Time for Re-orientation

On September 16, 2015, the Organisation for Economic Co-operation and Development (OECD) released the world interim economic outlook – and after reading the report, there are many things of which to be concerned.
The slow progress of recovery in advanced countries and the economic slowdown in emerging economies, notably Brazil and China, are two main factors cited for sub-par global growth during the rest of 2015 and 2016.

Around the world, labour markets are in disarray. Unemployment is high in many countries, especially among the young. At the same time, many companies report having trouble finding qualified workers. Record numbers of people are going into retirement, but many would prefer to work, at least part-time. Information technology has displaced workers even as it has created new jobs.

Income inequality has been increasing in most major economies – and in many of them, it has been increasing significantly. This is a cause for growing concern, and rightly so: inequality not only can undermine an economy’s long-term growth prospects; it can restrain growth in the short term by depressing aggregate demand.

Despite the industrial transformation the Ethiopian government is developing as a launch pad for economic growth, the manufacturing industry sector is not doing as well as expected, lagging far behind in terms of competitiveness in the international market. This manifests itself in the reality that foreign currency generation from the manufacturing sector is trending down on pars of planned export targets.

When World War II ended 70 years ago, much of the world – including industrialized Europe, Japan, and other countries that had been occupied – was left geopolitically riven and burdened by heavy sovereign debt, with many major economies in ruins. One might have expected a long period of limited international cooperation, slow growth, high unemployment, and extreme privation, owing to countries’ limited capacity to finance their huge investment needs. But that is not what happened.

When people think of innovation they often think of new technology. However, innovation is a process of converting ideas into goods and services that have recognizable values that persuade consumers to pay for them. In order to be called innovation, ideas must be produced with an economic cost and must satisfy a specific need.

Why Low-Cost Airline Carriers Don’t Work in Africa

Low-cost airline carriers (LCCs) have had a major effect on most of the world’s continents. Following the pattern of Southwest Airlines in the United States, budget carriers in Europe, Asia and even the Middle East – where it was popularly believed that travelers would equate low prices with low quality and take on low cost airlines – have opened up new horizons to millions of people.

In any country, the issue of labour is one of the policy areas that need serious regulatory attention to ensure and enhance social welfare, investment promotion and stable political economy. This is also true in Ethiopia. However, there are labour issues that need attention.

Look into the Future, Listen to the Young

Every generation feels that they are unique in some aspect from their parent’s generation. The phrase; “In our day we did things differently,” has been repeated throughout history. In the work place, the challenge is to understand generational differences so that they do not become a breeding ground for confusion, resentment, anger or turnover.

Millions of the world’s poorest people face serious water-related challenges – from lack of access and shortages to disputes over supplies – with profound implications for security, economic development, and environmental sustainability. As world leaders design a development agenda to succeed the Millennium Development Goals (MDGs), which expire in 2015, addressing these issues should be a top priority.