Abstract Ethiopia transformed from a state on the verge of collapse at the end of the Cold War into one of the world's fastest-developing economies and a regional power in the Horn of Africa in less than two decades. Since 2018 its economic, military and diplomatic status have, however, become significantly compromised yet again. What explains these significant fluctuations in regional power status? Drawing on policy documents and in-depth interviews with diplomatic, military and political officials from the Horn of Africa this article conducts a comparative analysis of the nature and variation of Ethiopia's regional power status under the Ethiopian People's Revolutionary Democratic Front (EPRDF) in 2000–2018 and the Prosperity Party (PP) in 2018–2022. The findings illustrate that the fluctuations in regional power were primarily caused by different grand strategies, which in turn reflected the priorities of the EPRDF's developmental state and the PP's restorative nationalist ideologies. These grand strategic concepts shaped Ethiopian government policies on key issues like defence doctrine, status-seeking, economic development, and rivalry and alliance management. These policies had a direct and significant impact on Ethiopia's state capacity, its ability to project military power and its diplomatic influence.
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