Poverty remains one of Ethiopia’s most pressing challenges, as it does for many developing countries. But like India—which has recently showcased remarkable success in reducing poverty—Ethiopia has an opportunity to accelerate its own progress by adopting inclusive, data-driven policies that deliver growth and welfare gains for all segments of society. The story of India’s fight against poverty offers valuable lessons on the role of sustained economic growth combined with targeted social programs, transparency, and political commitment. As Ethiopia strives to realize its developmental ambitions, these insights can help shape policies that uplift millions from deprivation while fostering social cohesion and democratic accountability.
At its core, poverty is more than a lack of income or access to basic needs. It is an affront to human dignity, obstructing social mobility and preventing marginalized populations from participating fully and equally in civic and economic life. Reducing poverty is, therefore, not only a moral imperative but also a critical metric of good governance and democratic responsibility. Ethiopia’s elected leaders must recognize that inclusive development is fundamental to sustaining peace, political stability, and long-term prosperity.
India’s recent progress has been extraordinary. After over a decade of rapid economic growth, the country has witnessed a dramatic decline in both rural and urban poverty. According to a rigorous new metric developed by experts led by former Reserve Bank of India Governor, India’s extreme poverty rate dropped from nearly 30% in 2011-12 to under 4% by 2023-24. In absolute terms, over 300 million people escaped extreme poverty within this timeframe—a staggering achievement that dwarfs progress in many other countries.
Ethiopia, too, has made important strides. Over the past two decades, the country has reduced poverty rates significantly through agricultural reforms, expanded social protection programs, and infrastructure development. However, challenges remain, particularly in rural areas, where poverty is often intertwined with limited access to education, health services, and markets. To build on its momentum, Ethiopia must deepen reforms that ensure economic growth translates into tangible welfare gains for vulnerable populations.
One key lesson from India is the importance of nuanced, multidimensional metrics that capture not only income poverty but also deprivations in nutrition, education, and living standards. Ethiopia must continue investing in data collection and analysis to better monitor poverty’s various dimensions and tailor policies accordingly. Transparent, reliable data foster accountability and help governments allocate resources to the most pressing needs.
Another insight is the impact of inclusive welfare policies that reach disadvantaged groups across social and religious divides. India’s experience demonstrates that well-designed universal and targeted programs can benefit marginalized communities—such as Scheduled Tribes, Scheduled Castes, and religious minorities—reducing inequalities and narrowing poverty gaps. Ethiopia’s diverse population demands similarly inclusive approaches that address historical inequities while promoting cohesion and opportunity for all.
Vocational skills development and education have also proven vital. India’s progress partly stems from programs that enhance human capital and link citizens to emerging job markets. Ethiopia faces a youth bulge and structural transformation that require a workforce equipped with relevant skills. Expanding technical and vocational training, aligned with evolving industry needs, can improve youth employability and increase incomes, helping break cycles of poverty.
Furthermore, urbanization and rural-urban linkages play a key role. India’s decline in urban poverty parallels rapid city economic growth and improved social safety nets. Ethiopia’s urban centers can become engines of inclusive growth if they expand affordable housing, infrastructure, and services, and channel rural migrants into productive employment opportunities.
Ethiopia’s government must commit to maintaining macroeconomic stability while fostering an enabling environment for private sector investment and entrepreneurship. Poverty reduction depends on creating jobs, driving productivity, and expanding markets where disadvantaged groups can participate meaningfully.
Importantly, political leadership must uphold democratic principles beyond elections—ensuring that all citizens, especially the marginalized, have voice and benefit from economic progress. Poverty reduction is both an outcome and a driver of democratic legitimacy, social peace, and nation-building.
Ethiopia currently confronts complex challenges, including conflicts and climate shocks, which threaten fragile gains in development. But these hurdles also underscore the urgency of adopting integrated, evidence-based policies that marry economic growth with social protection, human capital development, and environmental resilience.
By learning from global examples—embracing transparency, inclusiveness, and data-driven planning—Ethiopia can craft a poverty reduction strategy that is both ambitious and achievable. The fundamental goal is clear: ensure that no Ethiopian is left behind as the country advances toward sustainable prosperity.
In doing so, Ethiopia will honor its democratic mandate and fulfill a historic opportunity to improve the lives and dignity of millions—transforming poverty from a permanent condition to a temporary challenge resolutely overcome.
