
Viewpoints | Feb 24,2024
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]
Viewpoints | Feb 24,2024
Fortune News | Aug 12,2023
Agenda | Mar 28,2020
Viewpoints | May 24,2025
Sponsored Contents | May 22,2023
Editorial | Feb 20,2021
Commentaries | Apr 01,2023
Commentaries | Nov 23,2019
Radar | Feb 27,2021
Agenda | Jul 27,2019
My Opinion | 130948 Views | Aug 14,2021
My Opinion | 127288 Views | Aug 21,2021
My Opinion | 125280 Views | Sep 10,2021
My Opinion | 122942 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...
Jun 21 , 2025
A well-worn adage says, “Budget is not destiny, but it is direction.” Examining t...
Jun 14 , 2025
Yet again, the Horn of Africa is bracing for trouble. A region already frayed by wars...
Jun 7 , 2025
Few promises shine brighter in Addis Abeba than the pledge of a roof for every family...
May 31 , 2025
It is seldom flattering to be bracketed with North Korea and Myanmar. Ironically, Eth...
Jun 21 , 2025
In a landmark move to promote gender equity in the banking industry, the National Bank of Ethiopia (NBE) has released its inaugural Gender F...
Jun 21 , 2025 . By BEZAWIT HULUAGER
Officials of the Ministry of Urban & Infrastructure have tabled a draft regulation they believe will...
Jun 21 , 2025 . By AMANUEL BEKELE
A sudden ban on the importation of semi-knockdown and completely knockdown kits for gasoline-powered vehi...
Jun 21 , 2025 . By RUTH BERHANU
Mufariat Kamil, minister of Labour & Skills (MoLS), is rewriting the rules on overseas work, hoping t...