BY SOLOMMON DIBABA
Ethiopians are currently marking the 10th Anniversary of ground breaking ceremony for the construction of GERD and the third year of the comprehensive and multi-faceted reform programs the country had launched to catalyze socio-economic development. The resignation of the former Prime Minister Hailemariam Desalegn and the resultant immediate handing over of power measures taken by the EPRDF Council and the Secretariat led to the formation of a new cabinet composed of reformists that were eager to energize the socio-economic development of the country.
The reform program, although not designed in full package in the first year was indeed an offshoot of a pressing demand from the public across the country in their quest for marked changes in all aspects of social and economic development of this nation. It is therefore not surprising if the public was engaged in unrests that were to be quilled through the introduction of massive reform programs. Indeed one can say that a huge credit goes to the public for supporting the reform program.
Although Prime Minister Dr. Abiy Ahmed has categorized the changes as a reform, some of the measures taken in some sectors were indeed no less than revolutions. However, Ethiopia embarked on the major reform programs under the backdrop of multifaceted development challenges in job creation for the growing youth population; addressing macroeconomic imbalances; improving export performance and fostering private investments. Besides for those whom the reform program was implantable immediately escalated ramified socio-economic sabotages in the form of ethnic conflicts and political assassinations to frustrate efforts of the newly formed reformist government.
As part of a major step in preparing the ground for wider reform programs in foreign policy and diplomacy, the government took the initiative in breaking the no war no peace situation with Eretria and peace accord was inked between Ethiopia and Eritrea after the stalemate that lasted for more than 20 years.
Prime Minister Abiy introduced a new blend of foreign policy and diplomacy which focused on promoting the wellbeing and security of citizens in foreign lands. He paid working visits to the neighboring countries and engineered the release of thousands of Ethiopians who were languishing in the prisons of neighboring countries and elsewhere in the Middle East.
As part of the measures taken to widen the political participation of opposition parties that were based abroad and as a gesture for restoration of peace and reconciliation in the country, the prime minster invited all political parties which were operating in foreign lands to come home and participate in the formation of a new political system in the country.
Besides, the government releases thousands of political prisoners who were suffering in secret and open dungeons prepared by TPLF’s secret services. Amnesty was also granted to thousands of citizens who were serving prison terms across the country.
Prime Minister Abiy took a personal initiative to promote reconciliation among the leadership of the Ethiopian Orthodox Tewahedo Church to ensure better relationship between the leaders and the faithful in the church.
Changes were made to government functional structures with consideration of promoting efficiency and red tape. New Ministries like the Ministry of Peace were formed while the National Electoral Board of Ethiopia was reestablished with more legal and operational powers.
Among other things various operational task forces were formed under ministries in various sectors to coordinate and lead the reform program at national level. For instance, the task force entrusted with introducing legal reforms came up with a new law for the formation of civil society organizations with more functional rights of operations which enabled these organizations to engage in wider participation in the socio-political and economic development of the country.
Prior to the introduction of the reform program, major mega projects of the country including GERD, sugar factors were in shambles. With the prevalence of a wide range of corruption, mismanagement and abuse of financial resources, the construction of GERD had almost stopped. Huge foreign debt almost disqualified the country from obtaining more finance from international financial magnets. The government had to seek various means to promote the ever dwindling volume of exports while inflation was galloping every month with the skyrocketing of food prices which ordinary citizens were unable to shoulder.
The advent of COVID-19 pandemic which shattered global economy did not spare poor countries like Ethiopia and the government had to tale rapid austerity measures in the financial sector including restructuring the tax system to ease burden on manufacturing and the agricultural sector.
Over the last three years, the government focused on major bottlenecks that impeded accelerated development. In order to sustain its growth model, Ethiopia instituted economic reforms and introduced some policy adjustments to crowd-in private sector and improve competitiveness. The government shifted towards a more export-led model, where the private sector can play a greater role in economic growth, export diversification and employment. The Government has undertaken a series of reforms on improving investment climate; access to finance for the private sector; modernizing the financial sector; reforming public enterprises and advancing economic integration through coherent trade policies. The reform emphasis is on sustaining the current economic growth by ensuring sound macroeconomic management and promoting more open and transparent institutions that will create jobs for millions of Ethiopians.
In consultation with major stakeholders and prominent professionals in the country, the government introduced a Ten Years Home Grown Economic plan to further strengthen past achievements in infrastructural development and to build thee capacity of the private sector to enhance their meaningful participation in the economic development of the country. Policy and institutional frameworks were introduced to ensure institutional efficiency and to develop a modern financial system that could boost the rate of economic development of the country.
Modernization of the agriculture sector, diversification of exports, reintroducing modern logistic system, promoting the manufacturing and the energy sector, increasing the dividends from the mining sector and service industries were some of the major elements introduced in the plan.
The government did not spend the last three years in voicing empty promises. Responding to questions forwarded to him at the recent HPR regular session, Prime Minister Abiy noted that the progress made in growth in the GDP, Abiy said ` despite the advents of the challenges we have faced and the global economic downturn, we have managed to attain 6.1 GDP growth for the previous year compared to – 5.9 percent for US, -7 percent for Europe, and 1,2 percent for the PRC`.
He attributed the growth in the country’s GDP growth to the relative improvements in exports in gold and other commodities. He noted that the balance of trade which was 14.7per cent in the previous years was reduced by 4per cent as the result of rigorous control made in the sector. The national revenue according to him grew from 176.6 in 2018 grew to 228.9 in 2020. This year over the first 6 months of the fiscal year, the country’s revenue has already grown to 191 billion Birr with far more increment over the remaining months of the fiscal year. However, he said due to various reasons related to global economic conditions, remittances flowing into the country have declined.
The premier said that the rate of foreign debt the country stood at 37.6 percent in 2018 is now about 26.6 percent. Regarding the benefits the country had attained in introducing the changes in bank notes, Prime Minister Abiy said ` Some 6.2 million citizens were able to open bank accounts saving 96 billion Birr. The deposits at the banks in the country which was 730 billion Birr grew to 1.3 trillion in three years. Loan to the development programs in the private sector grew by 70per cent as part of promoting the capacity of the sector. `
The Prime Minister mentioned the national inflation level as a top challenge the country is grappling with. He said the skyrocketing of food prices, house rent continue to heavily affect the well-being of poor citizens of the country eating up 54 to 60 percent of their meager income for food and 20 to16 percent for house rent. He said the country has been unable to reduce the national level of inflation.
Abiy also mentioned the huge level of debt accumulated on government development institutions which stands at 600 billion Birr. He said this needs to be urgently restructured to ensure sound economic contribution from these public institutions.
In the last three years, the government did not face the above mentioned challenges and achievements on a red carpet. The TPLF regime which was an ardent opponent of the national reform program organized open and clandestine political sabotages through multiple assassinations of federal and regional government officials, fanning conspiracy theories in collaboration with international media companies not only to tarnish the image of the government but also to destroy the social bond that existed between the peoples of Ethiopia. The attack that TPLF organized on the restive Northern Army Command, the mass killings it masterminded in Mai Kadra, Metekel, Humera, Konso area, Guliso and other areas in the country will remain standing evidences for TPLF’s anti-human stance but the reform program that unfolded three years back will flourish and the upcoming National Election will add more vigor to the establishment of a genuine democratic order in this country.
The Ethiopian Herald April 2/2021
