement and
land leases bring critical foreign investment and large-scale
a new round of protests in Oromia began. Under pressure,
agricultural production that will spur growth. Such leases
the EPRDF launched a process of “deep reform,” and in
have displaced farmers, however, and human rights groups
January 2018 Hailemariam announced that “political”
suggest that some of the resettlements are forced. Concerns
prisoners would be released. Some hardliners reportedly
have also been raised about forced relocations and the
resisted, and a new state of emergency “to restore law and
environmental impacts of hydroelectric projects, notably
order” raised concerns about the commitment to change.
the Gibe III and Grand Ethiopian Renaissance dams. The
latter is Africa’s largest hydroelectric power project and
Abiy’s election suggests that reformers in the EPRDF are
would allow Ethiopia to export electricity to its neighbors.
ascendant, though not all welcome his agenda. He has
It has been a source of tension with Egypt, which is
invited critics in exile and former insurgents to return. In a
concerned the dam would stem the flow of a critical water
major August 2018 shakeup, he replaced the leadership of
supply on which Egypt relies.
oil-rich Somali regional state; top officials were arrested for
ethnic and religious incitement and abuses linked to a long-
Ethiopia’s ambitious development agenda, while fueling
running counterinsurgency campaign. Dozens of senior
economic growth, has led to a risk of debt distress, and a
security officials have also been arrested for human rights
severe foreign exchange shortage has reportedly deterred
violations and corruption, shaking the system and testing
investors, including China. Prime Minister Abiy has begun
the loyalty of the security forces. Abiy has appointed an
to open state enterprises and some sectors to foreign
unprecedented number of women to senior posts, including
investors. The banking sector, however, remains closed.
defense minister and head of the supreme court. The
U.S. Policy and Foreign Assistance
parliament has appointed Ethiopia’s first female president
(a largely ceremonial post). Abiy shocked many with his
Ethiopia’s stability and prosperity have been key priorities
choice of Birtukan Mideksa—a former judge, opposition
for U.S. engagement given its size and susceptibility to
leader, and political prisoner—to manage elections.
food insecurity, and its position in a volatile but strategic
region. The State Department describes Ethiopia as one of
Regional Concerns and Relations
the most effective U.S. development partners, though
Instability in neighboring Somalia is a top security concern
concerns about restrictions on political and human rights
for Ethiopia. Its troops deployed there in 2006 to oust a
have complicated diplomatic engagement and security
network of Islamist court militias that had seized control of
cooperation, and led Congress to condition some aid.
Somalia’s capital. That led to a long campaign against Al
Bilateral aid to Ethiopia, most of it for development, health,
Shabaab and other insurgents. Ethiopia joined the U.N.-
and food programs, totaled over $900 million in FY2016
mandated African Union Mission in Somalia (AMISOM),
and almost $750 million in FY2017. The Trump
to which it contributes over 4,000 troops, in 2014.
Administration’s FY2019 request of $227 million is, like
Ethiopian concerns in Somalia are linked to domestic
the FY2018 request, significantly lower than prior aid
considerations regarding its own ethnic Somali population
requests. Health and education programs could face major
and other factors, including regional influence and
cuts, as could agriculture and safety net programs.
prospective economic opportunities and port access.
Humanitarian aid, allocated separately, totaled over $480
Apart from Somalia, Ethiopia’s main regional concern has
million in both FY2017 and FY2018. Ethiopia continues to
been its antagonistic relationship with Eritrea, which
benefit from Feed the Future and Power Africa, which
seceded from Ethiopia in 1993. The countries fought a
respectively fund agricultural development and energy
deadly border war in the late 1990s, and a lingering border
projects. Some types of U.S. support, including for
dispute created a standoff between the two. They supported
governance and security reforms, could expand under Abiy.
proxy forces in the region against each other, including in
Somalia. In June 2018, Abiy extended an olive branch,
Lauren Ploch Blanchard,
announcing that Ethiopia would comply with a peace deal
IF10185
https://crsreports.congress.gov

---

Ethiopia


Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF10185 · VERSION 12 · UPDATED

---