Reaching critical mass to rapid industrialization and agricultural fundamentalism in ethiopia tsegaye tegenu, ph. 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. In obvious ways, ethiopia is a clear example of the african renaissance, having undergone dramatic. Made in africa the future of production on the continent. Growth in ethiopia has surpassed that of every other subsaharan country over the past decade and is forecast by the international monetary fund to exceed 8 percent over the next two years. The sector is dominated by small firms and resourcebased industries, lowvalue and lowtechnology products, and weak intersectoral and intrasectoral linkages. 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. Given that there is a single industrial strategy, why do its outcomes vary across sectors. Industrial policy experiences of todays rich countries 60 4. State security in ethiopia power, politics and security in. As mayor of addis ababa during 2003 2005, oqubay was credited with the transformation. The three sectors are cement, leather and leather products, and floriculture.
It explores how and why the outcomes of industrial policy are shaped by particular factors in these industries. Vertical policy is developed within a single organizational structure and generally starts with broad. Now were bringing in german and swiss pharmaceuticals, says arkebe oqubay, author of made in africa. Chapter 4 experiences of industrial policy in the past and the present 57 4.
Industrial policy experiences of todays rich countries after world war ii 60 4. This new policy provided investor benefits in the form of tax exemptions, remittances of foreign exchange, import and export duty relief, tax exemptions on dividends, and the provision of financing through the ethiopian investment. According to the medium variant projection made by central statistic authority csa, the. Table1summarises the structure of the industrial policy of a selection of eight ssa countries as described bymarti and ssenkubuge 2009. Uneven development in an importsubstitution industry 105 5. Ethiopia s industrial policies and performance cementing development. 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. Whilst we focus on ethiopia, the policy we study is similar in form to those implemented in several other countries in subsaharan africa ssa. It also provides an analysis of past attempts at promoting industrial development in the region and the lessons learned from these experiences. The journey of ethiopian airlines african development bank. Between 1950 and 1960, the imperial government of ethiopia enacted legislation and implemented a new policy to encourage foreign investment in the ethiopian economy.
It also examines industrial structures and associated global value. State security in ethiopia power, politics and security. The korean miracle 19621980 revisited kellogg institute. The oxford handbook of the ethiopian economy fantu cheru. Africas share of global manufacturing has fallen from about 3% in 1970 to less than 2% in 20. Ethiopias industrial policies and performance 60 4.
Technological learning, industrial policy, and catchup oxford university press, 2019. Transformative industrial policy african countries are. One element is the extremely high level of industrial product imports into the vast majority of ssa countries. It explores how and why the outcomes of industrial policy are shaped by.
Ethiopia, recognizing the vital principle of unity in diversity, the need for tolerance and accommodation in light of the diversity of languages, cultures and faiths. It is part of a research project on in dustrial policy in low and lowermiddleincome countries covering nine states in subsaharan africa, the mena region and southeast asia. It has recorded one of the fastest economic growth rates in the early twentyfirst century. Made in africa, industrial policy in ethiopia is an incredibly insightful book that takes the reader behind ethiopias successful economic performance. Ethiopias refugee proclamation requires all refugees to. Africas low level of industrial development and product diversification is reflected in an analysis of the international trade of ssa countries by industrial products. Guided by this policy, ethiopia has registered remarkable economic achievements, especially during the past twelve years.
We need to understand the shifts in the global economy and their impacts on 1 global value chains, which need to be understood for each sector from the start. Industrial policy in ethiopia, who is also a minister and a senior adviser to prime. 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. Ethiopia market overviewethiopia market overview discusses key economic indicators and trade statistics, which countries are dominant in the market, the u. Structure and performance of the ethiopian manufacturing. Arkebe oqubay, who has had a front row seat in the development of the policies that. Ethiopia has been among africas most impressive growth performers over the past decade, averaging 10. Industrial policy in ethiopia oxford university press, 2015. March 14, 2014 ethiopian population has now topped 85 million, the second largest population in africa.
Ethiopia s industrial policies and performance 60 4. Ethiopia is a lowincome country, landlocked, and located in a bad neighbourhood, and has the second largest population in africa, with all the challenges and opportunities that entails. The former refers to policy that is developed within the organization that has responsibility for its implementation. The ethiopian manufacturing sector is still far from being an engine of growth and economic transformation. From a wartorn and famineplagued country at the beginning of the 1990s, ethiopia is today emerging as one of the fastestgrowing economies in africa.
Pdf industrial policy of ethiopia and rodriks industrial. In 20 the average share of manufacturing in gdp in subsaharan africa was about 10% the same as in the 1970s. For more than 40 years africas industrial development has been disappointing. He is author of industrial policy and development in south korea, and coauthor of development strategies for. Despite being able to feed its growing population, ethiopia africa s second and the worlds twelfth most populous countryfaced intense structural constraints. Two circumstances allowed dbe to support the flower sector. Mar 14, 2014 reaching critical mass to rapid industrialization and agricultural fundamentalism in ethiopia tsegaye tegenu, ph. He is a development economist, occasionally serving as an economic. Despite being able to feed its growing population, ethiopia africas second and the worlds twelfth most populous countryfaced intense structural constraints. Industrial policy in ethiopia is part critique and part manifesto. Ethiopia is the second largest refugeehosting country in africa, sheltering more than 900 000 refugees. The objective of this paper is to critically assess and characterize the current ethiopian industrial policy and compare it with rodrik. Ethiopia all countries ldcs subsaharan africa ethiopia all countries ldcs subsaharan africa raw materials 14.
Transformative industrial policy african countries are in the. Industrial policy and structural transformation an industrial policy can be a vehicle for catchup and structural transformation, and. China africa and an economic transformation oxford. The governments economic strategy has been premised on sound macroeconomic policies, diversification by promoting agriculture and industrial development.
His excellency dr arkebe oqubay senior minister and. Industrial policy in ethiopia pdf,, download ebookee alternative effective tips for a improve ebook reading experience. Myths and realities in strategy and development kwan s. First, funds could be made available from t he excess cash held by the commercial bank of ethiopia cbe. The effectiveness of industrial policy in developing.
Policy dialogue with ethiopia transferring mindset and methodology of east asian policy making through concrete issues and projects dynamic capacity development. National population policy of ethiopia, addis ababa, ethiopia, office of the prime minister, april 1993. He is the former mayor of addis ababa and winner of the best african mayor of. 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. Establishing linkage between policy dialogue and japans industrial projects in ethiopia. Made in africa presents the findings of distinctive space evaluation into the design, comply with, and numerous outcomes of economic protection in the cement, leatherbasedbased mostly and leatherbasedbased mostly merchandise, and floriculture sectors in ethiopia. Industrial policy and development in ethiopia brookings institution. Introduction to industrial policy in ethiopia climbing without ladders. Introduction to industrial policy in ethiopia oxford. Saharan africa, the mena region and southeast asia. 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. Industrial policy in ethiopia pdf,, download ebookee alternative effective tips for a.
This report assesses industrial policy in ethiopia. Made in africa industrial policy in ethiopia arkebe oqubay. This chapter examines three main effects of the evolution of ethiopias political settlement on the organization of security. Ethiopias new leader, abiy ahmed, is seeking aggressive reforms to put an end to discord and build on the countrys progress in recent decades, but a towering set of challenges threatens his. Ethiopias refugee policy requires refugees to live in camps, with the exception of a small number of people. Experience over the last couple of decades in ethiopia has shown that as human numbers increased, the population carrying capacity of the environment decreased. It provides firsthand insights with academic rigor about.
First, funds could be made available from t he excess cash held by the commercial bank of ethiopia cbe, another state owned bank. Industrial policy of ethiopia oxford university press, 2015. Industrial development policy of ethiopia wikipedia. Nov 20, 2014 industrial policy and development in ethiopia. Uneven development in an importsubstitution industry 5. It provides firsthand insights with academic rigor about how ethiopia kicked. The economic development in africa report 2011 examines the status of industrial development in africa with a focus on the identification of stylized facts associated with african manufacturing. Industrial policy and late industrialisation in ethiopia african. Africa s low level of industrial development and product diversification is reflected in an analysis of the international trade of ssa countries by industrial products. Ethiopias industrial policies and performance cementing development.
As one of the earliest implementers of comprehensive industrial policy on the continent, ethiopia provides an. It describes ethiopias spectacular leaps on multiple development fronts and is written by dr. Developmental states8 that adopted industrial policy to shepherd upgrading to higher. Kim is professor of economics and departmental fellow of the kellogg institute at the university of notre dame. Arkebe, who wrote a bo ok about ethiopias industrial policy and has been its most prolific champion since meles death, presented a laundry list of key achievements in an interview from the. The oxford handbook of the ethiopian economy oxford university press, 2019. Industrial policy in ethiopia, published by oxford university press 2015. Vertical policy is what we think of as the normal or traditional way in which policy decisions are made.
Industrial policy experiences of todays rich countries at the earlier stages of their economic development 62. This book presents the findings of original field research into the design, practice, and. Oqubay also served as a minister and special advisor to the former prime minister of ethiopia, hailemariam desalegn. Despite recent policies that have arguably produced more results, manufacturing continues to play a marginal role in employment creation, output, exports, and in. It plays a marginal role in employment creation, exports, and output, and is short of stimulating domestic linkages. African industrial policy in an era of expanding global value chains. Industrial policy and late industrialisation in ethiopia. Comparison of ethiopia and select african countries33 20122016. The ethiopian government has demonstrated impressive dedication and ability to cre.
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