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The country's economy has long been based on local grains and animal herds. For example, traders exchanged gold, ivory, musk, and wild animal skins for salt and luxury goods. Ethiopia's resources have enabled the country to maintain contact with the outside world for centuries. The economy was based on subsistence trade and farming.

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Among the most important factors in social relations in Ethiopia has been religion. Ethiopian emperors nurtured the country's identity with Christianity.

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The emperor, the nobility, and landlords occupied the social hierarchy's highest positions. The most preferred occupations traditionally have been in government, the military, the clergy, and farming, with commerce and trade considered less important and consequently usually left to Muslims and foreigners. Most Ethiopians conducted their daily lives in accordance with norms peculiar to each community or region.

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After European adventurers and representatives began reaching Ethiopia. The changes climaxed with a Portuguese military intervention to support the Ethiopian monarchy.  These skills were used to modernize bureaucracy and the military.

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“Social Relations.” Ethiopia, countrystudies.us/ethiopia/. Accessed 1 Oct. 2023.

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The military wanted to create a classless society, but the social hierarchy based on landholdings was replaced by one based on political power and influence. National and regional party members, government ministers, military officers, and senior civil servants had enormous political sway.

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"Ethiopia." Cities of the World, edited by Karen Ellicott, 6th ed., vol. 1: Africa, Gale, 2002, pp. [202]-215. Gale In Context: World History, link.gale.com/apps/doc/CX3410700026/WHIC?u=lsc&sid=bookmark-WHIC&xid=b2d1153b. Accessed 2 Oct. 2023.

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The present official currency unit is the Ethiopian Birr. The metric system is used within their economics. By the late nineteenth century, coffee had become one of Ethiopia's more important cash crops. New infrastructure to exploit resources, a material base to improve living conditions, and better health, education, communications contributed to the transition from a subsistence economy to an agro-industrial economy. In 1954/55 the government created the National Economic Council to coordinate the state's development plans. Likewise, They had 3 Five-Year Plans (1957-73). This resulted in Ethiopia's economy not only to grow, but also had begun to create new areas such as manufacturing and services within their economy.