Unlocking Ethiopian Development Capital and Knowledge
Makonnen Tesfaye (BSC, MA, MIED)
Tigrai Online, Sept. 14, 2014
Unlocking Ethiopian Development Capital and Knowledge Networks for Economic Development and Transformation.
Unlocking Ethiopian Development Capital and Knowledge Networks for Economic Development and Transformation
Ethiopia’s Economic Development and Transformation
The aim of the presentation is to provide an overview of the key issues and facilitate discussion on the potential role of Diaspora development finance and knowledge networks for development in Ethiopia.
The presence of over 3000 Ethiopian Tigrayan Diaspora from all over the world in Tigrai during the FT2014 provides an excellent opportunity and platform to discuss the role and contribution of the Diaspora in economic development and transformation of the country.
The presentation is informed by/draws on data from a research project report undertaken by the Author for UNCTAD in 2013-14, which is due for official presentation/publication in the Autumn 2014. The views expressed here are none other than solely the Author's.
The research project is on mobilizing Ethiopian Diaspora capital and knowledge to build productive capacities for sustainable economic development.
Under the Growth and Transformation Plan (GTP) the Ethiopian economy has registered an impressive economic growth averaging 11% annually between 2004 and 2012.
Between 2010/11-2012/13, the economy grew by 10% annually despite a significant decline in world coffee price and a sluggish global economic recovery.
Ethiopia has also registered significant progress towards achieving the Millennium Development Goals (MDGs), already on track on six of the eight MDGs and working hard to bring the two on track by the end of 2015.
The role of Diaspora
Remittances flows to Ethiopia in 2010 were $3.2 billion, which exceeded all FDI flows, or all ODA. (World Bank Ethiopian Remittances Survey, 2010)
By 2013 over 3000 Diaspora members have invested over $1 billion mainly in the expanding real estate and hotel and tourism sectors. (Ethiopian Investment Agency, November 2013)
(UNDP MDGs Report on Ethiopia, 2012).
Integrating and mainstreaming the MDGs into the GTP has enabled the country to channel resources to key sectors that affect the MDGs goals.
The UNDP Human Development Report 2013 has put Ethiopia as the third top mover, having recorded HDI gains of more than two percent annually since 2000.