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HomeNewsEthiopian parliament approved Private-Public Partnership draft bill 

Ethiopian parliament approved Private-Public Partnership draft bill 

Ethiopian News _ Public Private Partnership
Ethiopian Members of parliament voting on Private-Public Partnership bill amendment on December 22, 2022 (Photo : Public Domain)

borkena 
Updated on December 22, 2022 at 8:20 P.M. Toronto Time

In what seems to be a deepening trend of neoliberal economic policies, the Ethiopian Parliament on Thursday approved a draft bill for private-public partnership.

According to ENA, it was approved with a majority vote following “extensive discussion” on the matter. There is a belief that the bill is useful to encourage projects under private-public partnerships. 

Desalegne Wodajo –  chair of the Plan,Budget and Finance Affairs Committee in the House – is cited as saying that there is a bigger role for the private-public partnership to foster economic growth and encourage  Private-public partnership projects. 

Amending the bill was needed to enhance the quality of public service delivery infrastructures and address challenges experienced so far, it was said. 

Prime Minister Abiy Ahmed’s administration has been boasting about “Home Grown Economic” as a guiding principle for economic groups. In fact, the rhetoric about it was given extensive media coverage in major state-owned media outlets in the country. 

In reality, his government seems to be aggressively implementing but with neoliberal policy agendas.  Some of the major revenue earners in the country including the telecom sector were made open for expatriate investors. The sugar factors in the country are up for sale.  

His government is also poised to open the banking sector for the sharks from elsewhere. It remains to be seen if Ethiopian Airlines, the major revenue earner and the most successful in the continent, will not be privatized. 

PM Abiy Ahmed had a meeting with American investors in the United States when he was in the country for the “U.S.-Africa Leaders Summit.” 

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3 COMMENTS

  1. Crediting PPP as a neoliberal economic policy, is an exaggeration and a bit misguided.
    Neoliberalism is a term used in the late 20th century to describe political ideas associated with “free-market capitalism”. Dedicated for Full dominance of the Economic sector by private capita.

    My understanding of the current Ethiopian administrations “Home Grown Economic” principle similar to the one used in China where the “Public” (Government, Federal/provincial/municipal ) holding the majority ownership (stewardship) 60% or more, “Private” can be ( (1) For-profit, (2) private none-profit, foundations, charities, NGO’s, (3) Local citizenship participation (as in the GERD contribution) splitting the remaining 40%, encouraging at least 10% or more to be allocated to the “local-citizen-Investor” (3rd, above).

    – (1) for Profit sector ” is thought to be creative and dynamic, bringing access to finance, knowledge of technologies, managerial efficiencies, and entrepreneurial spirit.
    – (2) While the none-profits are strong in areas that require compassion and commitment to the local citizenship of the nation.
    – (3) The local population participation as an investor (owner) help build-tradition-of-investing, keep capital building within the country to help grow further economic development in all sectors such as farming, small-scale manufacturing, small business development in service sector such as hotels, ristorantes, travel… etc.
    Neoliberals do not believe in “public” (Government) participation in Economic matters; instead forcing “Privatization” of all-public properties to the private sector according to their core economic policies.
    Surprisingly the catastrophic consequences of those shortsighted (unwise) neoliberal-privatization-policies are evident today through out Europe, (who privatized their nations “Public Utilities” decades ago) due to those-unwise- policies, now heating-Oil & Gas prices have gone through the ROOF making them unaffordable for the public at large, as a result the entire European population (except the very Rich, who bought shares in those utility-companies are profiting astronomically ) are forced to chose between feeding their families or heating their Homes this winter.

    I argue, PPP is not new, has been in use since early 1800s (perhaps not coined as PPP).
    PPP with Ethiopian-Characteristics (60%/30%/10% or 60%/20%/20%) is the best development vehicle for Ethiopia, Africa, and ” the Global South” as a whole. It has been in use in China since 1979 guided by the CPC’s “Socialist-governance-model” (not the neoliberal one) bringing previously unseen economic growth in the world in less than 40 years.
    As the result small-business-ownership, as well as per capita income in china is setting new records, including the ever growing millionaires & billionaires numbers bypassing that of the US (weekly/monthly in the last number of years) allowing China to lift 800 million people out of absolute poverty.

    Like wise the so-called “Home Grown Economic” policy, with strict 60%/40% “Public” stewardship across the board with no-exceptions would do best for the nation as well as the people of Ethiopia as a whole (leaving no one behind, in fact putting legislative forward where the Government grunting public borrowing from banks (lower interest rates) to invest in the PPP, to encourage the poor & the lower income folks to invest & learn wealth building practices).

    A do not see “opposing” ideas just for sake of being an opposition-party or for a reason one does not share the governments governance-model for whatever reason political or not.
    The very existence of an “opposition-parties” real or just to create an illusion, is un European invention “to divide and rule”. Since all Ethiopians want their country to prosper and grow both socially & economically, why create a category called “Opposition” of any kind?
    Remember the “rope pulling” game/sport we played at electuary school, the group that pulled the other to their side wines the game… pulling in the opposite direction there is no going “forward” but stagnation!!!
    I argue, the difference between “stagnation” and “moving forward” (developing) was demonstrably shown in the last 40 years in countries that practice “opposition-party” vs those who do not, and those who do not have grown their economies and their countries infrastructure by many-fold in places like China, Singapore, UAE, Saudi Arabia, Russia and many more, vs the Western economies stagnating with deteriorating-infrastructures (roads, bridges, schools, public spaces…).
    “Democracy” (discourse) is itself an over rated, time waisted conducting “never ending debate” just for the sake of democratic-practice yet there is little to show for the effort put forward in terms of useable anything for the public meant to be served by such “monumental” practice, people are sent -to die for “to protect”. It is an Illusory practice, and has been exposed to so, by the prospered economies i listed above in the last 40 years.
    “Voting” (one day) every 4 or 5 years cannot be called “democracy” while for most of the working days in a year a worker lives under the dictatorship of the “work place owner”, in a Democratic state. Making the term “democracy” (discourse) an illusion, not fit for progress but to make a cushy-living for those at the top keep “discording’.
    In our tradition we haver a lot of examples where there is no “opposition” in the management of them that we could draw from: Eckub (traditional banking system our ancestors used to raise fund.), Eder ( to help each other out in times of death.) Georgis, Mariam, Gebriel,… Mahebers , just to name a few, and none of these time-tested and effective working governance-models needed an “opposition” to steer things up, there is no need.
    Then one must ask (we collectively must ask) why do we need such a destructive and useless structure to run the biggest and most important thing we have collectively as one people, that we identify with at home or wherever we happen to be , need to survive in, need to develop & grow, and prosper together and leave behind a stronger Ethiopia for the next generation as did our forefathers?
    We do not.
    We have an over 3 thousand years of self governing practices, I understand there are varied perspectives emerged in the last 52 years or so, western education/teachers seems to be the source. (brainwashing from our European friends, not only we Ethiopians , but the entire “global south” has gone thorough that same influences, story telling, so that the global-north gets cheep resources while we kill each other for stories invented to divide us.)
    But for what it is worth, we had an over 3 thousand years of kingdoms, spread-out at one time or another and consolidated time and time again. Our history exists in books written locally and international ones in libraries across the world. Books written in Geez, on animal skin before paper was invented. In the Western nations Europe and US university have PhD studies in Geez and they are extracting information scientific, medicine, religious matters… etc. Some day we be able to bring back all those books and teach ourselves what is passed to us that is in them.

    Well, there is time for everything, and time will help us to regroup and be whole again.
    Wishing you all well, in this holiday season!!!

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