Ethiopia’s rapid economic growth is one of the great stories of the 21st Century, but there are signs that the country’s boom may not be sustainable. Recent reports suggest government spending, not improved productivity, has been boosting economy. If the government’s investments don’t prove fruitful, and tax revenues don’t increase, the Ethiopian economic miracle could be in peril.
In 2000, Ethiopia, the second-most populous country in Africa, was the third-poorest country in the world. Its annual GDP per capita was only about $620 (in 2011 dollars). More than 50% of the population lived