Ethiopia, a nation with a rich history and a rapidly growing economy, has embarked on an ambitious economic reform journey.
Over the past few years, the country has faced numerous challenges, including high inflation, debt stress, and the need for a more inclusive growth strategy. In response, Prime Minister Abiy Ahmed and his government have launched a series of macroeconomic reforms aimed at stabilising the economy, fostering sustainable growth, and ensuring that development benefits all Ethiopians. Particularly, the recent macroeconomic reforms have sparked a debate about whether they are driven by internal visions or influenced by external entities.
Abiy has provided a thorough and insightful clarification regarding the reforms. He addressed the misinterpretations that have arisen due to a fragmented understanding of the reforms, emphasising the necessity of viewing them within the context of Ethiopia’s comprehensive, Homegrown Economic strategy.
Contrary to claims that external entities have dictated these reforms, the Prime Minister affirmed that these changes are a core component of Ethiopia’s indigenous economic reform agenda, developed and driven by the nation’s vision and interest.
In his televised speech, Abiy underscored that the development of Ethiopia is a paramount priority for both his Prosperity Party and the government. He articulated that there is a well-defined roadmap and a clear strategic plan in place to achieve the nation’s developmental goals. “We are not proceeding blindly; we have a thorough understanding of our objectives and the necessary actions to achieve them,” he emphasised. The Prime Minister further stated that this forward-looking development vision is deeply rooted in Ethiopia’s Homegrown Economic Reform (HGER) strategy.
The development strategy in Medemer is founded on five fundamental pillars. The first pillar, unity or synergy, aims to harness the full potential of all citizens by integrating their knowledge, wealth, and interests. The second is inclusiveness and equity, which ensures that development initiatives are inclusive of the poor, who make up the majority of Ethiopia’s population. The third pillar is innovation, which focuses on incorporating new and creative ideas into the development process. The fourth one emphasises good governance, while the fifth is dedicated to maintaining peace and stability. These pillars are supported by four core principles: embracing new ideas, accelerating progress, effective implementation of strategies, and economic transformation.
Abiy emphasised that the reforms were not influenced or directed by external entities such as the IMF or the World Bank. He acknowledged however that both the IMF and the World Bank have endorsed Ethiopia’s approach and have provided substantial assistance to facilitate its implementation. He expressed gratitude to the institutions and countries like the UK for their unwavering support on this transformative journey.
Ethiopia’s macroeconomic reforms represent a bold step towards achieving sustainable development and economic stability. Abiy’s clarifications highlight that these reforms are fundamentally homegrown, and crafted to meet the unique needs and aspirations of the Ethiopian people. While external entities like the IMF and World Bank support Ethiopia’s vision, the nation’s commitment to its future is the driving force behind these reforms. The philosophy of Medemer, which translates to “synergy” or “coming together,” underpins these efforts by promoting unity, inclusiveness, innovation, good governance, and stability. As Ethiopia continues to implement these reforms, the country’s dedication to unity, inclusiveness, innovation, good governance, and stability will be crucial in realising its developmental goals and ensuring a prosperous future for all its citizens.
