World Bank: Ethiopia could reach middle income status by 2025

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• " Tsidiku bekrena be wil be konenkugn" is an Amrhaic proverb which describes the above statement from senior Bankers at World Bank, which i prefer many times to the IMF. This said, there are numerous obstacles to reaching this ' goal'. 1. There is no ' stock market' which can allow average folks to participate in the ' economic boon'. there are stock exchanges in Nairobi, Cario and Lagos, why not in Ethiopia. We have a ' commodity exchange' which has added fuel to hyperinflation. Commodity exchanges were meant to guarantee farmers' income and were set up to secure their existence in Chicago, first, two hundred or more years after the first stock exchanges were established in places like New York and London. These are the ultimate mechanisms for creating wealth and saving culture. In Nairobi, the average street peddler is involved in this scheme, why not in Addis or Mekele? Only the connected ' few' are enriching themselves by having cornered some of the most profitable enterprise like banking and insurance. 2, The government could have partially privatized the telephone and electric monopolies. I think the Telephone Monopoly should be sold to reputable foreign company. ( at least fifty percent of it). This will fetch some three billion or so according to HMD ( as was stated in his interview to Financial Times). What the government is getting is peanuts compare to the embezzlement prevalent in that department, Assuming some of the proceeds will be the ' nesting egg' of retirees, it will lighten the govt's pension burden. I think the govt will get much of the revenue in levying taxes on capital gains or transaction of stocks as is customary in much of the World. 3 As Addis is the capital of the Africa, some foreign banks should be allowed to operate. I wonder how the thousands of expats are living without what modern banking has to offer! These banks, should be restricted to allow the local banks to adjust to competition. They shouldn't be allowed to raid existing banks but train their own in the first four years or so. As the so called local banks are generating most of their incomes from peddling foreign currency and not lending to viable concerns, we have to categorize them as ' speculators' and not banks, in its earnest meaning. Some banks in the United States have already started giving loans to expatriates in Inida based on their credit- rating in their primary residence. Imagine an Ethiopian emigre( Ethiopians'
  credit rating tops immigrants in the US) in the United States can tap tens of thousands of dollars for investment in Ethiopia for he is a ' good credit risk',,,,,,, the benefit can be many times for the Nation and its many job residents.
  4. We should establish the Bosaso- Berbera corridor as a viable alternate to counter Djbiouti and its intrigue. Roads can be built by a share company comprising of nationals from Ethiopia and Somaliland. The same way the American west was tamed.
  5. Rule of law should be established in every aspect. civil and criminal. No favoring of ' underdogs' or ' assertive union sharks'
  6, 1% surtax on all expatriates until the Dam is built beats this 'bond fiasco'
  7. abolish ' the tara and korkoro' land lease system

  Of course, there are other important steps needed to get the Nation ready for the WTO accession and accelerated temp of growth. Some of these ideas can be summarized in a manner not to bore readers.
  The EPRDF should loosen up the media. It is a sure bet that it will get 50% plus one in any forthcoming election, given the massive support it has with in the rural dweller. Save for those agitating tribal or religious strife, the rest should be tolerated. If it is the Chinese or South Korean model it considers, these models have private and state owned enterprise functioning, side by side. So it should curb its animosity toward the private enterprise by first setting up a transparent regulated stock market. Similarly allow productive farmers, in its initial stage to have stake in the land they till, ie give them certificate of ownership, which will get them easy financing and above all, financial security. The properties which were confiscated by the Dergue has to be returned to their owners or have them compensated, if this is not possible. This will lay the foundation for a prospering Ethiopia. While any number of my suggestions will accelerate the momentum, all need scrutiny or trial, at best to see how much more progress there will be in the Nation.

• Sent from my iPhone