Ethiopian Business Review

Government Trains Economic Forecasters at Home

Thursday, 01 November 2012 06:23 Published in Economy & Finance

  • UNDP, EU and Other Development Partners Sponsor MoFED

For fast growing economies like Ethiopia, economic forecasting is very crucial. Making strategic decisions with uncertainties means that nations are frequently in need of forecasts. This effort can be put into practice at the macro level for country’s GDP, inflation, unemployment or fiscal deficit. It can also be applied at the micro level for specific sectors in the economy or even specific firms. But doing this is not as such an easy task, especially, in developing countries. The lack of analytic forecasting experts of their own, forces least developed countries to rely on global institutions such as the World Bank and International Monetary Fund (IMF).

Government Trains Economic Forecasters at Home

Thursday, 01 November 2012 06:23 Published in Focus

  • UNDP, EU and Other Development Partners Sponsor MoFED

For fast growing economies like Ethiopia, economic forecasting is very crucial. Making strategic decisions with uncertainties means that nations are frequently in need of forecasts. This effort can be put into practice at the macro level for country’s GDP, inflation, unemployment or fiscal deficit. It can also be applied at the micro level for specific sectors in the economy or even specific firms. But doing this is not as such an easy task, especially, in developing countries. The lack of analytic forecasting experts of their own, forces least developed countries to rely on global institutions such as the World Bank and International Monetary Fund (IMF).

Macro policy is not made in a political vacuum. The political economy context, both internal and external, in which macro policy is formulated, has a strong bearing on the resultant macro policy and hence the macroeconomic environment that private economic agents do face.

Macro Policy making in Africa has been primarily driven by the influence of the World Bank and International Monetary Fund (IMF) (International Financial Institutions, IFIs henceforth) for the last three decades. This is complemented by the political and intellectual support of IMF to the bank. The macro policy that emerged from the IFIs, termed as ‘Structural Adjustment Programs [SAPs]; and ‘Poverty Reduction Strategy Papers [PRSPs], was, and still is, effectively implemented in the continent. This is mediated through aid conditionality.

South-East Asia Eyes Ethiopia

Thursday, 01 November 2012 06:11 Published in Focus

Last September showed the coming of series of business delegations to Addis Ababa from East. One of the delegates was from small but industrialized country, Singapore. The Singapore’s delegation, which consisted of 20 bossiness people, focused to get dealers from Ethiopia for construction machineries, caterpillars, and agro-processing materials. They also wanted to identify suppliers of spice products. The mission also planned to engage in shipping and logistic sectors to ease trade activities they want to undertake in Ethiopia.

Entrepreneurship and National Economic Development

Thursday, 01 November 2012 06:03 Published in View Point

Have you ever gone back in retrospect and looked at how far you have traveled in life? Just think back to the time you were a child and recall what it was like. Think about where you were then. Were you in an urban or rural environment? What did you hope you would achieve in life? What kind of future did you really hope for, if at all? Hopefully if you look at where you are now you can see just how far you have traveled or how different your present reality is from your imagined future.

In the late 1960s and 1970s there was an outflax from the cities: people left for the countryside with hopes of becoming entrepreneurs. Interestingly in 1973 Ethiopia earned more from exports than paid for its imports for the first time in modern history. It looked as if the country had turned its direction and was on the path to prosperity through a new far sighted embryonic entrepreneurial economy. Imagine where Ethiopia would have been today had that trend continued - over the last half century or so.

Insuring the Uninsured

Thursday, 01 November 2012 05:54 Published in Economy & Finance

  • OIC’s new Index Based Livestock Insurance for Borena pastoralists

Oromia Insurance Company (OIC) has recently launched a new product dubbed Index Based Livestock Insurance (IBLI) for pastoralists in Borena Zone, Oromia National Regional State. For farmers and pastoralists in Ethiopia’s drought vulnerable zone, the launching of IBLI is very good news.

Borena has been affected by drought recurrently over the past couple of years. According to the United Nations Office for the Coordination of Humanitarian Affairs, in 2010 and 11, drought in Borena caused serious damage to the rich livestock resources of the region. As a result 412,000 out of a total of 1.29 million people in the region were receiving food assistance including aid provided under the Productive Safety Net Programme.

Businesses are legally responsible for their actions as if they were individual. This concept, known as corporate criminal liability, looks at practically every commercial or industrial organization whose existence is to make profit. As to the concept, businesses are responsible as an entity separate from their shareholders or partners.

Nonprofit and public sector organizations like charities, schools, or religious institutions are treated differently.

They are usually excluded from the conceptual coverage of corporate criminal liability. Not only is the for profit status an issue in corporate law, each sovereign state can enforce its own regulations on businesses. Therefore the issues of which types of organizations are subject to criminal liability, for what types of acts and omissions and for the fault of which type of employees is always left to the criminal policy and specific regulatory concerns of each sovereign state.

Time to Do Something about Underemployment

Thursday, 01 November 2012 05:01 Published in Society

Are you one of those who think they have a job merely because the alarm is set to wake you up every morning and tackle Addis Ababa’s discomfort of transportation to get to office? Are you coerced to do a part time job when what you want is to work 40 hours a week in an office? Are you a secretary, these days referred administrative assistant, using an old typewriter in the world of computers or simply using the latest Macintosh computers for solitary games? Or, are you an Engineering graduate who took up a cobblestone job with the nation’s road construction projects?

No matter how much you make, if your employment resembles any one of these cases, Human Resource theories suggest that you are rather underemployed. This situation has numerous consequences with regard to your personal future and the economy in general.

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