News Analysis | Oct 27,2024
Jul 22 , 2023
By Hintsa Andebrhan
At the recent Paris Finance Summit, the world stood on the precipice of a novel epoch, two rival monetary orbits glinting at its edges. The international community, it appears, is at a critical juncture, teetering on the brink of a struggle for financial domination. In this volatile milieu, only countries with robust economic policies dare tread the arduous path.
At the fulcrum of these geopolitical machinations was Ethiopia's Prime Minister, Abiy Ahmed (PhD), a leader whose presence, while noticeable, was marked by a surprisingly tepid critique of the International Monetary Fund (IMF) and World Bank, the very emblems of the Bretton Woods monetary order.
Abiy's key points included a call for the fulfillment of pledges, a push for enhanced liquidity access, a rallying cry for scaling up Multilateral Development Banks (MDBs), and an appeal for immediate debt relief. His cause, however, revealed an apparent acquiescence to the incumbent economic order and its associated rules - a position that many in Ethiopia may view as a gamble.
Notably, the Summit brought into sharp relief the underlying tensions simmering in the Global South. A clear distinction was made by South Africa and Kenya, whose leaders have grown weary of international financial institutions that treat them as subordinate entities.
Kenya's President, William Ruto (PhD), emphasised the call for an equal partnership, articulating the need for a new financial architecture. This sentiment found an echo in several developing economies from Latin America to Asia, all expressing disenchantment with the hegemony of dollar trades.
The Summit laid bare a silent but palpable specter: Brazil, Russia, India, China, South Africa, a.k.a the BRICS, and its New Development Bank (NDB). It is not just the emergence of a new bank that alarms Washington and its allies; rather, it is the idea of a new currency that seeks to upend the Dollar's supremacy. Recent developments, such as China's petro-Yuan agreement with Saudi Arabia, and the Yuan and Ruble-based energy trade agreement between China and Russia, signify a significant thorn in the side of the US-led liberal economic order.
American economist Jeffrey D. Sachs (PhD) poignantly captured the mood, noting the inability of American leaders to deliver cogent policies at the Summit. In this milieu, the US-centric financial entities, the IMF and World Bank, stand on the verge of a watershed moment. They must either reform their bureaucratic structures or face the onslaught of a new currency championed by the BRICS.
The implications of these shifting tectonic plates are not lost on Ethiopia.
While the country's current economic strategy remains opaque, there is a pressing need for a robust economic policy to navigate this incoming 'war of economies.' The new global order looming over the horizon is not about simple trade-offs but about having a nuanced and complex policy. It is also about states safeguarding their sovereignty while advancing their interests. It is incumbent upon Ethiopia's Prime Minister and his administration to fashion an economic strategy that would shield Ethiopia and secure its populace's social and economic well-being in this evolving world order.
PUBLISHED ON
Jul 22,2023 [ VOL
24 , NO
1212]
News Analysis | Oct 27,2024
Commentaries | Jul 08,2023
Viewpoints | Jun 03,2023
Sunday with Eden | Mar 23,2019
View From Arada | Dec 24,2022
Radar | Feb 26,2022
Commentaries | Jul 07,2024
Verbatim | Oct 23,2021
Commentaries | Sep 04,2021
Radar | May 26,2021
My Opinion | 127763 Views | Aug 14,2021
My Opinion | 123961 Views | Aug 21,2021
My Opinion | 122101 Views | Sep 10,2021
My Opinion | 119952 Views | Aug 07,2021
Dec 22 , 2024 . By TIZITA SHEWAFERAW
Charged with transforming colossal state-owned enterprises into modern and competitiv...
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 28 , 2024 . By TIZITA SHEWAFERAW
Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...
Apr 20 , 2025
Mufariat Kamil, the minister of Labour & Skills, recently told Parliament that he...
Apr 13 , 2025
The federal government will soon require one year of national service from university...
Apr 6 , 2025
Last week, the International Finance Corporation (IFC), part of the World Bank Group...
Mar 30 , 2025
When the private satellite channel, Ethiopian Broadcasting Service (EBS), aired an em...
Apr 19 , 2025
At first light in Addis Abeba's Qality District, the smell of freshly roasted Yirgach...
Apr 19 , 2025 . By AKSAH ITALO
Key Takeaways The National Bank of Ethiopia has introduced a new loan classifi...
Apr 19 , 2025 . By BEZAWIT HULUAGER
Key Takeaways: Over 800 auditors and accountants are under scrutiny in Addis A...
Key Takeaways: EDIF has collected 5.2 billion Br in premiums, displaying its...
Loading your updates...