Following the overthrow of the Ethiopian monarchy a marxist military government nationalized all companies and land, expelled foreign investors, and pursued an extensive military expenditure. The Ethiopian economy significantly deteriorated due to the civil war and famines of the 1970s and 1980s. Since 1991, the Ethiopian government has embarked on a program of economic reform, including privatization of state enterprises and rationalization of government regulation. While the process is still ongoing, the reforms have attracted much-needed foreign direct investment.