Upon deposing Emperor Haile Selassie on 12 September 1974 and seizing its power, the Derg adopted title such as "committee", consisting provisional administrative council of soldiers which has socialist and military ideology.

In January and February 1975, the regime extended its nationalization efforts to encompass all banks and insurance firms, as well as taking control of nearly every major company.

[4] The Derg promoted "Ethiopian socialism", embodying slogans such as "self-reliance", the dignity of labor, and "the supremacy of the common good".

[5] The Derg had initially approached the Western Bloc, including the United States and Western European countries, but shifted towards the Eastern Bloc (Soviet Union and Warsaw Pact) due to the lack of US support for Ethiopia and the recurring human rights violations in the country.

Influenced by Marxist-Leninist ideology and concepts of society, the Derg's foreign policy shared similarities, particularly in its strong commitment to the Soviet Union, which was viewed as "the natural ally of Ethiopia.