Radar | Dec 19,2020
October 24 , 2020
By Ayele Tirfie Woldemichael ( Author of several books and an alumnus of Oregon State University and the University of Stuttgart. )
The 10-year economic plan is critical to realising development in the country. But there are a set of challenges that need to be recognised and preconditions that have to be fulfilled to realise success, writes Ayele Tirfie Woldemichael (Prof.), author of several books and an alumnus of Oregon State University and the University of Stuttgart.
The government has put a national 10-year development plan forward for discussion. Ministries have been holding forums for their respective industries and sectors, while the Planning & Development Commission has been promoting an economic transformation plan expected to guide the country until 2030.
It is evident that long-term 10-year plans such as this are critical in economic policymaking. The merits accrue in its value in giving long-term direction and vision about the envisioned pursuit of the nation’s growth and development and comprehensive coverage of all major aspects of the nation’s economy. It also allows for the identification of core sectors of the economy for targeted allocation and optimal utilisation of resources for creating complementarities between the sectors for integrated and effective progress.
A 10-year plan will also set the preconditions for coordination of the workings of both public and private investment through forecasts and targeted outputs.
But there is a need to build on the implementation of the 10-year plan by translating it into two three-year and one four-year plan or into two five-year plans, whichever is acceptable to the national planning organ, the Commission. This measure creates possibilities for periodic assessment of progress stretching over the subdivided and consecutive plan periods, eventually leading to the overall success of achievement at the end of the 10 years.
The timeless principle affirms that success is the ultimate measure of performance. But this will not occur in a vacuum. There are prerequisite measures that need to be taken to make the planning successful, including a critical assessment of the current or existing state of the socioeconomic conditions in the country to establish the reality as a point of departure.
While the federal government discharges its responsibility of developing physical and social infrastructure in all its forms, there should be a participative or inclusive review of both the draft plan and full participation in the implementation process involving the private sector, the regional and local authorities and, if possible, the communities at the grassroots level.
Building institutional capacities or competencies at all levels of the hierarchical system in tandem with staffing them by human resources equipped with high-quality knowledge and skills is just as critical. These are basic for effective implementation.
The plan implementation also needs to be decentralised with sectoral coordination at national and regional levels. Growth and development under regional or decentralised - harmonised top-down, bottom-up - planning approaches are the outcome of shared responsibilities and coordinated efforts between the planning organs of the national and regional players. Regional development is inherently resource-based, need-oriented, participative and people-centred.
Critical to the whole process is constant monitoring and milestone-based evaluations during the process of implementation of the plans. The outcome of evaluation at each milestone provides lessons or feedback to be of use in each following stage within the implementation process. Also, careful study of socioeconomic conditions and forecasting for each of the remaining plan periods would serve as an instrument of feedforward.
Challenges will abound during the implementation process without a doubt. Some of the major ones are deficiencies in the plans and in the implementation process and poor or wasteful resource utilisations. It could also be institutional weakness and low-level human capacities that could lead to delays in reacting to symptoms or indications of impending failures. An underdeveloped service sector consisting of financial services, public administration, transportation-cum-communication, the legal system, touristic services, health and education may also complicate the planning beyond what is required.
There are other critical bottlenecks to be recognised in Ethiopia. One of the major ones concerns how the nation’s urban centres are characterised by a skewed distribution across the national space and low economic significance taken on their own. Many are not centres of generative or value-adding industries capable of creating jobs and wealth. The prevailing realities in the urban centres are - despite the massive potential and gradual growth - informal businesses, poverty and inequality. With the existing poor urban qualities and low agricultural productivity, economic interactions between the two sectors are at best rudimentary and at worst non-existent.
The simultaneous existence of growth and poverty is no small matter as well, as is the disparity between economic benefits and social services including quality health and education. The relegated improvement of rural economic performance will be another headache that planners will have to deal with.
PUBLISHED ON Oct 24,2020 [ VOL 21 , NO 1069]
Radar | Dec 19,2020
Featured | Jan 08,2019
Life Matters | Jul 13,2019
Editorial | Apr 30,2021
Viewpoints | Jul 10,2020
Editorial | Apr 26,2019
Commentaries | Mar 07,2020
Viewpoints | Jan 03,2021
Fortune News | 41682 Views | Jul 18,2020
Fortune News | 35453 Views | Sep 01,2021
Photo Gallery | 28171 Views | May 06,2019
Photo Gallery | 26383 Views | Mar 17,2019
Commentaries | Oct 23,2021
Life Matters | Oct 23,2021
My Opinion | Oct 23,2021
Sunday with Eden | Oct 23,2021
Agenda | Oct 23,2021
Editorial | Oct 23,2021
October 16 , 2021 . By HAWI DADHI
Residing in a country with no capital market, an organised marketplace for trading se...
August 28 , 2021 . By HAWI DADHI
The streets of Addis Abeba are as varied as they are many, although too many of them have yet to be named. From the narrow alleyways of the...
August 7 , 2021
There are a few without an opinion on Ethiopia’s federal structure, which is arranged along lingo-cultu...
July 24 , 2021
There was an alarming increase in the price of Teffin August 2017. It suddenly skyrocketed from 2,000 Br...
Ethiopia is at a pivotal moment in its history. Its future path is not only vital for...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
October 23 , 2021
Ethiopia`s civil war continues to rage, with no sign of respite or a prospect for a n...
October 16 , 2021
For many, the past rainy season was a critical moment in the life of the nation. One...
October 9 , 2021
Public offices have been having a field day in the past few years. From the Prime Min...
October 2 , 2021
Ethiopia`s Parliament will pick up a Prime Minister on Monday, October 4, 2021. The i...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
Friends help us make the most out of life, providing social and emotional support as...
Human societies have come a long way. Just think about it. It was only in 1888 that electricity in our ho...
October 23 , 2021
Beverage companies and commercial banks dominated last week's event held at the Grand Palace up at Arat Kilo. Prime Minister Abiy Ahmed (PhD...
October 23 , 2021 . By HAWI DADHI
The central bank has instructed commercial banks to reinvest returns from bonds maturing next year and on...
Companies setting up data centres at the Addis Abeba ICT Park are embroiled in a dispute over lease payme...
October 23 , 2021 . By TAMRAT G. GIORGIS
The International Monetary Fund (IMF) left Ethiopia out of its economic growth projections for next year...
Or see contact page