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Political changes in Ethiopia, triggered by the Popular conduct of techno-economic and feasibility studies. This conRevolution in 1974, however, have not in the least affected the tinued from 1965 under the Indian Technical and Economic warmth, goodwill and regard for India and Indians with whom Cooperation programme, known by its acronym ITEC. After Ethiopians had enjoyed close customary cultural, social and the visit of the then Ethiopian President Mengistu Haile business links. India is one of the few countries with which Mariam to India in December 1985, assistance under this prorelations are firmly based on grassroots support and even the gramme was expanded considerably. India also has cooperanormally xenophobic Ethiopian finds it the most natural thing tion arrangements with Ethiopia in the field of defence since to support good relations with India. India continued to extend the early 1960s, when it set up a Military Academy at Harar its cooperation to the Ethiopian people, significantly in areas for training officers. The Harar Military Academy, which was of technical cooperation and development of small-scale originally designed and established by the British, was later run industries. Indian universities and institutions of higher learn- by the Indian Army officers delegated by the Indian Military ing began to receive large numbers of Ethiopian students pur- Academy, Khadakhvasla, near Pune, India. suing professional and higher studies. After the 1974 revolution in Ethiopia, India was perhaps one of the few countries Trade and Bilateral Cooperation with which its relations were never hostile, unlike with most of the Western, Arab or even other Asian countries. India’s In 1982, India and Ethiopia signed a trade agreement and a support to Ethiopia during the Ethiopian-Somalia war of memorandum of understanding on commercial, technical 1977-78 over the Ogaden is remembered with gratitude. and scientific cooperation which identified a number of fields Ethiopia and India supported each other in the United such as agriculture, development, consultancy, handicrafts, Nations and the Non-Aligned small-scale industries, transportaA Joint Trade Committee (JTC) tion, manpower development, etc. In Movement (NAM). Ethiopia paid close attention to India’s policies and July 1987, the Ethiopian Handicraft was constituted which held a postures on disarmament, Northand Small Industry Development number of fruitful meetings South dialogue, South-South coopAgency and the National Small subsequently. The volume of eration, the Indian Ocean and Industries Corporation of India numerous other issues. President trade, though small, has grown signed an agreement for developing Mengistu Haile Mariam visited around 38 different types of machingradually and in 2001-2002 India in 1983 (NAM Summit) and ery for utilisation in setting up smallcrossed the $100 million mark in 1985. India’s sympathetic attitude scale industries in Ethiopia. towards the problems of economic with exports from India valued at Since 1991, with the coming into development of African countries power of the EPRDF regime in $90.4 million and imports from Ethiopia and liberalisation of both and their sensitivities has struck a Ethiopia at $18.4 million. chord with Ethiopia. Viewed against the Indian and the Ethiopian this background, it is, therefore, not economies, political and business ties Bilateral trade stood at mere surprising that there has been a between the two countries have $12.9 million a decade earlier, remarkable intensity of bilateral grown significantly. After liberalisain 1992-93. exchanges in diverse fields charaction, the Indian economy is now on terising the Indo-Ethiopian relations. the verge of sustained increase in Most of these exchanges are connected with the upgrading of domestic demand due to rising per capita GDP and the Ethiopian skills for which India has been identified as a pre- increasing globalisation of India’s capital markets. These, couferred source. Ethiopia considered India’s experience in grap- pled with the availability of low-cost, high-quality manpowpling with the problems of economic reconstruction after er, offer attractive opportunities for business in India. India is independence as more relevant in its present context and has one of the largest emerging market economies in the world, tried to pattern its development and institutions after India’s. with a GDP of over $1 trillion. Its improved macroeconomics, Ethiopia has been keen to study India’s experience in sugar trade and investment-friendly initiatives, and low-cost, hightechnology, textiles, small-scale industries, engineering indus- quality manpower base offer significant opportunities for busitries, agriculture, water resources management, and, more ness. By 2040, India is expected to emerge as the world’s thirdrecently, information technology and telemedicine. Ethiopian largest economy. Home to more that one billion people, India Prime Minister Meles Zenawi visited India in 1997. There accounts for one-sixth of the world’s population and in less were many other exchanges of high-level delegations between that 10 years, it is expected to be the world’s most populous the two countries in more recent years. nation. India has also been providing modest economic and techEthiopia also has introduced rapid political and economic nical assistance to Ethiopia. Such assistance has mainly been changes and reforms since 1991. From 1974 to 1991, the in the form of training facilities and scholarship to Ethiopian Ethiopian economy was run on the basis of a Central nationals in academic and technical institutions, deputation of Command System. After the collapse of the Derg regime in Indian experts, donations of food grains, medicines and hand- 1991, the new government of Ethiopia has endeavoured to looms, agricultural equipment, books and publications and the steer the economy from the Central Command System to a


February-April 2007


February 2007-April 2007