The wide gap between the rich and the poor here in Ethiopia owing to unfairwealth distribution will be narrowed down if the nationalrevenue-channeling task towards income-generating jobs too enjoys attention, so remarked a scholar.
The economist Associate Professor Atelaw Alemu, from Addis Ababa University, emphasized that the riftfilling task could materialize fastif the government takesmore youths aboard. Adding, he said that the wealth distribution variation has taken place in the absence ofincome distribution, which is one of the determinant parameters to indicate annual deposit of individuals’ productive revenues.
The Associate professor pointed out that as long as human and natural capitals are the backbones and sources of income generations, there is a call for handling the resources properly and appropriately within the integrative framework. Such decisive measures, most likely allow, the circulation of abundant wealth for the benefit of thegeneral public.
He said that human made capital encompasses infrastructural projects and facilitates such as high-rising buildings,health infrastructures, roads,telecommunication, and machines, among others. However,natural capitals include climate and other environment related issues, adding he said that human capital is a springboard to utilize natural capitals with extensive mode.
He underscored that wealth distribution imbalance has uncalculated implication to weaken and dismantle the economic structure of the country. It leads to political turmoil and social instability. Pertaining to government-basedresearch-finding assessment,he noted that the gini-coefficient of wealth gap between the rich and the poor has reached 30 percent.
Even though the wealth distribution data showed moderate and mild satisfactory upshot, there is a skeptical assumption and suspicion beyond reasonable doubt thatstatistical fallacy, metedologyand measurement of the parameters are not adjusted and circumcised. He noted that it is not a correct methdology measuring the rate of wealth distribution focusing on individuals’ expenditure and consumption by neglecting income generation status.
“Unless capital and labor are exploited with a sense of enough and great care, the expected outcome intended to narrow down wealth distribution gap could not actualize,” he stated. He underlined the need to set free the productive group from dependency syndrome and mobilize it in incomegeneratingactivities and social entrepreneurship as well as poverty reduction endeavors. As to him, this way it is more likely possible to regain a stable degree of wealth distribution.
The government should express its readiness diligently to engage in the area of human development indexthrough establishing pubic institutions. This helps the government in order to secure the need and lives ofthe public with great care, he remarked. He indicated that direct and cooperate taxation has a trajectory to add more in the government’s coffer to spend on public investment sector for the benefit of targeted populations. Maladministration and escalating rate of corruption are negative catalysts that widen wealth distribution gaps, he highlighted.
The Ethiopian Herald, January 13/2019
BY MEHARI BEYENE
