Commentaries | Apr 17,2021
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]
Commentaries | Apr 17,2021
Fortune News | May 11,2019
Commentaries | Jan 11,2020
Fortune News | Jan 25,2020
Radar | Jan 16,2021
Fortune News | Mar 28,2020
Featured | Sep 08,2019
My Opinion | Jul 13,2020
Radar | Jul 30,2022
View From Arada | Sep 19,2020
Photo Gallery | 96892 Views | May 06,2019
Photo Gallery | 89110 Views | Apr 26,2019
My Opinion | 67216 Views | Aug 14,2021
Commentaries | 65778 Views | Oct 02,2021
Feb 24 , 2024 . By MUNIR SHEMSU
Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...
Feb 10 , 2024 . By MUNIR SHEMSU
In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...
Jan 7 , 2024
In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...
Sep 30 , 2023 . By AKSAH ITALO
On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...
Apr 20 , 2024
In a departure from its traditionally opaque practices, the National Bank of Ethiopia...
Apr 13 , 2024
In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo)...
Apr 6 , 2024
In a rather unsettling turn of events, the state-owned Commercial Bank of Ethiopia (C...
Mar 30 , 2024
Ethiopian authorities find themselves at a crossroads in the shadow of a global econo...
Apr 20 , 2024
Ethiopia's economic reform negotiations with the International Monetary Fund (IMF) are in their fourth round, taking place in Washington, D...
Apr 20 , 2024 . By BERSABEH GEBRE
An undercurrent of controversy surrounds the appointment of founding members of Amhara Bank after regulat...
An ambitious cooperative housing initiative designed to provide thousands with affordable homes is mired...
Apr 20 , 2024 . By AKSAH ITALO
Ethiopia's juice manufacturers confront formidable economic challenges following the reclassification of...
Loading your updates...