Ethiopia, Crisis of a Marxist Economy

Analysis and Text of a Soviet Report

by Paul B. Henze

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 6.6 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback141 pages $30 $24.00 20% Web Discount

This report analyzes and reproduces a critique of the Ethiopian economic crisis written in 1985 by Soviet State Planning Commission (GOSPLAN) advisers to the Ethiopian government. Between 1974 and 1984, grain production fell from 172 to 146 kg per year, exports declined 67 percent, and military spending rose from 49 percent to 59 percent of the national budget. In the face of this drastically deteriorated economic situation, the GOSPLAN advisers recommended a "new economic policy," i.e., a temporary return to greater economic freedom, to ease the transition from capitalism to socialism. The GOSPLAN report ignores the burden that increased military expenditures and continued military operations place on the economy; moreover, it gives no hint that Moscow might increase its economic aid. The Ethiopian leadership, meanwhile, has failed to take advantage of the Soviet recommendations to slow the collectivization of agriculture, and the private sector in trade and industry operates under severe restrictions and the threat of further nationalization. More and more of the economy is slipping underground, out of regime control.

This report is part of the RAND Corporation report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.