Anatomy of Foreign Aid to Ethiopia: 1960-2003

The purpose of this study is to present a portrait of the foreign aid flow to Ethiopia during the 1960 to 2003 period. Since the launch of Marshal Plan after World War II, the flow of foreign aid has been seen as the panacea to overcome underdevelopment. Ethiopia is not an exception to this view, and Ethiopia is one of the recipients of foreign aid not only to provide emergency relief but also to support long-term economic development. This study shows the flow of aid to Ethiopia in terms of major donors (bilateral and multilateral), method of delivery, and major recipient sectors/purposes. The study attempts to answer the following questions: Which are the major donor countries? For what purposes has the aid been given? For which sectors has the country been receiving aid? Further, during the study period the country has twice experienced changes in government. How have the composition, donors, and purposes of aid changed with the changes of government? The paper attempts to present aid flows for the country's three government regimes. The study will use detailed aid data collected from donors by the OECD and recently made available. This study does not attempt to link the flow of aid to the progress, economic or otherwise, that has ensued from the flow of aid.