BY LAKACHEW ATINAFU
According to empirics and studies, in the ever increasing global dynamism of the world economy, finding ways and new modalities of sound economy must be pivotal point for fiscal and monetary policies.
Inquire to adhere for knowledge and skill will determine the upcoming forth industrial revolution to be competent and competitiveness of countries. The mere desire of capo regime, bureaucracy and aristocracy could no longer be solution for emerging notation as the world demand work force tempted through actions and practice based on fundamental changes of circumstances.
The intellectual bankruptcy and mal practices in Ethiopia in one or other hands associate with skill and talent gap, however, the country own numerous institutions that can transcend the country to the realm of prosperity.
The governing power of knowledge and skill-based practices in the world is rapidly growing. As a result, the technologies created based on knowledge and skills will determine the upcoming fourth industrial revolution in addition to the way of life of people and the competitiveness of countries.
According to various studies, in this ever-changing environment, it is only possible to be effective and competitive when human resources that can create broad-based technologies are developed. Existing procedures in Ethiopia is expected to do extensive and competent work in developing its talent and human are resources if it is to be a competitive international player. Updated, and led with the future in mind. In this regard, Ethiopia is a country with a large portion of young people with great potential.
With this in mind, it is our shared responsibility to bring out the true potential of these young people. In bringing out the true potential of the young generation to change Ethiopia, human resource development plays a huge role in all sectors. From this point utilizing it to bring about a substantial positive of view, talent development is not a matter that should be left to the government or some organizations. It requires the strong participation of all stakeholders.
A sustainable talent development ecosystem is built when every stakeholder contributes what is expected of it. In this regard, talent development associations are among the prime contributors. When we come to Ethiopia, although there are various human resource development activities, most are done by the government, individuals, and development partners. In terms of helping these efforts and making the country competent and competitive in the field of talent development, professionals in the field should also play their role in an organized manner. To realize this, it was imperative to establish the Association for Talented Development in Ethiopia (ATD-E).
Association for Talent Development in Ethiopia (ATD-E) is a non-profit organization registered by the Civil Society Organizations Authority of Ethiopia under registration number 6041. ATD Ethiopia contributes in six strategic areas. These areas are Industry Insight, Capacity Building, Policy Advocacy, Certification and Qualification, Employment Linkage, and Platforms and Communities.
ATD-E plans to have 5000 professionals and institutions in the talent development sector as members in a short period. The association aims to fuel the country’s human resources development by creating a favorable environment for experts and industry stakeholders to get to know each other and improve their services. It also aims generate access to vital resources to help its members. In addition, it is preparing platforms for human resource development experts in the country and other countries.
Certifying and recognizing professional talent developers create a conducive environment for employment linkage. Most notably, what is demanded from the economy is the betterment of the public and consolidation of the country.
To change the general objective into practice paving the way for individuals who want eat bread upon their sweat is a must. In precise terms, there is a need to undergo institutional reform to create enabling environment for visionary citizens.
Second, citizens have to take advantage of systems and able to score sustainable development and third, the new wealth reaped from such the new system has to be fairly distributed and price of product stabilized. Finally, the other pillar of the economy is the establishment of partnership in foreign policy without violating national sovereignty.
However, the economy could provide such benefits, over the past 40 years, it was in vain to achieve so even it was difficult to be self-sufficient in producing food items and basic needs. Such failure has been accelerating inflation. What is worse would be the inflation rate in food related areas more escalated compared to non-food items albeit it is a paradox.
To fill the gap, the country has to make procurement from oversea market. Yet, there are short comings in affording foreign currency and incumbent upon loans from abroad. As a result, the mirrored reflection of Ethiopia seems to be a country unable to rescue itself and the citizenry from begging. What is left for an Ethiopian is good psychological makeup and proud despite all odes.
There is the problem somewhere so that to put lasting solution identifying the source is important. There is abundant water, arable land and workaholic farmers along with universities producing agriculture professionals.
The question that matters is why starvation and why inputs and mechanizations and implementation failed to modernize the farmers? Why the industry sector is crawling while the country is part of the wisdom world?
The country is not the only entity troubled by its problem. Countries and strategic partners have also felt the complication. They reiterate advising Ethiopia formulating strategies and they are also doing it at this concurrent.
They always come up with two affairs- system and strategy. They begin with saying that Ethiopia is rich with natural resource and human power the short coming is skill and production facilities. Knowledge gap limited to produce machineries unable to afford the cost forced the country to buy. Hence, they consider this for the economy is crawling adding that administration involvement in the economy is another constituent while the economy ought to be left to the private sector based on free market economy.
They also always observed to say the government highly involved in economic endeavors harm the public for instance when it took a loan from banks the private sector would not get cashes. There would be crowding out.
They in short terms claim public enterprises of Ethiopia and recommend the government to focus in safeguarding law and order. They ardently oppose subsidy and advocate competency and madly need capital account liberalization. Neutrality of National bank and limiting its duty to stabilize market are also some aspects such entities demanded.
They also claim that Ethiopia has to be competent in the globe unless it loses what it could get from the competition. However, from the economic perspective, there is no country compete with one another but companies. For instance, in terms of car market Toyota may compete with BMW or Mercedes, but Japan never competes with USA or Germany.
The other is the establishment of stock market for its importance for the availability of capital and generating lucrative foreign currency for newly emerging firms. Nonetheless, the presence of stock market can’t help the establishment of new ones and they do not have relation as well.
Three criterions have to be fulfilled for one company to sale stocks. One the company has to be active and operational then it must be productive and third sustainable must be the company. Hence, stock exchange does not help the establishment of emerging firms.
Foreign investors could generate foreign currency but the deposition is short term as they withdraw it to exchange stocks but banks might be in desperate to pay. On the process their strive to obtain to pay for stock holders the money value would fall to zero as banks may engage in black market.
Thus, share market is a real casino that involves brokers through encouraging buyers and discouraging holders and hastens the exchange rate. It reduced investment fund since there is highly competitive relationship between investment fund and share market.
As time went by, the value one USD has reached 50 ETB. If situations went on similar momentum it would elevated to 100 soon. In this connection the Ethiopian government should not devalued its currency as most items are purchased from oversea market.
Medicine, capital good, petroleum and other important items are purchased from abroad and currency does not have equilibrium. The other adverse effect of devaluation is it is inflationary.
Hence, what is recommended for the nation is contextualizing Structural Adjustment Program (SAP) with home grown and learn from best practices. Second, it is also advisable investigate the fundamental reason of prosperous countries in reaching the helm of success.
What lastly learned is government by itself cannot bring about economic growth and economic development. Second there is no country that has followed in and through the so called free trade modality. Hence, Development urges the cooperation between government and market.
Abdurazak Hussien (PhD), Lecturer in the Economics Department and Post Graduate Program Coordinator at Addis Ababa University said that Ethiopia is proud since it has a story to narrate even if the economic history taken starting from 1950. Because, there have not been other African countries that were autonomous in the mentioned year.
Again the chronology is taken from 1900; there would not be also countries of Europe to narrate their story of economics as many states were not incepted in the year. Hence Ethiopia is lucky that it has something to say that many are forced to be mute.
So the country had started the journey while others were not born however presently the human development index gauge the country at 173rd in the world 40th in Africa leading South Sudan and Eritrea in East Africa. Over the last 60 years, the country has been remained to be demonstration centers of economic modal ranging from feudalism to command to developmental state economy.
Of course, like Ethiopia, the world has passed through political regimes weather it is monarchic, military or civilian, but Ethiopia is still in shock draught famine civil war, international transition had its own impact though. Hence, investigating at least the past 60 years economic history of the country might be of paramount significance to reach some sorts of relief.
The Ethiopian Herald November 6/2022
