Based on the new economic policy, the Ethiopian government formulated a long-term economic development strategy known as -Agriculture -Led -Industrialization which is devised towards the renovation of the backward economic structure. It is a two-sided strategy, integrating:
• on one side the external sector (export -led part) and
• on the other the internal sector which explains the forward and the backward -relationship between agriculture and industry
In other words, agriculture will provide commodities for exports, domestic food supply and industrial output; and enlarge market for domestic manufactures. The mining sector is anticipated to give a momentum to the development of the export sector.
The country’s development strategy is maintained by an economic reform programme developed in cooperation with the World Bank and the International Monetary Fund (IMF) and on a series of structural adjustment programmes.
Encouraging gains have been made from the reform programme, particularly as a result of liberalization, low inflation, fiscal discipline and low government borrowing, infrastructure improvement and the growth of the private sector.
Keywords: Agriculture -Led –Industrialization, ADLI, economic policy,