(5,784 words)
This year saw the Ethiopian millennium. Ethiopia's domestic and international situation remained highly unstable and was marked by violent tension. The political space was monopolised further by the ruling party, the Ethiopian Peoples Revolutionary Democratic Front (EPRDF), while the fragmented opposition was further undermined. The government released major opposition figures from prison after a questionable trial but made no further meaningful ‘reconciliation’ moves. Domestic ethnic and social dissent persisted, sometimes in violent form. The EPRDF continued to organise among the rural population, co-opting them into party structures. In the wake of Ethiopia's 2006 invasion of Somalia, a protracted terrorist campaign was mounted by remnants of the defeated Islamic Courts Union, targeting Ethiopian troops, Somali civilians and government officials. The redistribution effects of economic growth were limited and poverty remained widespread. Spiralling inflation severely affected the poor and middle class. There was drought, especially in the south. There were no solutions to the structural problems of the rural economy, climate change and the ecological crisis. The US and China provided international support for Ethiopia, while the EU continued to provide development funds. Relations with Eritrea were poor, with no headway being made in the border conflict, while the proxy war in southern Somalia and elsewhere intensified. Ethiopia's relations with its other neighbours were mainly stable.
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(5,784 words)