Ethiopian and the World Bank Economic Cooperation – Past and Present
In the past decade, the Ethiopian economic, social and political environment has been changing steadily on the back of the annual double-digit economic growth witnessed throughout the period. The pro-poor economic strategy implemented by the government in the past decade resulted in the lifting out millions of citizens from extreme poverty which paves the way to middle-income country status in 2025.
The progress observed in the country was not only limited to fast economic growth, but this was achieved on the background of stable macroeconomic environment. As witnessed by various studies and analytical works related to the performance of the Ethiopian economy, Ethiopia's growth is what could be classified as shared-growth. That is why Ethiopia’s fast economic growth is also distinctive in its nature since it benefited millions of poor citizens from the economic boom.
The achievement being witnessed in Ethiopia is a result of appropriate policies and strategies, government commitment, effective implementation strategy, mass mobilization of the population to the cause and very supportive development partners. One such supportive development partner is the World Bank Group.
In one of its recent reports (World Bank, 2015), the Bank states the following about the country's achievements in the past years as follows: the World Bank witnessed Ethiopia’s accelerated economic growth and its positive effect on the citizens particularly, towards the poor. The report states:-
“Ethiopia has witnessed rapid economic growth, with real gross domestic product (GDP) growth averaging 10.9% between 2004 and 2014, which is lifting the country from being the second poorest in the world in 2000 to becoming a middle income country by 2025, if it continues its current growth trajectory.This pace of growth is the fastest that the country has ever experienced and it also exceeds what was achieved by low-income and Sub-Saharan African countries in that period.”
Thanks to the Ethiopian Government pro-poor focused economic and development strategy and its development partners who have been working aligned with the government’s strategic plan, a remarkable economic growth has been achieved. To this effect, the contributions of multilateral and bilateral development partners were tremendous.
Thus, this article is devoted to highlighting the contributions of one of Ethiopia’s development partners namely, the World Bank. In this article, we will assess the economic cooperation and partnership of Ethiopia and the World Bank Group in brief.