Is ‘Ideology’ thwarting ‘‘Doing Business’’ & ‘Global Competitiveness’ RL Vol XIII No 423 MMXIX

Is ‘Ideology’ thwarting ‘‘Doing Business’’ & ‘Global Competitiveness’

Ethiopia: A Narrative of Hesitant Capitalism?

Public Lecture – Respublica Litereria - RL Vol XIII No 423 MMXIX

Costantinos Berhutesfa Costantinos, PhD

President, Lem Ethiopia, Environment & Development Society

Professor of Public Policy & Sustainable Institutional Reforms

https://addisababa.academia.edu/CostyCostantinos

Abstract

Ethiopia’s economy has recently been growing rapidly that provides opportunities to integrate investment and aid with a strong economy to finance development within. Nonetheless, Ethiopia’s poor record of 122^nd nation among 140 nations in the World Economic Forum’s Global Competitiveness Index 4.0 and 161 place among 190 nations in the World Bank’s ‘Doing Business’ is disheartening. Both measure Ethiopia’s pitiable global competitiveness resulting in poor balance of payments, its business regulations and their implications for firm establishment and operations affecting private sector development and FDI. There is no meaningful privatisation of finance in Ethiopia. Why do governments – here and elsewhere – resist privatisation, and privatisation of finance, in particular? The command behaviour and resistance to privatisation is endemic to the benevolent attitude of governments that lack faith in the collective wisdom coming from private initiative: improvement of the global risk-reward ratio faced by global investors. With a life span of many decades, the ‘deep state’ has exhibited an enhanced degree of coercive power, corruption is the perpetual spring of all wasteful extravagance and illicit financial flows. Eloquent testimony to the complexity of a globally competitive and business friendly Ethiopia is provided by the predictable armour of trials it faces with too few mechanism, while also wrestling with perennial problems of policy reforms subject to doctrinal reins.

Hence the paper discusses legal protection of rights and advancing the rule of law, elimination of absolute poverty will entail a two-pronged approach in reforming the very strategy and structure of rules and institutions. Economic and social governance must focus on policy regimes that enhance people’s capacity to achieve sustainable livelihoods. Government corporate plans, if well designed can provide the basis for establishing the state’s ‘core activities’ and recognition and acknowledgement of the importance of credit and capital markets; creation and nurturing of enabling environments for entrepreneurship to attract investors and tourists; and promotional and educational efforts on capital markets must be developed. A democratic Ethiopia has to shed control from the ‘deep state’ organs of state. Hence, to found a globally competitive Ethiopia with high scores on the ease of doing business, the state needs to develop corporate strategic and business plans for the 21^st century. A disciplined, healthy, nourished, and motivated civil service labour force is required to produce and distribute goods and services. Leadership teams committed to facilitate opportunities for every citizen would require a proactive and innovative managerial and entrepreneurial will power, which under the current dispensation seem attainable, but only to elude; it seems practicable, only to resist realization. Based on the issues that have arisen policy questions addressed include access to justice and rule of law, property rights, labour rights and expanding opportunities for legal business organisation.

Key words: Ethiopia, access to justice and rule of law, property rights, labour rights, entrepreneurial rights, competitiveness, doing business, 

See paper here or https://www.academia.edu/38448113/Is_Ideology_thwarting_Doing_Business_and_Global_Competitiveness_RL_Vol_XIII_No_423_MMXIX.pdf