Last December, the United Nations launched the latest of its annual landmark Human Development Reports. The report focuses on the nature of work: how the way we earn a living is being transformed by economic globalisation, new technologies, and innovations in social organisation. The outlook for developing countries, in particular, is decidedly mixed.

Business organisations and individuals in Ethiopia vary in terms of their stance on the subject of electing insurance as a risk management tool. Practice and figures show that although insurance policies are availed to guard businesses from apparent life, property and liability risks, most prefer self-insurance or other risk management tools instead of traditional insurance.

In the run-up to the United Nations Climate Change Conference (COP21) in Paris, more than 150 governments submitted plans to reduce carbon emissions by 2030. Many observers are asking whether these reductions are deep enough. But there is an even more important question: Will the chosen path to 2030 provide the basis for ending greenhouse-gas emissions later in the century?

as a Strategy of Reducing Drought-Related Vulnerability

Ideally, the rainy season in Ethiopia begins in June and lingers through August or mid-September. Known locally as keremt, it is during these three months that Ethiopia obtains the chief portion of its total annual rainfall – and serves as a key determinant in the country’s ability to feed its populace and prepare certain items for export.

Issues to Note While Amending the Income Tax Law

With some minor amendments, the Income Tax Law (proclamation no 286/2002) has been operational for the last 14 years, complemented by the proclamation regulating Ethiopia’s Value Added Tax. Both proclamations were the result of measures the government took to expand the tax base and modernise the system. The purpose was to mobilise resources to fund development projects and government expenditures from domestic sources. The results have been noticeable, as the federal tax authority was able to increase tax collection drastically, with the annual amount reaching more than ETB100 billion in the just-ended budget year.

Mind the ‘Attention Gap’

‘Insurance fraud’ has existed since the commencement of the insurance business in its modern sense. In general, insurance fraud transpires when a beneficiary acquires a benefit to which he or she is not otherwise eligible. The insurance directive issued by the National Bank of Ethiopia (NBE) in 2014 specifically defines fraud as “an act or omission by shareholders, directors, employees, customers, policyholders or insurance auxiliaries committed with the intention of gaining dishonest or unlawful advantage for the party committing fraud or for other parties.”

A few years ago, Melinda and I visited with a group of rice farmers in Bihar, India, one of the most flood-prone regions of the country. All of them were extremely poor and depended on the rice they grew to feed and support their families. When the monsoon rains arrived each year, the rivers would swell, threatening to flood their farms and ruin their crops. Still, they were willing to bet everything on the chance that their farm would be spared. It was a gamble they often lost. Their crops ruined, they would flee to the cities in search of odd jobs to feed their families. By the next year, however, they would return – often poorer than when they left – ready to plant again.

Major issues to consider

One of the greatest achievements of Prime Minister Abiy Ahmed (PhD) in his short stay in power is bringing peace between Ethiopia and Eritrea, which is an excellent political and diplomatic success. This is also a smart political move on his part to fight established interest groups who could stand against his reform. His visits to Egypt, the UAE and Saudi is also a predictable political underpinning for the success.

Michael Kalecki’s Advice on Financing Development

Michael Kalecki (1899-1970) was a rare economist of Polish origin who could be referred as the unknown prophet in economics. He actually developed his theories before or at the same time as the famous British economist J.M. Keynes’ ideas that revolutionized economics and economic policy from 1930s to 1970.

History is replete with wars fought for access to land. There was a time when a piece of land had limited usage – you grow food grains and fruits or you just live on it. As societies evolved, land use changed purely based on human needs.