ABSTRACT
Ethiopia is bordered by Somalia on the east, Kenya on the south, the Sudan on the west and Djibouti and the Red Sea on the north-east. The 1974 revolution came at a time of declining American influence in and support for Ethiopia. Since the revolution, the economy has been fundamentally altered by domestic policies and foreign developments. The economy revolves around agriculture. Agriculture was recognised as the mainstay of the economy, and agricultural land the main national asset. In February 1979, Ethiopia launched an economic development campaign, the National Development Campaign, with the declared long-term aim of laying the foundation of a socialist community. As part of the transition to a centrally-planned economy the role of the public sector in foreign trade was expanded. Ethiopia’s foreign policy after the revolution was similar to that during the reign of Haile Selassie.
