If you want to travel to the federal republic in the Ethiopian highlands, you first have to climb 2,000 to 3,000 metres in altitude from the surrounding deserts. But there, a completely foreign culture opens up – and yet the same problems as everywhere else in Africa. At the turn of the millennium, Chinese poverty figures even lag behind those of one of the poorest African countries – but within a few years, this development turns around. China is effectively eradicating poverty, while Ethiopia is lagging behind. Reason enough to take China’s development model as a model.
In addition to massive public investments, it is drawing on China’s successful model of New Structural Economics. Using its leather sector as an example, we describe how Ethiopia integrated itself into global value chains and thus became an economic lion on the African continent within a few years.
Read more about how Ethiopia is pushing its domestic economy to raise the living standards of its citizens in Africa’s Century – Is the Grip on Prosperity Working?