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Ethiopia constitutes a part of the Horn of Africa and its neighboring countries include Eritrea, Djibouti, Sudan, Somalia and Kenya (Cities of the World, 2002). Ethiopia roughly has an area of 1,127,127 square kilometers. Strikingly, though 85 percent of the Ethiopians rely on animal husbandry and agriculture for sustenance, still merely 12 percent of the land area of Ethiopia is arable (Cities of the World, 2002).


The major ethnic groups inhabiting Ethiopia are Oromo (40 percent), Amhara (20 percent), Tigrayan (12 percent) and Sidama (9 percent) (Cities of the World, 2002). Amharic happens to be the Official language of Ethiopia. The other languages spoken in Ethiopia include English, Italian, Tigriyna, French, Oromiffa, Arabic, Afara and Somali (Cities of the World, 2002). Nearly 45 percent of the Ethiopians happen to be adherents of Ethiopian Orthodox Church while an approximately the same number are affiliated to Islam.
Since the fall of the Marxist regime in 1991, Ethiopia has decentralized its economic planning and has opted for open market policies (Cities of the World, 2002). Agriculture stands to be the most promising sector in Ethiopia that contributes more then 50 percent of its GDP and roughly 80 percent of all the Ethiopian exports (Cities of the World, 2002). Ethiopia has one of the most underdeveloped infrastructures in Africa.
The economic problems in rural Ethiopia happened to be rampant and widespread. Thus, the unleashing of agrarian reforms in Ethiopia was essential to give boost to its ailing economy. ...
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