High GDP Growth Rate XXXVI. Ethiopia has one of the fastest growing economies in the world with a fast growing annual GDP. In 2007 and 2008, with a GDP growth rate of 11.5 percent, it was one of the fastest growing non-oil dependent African nations. Challenges XXXVII. While notable progress has been achieved in pursuit of political and economic reforms, the country still faces a number of challenges that, if not properly and diligently addressed, could complicate its quest to improve the welfare of the majority of its people. Poverty XXXVIII. While there has been unparalleled development, Ethiopia is still one of the poorest countries in the world. At US$340 (average for the 2007-09 period), Ethiopia’s per capita gross domestic product (GDP) is much lower than the subSahara African average and only slightly above the levels reached in the early 1970. The United Nations Human Development Report (HDR) 2009, recently ranked Ethiopia as 171 out of 182 countries surveyed with an HDI score of 0.414. Deepening Political Reforms and Democratisation XXXIX. Although the Ethiopian people have demonstrated a penchant for political participation there are inherent contradictions. The period since 1991 has witnessed significant political institution-building and democratic reforms in Ethiopia but the political process is still closely controlled by the ruling-Ethiopian People’s Revolutionary Democratic Front. There is also a tremendous deficit in political engagement by key actors. Ahead of the general elections in 2010, there was escalating tensions between the long-entrenched ruling party and the opposition. Even after the elections, the relationship between the opposition and ruling party in Ethiopia is rather tense. XL. Ethiopians in large measure needs to transcend the historical psyche of vindictive politics, presumptuousness, confrontation and divisive actions. The path to democracy and good governance is non linear but bumpy. Tolerance, pragmatism, cooperation and compromise are essential values that greatly help democracy to function smoothly. A culture of constructive engagement and dialogue needs to be cultivated to reconcile differences among politicians and also vis à vis the larger Ethiopian society. Not only is democracy critical for Ethiopia but it is also the sole guarantee for the survival of this multi-national, multi-religious and multi-cultural nation/state. - 31 -