War affecting Ethopia's development

An international report on Ethiopia's economic prospects says the war is severely affecting its development.

Diplomats estimate the conflict is costing Ethiopia -- one of the poorest countries in the world -- about one million dollars a day.

The draft report prepared by the International Monetary Fund and international donors says that while defence spending has risen, funding for health and education has declined.

There is no money for essential projects, such as alleviating the chronic drought which is affecting millions of people.

Correspondents say Ethiopia's economic difficulties have been compounded by the refusal of many western donors to offer funds to a nation at war.

But Ethiopia says it was invaded by Eritrea, asserts its right to defend its sovereignty.

From the newsroom of the BBC World Service