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Abdur Rahman Alfa Shaban with WORLD BANK GROUP

1024x576_351712The World Bank Group has praised Ethiopia for its respectable economic performance in spite of biting drought affecting the entire Horn of Africa region.

“Economic growth remained at a respectable 8% in 2015/16, which is impressive especially compared to previous drought situations which often resulted in economic contraction,” said Carolyn Turk, World Bank Country Director for Ethiopia, Sudan and South Sudan.

The global financial outfit in its 5th Ethiopia Economic Update stated that ‘‘growth momentum will still remain and since 2016 rains arrived as expected, the recent drought will not likely affect Ethiopia’s medium-term economic growth.

Economic growth remained at a respectable 8% in 2015/16, which is impressive especially compared to previous drought situations which often resulted in economic contraction.
‘‘In addition, the newly completed Addis Ababa-Djibouti railway line, significantly eases trade logistics related constraints.’‘

The Group’s report also lauded Addis Ababa in the area of developing industrial parks and power generation efforts which they say is ‘‘expected to improve export performance and stimulate growth in the short to medium-term.

‘‘On the other hand, the potential negative economic effects of the current unrest could pose a risk to the outlook,’‘ they added.

Economy slows down for first time in decades

A recent report by the BBC indicated that the Ethiopian economy had for the first time in decades recorded its slowest growth. Growth was 8% in the 2015/2016 fiscal year.

The planning commission confirmed that the country could fail to reach 2016 projected growth of 11% citing the devastating drought that has affected harvest in most parts of the country.

Earlier this year, The International Monetary Fund (IMF) had warned that Ethiopia’s economy would shrink to 4.5%, but the government dismissed the figures saying that growth would reach 8%.

Analysts predicted that recent protests in the Oromia and Amhara regions which saw dozens of foreign owned firms attacked by protesters could further dampen growth in the country. Ethiopia has been one of the world’s fastest growing economies with growth averaging 10% over the last 10 years.

The Horn of Africa drought

Countries in the Horn of African region recently benefitted from a drought aid package by the European Union (EU). The EU has announced €66.5m aid to respond to the El Niño and food security crisis in the region.

The package of development assistance focuses on the four countries that are most severely hit by El Niño and that are experiencing food insecurity: Ethiopia, Somalia, South Sudan and Sudan.

The breakdowm of the funds are as follows:

Ethiopia (€22.5 million)
Somalia (€8 million)
South Sudan (€28 million) and
Sudan (€8 million)
The EU further disclosed that the four new actions worth 66.5 million Euros will be funded under the EU Emergency Trust Fund for Africa to address the destructive impacts of the El Niño phenomenon in the Horn of Africa region, such as floods and droughts.

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2 comments

  1. Many kudos for this one!!! This is a commendable work and very essential for the country’s transformation from disgusting agrarian way of life. Yes there will be some pain. But where in history transformation was achieved without enduring pain? Where? I am talking about the economic transformation. Politics? That is a different matter. I am tired of being told that political transformation is the only way out of economic quagmire. But history is consistently telling me that almost all of the modern day wonders had to go thru the economic transformations and when that happened it was too late for the despots to rule business as usual. Which one? You may dare to ask. How about Taiwan? How about South Korea? Chile. Brazil, Argentina even Malaysia and Indonesia I would dare to cite as my witness. In our own example, during the noisy student movement of the 1960’s and 70’s, I used to be told that the hard-to-count ‘proletariat’ in that country has to be liberated and found its own dictatorship first(That was when my antenna was up. HSI must be overthrown and replaced with a state dictatorship led by the proletariat, I was told). Then economic transformation would follow. Mengistu took that to the heart thanks to exhausting tutoring by Western Europe educated intellectuals. He ran the country and the economy accordingly. And he ran it to the ground. Meles and his gangs thought they can do a better job at it but to their misery the global geopolitics changed almost overnight on the eve before they marched into Addis(Finfine). They still can be heard talking about such nauseating Maoist jargon as ‘National Economic Revolution’ ad nauseam. Disgusting!!! But those unsung heroes of engineers and technocrats are chugging away one transformation at a time. That is one guaranteed way of sniffing the lives of despots and religious extremists. That is in my book and there is nothing you can do to convince me otherwise. And I have plenty of evidence to back me up on that one. I don’t see Marcos in the Philippines any more. Park and his demons are gone and his daughter is getting a bitter lesson from a transformed country. The reality on the ground is telling her that South Korea is not like Daddy’s kind. I don’t see Pinochet and his thugs kicking Chileans around. His operatives are either running for their lives or are rotting in jails. That is deservingly so. Chiang Kai-shek and his descendants are not in firm control of Taiwan to throw their weight around. Even their name sake Kuomintang has been singing the all inclusive cliché since the 1990’s and has been coughing up the money making behemoth enterprises it gabbled up dating back to the late 1940’s one by one. All comes as a result of economic transformation. Taiwan is not a camphor scavenging outpost any more. It is making majority of computers and cell phones used in every country around the world. Its metal and chemical enterprises are at par with any Western rivals. Taiwanese women’s main line of work used to be that of hospitality as late as the 1970’s. But now there is more than 50% chance that you will encounter a female corporate chairwoman or sales manager when resourcing products. That is what I dream for our women from the old country. They have the same potential if they are presented with the unfettered opportunity to education and then employment. In fact, I believe they are capable of doing a better job at it. That is what I believe and there in nothing you can do to alter my faith in the capabilities of our women. All what needed is to force the two dominant religions in that country to leave our women alone. Let our women go!!! And without the liberation of our women, you can say goodbye to any real economic transformation. You hear me? That is goodbye!!! Period!!!

  2. የቀድሞ የኢትዮጵያ ጠቅላይ ሚኒስትር አቶ ተስፋዬ ዲንቃ አቶ ተስፋዬ ዲንቃ፣ በአለም ባንክና መሰል አለም አቀፍ ተቋማት ውስጥ ሲያገለግሉ ከዚህ አለም በሞት ተለዩ:: በደርግ ኢህድሪ መንግስት ውስጥ በከፍተኛ የሃላፊነት ቦታዎች ያገለገሉትና በመጨረሻ ለከፍተኛው የጠቅላይ ሚኒስትርነት ስፍራ የበቁት አቶ ተስፋዬ ዲንቃ ያረፉት ፣ በአለም ባንክና መሰል አለም አቀፍ ተቋማት ውስጥ ሲያገለግሉ በዩ ኤስ አሜሪካ መሆኑን ለማወቅ ተችሏል።
    ግንቦት 19 ቀን 1983 በደርግ ኢህድሪ መንግስት፣ በሻዕቢያ፣ ኢህአዴግና የኦሮሞ ነጻነት ግንባር መካከል ሊካሄድ በታቀደው ድርድር የመንግስት ልዑካን መርተው ለንደን የተገኙት አቶ ተስፋዬ ዲንቃ፣ የድርድሩን ሂደት በመቃወም በወቅቱ መግለጫ መስጠታቸው ይታወሳል።የአለም ባንክ ኢትዮጵያ አጋጥሟት ያለውን የውጭ ንግድ ገቢ ለማነቃቃት የሃገሪቱ መገበያያ ገንዘብ የሆነው ብር ከዶላር ጋር ያለው የመግዛት አቅም ማስተካከያ እንዲደረግበት አሳሰበ።
    ባንኩ ከአምስት አመት በፊት ያቀረበውን ተመሳሳይ ሃሳብ ተከትሎ ብር ከዶላር ጋር ያለው የመግዛት አቅም በ15 በመቶ አካባቢ እንዲቀንስ መደረጉ ይታወሳል።
    ከአምስት አመት በፊት ሁለተኛ ዙር ማስተካከያ በብር ላይ እንዲደረገ ያሳሰበው የአለም ባንክ እየተዳከመ የመጣውን የውጭ ንግድ ገቢ ሊያግዝ እንደሚችል አመልክቷል።
    የብሄራዊ ባንክ በበኩሉ ከባንኩ የቀረበው ሃሳብ ከጥቅሙ ጉዳቱ ይበልጣል በማለት እንዳማይቀበለው የገለጸ ሲሆን፣ ተመሳሳይ ዕርምጃ በተወሰደ ጊዜ በሃገሪቱ ከፍተኛ የዋጋ ግሽበት መከሰቱን በማስረጃነት አቅርቧል።
    የብሄራዊ ባንክ ምክትል ገዢ የሆኑት አቶ ዮሃንስ አያሌው የምንዛሪ ማሻሻያ እንዲደረግ የቀረበው ሃሳብ ሊያመጣው ከሚችለው ጥቅም በላይ ጉዳቱ ሊያይል ይችላል ሲሉ ለሃገር ውስጥ መገኛኛ ብዙሃን አስረድተዋል።
    ከቀናት በፊት በኢትዮጵያ የኢኮኖሚ ሁኔታ ላይ ሪፖርቱን ያቀረበው የአለም ባንክ የኢትዮጵያ የውጭ ንግድ ካለፉት ሁለትና ሶስት አመታት ወዲህ ከፍተኛ መዋዠቅ ማስመዝገቡን ይፋ አድርጓል።

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