BY DANIEL ALEMAYEHU
In the present climate, building stronger and resilient economy has become the focal point around the world. Nations across the world have experienced one of the great economic down fall in the past three years. It is said by many scholars, experts and leaders of nations that the world has been suffering from the two major challenges that blow the whole economy of the world; the COVID-19 pandemic and the war between Russia and Ukraine. These occurrences have turned things around and made the world suffer in multiple aspects. Not only the third world countries that suffered a lot from the disasters, the most developed nations have also encountered the aftermath of the challenges.
Coping up the tides generated from the above mentioned challenges, nations across the world have acted in unison to find the solution to return to the old days back. Especially, the world stood in solidarity on the global pandemic that cost the lives of millions. On the other hand, the world took different stances regarding the war between Russia and Ukraine.
It is the undeniable truth that these challenges have seriously affected the economy of nations in the third world including those in Africa. Africa designed a number of strategies and took actions to revive from the challenges. In terms of economic recovery, African nations have been trying to bring at least the previous economic activities back.
In the Ethiopian context, unlike other countries that have suffered from the pandemic and the war, the Government and the people of Ethiopia have been experiencing challenges from both inside and outside. The nation has been in an active war burst in the northern part of it for about two years. Besides, the nation could not move as expected due to the internal unrest here and there.
In such times of hardship, Ethiopians are known for defending their beloved country standing together in solidarity. That is what has been witnessed when it comes to protecting the nation and responding to the calls from government. The incumbent and the people have stood in harmony to defend the nation not only from existential threat, but also from economic down fall. The government has crafted different strategies and put them in action in order to restrain the economy from loss. As a result, Ethiopia has succeeded by the new actions.
Earlier to eruption of the challenges, the nation has planned to register economic growth that put the nation on the list of top African economies. So as to achieve the target, it has been trying and using numerous ways. At this point, the nation has achieved its objective to build better and resilient economy. The effort has also brought a reward to put Ethiopia on the list of the top economies in Africa. This time, Ethiopia takes fifth place in the list of largest economies in Africa. Similarly, in recent times, the International Monetary Fund (IMF) disclosed that Ethiopian economy will be one of the largest economies in the East African region.
Though the nation has been going through various challenges that could pull the country down to loss everything, fortunately, it has shown its strength via passing through the challenges and achieved its goals. However, such actions and accomplishments should be protected and kept going on the right track.
While having a stay with The Ethiopian Herald, Dilla University Economics Lecturer, Dawit Hayeso (PhD) disclosed that the nation’s economy should be managed in a well-organized manner and it must be top priority of the government. There are a number of ways to expand the nation’s economy even bigger than this as it is furnished with domestic economic blessings. To this end, employing the opportunities, designing better strategies and implementing is essential to bridge the gaps in the sector.
The homegrown economic reform program of the nation has opened different platforms that have the capacity to take the nation to the next step. By using nation’s economic resources, the economy can rise up even better than the registered so far. Ethiopia has the potential to meet its national objectives by using its own homegrown economic reform and build a model and leading economy in Africa.
“This self initiated reform has created platforms where we can use our interior potential that we have not exploited yet. There is a situation where this platform has made us improve our previous level,” Dawit said.
Regarding changing problems to opportunities, Dawit added, “Crises in the world have created favorable conditions for increasing production and productivity in Ethiopia where agricultural sector takes the leading. The war broke out between Russia and Ukraine, the main producers of wheat and providers to the world market, propelled Ethiopia to capitalize on wheat production widely in quantity and quality in all seasons to fill the gap.”
Dawit mentioned that the nation has also started using mechanized farming and modern agriculture including tractors to increase the production and productivity. The nation’s farming system is mostly rain fed; however, lately, using irrigation and underground water have become the alternative ways to advance the farming system. Oromia region can be a textbook example in this regard.
Following the resolution of the conflict erupted in the nation’s northern part; as to Dawit, the investment sector has been revived. On top of that, the service sector has also shown better accomplishments. All these show that the nation is on the right track.
Ethiopia’s current economic growth indicates that it is advancing towards food self-sufficiency. When the country becomes economically independent, its reputation in the African and the world stages will be elevated. It is vividly clear that economy is the tool used to govern the politics in the modern world. A country with economic growth will have a huge influence on the international arena through politics and other means. Therefore, it creates an opportunity for Ethiopia to be heard on the international stage, Dawit stated.
Besides, the nation’s economic growth will also bring a new look on the regional integration. Larger economies require larger markets, infrastructure, inputs, and skilled labor. As a result, it allows the nation to create economic integration with the neighboring nations. It also enables establish reliable and sustainable industry with huge opportunities. It helps Ethiopia realize its autonomy in terms of modernization, Dawit elucidated.
There is a green light seen in terms of achieving the nation’s objectives in the economic sector. With the bumpy road that the nation has been walking, it might be difficult to say that Ethiopia traveled as planned, but there is a positive progress that gives hope. Therefore, Ethiopians from all walks of life come together and work with full potential so that the economic growth of Ethiopia can be improved even better, Dawit said.
Likewise, an economist from Haramaya University, Molla Alemayehu (PhD) on his part, said that the IMF report depicts that Ethiopia ranks fifth as the largest economies among African countries that have achieved great economic growth. He said, “This is a good change. But we have to make sure that the development has benefited the majority of the society. A lot of work is expected from the government and the concerned bodies to benefit the entire citizens.”
In order to keep the economic momentum registered in the future, Molla stated that the strong and weak sides of the current economic growth should be identified. The government is required not to control the economy rather it should play facilitating role. If the incumbent plays its role perfectly, there is a chance to evaluate the gaps and implement different strategies on the main things.
As Ethiopia has shown its potential to achieve its goals even amidst such challenges from multiple of directions no matter the circumstances are; the country, with the concerted effort of its people, can pass through all odds and register tremendous success.
In conclusion, the government is highly responsible to play its role in order to build the economy that the nation has been longing for a long time. Being fifth largest economy in Africa should not be the peak of the nation’s objectives; rather it is just a step in climbing up the ladder of success and economic independence. Thus, everyone should play its role to augment the economic success.
The Ethiopian herald April 27 /2023
