Position Paper On State Of Poverty In Ethiopia. Nathan

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Position Paper on State of Poverty in Ethiopia
Nathan Dawson

Poverty is defined to be a state when “[A person’s income is below] a minimum income level used as an official standard for determining the proportion of a population living in poverty.” (‘poverty line’, 2016). In 2015, the USD purchasing price the international poverty line was set at $1.90 (Worldbankorg, 2016).

Ethiopia, on average, falls well below said poverty line with the “real income per capita (income after inflation based on year 2000 prices), which is used to measure standard of living, was only $131” (Teferra, 2013) This means that the average income of a person, when inflation is taken into account, works out to be roughly $0.36 per day. This leads to …show more content…

This lack of education leads to a situation where skilled workers are in a shortage. For example, only 6% of births were attended by skilled workers in Ethiopia in 2012 (, 2012). This helps to spur on the effect of poverty as there is not enough skilled workers to meet the demands due to the overstretched state of education in Ethiopia.

Currently, Ethiopia is taking steps to help reduce poverty.

One such way is the introduction of new farming practices which “has allowed for a 4 percent reduction in poverty each year (since 2005)” (Rau, A. et al., 2016). This has allowed for a greater supply of food, therefore reducing the living costs of individuals in Ethiopia; as well as providing jobs on farms.

Another way Ethiopia is fighting poverty is via the implementation of the Product Safety Net Program. This works by ensuring that everyone has enough food to survive by the trading of food and money, to help relieve insecurities about food shortage. “The PSNP has helped 1.5 million people who were in poverty to be lifted out of poverty.” (Rau, A. et al., 2016).

Further cutting military spending will also continue to help Ethiopia’s economic growth as the military budget has been cut from 4.8% of the GDP in 2001 to 0.8% in 2012 (, 2012). This cut in spending on the military will allow for tax funds to be

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