A Market Nether Logic Nor Theory Explains

The most bizarre aspect of the Ethiopian economy is the constant surge in the prices of properties, particularly in the capital. The fast price growth trajectory which started almost two decades ago has increased its momentum in recent years.

In a properly functioning property market, the trend in house prices is somehow anchored to some economic fundamentals such as real income and rental value. Defying these economic fundamentals, the price of houses, particularly in the capital, is soaring to an alarming level. What is surprising is that the increase in rent is far behind the growth in property value, considerably squeezing the yield (rent/property value). This indicates that there is something serious that has gone terribly wrong.

The Council of Ministers in its 13th regular session held on August 4, 2022, resolved to open the banking sector to foreign investors by endorsing a policy document. Following this decision, the National Bank of Ethiopia (NBE) circulated the policy along with a draft amendment to the banking business proclamation. The policy document as well as the draft legislation allow four models for the entry of foreign banks into Ethiopia, viz., acquisition of stakes in existing banks, subsidiary formation, the opening of branches, and opening of representative offices. While opening a representative office cannot amount to market entry, it has long been permitted for some foreign banks. Representative offices can only do promotional activities and, most importantly, cannot offer services to customers. There is no mention of the joint venture as an entry model, contrary to earlier reports in some media. This is not to suggest that the proposed models are not good enough. On the contrary, one may be tempted to judge that the policy gives too much in terms of entry options. With Ethiopia being the second most populous country in the continent with one of the lowest rates of financial inclusion, there was no doubt that Ethiopia’s banking market would attract interest even if the country restricts the modes of entry.

In terms of the market situation and marketplace in Ethiopia, there are many issues that need to be modernized and improved. Of these, the marketing process and implementation, which has not redeemed the time, takes the biggest portion. Paying attention to this issue will greatly help the challenging journey of the Ethiopian economy to maintain its health and move on the path of modernization.

It is very difficult to communicate and move along with the global marketing system while running a marketing application that lacks modernity. Transforming the process of how the trading practice is done is becoming inevitable in all our marketplaces. It makes the issue serious when we think of the famous foreign companies that have entered the country—and are preparing to enter—following the economic reform Ethiopia is carrying out. Eliminating these challenges in time and changing it to a modern marketing process should be one of the main issues.

The post-pandemic economy’s high inflationary pressures are being powered in part by secular trends and forces, many of which are operating on the supply side. While there are also transitory factors – such as supply-chain disruptions and bottlenecks, and China’s zero-COVID policy – these presumably will abate at some point. But the secular trends are likely to lead to a new equilibrium in many economies and global financial markets.

On September 6, my book was published Slouching Towards Utopia, it’s economic history of the “long twentieth century” from 1870 to 2010. It is past time, I argue, that we shifted our understanding of where the hinge of global economic history lies.

Some might put it in 1076, when the European Investiture Controversy cemented the idea that law should constrain even the most powerful, rather than being merely a tool at their disposal. Another big year is 1450, when the arrival of the Gutenberg moveable-type printing press and the Renaissance set the stage for the Enlightenment. And then, of course, there is 1770, when the Industrial Revolution really got into swing.

Open Letter to the Prime Minister and Government

On August 3, 2022, the Ethiopian government held its annual meeting to review the macroeconomic performance of the country. The session led by the Prime Minster assessed the country’s economic journey and performance in terms of GDP growth and other macro-economic variables such as inflation, employment creation, export, and investment promotion.

Despite higher inflation, incessant conflicts unfavorable to business, the practice of corruption, global recessions, and rapid population growth—which all have a negative relationship with economic growth—the Prime Minster declared that the country’s economy grew by 6.6Pct. That was considered a miracle and gave credit to the government’s plan and effort.

Environmental, social, and governance (ESG) considerations are playing an increasingly prominent role in business. ESG is now central to how firms in a wide range of sectors, including finance and asset management, define their purpose, mission, and strategy, and it is increasingly shaping hiring practices and regulatory activity. But whether the apparent embrace of ESG will deliver real progress remains to be seen.

The promise of ESG stems from an important proposition. The key challenges we face today – from achieving reasonable levels of equity and equality of opportunity to ensuring environmental sustainability – cannot be overcome by any single actor, not even the government. On the contrary, effective solutions will require all hands on deck, including business, government, finance, education, the courts, and the nonprofit sphere.

From March 1967 to July 1972, the United States military carried out Operation Popeye during the Vietnam war. The operation used a type of geoengineering which “seeded” clouds that rained on the Laotian Panhandle. No, this is not a fictitious or dramatic scene from Michael Herr’s Dispatches. Rather an actual action that married the agile technology of its time to a government operation for just over 5 years.

New evidence from two Kenyan counties shows that cash transfers and other income supplements reduce hunger, illness, and risk exposure during crises. Countries should consider building transfer systems that can be activated at short notice to help people weather unanticipated shocks.

When the COVID-19 pandemic and the resulting recession pushed 120 million people worldwide into extreme poverty in 2020, many countries relied on social-protection measures to cushion the blow. By May 2021, a total of 3,333 such schemes had been planned or implemented in 222 countries or territories.

The Implications of the Beginning of Organizational Advocacy Service in Ethiopia

The provision of organizational advocacy services established as law firms has a long history. Guinness World Records notes that Thomson Snell & Passmore law firm, established in 1570 in the United Kingdom, is the oldest continuously operating law firm. Similarly, the first law firm in the United States was established 12 years after independence from Great Britain. Rawle & Henderson LLP, a law firm headquartered in Philadelphia, Pennsylvania, is the oldest law firm in continuous practice there. Established in 1783, the firm is one of the leading practices in admiralty and maritime law.