Reducing Future Vulnerability


Drought has remained a major challenge not only to Ethiopia but also many countries in the Horn. Governments of these countries are being pushed to fill the gaps in humanitarian assistance because the international support is falling far short of the past. It seems the option left for them is to work on climate change adaptation beyond their current focus on increasing yields or diversifying incomes in the hard-hit rural areas, writes John Graham, a Canadian veteran aid worker and specialist in humanitarian emergency response. 


The Impact of IFRS on Income Tax Administration

While the trend and the proclamation are calling for regulators to keep updating themselves to the ever changing financial reporting and prepare the tax environment for a smooth transition to International Financial Reporting Standards (IFRS), many companies and the Ethiopian Revenues & Customs Authority (ERCA) are still comfortable in using the Generally Accepted Accounting Principles (GAAP), writes Dawit Tadesse (dawittadesse9053@yahoo.com). He suggests the Authority publish specific guidelines on tax treatments in line with each IFRS standard based on research that aims at understanding the impact of IFRS on taxpayers and the tax administration involving all stakeholders.


 Thirty Years On – From Live Aid Ethiopia Ending Famine

For the first time in its history, Ethiopia overcame a recurring challenge of famine. In 2015, the worst drought in 50 years came and went, but without transforming itself into a national catastrophe of famine, notes John Graham, a veteran of the aid community in Ethiopia, before he left for his homeland Canada, after two decades of dedicated service in saving lives.


Who Does Business Represent?

If business associations could transform themselves to represent and give voice to the network of stakeholders on which businesses are built, they could contribute enormously to the creation of a much more collaborative and inclusive society, writes Ricardo Hausmann, a former minister of planning of Venezuela and former chief economist of the Inter-American Development Bank, is director of the Center for International Development at Harvard University.


Small Business, Big Impact

The Global Goals for Sustainable Development seek to boost incomes for the bottom 40pc by eradicating extreme poverty and creating job-rich growth that raises revenues across the board in 2030. However, attaining these goals will significantly depend on micro, small and medium-sized enterprises (MSMEs), writes Arancha Gonzalez, executive director of the International Trade Centre (ITC).


Opportunities for Digital Entrepreneurship

For the fact that the concept of IT innovation and entrepreneurship has proved to work now more than ever, and there is a huge population and growing economy in Ethiopia, it only asks the public and private sectors of the country to join forces to provide a supportive environment for software engineers and developers to thrive and create solutions that positively impact society and the economy at large, writes Amadou Daffe (merkeb@gebeya.com), chief executive officer of Gebeya, an IT training academy based in Ethiopia and other African countries.


Unraveling Meles Zenawi’s Concept of Developmental State

Unlike the East Asian experience, which was industrialisation without enlightenment and technique stripped away from Weltanschauung, the developmental state theory and practice of Meles Zenawi is a consistent reading of global experience and inventing the Weltanschauung, argues Merkeb Negash (elroenegash@gmail.com). Merkeb is an analyst based in Addis. His areas of interest include Development Economics, Foreign Policy and Grand Strategy.


The Global Economy in 2067

Economic stagnation and widening inequality have contributed to a surge in xenophobia and nationalism in the advanced countries. But while such turbulence is likely to continue for the near future, there is little consensus on what lies beyond that. In 50 years, the world economy is likely to be thriving, with global GDP growth by as much as 20pc a year, and income and consumption doubling every four years or so, predicts Kaushik Basu, a former chief economist of the World Bank and currently a professor of economics at Cornell University.


What Avoids the Rational Act of Rent-Seeking

Rent-seeking behaviour is rational. Since the inherent rationality of individuals cannot be changed by preaching and singing that rent-seeking behaviour is fatally and destructively malicious, changing the incentive structure would be of great help to reduce it, argues Aman T. Hailu (amanthinkth@gmail.com).


Trump’s Climate-Change Sociopathy

With its large, rich, fossil-fuel-intensive economy, the US has done more than any other country to bring about the global peril of climate change, so it should accept its responsibility in helping to get us all out of danger. At a minimum, America should be eagerly cooperating with the rest of the world, writes Jeffrey D. Sachs, professor of Sustainable Development, Health Policy & Management.


In Housing, CBE Enters Uncharted Territories

One of the defining characteristics of many institutions in Ethiopia is the gradual overlap of purposes, overburdening with responsibilities and lack of clarity of mission although they are created with clear objectives, writes Abdulmenan M. Hamza, warning CBE’s role in housing financing as a spell for trouble.


Trump Affects Ethiopia’s Climate Resilient Economy

Trump’s recent outrageous decision to pull the US out of the Paris Agreement on climate change may potentially affect Ethiopia’s future endeavours in two ways. The remaining US’s share of carbon budget will pose additional pressure on the rest of the world including Ethiopia, which also has to fund its green projects such as reducing deforestation and forest degradation, which it intends to execute contingent on external funding, writes Aman T. Hailu (amanthinkth@gmail.com).


What Cripples the Media Most?

A media fretting for survival cannot excel at innovation, comments Sileshi Yilma Reta (sileshiyilma@gmail.com), who also suggests the best way for the media to seek a solution for their problems is to come together, instead of taking the same old isolated and fragmented actions.


Costs, Perils of Militarising the Red Sea Region

Managed by a web of multilateral organizations, the Red Sea arena should be considered a trans-regional shared space, proposes Abdul Mohammed, African Union (AU) senior political analyst, who also calls upon the AU, the League of Arab States (LAS), the Intergovernmental Authority on Development (IGAD), and the Gulf Cooperation Council (GCC) to find out a mechanism whereby they can dialogue on their common concerns over the Red Sea area. This piece is an excerpt from a speech given at a conference organized by the Gulf Institute for Strategic Studies in UAE.


Craving for Reform of the Insurance Industry

The restriction of foreign capital flow in the Ethiopian insurance industry was said to protect the sector from foreign competition until the local insurers developed sufficient financial strengths and insurance expertise to compete with the foreign insurers. However, while the rationale is too good to be true, nothing has materialised to fulfil that objective regarding finance or capacity building since the restriction, writes Eyobed Tibebu Lisanework (eyosono@gmail.com), who also recommends that going back to square one as it was during the Imperial Government could help improve the insurance sector.


Is It Worthwhile for Development Partners to Invest in Industrialisation?

The development community having an approach of trying to act as guardian of the market or protector of the state would not help achieve the desired goals. Filling the real gaps in human, technological, and organisational capacities that Ethiopia lacks is the right place for the development community to invest its money which would facilitate a far better and smooth functioning of the market and the state, writes Getachew T. Alemu (getupfront@gmail.com).


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