The FDRE government’s formulation of suitable policies and strategies and their perfect execution have played the major role in enabling our country to achieve rapid growth. The country’s fast growth is mainly attributed to clear and concise direction, leadership quality which adjusted for the country’s current and realistic truths and a developmental government backed by full public support.
During these times where the international community is attesting to the fact that the FDRE government formulation and execution of developmental and democratic direction is reaping positive results, there are some forces seen being involved in damaging the country’s image just to impose their hidden agenda. These forces are extremist neo-liberal institutions.
They frequently blame the Ethiopian government unwillingness to liberalize banking; telecommunication and electric sector is becoming hopeless, instead of telling the fast growing investment trend in the country. Since the Ethiopian government started to implement its policies and strategies to drag the country out of poverty and backwardness, these extremist forces have been constantly throw cheap shots at the government in order to impose their own ideological agenda.
They have been putting pressure and pressing upon the government to privatize Banks, Telecommunication, Electric Company, Airline Company, city water etc… This pressure also includes calls for privatization of public-owned lands- the selling and transaction of lands, to be more precise.
On top of this, they have constantly tried to force the government to grant them their wishes by threatening it that the country would not get any aid and assistance, if it doesn’t play ball – although, it was not successful. Also, these forces have been advocating that, if the country doesn’t follow their political–economic thinking, it will not have any kind of developmental growth – again another futile attempt. Since the government was well aware of these extremist force’s ‘everything must be left to the private sector, the government shouldn’t interfere in the economy except for upholding the rule and law’ thinking, it was very careful not to be webbed with their thinking.
Instead, the government by withstanding their constant pressuring and also resisting these forces’ plot to weaken the government role, it has been able to establish a developmental state which is recording rapid and sustainable economic growth.
When most were compelling and pressuring the government to privatize/sell land, when they were belittling and prophesying rural-based developmental strategy is a recipe for disaster; the government instead; understanding their ideology doesn’t bide well with the country’s reality, chose to follow its own developmental path and thereby, led the country into a direction of fast growth. As it is known our country is seeing an extraordinary change for the last decade.
The Ethiopian government has shown that the neo-liberal thinking of ‘the government should not interfere in the economy isn’t the way to go. This is why countries under the umbrella of neo-liberalism ideology are deep in economic crisis, while our country is continuing with its rapid and sustainable economic growth.
What we can understand from this is the fact that any country can have a fast and sustainable growth outside of neo-liberalism dogma just like Ethiopia did, if they can formulate policies and strategies that are honest to their respective country’s realities. Because of this the Ethiopian government is attracting investor willing to pour their capital in the country, by opening its door to investment, putting up incentives and using different international arenas to promote the country’s progress and realities.
With this work, the number of investors involved in different sectors of the country like agriculture, manufacturing and industrial sectors are fast growing. So, it’s vital here to ask the reason for dissemination of bogus and unfounded rumors, at a time where many foreign companies and investors are flooding to the country, understanding the country’s suitability to investment.
Of course, China, Turkey, India, Arab countries along with Multinational companies and investors like Samsung, the American large company involved in geothermal hydro-power project, the other Canadian and Australian Mineral exploration companies, all investing in the country taking advantage of the investment–friendly policies of the country, are all evidence to growing investment trend in the country. I think it is important to understand the fact the government involvement in a few selected sectors like banking, telecommunication, electricity etc… by omitting private investors involvement isn’t hopeless as they claim it to be. Because, private investors can invest in one of the many developmental sectors which simultaneously provide great opportunities and take the country’s realities into account at the same time. It isn’t clear the meaning of being infatuated on the small government-owned sectors.
Although our economy is growing fast and the private sector is playing its own share, it can’t be denied that the country’s private investors have capability deficiencies. Therefore, in order to ensure the continuity of the country’s economic growth, there has to be governmental intervention. And I don’t think without intervention from the government the country’s vision of entering middle-income economy will be achieved.
As it is known, first of all the country’s infrastructure has to be highly inter-connected. And I think it is the responsibility of the government to fast achieve these infrastructural constructions. It’s obvious that in a country where education, health, roads etc… lacks infrastructures; selling cash cow sectors like Banks, Telecom, and Electricity will have a negative impact on the country’s aspirations of achieving economic prosperity. And this fact has been seen in countries which took-in neo-liberalism thinking, without reservation.
By the way, development or economic growth has been the demand of our people for years. It should be noted here that today’s peace that we are seeing in our country is because these demands for development is answered. That is why our government and people consistently say development is a question of survival.
Here what we should know is that, this isn’t the first time neo-liberal extremist forces like ‘human rights watch’ condemn our country’s free market system which allows a limited involvement of government intervention. They have also been condemning investors who have been investing in the agricultural sector. As part of this smear campaign, they have also been condemning the agricultural investment undertaken in Gambella region. It’s not surprising that these forces do not wish helpful things for our country, as it’s not expected from those who belittle the developmental works that are helping the country.
But, it is clearly known that during the economic crisis before six years, one of the reasons mentioned for the crisis; ignited by the banking and financial sector, was the fact that are in the hands of the private sector. And I think it will not be forgotten that it took governmental intervention and subsidy to bailout the countries from the crisis. These same banking and financial sectors that are under the control of the private sectors started this huge global economic mess by encouraging easy credit conditions.
As a result of this global financial crisis erupted around the globe including those that started it. This directly or indirectly not only implicates that the crisis is caused by neo-liberalism thinking and principle, but it also shows how much the thinking is becoming obsolete. In light with this, the constant pressure they put on our government to sell banks, telecom etc … to the private is like ‘trying to help others, when you can’t even help yourself’.
I believe since the investment policy of the democratic developmental government of Ethiopia clearly distinct the role and function of the government and the private sector, there have been positive results on both sides. So, the ideology–extremists bad-mouthing of our country’s ideological path, cannot be anything more than a sinister act to derail the impressive development undertakings of the country.