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This study presents the findings of original field research into the design, practice, and varied outcomes of industrial policy in three sectors in Ethiopia: cement, leather and leather products, and floriculture. Given that there is a single industrial strategy, why do its outcomes vary across sectors? To what extent is this a function of the specific market and political economy features of each sector? The book examines industrial structures and associated global value chains to demonstrate the challenges faced by African firms in international markets.
Ethiopia, though remaining one of the least urbanised countries in the world, has taken impressive actions to transform the state into a more industrialized nation.Several industrial parks have been built in recent years throughout the whole country. The textile sector is one of these sectors. The textile industry is expected to provide employment for hundreds of thousands and thus improve people's living conditions and contribute to the development of the country. Major reason for asian investors to shift their focus to Ethiopia are extremely low wages and the lower production costs involved. The Ethiopian textile industry has to deal with high rates of labor turnover and absenteeism. From the perspective of the mostly international managers the reason for turnover and absenteeism is often attributed to the 'mindset' of the predominantly female workforce. A research project financed by the German Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung is looking at reasons and possible measures to solve this problem. Results of this project (conducted at the University of Giessen by Michaela Fink and Reimer Gronemeyer together with Ethiopian colleagues are presented in this book. Experts from Ethiopia and Germany are presenting the history of the textile industry in Ethiopia and the coming development. All this is framed by the discussion of present crisis - Covid-19; the war - in Ethiopia).
This volume is a collection of selected empirical studies on determinants of economic growth and development in Ethiopia.The core argument for editing this book is to provide an up-to-date picture of the state and patterns of growth and development in Ethiopia. Ethiopia has been under focus in the past due to draughts, war, famine, development changes and the effects of global economic crisis in the country. A main contribution of this volume is that it helps identify selected important determinants of growth and development in Ethiopia and provides an estimation of their effects using up-to-date data, modelling and methods. Taken together the studies provide a comprehensive picture of the state of growth and development, their measurements, causal relationships and evaluation of efficient policies and practices in achieving progress in Ethiopia. The issues covered represent major challenges to the government and development organizations who are aiming at achieving higher growth and alleviating poverty in the country. The studies cover transition from rural agriculture to urban industry and the development of services.
This Handbook illustrates the diverse and complex nature of industrial hubs and shows how industrial hubs promote industrialization, economic structural transformation, and economic catch-up.
The revival of economic growth in Sub-Saharan Africa is all the more welcome for having followed one of the worst economic disasters—a quarter century of economic malaise for most of the region—since the industrial revolution. Six of the world's fastest-growing economies in the first decade of this century were African. Yet only in Ethiopia and Rwanda was growth not based on resources and the rising price of oil. Deindustrialization has yet to be reversed, and progress toward creating a modern economy remains limited. This book explores the vital role that active government policies can play in transforming African economies. Such policies pertain not just to industry. They traverse all economic sectors, including finance, information technology, and agriculture. These packages of learning, industrial, and technology (LIT) policies aim to bring vigorous and lasting growth to the region. This collection features case studies of LIT policies in action in many parts of the world, examining their risks and rewards and what they mean for Sub-Saharan Africa.
This volume is the result of the 2012 International Economic Association's series of roundtables on the theme of Industrial Policy. The first, 'New Thinking on Industrial Policy,' was hosted by the World Bank in Washington, D.C, and the second, 'New Thinking on Industrial Policy: Implications for Africa,' was held in Pretoria, South Africa.
This paper evaluates Ethiopia’s urbanization trend during the last four decades, while also considering Ethiopia’s structural transformation and recent public investments to promote greater industrialization within the country. Ethiopia’s urban population grew 4.2 percent per year between 1994 and 2015, far outpacing the overall population growth rate of 2.5 percent. Compared to the urban growth rate of Africa (3.5 percent per year), Ethiopia experienced a 20 percent faster urban population growth rate (UNDESA 2015). Urbanization in Ethiopia is expected to reach 38 percent by 2050. However, this level is relatively low compared to the majority of sub-Saharan Africa (SSA) countries. Improved road infrastructure, rural to urban migration and secondary city development is increasing urbanization within the country. In addition, recent public investments to promote industrialization and increase manufacturing labor opportunities via newly constructed and planned industrial parks are projected to increase urbanization and bolster structural transformation across the country. We evaluate these investments and demographic trends within the context of other countries in sub-Saharan Africa, as well as with the experience of India and China. Ethiopia’s investment in higher-value manufacturing and service activities via economic zones may provide similar infrastructure to that of China and India’s ‘township and village enterprises’ (TVE). However, a focus on increasing human capacity and labor mobility will be necessary to ensure that rural farmers are able to take advantage of labor opportunities outside of the agriculture sector. We calculate the projected economic impact of Ethiopia’s planned industrial zones and sugar factories and find that while public and private investment in industrial and agro-industrial parks may provide a catalyst for future growth, they are likely to provide only a small share of total output and employment. Investments in sugar factories are anticipated to total USD 5.2 billion, with estimated production of USD 3.6 billion and value-added of USD 3.3 billion. However, an increase in sugar output of this magnitude would imply massive sugar exports that may not be financially profitable.
From a war-torn and famine-plagued country at the beginning of the 1990s, Ethiopia is today emerging as one of the fastest-growing economies in Africa. Growth in Ethiopia has surpassed that of every other sub-Saharan country over the past decade and is forecast by the International Monetary Fund to exceed 8 percent over the next two years. The government has set its eyes on transforming the country into a middle-income country by 2025, and into a leading manufacturing hub in Africa. The Oxford Handbook of the Ethiopian Economy studies this country's unique model of development, where the state plays a central role, and where a successful industrialization drive has challenged the long-held erroneous assumption that industrial policy will never work in poor African countries. While much of the volume is focused on post-1991 economic development policy and strategy, the analysis is set against the background of the long history of Ethiopia, and more specifically on the Imperial period that ended in 1974, the socialist development experiment of the Derg regime between 1974 and 1991, and the policies and strategies of the current EPRDF government that assumed power in 1991. Including a range of contributions from both academic and professional standpoints, this volume is a key reference work on the economy of Ethiopia.
This is an open access title available under the terms of a CC BY-NC-ND 4.0 International licence. It is free to read on the Oxford Academic platform and offered as a free PDF download from OUP and selected open access locations. After more than a decade of construction, Ethiopia is filling the Grand Ethiopian Renaissance Dam (GERD), a controversial dam with the potential to transform the hydrology and politics of the Nile Basin. The GERD is the culmination of a dam building boom carried out over three decades and a key pillar of the Ethiopian Peoples' Revolutionary Democratic Front's (EPRDF) efforts to bring about an Ethiopian 'Renaissance'. Dams, Power, and the Politics of Ethiopia's Renaissance provides a detailed examination of the domestic and international political dynamics that shaped Ethiopia's dam building, drawing on extensive primary research including more than a hundred interviews with politicians, technocrats, consultants, and donors. The authors reflect on the implications of Ethiopia's dam building for broader debates about the role of the state in late development, the dynamics of twenty-first century dam building, and the political economy of renewable energy transitions. A central argument of the book is that Ethiopia's dam building is symbolic of the successes and failures of the EPRDF's 'developmental state'. On the one hand, this dams' boom enhanced electricity generation capacity, while constituting a key element of the state infrastructure investment that turned Ethiopia into one of the world's fastest growing economies. In contrast, a politically driven decision-making process undermined electricity planning, contributed to an unsustainable debt burden, and, ultimately, failed to provide reliable electricity access to key users. Following the EPRDF's collapse, the subsequent Prosperity Party government has taken steps away from the state-led development model of its predecessor, while labouring towards the final completion of the GERD. Oxford Studies in African Politics and International Relations is a series for scholars and students working on African politics and International Relations and related disciplines. Volumes concentrate on contemporary developments in African political science, political economy, and International Relations, such as electoral politics, democratization, decentralization, gender and political representation, the political impact of natural resources, the dynamics and consequences of conflict, comparative political thought, and the nature of the continent's engagement with the East and West. Comparative and mixed methods work is particularly encouraged. Case studies are welcomed but should demonstrate the broader theoretical and empirical implications of the study and its wider relevance to contemporary debates. The focus of the series is on sub-Saharan Africa, although proposals that explain how the region engages with North Africa and other parts of the world are of interest. Series Editors: Nic Cheeseman (University of Birmingham), Peace Medie (University of Bristol), and Ricardo Soares de Oliveira (University of Oxford)
Ethiopia has experienced impressive agricultural growth and poverty reduction, stemming in part from substantial public investments in agriculture. Yet, the agriculture sector now faces increasing land and water constraints along with other challenges to growth. Ethiopia’s Agrifood System: Past Trends, Present Challenges, and Future Scenarios presents a forward-looking analysis of Ethiopia’s agrifood system in the context of a rapidly changing economy. Growth in the agriculture sector remains essential to continued poverty reduction in Ethiopia and will depend on sustained investment in the agrifood system, especially private sector investment. Many of the policies for a successful agricultural and rural development strategy for Ethiopia are relevant for other African countries, as well. Ethiopia’s Agrifood System should be a valuable resource for policymakers, development specialists, and others concerned with economic development in Africa south of the Sahara.