The PRSP identifies poverty reduction as its core objective. The latest version of the PRSP, known as Plan for Accelerated and Sustained Development to End Poverty (PASDEP), covers five years, 2006 -2010 and focuses on the following eight elements.

1. A Boost To Accelerate Growth: Recognizing that economic growth is the only sustainable way out of poverty, this element of the PASDEP is strongly centered on modernization of agriculture and promotion of growth in the non-farm private sector.

2. A Geographically Differentiated Strategy: Given that Ethiopia is a geographically and culturally diverse country, the PASDEP makes a point on rooting development work locally by encouraging diverse approaches based on the particular needs of different areas of the country.

3. Addressing Population Growth Challenges: The current annual rate of population growth in Ethiopia undermines largely, if not entirely, the yearly economic growth the country achieves. Recognizing this, the PASDEP pays particular attention to address population growth issues.

4. Promoting the Potential of Ethiopia’s Women: The potential of Ethiopia’s women is mostly untapped. The PASDEP recognizes women as a resource and therefore it makes a specific effort to improve the participation of women and girls in key social and economic activities.

5. Strengthening the Infrastructure Backbone: Infrastructures facilitate connection and integration of people and represent the foundation of social and economic development of a country. The PASDEP includes major expansions of the road networks, water supply, energy and telecommunications in the Country.

6. Managing Risk and Volatility: When a country is mired in deep poverty as Ethiopia, the spread of a major disease or a crop failure could put households in life threatening economic jeopardy. This pattern of volatility is present on almost every area of the country. PASDEP aims to address country’s exposure to risk and volatility.

7. Scaling up to reach the MDG’s: This element sets targets for the PASDEP period regarding the reduction of infant and maternal mortality, education, health and access to drinking water. It also includes a major effort between the government of Ethiopia and its partners to increase the level of foreign aid in order to finance the process to reach these targets and, eventually, increase efficiency and service delivery.

8. Creating jobs: Unemployment in Ethiopia, especially in urban areas is a serious challenge. To face it, the government acts on two levels: managing the dynamics of population growth and expanding productive activities. This is why PASDEP’s strategic emphasis is on the growth of rural sector, industry and export activities in particular through the promotion of micro and small enterprise development and public construction and infrastructure.