Reforms, challenges in Ethiopia’s development journey to Unity and Prosperity (2018-2024)

As the Ethiopian New Year is just at the corner, the nation marks Pagumen 2, 2016 as the day of national reform. Despite some challenges, the country and its political order effectively cruised through these challenges and registered remarkable socio-economic, diplomatic and political successes uncommon in the past history of the country.

Promotion of Justice and human rights

Six years back, the reformist government headed by Prime Minister Abiy Ahmed took drastic measures in releasing hundreds of thousands of inmates who were languishing in the official and secret dungeons of the EPRDF regime in which citizens were castrated, tortured. The government introduced far reaching political reforms by inviting foreign based opposition political parties and their armed groups to come home and participate in developing their country by conducting mutual rapprochement and constructive dialogues. Almost all of the opposition political parties managed to come back home while some of them are even participating in the current government.

Reforms in the Justice System

Introducing major reforms in the country’s legal and juridical and legislative system was one of the elements of the reform package was implemented by the government over the last six years. Shortly after Abiy’s appointment in April 2018, a Legal and Justice Affairs Advisory Council (LJAAC) was established by directive with the aim of making basic reforms on the draconian laws of the previous regime. Its mandate was to advise the Attorney General on matters related to legal and justice system reform. New Proclamations including proclamation on National Election Board of Ethiopia (1133- 2019), Ethiopian Electoral Political Parties Registration and Election Code of Conduct (1162-2019), Civil Society Proclamation (1113-2019), Proclamation on Prevention and Suppression Terrorism (1176-2020) and Media Proclamation (1238-2021). The Proclamation on the formation of a National Dialogue Commission to address the age old differences and challenges in the country through national dialogue is already gaining momentum with the process of agenda selection in most of the regions and zones as well as two city administrations across the country. Besides Options on Transitional Justice Policy was well discussed among stakeholders and have been approved for implementation.

Economic reforms and Achievements

A national economic reform program which was established at the national level was led by a macro team, chaired by the Prime Minister. The macro team had four sub-teams leading the reform in relevant sectors. The background study of Ethiopia’s long term perspective plan suggested to revisit exemptions and tax incentives provided to attract Foreign Direct Investment (FDI). Mega projects and a number of State Owned Enterprises (SOE) that failed due to weak project execution capacity to be privatized in order to improved competitiveness.

Prior to the introduction of Ten Years Perspective Plan a Home grown economic plan was introduced to establish the major background for sustainable economic development of the country.

Formulation of Ethiopia’s Ten Years Perspective Plan (2021- 2030) to tackle macroeconomic imbalance, inflation, high unemployment rate, rising foreign debt, chronic foreign currency shortage, sluggish structural change, vulnerability to various economic shocks, poor quality and inequality in infrastructure outreach.

In this regard export oriented agriculture was given a top priority and as the result Ethiopia has now managed to cease export of wheat in import substitution saving million USD as of the current year. The increase in the production of wheat has now reached 1.3 million with projected more than 52 million quintals in the current harvest season. Ethiopia no more imports wheat from abroad as both dry season irrigated wheat production and summer wheat harvest has resulted in self-sufficiency and possible export of wheat. In line with the National Green Legacy Imitative, more than 30 billion trees were planted in five years far above plan. Foreign Direct Investment has now reached 2.2 billion USD. As the result of reform in fiscal policy, the government introduced new bank notes to control the flow of local currency.

Reforms in foreign policy objectives, diplomacy and foreign relations

Ethiopia introduced new elements into the foreign policy objectives of the country including citizen’s rights focused diplomacy, economic diplomacy to foster FDI for industrial and agricultural development, pursuing special diplomatic relations with the neighboring countries, the July 8, 2018 accord with Eritrea, further strengthening of operational relations with AU and IGAD, promoting peace keeping missions in Somalia, Sudan and South Sudan in Abiye and Darfur, More profound relations with China, Russia and India on the basis of mutual benefits. Despite challenges, Ethiopia maintained good standing in the UN and other global and regional organization in which the nation is actively participating. Ethiopia’s membership into BRICS is another landmark development which expanded the country’s global economic and political cooperation.

Reforms in the Education Sector

The new education roadmap (2018-2030) that was issued by the government in consultation with local stakeholders and international partners envisions linking education with the development needs of the country and to produce qualified professionals that can manage the socio-economic development programs of the country. Lately the right too autonomous administration of public universities and promotion of standards for quality education right from nursery to the institutes of higher education is underway. Promotion of university-industry linkage strategy was issued a couple of years back in view of producing highly qualified experts to manage the industries that are growing in the country. Universities were granted self-management and autonomy in administration.

Industrial Reforms

Since 2018 industry showed a modest 7-8% growth of GDP and more focus was made on inviting FDI in textile and apparel, leather and leather products, meat processing plants, food processing, beverages, cement, steel and horticulture and cut flowers. The reform program in the industrial sector introduced vast incentives to encourage the private sector to fully engage in the production of the above mentioned commodities in the industrial parks. The government provided special incentives for local investors to use such opportunities like loans, extension of grace period and other means. Major public and private manufacturing sectors like METEC were rehabilitated while a number of cement factories were provided with multiple sets of support.

BY SOLOMON DIBABA

THE ETHIOPIAN HERALD SATURDAY 7 SEPTEMBER 2024

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