The Current Internal Political Dynamics Of Ethiopia and its Economic Impact in the Horn Of Africa

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Date

2019-07

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Addis Ababa University

Abstract

One of the recent important developments in the of Horn of Africa, is the internal political reform in Ethiopia. This changed the politics of the region and determined the type of relations that the Horn countries should have. As far as the relationship between the Horn countries have been characterized as hostile, and dominantly by mutual intervention through backing one another‘s political oppositions. However the on-going political reform in Ethiopia brought about regional peace prospect. This thesis is concerned with the study of the current internal political reform, its economic impact and the implication to regional economic integration. To this end, the study aims at describing and analyzing the extent to which factors that contributed the internal political reform of Ethiopia. Accordingly, In terms of research methodology, qualitative approach was employed. In this study, both primary and secondary sources of data was collected both from primary and secondary sources of information. The primary sources of information were collected through a series of semi-structured interviews with key informants. Apart from this, secondary sources of information were also collected from relevant literature, such as books, internet sources, journal articles, published and unpublished materials, news releases, agreements concluded and other documents are also used in the final analysis of the study. Qualitative method was used as data analysis technique. The study identified the economic impact of the current political reform in Ethiopia to the neighboring countries, such as; the reform brought about rapprochement between Ethiopia and Eritrea, this lead to the opening the border that helps free movement of people and encouraged cross border trade that led to decline the price of some commodity in Eretria, lifting the sanction which helps Eritrea to apply for new sources of credit and investment, free movement, free trade and also has several economic benefits for Eritrea and prospect of Ethiopia using the port Eritrea that helps as means of income generating this event will have negative impact to Djibouti could be decline the income earned from Ethiopia import and export traffic but this can happen in long run. The study also identified some implication to the economic integration of the region; the primer has paid maximum attention to regional cooperation and integration issues. For instance by brought peace and stability in the region, Ethiopia approved its membership to the Africa Continental Free Trade Agreement it is a part of integration dimension, and Ethiopia is about to change of the Foreign Affairs and National Security Policy and Strategy by giving more attention to the neighboring countries. Based on the empirical discussions, the study concludes that the political reform in Ethiopia brought about positive economic impact to neighboring countries and has good implication to regional Economic integration.

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The Current Internal Political Dynamics Of Ethiopia and its Economic Impact in the Horn Of Africa

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