Reform helps sustain economic growth

ADDIS ABABA- The current reform in Ethiopia enables the country to sustain the momentum of its decadeold economic growth, UNDP Ethiopia senior officials told The Ethiopian Herald.

The officials recommended on the need for looking at ways and means to bring about industrialization that ensures human development. James Wakiaga, Head of Policy Advisory Unit at UNDP Ethiopia, stated that tweaking its policies will enable Ethiopia to continue its double-digit economic growth. “The country is going through economic and governance reform”, he said, “and for me, I think this is important in terms of fostering sustainable development.” Wakiaga said that he sees the reform as a positive step in terms of addressing some of the gaps, and driving the economic transformation.

“For instance, the role of the private sector is part and parcel of the reform process, and I think this is critical in driving the country’s structural transformation.” Moreover, mentioning the current competitive environment, he noted that it is important for Ethiopia to be competitive, productive and for its economy to be able to generate decent jobs that can also leads to human development.

Citing UNDP’s 2018 Human Development report, Louise Chamberlain, Country Director of UNDP, stated that Ethiopia can benefit greatly from industrialization that leads to a better human development. To this end, while the Ethiopian government is investing so much in the industrial parks, there is a need to design policies that would ensure inclusive outcomes to women, create better jobs and limit negative environmental impacts.

Again referring to the report, the Country Director pointed out the importance of improving the education and health system so that it leads to productive workforce, which in turn leads to a more inclusive industrialization. She also suggested looking at approaches that would help get more added values from each of stage of the process, and strengthen and spread the value chains in a way that has more involvement of different regions.

Chamberlain indicated the importance of clear, concerted policies and focused investment in the sector alongside the human development aspect, such as the working conditions in the industry. “If Ethiopia can manage these aspects, I think we will see a very successful industrialization in a 5-10 year time,” she concluded.

The Ethiopian Herald, December 26/2018

BY ROBEL YOHANNES

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