I have a comments to make here too; sorry if they are a bit dis-jointed. Firstly, it wasn't just Ethiopia that was/is affected by famine/drought. The economies of most of mid-Africa from Nigeria right across to Ethiopia and Kenya is based on agriculture, and they were/are still all affected by this. Countries around the world were helping out, sending millions of pounds worth of aid - and still do - it was not just Bob Geldof who did this, although because of his status he received a lot more publicity. The UK contributes a vast amount of money annually but alas people here want them to stop and keep in the money in the UK. One member of my [extended] family who is Ethiopian told me that some areas of Ethiopia are much more affected by drought than others (mainly in the north east of the country) and these regions are very poor and very rural. It is difficult to get any sort of aid to them by road, but in other years the droughts can also affect the main towns and cities including Addis Ababa, and like many others countries they are affected badly by climate change. This particular cousin moved to Saudi Arabia and lived there for many years before moving to Spain. She has recently however had a house built in Ethiopia and goes back there regularly.
As far as the money going to buy arms etc, would so many countries give direct aid to Ethiopia if this were the case? You may find these links interesting:
http://www.bbc.co.uk/complaints/comp-reports/ecu/ecu_bandaidmoneydonatedethiopia
http://www.bbc.co.uk/news/entertainment-arts-11688535
It is also interesting to note that after the devastating floods in the UK in 1947, Haile Selassie sent aid to us, although I believe a lot of it was in the form of coffee rather than money!