One major casualty of Donald Trump’s victory in the bruising US presidential election is, without a doubt, America’s soft power around the world. It is a development that will be difficult – perhaps even impossible – to reverse, especially for Trump.

In its May 2010 “Global Survey,” McKinsey & Company reported that, “the core drivers of globalisation are alive and well.” In an April 2014 report, the firm went further, declaring that, “to be unconnected is to fall behind.”

Between 2010 and 2014, Africa’s economic growth was an over-studied phenomenon. A cursory glance at any financial publication during this period and one would have been inundated with overwhelming analysis and statistics on Africa’s progress and future potential. The topic was so ubiquitous that the global conference industry was thriving on just one subject – African development. However, by 2015 the euphoria seemed to have all but evaporated.

Gross domestic product (GDP) is the most powerful metric in history. The US Department of Commerce calls it “one of the great inventions of the twentieth century.” But its utility and persistence reflect political realities, not economic considerations.

A chronic housing shortage is one of the grimiest realities in Addis Ababa. The problem is manifested in squatter settlements, living in squalid and overcrowded conditions without regard for health and safety, long commutes, abject poverty, and exorbitant rent with minimum rights for tenants. The capital has vast slums. The inner-city, which covers 12Pct of the land, of which 70Pct is comprised of government- owned mud houses, is home to 40Pct of the population, according to the Central Statistical Agency.

A Population Growth Perspective

In the past, Ethiopia has experienced different defining moments that have allowed it to survive for thousand years. One moment, for instance, was the war against colonialist Italy during the second half of the nineteenth century, which culminated in the Battle of Adwa. Today, Ethiopia has to choose another defining moment to ensure the material well-being and unity of the people and survival of its cultures: Embracing industrialisation-led structural transformation.

Despite the pivotal role small-scale farmers have in economic transformation, there are critics who question the viability of small farming as a way out of poverty and as a vehicle for achieving sustainable development, including the writer of the article that appeared in EBR’s 37th edition. Tsegaye Tegenu (PhD) outlines the multifaceted challenges that small farmers continue to face that undermine their potential for economic growth.

In the first part of this series, which was published in EBR’s 40th edition, I presented how and why our government fails to effectively support small businesses, especially those that prefer not to be organised under the national micro and small business development plan. In this second part, I will suggest solutions that will help reverse the current unfriendly situation.

Throughout human history, mankind has engaged in business transactions – from bartering simple goods to selling and purchasing sophisticated products and services. Governments have been one of the most visible agents in these processes. Initially, they were entrusted to create an efficient legal and regulatory framework for these exchanges to take place in a safe and fair environment. In turn, they became one of the largest financial beneficiaries of this activity – through levying taxes.

According to the United Nations Development Programme, governance is the “exercise of economic, political, and administrative authority to manage a country’s affairs at all levels.” Those who know how to govern themselves in an efficient manner have created prosperous societies.