The Chaka Project, a development project on over 503 hectares of land in Yeka Sub-City leaning on Yeka hill of the Addis Ababa City Administration, has become a pivotal national project. The project, spearheaded by Prime Minister Abiy Ahmed, is part of a grand ‘Smart City’ Development endeavour that would cost more than 500 billion birrs. 

A Population Growth Perspective

Ethiopia has experienced different defining moments that have allowed it to survive for thousands of years. One moment, for instance, was the war against colonialist Italy during the second half of the nineteenth century, culminating 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 the survival of its cultures: Embracing industrialisation-led structural transformation.

Addis Ababa, the dynamic capital city of Ethiopia, is grappling with an unprecedented housing crisis due to rapid population growth and urbanisation. The allure of Addis Ababa as Ethiopia’s political, economic, social and diplomatic hub has attracted a significant influx of people seeking better livelihoods, safe environment and job prospects. This surge in population, along with other factors, has led to a severe housing, transport and unemployment crisis in the city. It’s even transpiring unheard-of crimes in the broad day, while its impact on providing essential services has grown tremendously.

Around the world, supply is struggling to keep up with demand. Inflation remains stubbornly high, despite aggressive interest-rate hikes. The global workforce is aging rapidly. Labor shortages are ubiquitous and persistent.

These are just some of the forces behind the productivity challenge facing the global economy. And it has become increasingly clear that we must harness artificial intelligence to address that challenge.

 In urban planning, few endeavours have sparked as much debate and criticism as the establishment of Sheger City, encircling the vibrant capital of Ethiopia, Addis Ababa. This audacious plan has come under fire from various quarters for many reasons, including its unprecedented nature in city planning, unjust implementation, and questionable long-term sustainability. As stakeholders question its viability, it is imperative to reassess the plan and explore alternative approaches prioritizing equity, inclusivity, and environmental responsibility.

The Sudan crisis that exploded in April is a stark reminder of the far-reaching spillovers of violent conflict in today’s integrated global economy. Beyond the suffering of the Sudanese people, a full-blown conflict would further destabilize the region. Sudan’s neighbours, such as the Central African Republic, Chad, Ethiopia, Libya, and South Sudan, are already facing conflict, civil unrest, and food insecurity.

For several decades, markets and market incentives were the main drivers of economic trends and policies. No longer. We have entered an age of political economy, in which the actions of governments and the possibility of drastic policy shifts have become the main determinants of economic performance.

Industrial policy has always been a controversial dimension of growth and development strategies in emerging economies. Now, the introduction of the CHIPS and Science Act, [a US federal statute enacted by the 117th United States Congress and signed into law by President Joe Biden on August 9, 2022. The act provides roughly USD280 billion in new funding to boost domestic research and manufacturing of semiconductors in the United States], and the (misnamed) Inflation Reduction Act in the United States has reignited a similar debate in advanced economies. Unfortunately, it’s a debate that often generates more heat than light.