BY PIERREPONT JOHNSON Between 2007-2018, only two countries achieved at least 6% annual economic growth. China is one. The other is Ethiopia. Similar to China, Ethiopia’s historically authoritarian government has played a significant role in creating growth and reducing poverty, and only recently allowed more private sector participation. In addition, the end of the twenty-year Ethiopian-Eritrean war resulted in a tremendous boost to the Ethiopian economy, with tourism alone growing by 48.6% in 2018, higher than any country in the world. However, if Addis Ababa’s slowly democratizing government wants to continue this progress and become a major economic player, it should keep to three core suggestions: fiscal policy that focuses on rural development, gradual increases in trade and foreign investment, and smart monetary policy.
HOW ETHIOPIA CAN BECOME THE NEXT CHINA
HOW ETHIOPIA CAN BECOME THE NEXT CHINA
HOW ETHIOPIA CAN BECOME THE NEXT CHINA
BY PIERREPONT JOHNSON Between 2007-2018, only two countries achieved at least 6% annual economic growth. China is one. The other is Ethiopia. Similar to China, Ethiopia’s historically authoritarian government has played a significant role in creating growth and reducing poverty, and only recently allowed more private sector participation. In addition, the end of the twenty-year Ethiopian-Eritrean war resulted in a tremendous boost to the Ethiopian economy, with tourism alone growing by 48.6% in 2018, higher than any country in the world. However, if Addis Ababa’s slowly democratizing government wants to continue this progress and become a major economic player, it should keep to three core suggestions: fiscal policy that focuses on rural development, gradual increases in trade and foreign investment, and smart monetary policy.