trade

• coffee is 28% of all exports
• total exports value = $3 billion
• vegetables and legumes = 15% of exports
• flowers in highlands and commercial fields = 7% of exports
• livestock over 170 million animals = 23% of exports
• trade = exchanging, buying and selling services or products with other countries
• most exports are on agricultural exports is risky = Ethiopia has warm climate because they can have droughts - cant grow crops = cant trade = cant develop and less money
• not likely to develop its current economy because there is a trade deficit = $11 billion imports (trucks and diesel) and $3 billion exports (agriculture)
• TNC = transnational companies
• TNC is a global company that has factories and offices in different countries around the world
• Pros of TNC effect on development = employment, development projects, brings money in through taxes and spends it on services, invest in infrastructure
• cons of TNC effect on development = can pull out anytime - takes jobs and wealth, profits don't benefit Ethiopia - only the ACs, large businesses close smaller ones, environmental problems are caused from mining eg. deforestation
• 1.4 million young people are looking for jobs every year = cheap labour - attracts companies to Ethiopia
• H&M: Ethiopia was the first African country to have business with H&M in 2013 - the textile industry had taken off
• H&M invested $15 million through a loan to develop the textile industry
• H&M: provides jobs for 4,000 people, teaches them skills and knowledge, decent work conditions, jobs for women, sustainable products and work, gives sick pay and medical pay, allows for advancement, base salary above average, Ethiopia gained $75.28 million from textile exports = more money to develop and invest and pay of debt
• cant earn more money as the prices for textiles are going up and down
• cons of working for TNCs = low pay rate, smell from the work, works long ours and days for small pay, cheap labour, exploit workers
• one thing about growth and transformation plan = seeking investment in renewable energy = will increase amount of secondary and tertiary jobs = jobs will increase skill level and income - can do more advanced work and earn more money to support themselves
• another aspect of growth and transformation plan = increase road network = will increase connectivity in Ethiopia = more people can get job sin city by traveling - get more money from better paying jobs in the city
• one top-down strategy = growth and transformation strategy: builds dam to increase hydroelectric power and water reserves, improve infrastructure - roads, successful at decreasing poverty - more jobs in construction to get a wage, manufacturing is key aim - now 8% of all exports - created first railway in Africa - public transport and connectivity is increases
• bottom up strategy = farm Africa: aim to boost Africa's harvests, build rural incomes, sustain natural resources (Africa has 60% of worlds uncultivated land), work with communities to help locals find ways to increase food production
• one example of farm Africa project = sweetening the forest: aims to conserve natural materials, strengthen forest and support rural women - Ethiopian beeswax has high price - trains people to create beehives out of bamboo (sustainable) and is cheaper and requires less skill - sustainable as it uses bamboo instead of hollowed trees - protects forest - bad as beehives has high price = hard to trade so no income = cant develop
• Ethiopia needs international aid = get $550 million every year
• Ethiopia needs aid because: water well is nearly dry - needs clean water, drought - lack of irrigation - cant grow crops or drink - dehydration and no food to eat or sell, no food - weather too harsh - malnourishment - causes deaths (high child mortality rate)
• negatives of international aid = aid doesn't reach the people who need it - government use aid to help selves, become reliant on aid and prevents them developing trade links to get them out of debt deficit and poverty, helps in the short term and hinders in the long term
• positives of international aid = many forms = humanitarian or multilateral, aid is necessary in crisis situations like natural disasters, has a positive impact on people - builds schools to educate children and bring better wage in, research for medicine to decrease mortality rate and increase quality of life