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Book part
Publication date: 11 June 2021

Taffere Tesfachew

This chapter reviews the role of industrial parks (IP) as drivers of export-led industrialisation in Ethiopia. For several decades, IPs or special economic zones have been…

Abstract

This chapter reviews the role of industrial parks (IP) as drivers of export-led industrialisation in Ethiopia. For several decades, IPs or special economic zones have been promoted as policy instruments to attract investment, create jobs and promote exports of manufactured goods. However, their popularity as policy instruments has been mainly associated with the successful export-led industrialisation of emerging economies in East Asia where IPs have played a critical role not only in attracting investment and promoting export-led growth but also transferring technology, promoting technological learning and industrial development and jump-starting the process of economic diversification and structural transformation. Ethiopia, along with other African countries, is among the latest to introduce IPs as major drivers of economic diversification and export-led industrialisation. As a newcomer, Ethiopia can learn many valuable lessons from more successful cases. This chapter explores some of the lessons that Ethiopia can draw from other countries’ experience as it continues to build additional parks to attract investment and push its industrialisation agenda.

Details

Enterprise and Economic Development in Africa
Type: Book
ISBN: 978-1-80071-323-9

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Book part
Publication date: 26 January 2023

Okechukwu Ethelbert Amah

Ethiopia was under the rule of monarchies between 1811 and 1974, a reign long enough to create good value for Ethiopia. The emperors came from eight dynasties, and 86 emperors…

Abstract

Ethiopia was under the rule of monarchies between 1811 and 1974, a reign long enough to create good value for Ethiopia. The emperors came from eight dynasties, and 86 emperors ruled Ethiopia from these dynasties. Apart from 1936 to 1941, when the Italians occupied Ethiopia, the nation was never under colonial rule. Vices such as concentration of power, inequity, favoritism, expansionist drive, and the marginalization of the population were prevalent during the reign of the emperors. Most of the emperors preferred a positive external reputation over internal respect. They maintained legitimacy despite their negative contributions because of their link to the gods, reinforced by the national religion. In the end, the emperors achieved marginalization and expansion, leading to wars, and draining the nation's natural and human resources. They did not create or leave behind any sustainable and effective legacy, and all they did ended with the termination of monarchical rule in 1974. In other words, in 1974, Ethiopia started from ground zero because what was left by the emperors had no use in the modern nation.

Book part
Publication date: 15 July 2009

Marc von Boemcken

Only two days before the UN imposed a mandatory arms embargo on Eritrea and Ethiopia, the German Minister for Development, Heidemarie Wieczorek-Zeul, issued a communiqué wherein…

Abstract

Only two days before the UN imposed a mandatory arms embargo on Eritrea and Ethiopia, the German Minister for Development, Heidemarie Wieczorek-Zeul, issued a communiqué wherein she described the ongoing absence of international export restrictions against the warring countries as nothing less than a “scandal” (Agence France Press, May 15, 2000). Indeed, the war between Eritrea and Ethiopia had pre-dated the embargo by two years.

Details

Putting Teeth in the Tiger: Improving the Effectiveness of Arms Embargoes
Type: Book
ISBN: 978-1-84855-202-9

Book part
Publication date: 2 July 2010

Axel Borchgrevink

This chapter explores how the dynamics of cross-border conflicts relate to the characteristics of the states involved. The underlying idea is that cross-border conflicts will…

Abstract

This chapter explores how the dynamics of cross-border conflicts relate to the characteristics of the states involved. The underlying idea is that cross-border conflicts will develop in different ways and involve different sets of actors depending on the relative strengths and other characteristics of the states separated by the border. This proposition is investigated through a comparison of the conflict dynamics across three of Ethiopia's borders. These borders differ in terms of the relative strength of the two states they separate in each case, as well as on the kind of state presence found in the borderlands. Thus, the border between Eritrea and Ethiopia can be said to have a strong state presence on both sides; between Somalia and Ethiopia the state is considerably stronger on the Ethiopian side; while the border between Ethiopia and Sudan has a weak state presence on both sides. The conflict dynamics across the border with Eritrea have tended to be of a ‘classic’ bipolar and interstate kind, while the border with Sudan has seen a much more complex and ‘anarchic’ conflict pattern, involving a complex array of both non-state and state actors. The Somalia border falls somewhere in between, with a complex set of actors and conflicts, yet subject to an overall structuring along one dimension. These differences are argued to be congruent with the relative strength of state presence in these borderlands. The main value of the chapter may lie in its approach to the theme of African borders, and in the relativistic way in which it conceptualizes state strength.

Details

Troubled Regions and Failing States: The Clustering and Contagion of Armed Conflicts
Type: Book
ISBN: 978-0-85724-102-3

Book part
Publication date: 26 January 2023

Okechukwu Ethelbert Amah

Post-monarchical Ethiopia covers the period between 1974 and present-day Ethiopia. Ethiopia was ruled by the socialist government, the federalists, and the democrats. The…

Abstract

Post-monarchical Ethiopia covers the period between 1974 and present-day Ethiopia. Ethiopia was ruled by the socialist government, the federalists, and the democrats. The socialists terminated the reign of the monarchs and instituted the Marxist ideology with the help of the former USSR and Cuba. They took advantage of the people's dissatisfaction with the aristocracy and the divide and rule tendencies of the monarchs. When the socialists took power, they gradually installed a system like what they had condemned. They became unpopular with the same people whose support brought them into power. Within the juntas, division arose, so killings and counter-killing gave power to some of the juntas. Ethiopia's subsequent forms of governance followed the same path as the socialist government. Hence, Ethiopia ended up with very poor WGI compared to other sub-Saharan African countries. This chapter tried to explain what happened and the lessons from this. Ethiopia was well-positioned to grow, but the monarchy started badly, and subsequent regimes followed their path.

Details

Resolving the African Leadership Challenge
Type: Book
ISBN: 978-1-80262-678-0

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Article
Publication date: 10 May 2022

Messay Asgedom Gobena

The purpose of this study is to identify money laundering typologies and techniques in Ethiopia.

Abstract

Purpose

The purpose of this study is to identify money laundering typologies and techniques in Ethiopia.

Design/methodology/approach

This is a descriptive study that relies on primary data generated from interviewees drawn from the Ethiopian Financial Intelligence Center, Ethiopian Customs Commission, selected commercial banks and law enforcement agencies, as well as secondary data from government reports, media press, statutes and other online and offline sources.

Findings

According to this study, criminals in Ethiopia used several laundering techniques, the most common of which are money laundering using financial institutions, trade-based money laundering, cash-based money laundering, money laundering through illegal hawala, shell companies, or anonymous beneficiaries. Criminals have recently been suspected of using financial technologies and virtual currencies to launder the proceeds of their illicit activities. The laundering strategies are extremely intertwined and their distinction remains highly blurred. Moreover, the typologies are operated transnationally, despite being highly tailored to Ethiopia’s political economy.

Originality/value

This is one of the very few papers to date that provides the typologies and techniques of money laundering, specifically in the context of cash-intensive economies.

Details

Journal of Money Laundering Control, vol. 26 no. 4
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 11 April 2008

Rakesh Belwal and Meseret Chala

This paper aims to conduct a case study on the recent rise of floriculture industry in Ethiopia which has taken aback the stakeholders in the global flower industry. Further to…

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Abstract

Purpose

This paper aims to conduct a case study on the recent rise of floriculture industry in Ethiopia which has taken aback the stakeholders in the global flower industry. Further to understand this success, an attempt has been made to conduct an environmental appraisal of the floriculture industry in Ethiopia amid explicit promotional efforts of the incumbent government towards boosting floriculture exports. Particularly, the study intends to reveal the catalysts and barriers prevalent in the industry that concerns the growth.

Design/methodology/approach

The first stage of research involves a general assessment of global and Ethiopian floriculture industry using desk research. The second stage includes analysis of primary data secured through interview of managers at eight functional floriculture farms located around Addis Ababa. The study utilizes qualitative analysis of data acquired using judgmental‐cum‐convenience sampling and semi‐structured interviews with concerned officials.

Findings

The success of Ethiopia in the cut flower exports from Africa has been remarkable. Ethiopia enjoys certain advantages that create ample opportunities for being one among the principal producers and exporters of flower in the world. As a whole, the finding reveals that foreign investments, government support and the formation of the Horticulture Producers and Exporters Association are the major catalysts in the sector. However, the opportunities are not without threats. Infrastructural bottlenecks appended by shortage of agricultural inputs, narrow product range, and lack of adherence to international codes of practices are major among the perceived barriers. As a whole, there is a growing trend in the development of the floricultural industry in Ethiopia. With the attention given by the government to this sector coupled with the advantages that Ethiopia has, the country has been able to attract both domestic and foreign investors. Ethiopia's performance in floriculture acts as an eye opener for other African countries.

Originality/value

The study is of benefit to the floriculture industry as well as the investors and policy makers intending to support establishing floriculture industries in countries such as Ethiopia.

Details

International Journal of Emerging Markets, vol. 3 no. 2
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 1 November 2021

Messay Asgedom Gobena

The purpose of this paper is to examine the divers and facilitators of money laundering in Ethiopia. Specifically, it looks at the risk factors that existed in the country’s…

Abstract

Purpose

The purpose of this paper is to examine the divers and facilitators of money laundering in Ethiopia. Specifically, it looks at the risk factors that existed in the country’s economic and political system, which provide an appealing environment for money laundering to grow.

Design/methodology/approach

This qualitative study relies on primary data generated from interviewees drawn from the National Bank of Ethiopia, Ethiopian Financial Intelligence Center, Ethiopian Customs Commission, selected financial institutions and certain non-financial businesses and professions and law enforcement agencies, as well as secondary data from government reports, media press, statutes and other online and offline sources.

Findings

This study finds that the risk factors for the growth of money laundering in Ethiopia are highly reliant on the country’s economic and political system. Accordingly, the nature of Ethiopia’s economy, which is cash-intensive, loosely regulated economic growth and the raise associated criminality, the development of underground banking activities, scarcity of foreign currency reserves and the existence of societal demand for illicit goods and services are all risk factors for the growth of money laundering. The raise of an elite cartel model type of systematic corruption, limited institutional capacity to prevent and suppress money laundering and the absence of a national identity card system are also identified as risk factors for the rife of money laundering in Ethiopia. Moreover, the geopolitical location of the country, its porous borders, limited cross-border cooperation and information sharing add further fuel to the vulnerability of the country to money laundering and associated predicate offense.

Originality/value

To the best of the author’s knowledge, this paper provides a first-of-its-kind analytical perspective on the risk factors for the raise of money laundering in Ethiopia.

Details

Journal of Money Laundering Control, vol. 26 no. 1
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 31 May 2021

Hana Woldekidan Azmete and Kahsay Gerezihar Tsaedu

The purpose of this study is to empirically analyze if a bilateral trade between two countries leads to a foreign direct investment (FDI) using a time series data spanning over…

Abstract

Purpose

The purpose of this study is to empirically analyze if a bilateral trade between two countries leads to a foreign direct investment (FDI) using a time series data spanning over the period 2000–2017.

Design/methodology/approach

The Engle-Granger method of co-integration analysis is applied to the data to estimate if China’s export to Ethiopia led to an inflow of FDI from China to Ethiopia over the long run.

Findings

The results indicated that bilateral trade (import from China) is a major determinant of Chinese FDI inflow to Ethiopia over the study period.

Originality/value

A number of studies have been conducted on the determinants of FDI in Ethiopia using time series data at different points of time. However, none of them tried to analyze what attracts FDI from an individual country. Accordingly, this study has concentrated on FDI from China and its relation with bilateral trade between China and Ethiopia as China is the number one FDI source and trade partner of Ethiopia.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 14 no. 3
Type: Research Article
ISSN: 1754-4408

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Article
Publication date: 14 September 2012

Dessalegn Getie Mihret, Kieran James and Joseph M. Mula

This study aims to examine accounting professionalization in Ethiopia focusing on how the state, occupational group struggle and transnational accountancy bodies influence the…

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Abstract

Purpose

This study aims to examine accounting professionalization in Ethiopia focusing on how the state, occupational group struggle and transnational accountancy bodies influence the realization of closure.

Design/methodology/approach

A qualitative research approach is employed. Data were collected using document review and oral history approaches.

Findings

Accounting professionalization in Ethiopia was initiated by the state to strengthen the country's financial system. Owing to a change of state ideology to communism in 1974, a strategy of developing accounting professionals as government‐employed experts was pursued. The return to a market‐oriented economy in 1991 has seen a trend towards a more autonomous accountancy profession. Inflow of UK capital in the early twentieth century and activities of the UK‐based Association of Chartered Certified Accountants (ACCA) in recent decades have influenced Ethiopia's accountancy. Its professional and financial power has enabled ACCA to make arrangements with Ethiopian Professional Association of Accountants and Auditors (EPAAA) and consolidate its position in Ethiopia's accountancy by controlling EPAAA's member training and certification.

Originality/value

The literature on accounting professional projects in developing countries has focused on imperialistic influence in former British colonies. The present study extends this literature by illustrating how British influence has continued to extend beyond Britain's former colonial possessions. This enables an understanding of the dynamics of accounting professional projects in the developing world with analytical dimensions building on the hitherto dominant lens of “formal” colonial connection.

Details

Accounting, Auditing & Accountability Journal, vol. 25 no. 7
Type: Research Article
ISSN: 0951-3574

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