BY ABEBE WOLDEGIORGIS
As it is unanimously agreed by many, the nation’s economy has been suffering with chronic stagnation in the past due to mismanagement, lack of incentive to private sector, shortage of foreign currency and so on.
Commendably, the current government led by Prime Minister Abiy Ahmed, has been trying its level best to recover the plummeting economy since it assumed power three years ago.
As a result, various measures have been taken as remedial actions and among others, preparing 10 years perspective development plan which will be implemented by various sectors can be mentioned.
In addition, the introduction of home grown economic reform plan which aims to resolve shortcomings by local means perceived helpful.
While explaining about the 10 years perspective development plan to the local media recently, Minister of Trade and Industry, Melaku Alebel said that during the preparation of the plan document, the Ministry made various discussions with stake holders and the private sector. The discussion thus, generated important ideas that are considered helpful and taken as inputs to attain the intended development in the coming 10 years.
Discussants also provided support to the Ministry’s Research Center Staff. Cognizant of their valuable ideas, the Ministry assigned some of the stake holders in the advisory board to provide consultation services and supervise the working process when the plan is executed, he stated.
Adding, he said that some of the articles comprised in the document form which needs the decision makers consent was sent to the pertinent officials.
He further explained that The Ministry of Trade and Industry is working with various stake holders that facilitate its day to day activities. Among others, the Commercial Bank of Ethiopia, the Ministry of Agriculture, the Ethiopian Electric Power and Utility Service can be mentioned in this regard. Therefore, to make the perspective development plan meaningful, discussion which lasted for five days was conducted with these institutions.
According to the Minister, it is crystal clear that Planning in an integrated manner is of paramount importance to meet the goals. For example, if there are industries that are going to be constructed in the coming five years, the Ethiopian Electric Power and Utility Service must ensure whether it makes the energy available or not in the time set. In line with this, each sector has to plan and implement in accordance with the demand comes from other institution which needs the product.
An investor who wants to install agro-industrial manufacturing for instance, has to indicate that where does the input utilized by the industry comes from, in his plan, and in what circumstances it obtained.
The agriculture enterprise which produces the input also must indicate the volume of the product and its quality. The ten years perspective development plan is prepared in depth and can serve as a working guideline. It also helps to resolve problems witnessed in each sector in the past. Executing the plan in a coordinated manner with concerned stake holders enhances the chance to meet the goals, he said.
Apart from the objectives mentioned above, the plan serves to develop the nation’s competitiveness in the international market. In addition, it helps to strengthen interregional trade, he added.
Ethiopia is endowed with abundant natural resources that incorporate the huge number of its population which provides surplus labor to the market; vast arable land used for agriculture; diversified mineral resources and hydro power sources which can produce huge electric energy. Hence; exploiting these resources can easily be possible through foreign and local investments. Cooperating with partners also has been taken as a way out for the effectiveness of the plan, he noted.
As to the Minister, no country in Africa has developed industrial parks at the level Ethiopia did. In fact, there are some countries which constructed industries in a concentrated manner and enhanced their competitive capacity but not conducive for business acceleration as in Ethiopia. Therefore, Enhancing competitiveness can enable Ethiopia to easily penetrate the African market.
The nation has excess educated labor force in Africa and if it utilized this workforce properly, attaining the assumed economic progress in the near future will be practical. It is also possible to change the nation’s economic landscape. But it needs dedicated leadership with viable policy and disciplined working force, the Minster added.
For example, establishing cement industry by joint venture was legally forbidden and impossible until the recent time. After the government introduced new law which permits establishing cement industry with joint venture, however, many local and foreign investors have shown interest in the sector and invested their money and could boost the production which in turn stimulated the construction industry. The high demand for cement in the market prompted the government to introduce the new law.
As the construction sector plays crucial role in achieving the dreamed economic growth, as of the Minister, cement products and iron along with still are key elements in this regard. New policies formulated based on assessment aiming to create enabling environment to do business in a simplest way which in turn paves way to pull foreign investment. It also enhances creativity and competitiveness. It should be vividly understood that a policy that is implemented matters in every aspect. The currently flourishing business and investment in the country bear witness for the industry’s direct relation with enabling environment created by the policy.
The objective of the introduction of home- grown economic policy is resolving the country’s problems by its own methods through using local resources, the Minister said.
To this end, the policy deals with the various economic sectors’ strength and weakness along with investigating the nation’s competitiveness capacity in the African market.
It also clearly defines the role of the private sector in the development endeavor and makes the sector to be a self-sustaining economic hub. Independent democratic institutions will be expanded so that inclusive political environment will prevail. In such a way citizens can play pivotal role in the economy and invigorate their potential. Agricultural products which have a comparative advantage in the world market sorted out.
In line with these, substituting imported products by the local ones and boosting export to enhance the nation foreign currency earning capacity will be strengthened.
THE ETHIOPIAN HERALD JULY 2 /2021
