288
Determinants of growth since 1991 include notable economic policy changes
undertaken by the current government. Some of these were domestic currency
devaluation, price control removal, trade liberalisation, privatisation of public
enterprises, and opening up the economy to foreign investment. Focusing
on the poverty agenda, in 1992 government adopted the Agricultural
Development Led Industrialisation (ADLI) strategy which provided
the basis for subsequent policies and national poverty reduction strategies. The
ADLI aimed, inter alia, at: i) transforming the Ethiopian economy into a fully
market-based economy; ii) promoting labour-intensive agricultural growth; and
iii) devolution of power from the capital to the states.
289
In recent years, economic growth has been driven by the significant performance
of the services and industrial sectors, although agriculture continues to remain
the mainstay and driver of the economy (Figure 2). With a share of about 58
percent of GDP in 1997, agriculture’s contribution to GDP declined to 46 percent
in 2007. The contribution of services grew from 32 percent in 1997 to over 40
percent in 2007. Similarly, the share of the industrial sector grew from about 11
percent in 1997 to over 13 percent in 2007. These are signs that government
economic diversification efforts are yielding positive results.
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