Inclusive Growth and Inequalities in the Context of Structural Transformation: Evidence from Ethiopia

Abstract

Ethiopia’s structural change has yielded impressive economic growth. With various forms of inequalities weakening the poverty reducing impact of this growth, there is increasing pressure for equitable and shared growth. This article investigates the forms of inequalities in Ethiopia and offers possible remedies. It shows that urban inequality remains higher than rural inequality, despite a slight narrowing because of favourable pricing for agricultural commodities and a large-scale social safety net programme. Key to addressing inequality is: sustaining the social protection intervention; providing decent jobs; enhancing opportunity; and fair representation.