In the second chapter, i present a comprehensive overview of the literature. Pdf industrial policy of ethiopia and rodriks industrial. It also examines industrial structures and associated global value. Developmental state and industrial policy of ethiopia. Industrial policy experiences of todays rich countries after world war ii 60 4. To seek and support peaceful solutions to international disputes. Industrial policy and development in ethiopia unuwider. Printed in addis ababa, ethiopia by the eca printing and publishing unit.
Industrial policy experiences of todays rich countries 60 4. In fact, the evolution of ethiopias industrial policy seems generally consistent with the situations that the country must cope with, which include current levels of policy capability and private dynamism. In turn, high growth rate of exports is required, in the first instance, to remove the threat of balanceofpayment constraint on gdp growth. Understanding the policy choices and the implementation as well as their efficacy is of paramount importance not only for providing feedback to the policy process in ethiopia but also for. The aim of this study is to examine the choices, implementation process, and outcome of the. The ethiopian experience shows that an activist industrial policy goes hand in hand with an activist state. Moreover, the industrial policy o f ethiopia co mbines both carrot and stick.
Industrial policy and late industrialisation in ethiopia. Thus, by the early 1970s, ethiopias industrialization policy included a range of fiscal incentives, direct government investment, and equity participation in private enterprises. This paper aims to better understand how agencies are. Industrial policy is a contested issue, especially for lowincome countries. The objective of this paper is to critically assess and characterize the current ethiopian industrial policy and compare it with rodrik. The study revealed that, industrial policy formulation in ethiopia has undergone several changes across the regimes. Industrial policy and late industrialisation in ethiopia tralac. Ethiopia and the sectors interregional and intraregional distribution.
An industrial policy of a country, sometimes denoted ip, sometimes industrial strategy, is its official strategic effort to encourage the development and growth of all or part of the economy, often focused on all or part of the manufacturing sector. Ethiopia investment policies and incentives and opportunities. Shanta devarajan uses examples to explain why industrial policy often fails, although industrialization has been the goal of nearly every government. On one hand, it is widely accepted that these countries need proactive policies to master the. Lease financing reforms, forex retention, access to foreign loan etc. Reliable information about the coronavirus covid19 is available from the world health organization current situation, international travel. Industrial policy is defined as the strategic effort by the state to encourage the development and growth of a sector of the economy. Chapter 4 experiences of industrial policy in the past and the present 57 4. Investment promotion the current focus of industrial agencies and policies is primarily to attract new investment into their industrial zones. The government takes measures aimed at improving the competitiveness and capabilities of domestic firms and promoting structural transformation. Despite rapid growth, structural transformation of the economy remains the countrys central challenge. There is indeed a rich literature on industrial policy and several advanced and developing countries have successfully implemented industrial policies though not always calling it by that name. Dear abrish,may you send the national ict policy please. Ethiopia is also one of the few african countries that has formulated a fullfledged industrial policy and aggressively pursued it over the last decade.
Second, there certainly are examples where industrial policy has played this role. Specifically, it will attempt to identify the major tenets of the industrial policy of the successive regime of ethiopia. Industrial policy experiences of todays rich countries at the earlier stages of their economic development 62. An overview the impulse for an industrial policy in ethiopia comes from the need to attain a high growth rate of exports. Since ethiopia is an agrarian country the building up of industrialized ethiopia can be realized only through the implementation of agricultural and rural centered economic and industrial development strategy. Industrial development policy of ethiopia wikipedia. Ethiopia actively served the organization as a board member during 199195 and 19992003.
The strategy of combining carrots and sticks can be illustrated well using the leather an d l eather produc ts. Unidos assistance to the country has focused on technical and material assistance in agroprocessing incl. Dear sir i want biodiversity policy of ethiopia doc. To this end, a mixed research approach is pursued in the analysis of the primary and secondary data. Industrial policy is designed with minimal consultation with key stakeholders, especially the private sector. National policies and strategies ethiopian legal brief. In chapter one, i set the context for the study and present the research methodology. Transformative industrial policy african countries. Based on fieldwork in ethiopia and china, including interviews with government officials, companies, and industrial zone operators from both countries, as well as secondary literature, this report offers reflections and recommendations from chinas experience for ethiopias industrial development. It provides firsthand insights with academic rigor about. Industrial policy and late industrialisation in ethiopia african. This report pdf assesses industrial policy in ethiopia.
Debate over industrialization policy choice in ethiopia 20151128 tsegaye tegenu, phd 1 industrialization is a process of building up a countrys capacity to convert raw materials. Any organ of government shall, in the implementation of the constitution, other laws and public policies, be guided by the principles and objectives specified under this chapter. Industrial policy and development in ethiopia oxford. Read made in africa industrial policy in ethiopia online, read in mobile or kindle. Proactive policies are required to make the transition from lowproductivity resourcedbased societies with large informal sectors to more productive, knowledgebased and formalised patterns of productive organisation. This report assesses industrial policy in ethiopia. After examining the fundamental weakness in ethiopias economic structure, this chapter illustrates why and how industrial policy must focus on manufacturing and exports to generate structural transformation and accelerate catchup.
Supporting sectorfocused business environment reform in developing countries, 2015. To forge and promote ever growing economic union and fraternal relations of peoples with ethiopia s neighbours and other african countries. Ethiopia, structural transformation, industrialization, industrial policy, policy learning, activist state, linkage effects, industrial parks 1 dr. It must be underlined that the implementation of agricultural development.
It refers to any type of selective intervention or government policy that attempts to alter the structure of production toward sectors that are expected to offer better prospects for economic growth than would occur in the absence of such intervention. Oclcs webjunction has pulled together information and resources to assist library staff as they consider how to handle. Policy options for food security and promoting rapid employment in ethiopia tsegaye tegenu, stockholm university introduction in the ethiopian political arena there is a discussion on the accuracy the figure and statistics of economic growth rate. Causal evidence from ethiopian manufacturing firms tewodros makonnen gebrewolde university of leicester james rockey university of leicester abstract prioritizing the growth of particular sectors or regions is often part of ldc growth strategies.
Pdf ethiopian industrial development strategic plan 20. Industrial policy and late industrialization in ethiopia. Download made in africa industrial policy in ethiopia ebook free in pdf and epub format. Our understanding of industrial policy has been enriched through practice and constant learning. Pdf the objective of this paper is to critically assess and characterize the current ethiopian industrial policy and compare it with rodrik.
Policy options for food security and promoting rapid employment in ethiopia tsegaye tegenu, stockholm university introduction in the ethiopian political arena there is a discussion on the accuracy the. Industrial policy is a relatively demanding approach. Thus, by the early 1970s, ethiopia s industrialization policy included a range of fiscal incentives, direct government investment, and equity participation in private enterprises. This book presents the findings of original field research into the design, practice, and varied outcomes of industrial policy in three sectors in ethiopia, covering exportoriented and importsubstitution industries. Arkebe oqubay this study presents the findings of original field research into the design, practice, and varied outcomes of industrial policy in three sectors in ethiopia. Pdf ethiopian industrial development strategic plan. Ethiopia is a development miracle in making, which will provide the inspiration, confidence, and experiences for other african countries, like the japanese miracle in post wwii to east asian countries. In 2001 he was awarded the nobel prize in economics.
If industrial policy is to be revised, we must cite other. Overview of economic, geographic, social, and political outlook. Department of policy, research and statistics working paper 212018 industrial park development in ethiopia case study report xiaodi zhang unido dejene tezera unido ciyong zou unido zhen wang unido jie zhao unido eneyew abera gebremenfas unido jaidev dhavle unido consultant united nations industrial development organization vienna, 2018. More than fifteen years into a period of sustained and rapid economic growth, ethiopia has continued to attract international attention for its achievements and for pursuing a homegrown development strategy, with an active industrial policy at its center.
To be effective, its design and implementation needs to take into account both a governments capabilities and political will. The governments policy attracted considerable foreign investment to the industrial sector. Numerous and frequentlyupdated resource results are available from this search. National policy principles and objectives national policy principles and objectives. National policy principles and objectives ethiopia. In recent years the ethiopian government has made significant effort to enhance the policy content of the trade and industry sector. Given that there is a single industrial strategy, why do its outcomes vary across. In this dissertation, i present a political economy analysis of the post1991 industrial policy ip in ethiopia. To ensure that the foreign relation policies of the country are based on mutual interests and equality of states as well as that international agreements promote the interests of ethiopia.
Jan 14, 2016 shanta devarajan uses examples to explain why industrial policy often fails, although industrialization has been the goal of nearly every government. This essay, the outcome of a conference held in pretoria. Made in africa presents the findings of original field research into the design, practice, and varied outcomes of industrial policy in the cement, leather and leather products, and floriculture sectors in ethiopia. An industrial policy ip or industrial strategy of a country is its official strategic effort to encourage the development and growth of all or part of the economy, often focused on all or part of the manufacturing sector. It is part of a research project on industrial policy in low and lowermiddleincome countries covering nine states in subsaharan africa, the mena region and southeast asia. To order copies of dynamic industrial policy in africa. The industrial policy of ethiopia should move away from. Introduction ethiopia has adopted a national economic policy that mainly focuses on implementing the agricultural development led industrialization adli. Institutions in charge of industrial policy are characterized by competing and conflicting objectives, and industrial policy decisions are captured by interest groups and the political elite eca and auc, 2014. Policy instrument priority sector designation leather industry policy loan through stateowned bank tax exemption for exporting companies various export promotion policy ecbp, made in ethiopia, benchmarking project fiveyear plan for economic development pasdep, gtp, master plan for leather industry.
Industrial policy, market failures, learning society, policy neutrality. Debate over industralization policy choice in ethiopia. Transformative industrial policy african countries are in the. Government of ethiopia adopted key investment policy and regulatory reforms industrial parks proclamation, regulations and directives various investment policy reforms through eib finance and forex. It explores how and why the outcomes of industrial policy are shaped by particular factors in these industries. The latter, particularly if implemented widely across nations, is the most direct pathway to sustainable industrial development. Challenges, opportunities and policy options for effective use to stimulate industrialization.
Joseph stiglitz is university professor at columbia university and a former senior vice president and chief economist of the world bank. The journey of ethiopian airlines african development bank. Industrial policy and development in ethiopia brookings institution. Sustainable development and poverty reduction program.
Third, for every such example there are others where industrial policy has been a failure and may even have impeded development though the counterfactual is complicated. Ethiopias vision of becoming a middle income country by 2025 is built around economic, social, and environmental pillars ethiopian investment comission 9 1. Innovative institutions, effective processes and flexible mechanisms by the economic commission for africa, please contact. In developing countries like ethiopia where market failures are persistent, the pathway to economic development requires a prescribed amount of industrial policy.
Arkebe oqubay is a minister and special advisor to the prime minister of ethiopia, dr. To observe international agreements which ensure respect for ethiopia s sovereignty and are not contrary to the interests of its peoples. Industrial policy for africa african countries are in the process of upgrading and promoting the development of. The effectiveness of industrial policy in developing. Ethiopia has emerged as one of the fastestgrowing economies in africa in the early twentyfirst century. The government takes measures aimed at improving the competitiveness and capabilities of. Learning, capability building, catchup, ethiopia, aviation industry, intensity of learning the journey of ethiopian airlines arkebe oqubay 2 and taffere tesfachew 3 this paper is a contribution to the how they did it hdi series, a new line of publications from the vicepresidency for economic governance and knowledge management. The three sectors are cement, leather and leather products, and floriculture. Pdf industrial policy of ethiopia and rodriks industrial policy. Jun 28, 2018 industrial policy and late industrialisation in ethiopia. Ethiopian industrial development strategic plan 202025 fdre ministry of industry. Pdf on apr 1, 2017, mulu gebreeyesus and others published foreign direct investment in ethiopia.