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Centrally-planned or Developmental-oriented State: A Review of the Ethiopian Economic System
Journal of Academy of Business and Economics (2012)
  • Asayehgn Desta, School of Business and Leadership, Dominican University of California
After adhering to the required draconian conditions laid out by the multi-lateral financial institutions, more than ever the developing borrowing countries were faced with sharply declining living standards, recurring financial crises, rampant inflation and a resulting high rate of unemployment. Then, a number of African countries halfheartedly and with little or no accountability, or transparency, relinquished total responsibility to their governments to manage and direct their economies. While pursuing the command economic system imitated from socialist countries where by the central governments played a pivotal role in planning and programming, Africa faced by ineffective policies, misuse of abundant resources and went through a deep economic crisis. Therefore to marshal the African continent from deep poverty and rampant unemployment rate, the Economic Commission for Africa challenged the African states to follow the development approach and structurally transform their economies from an agriculture- bound to more industrialized and knowledge-based economy. Though too early to assess the implementation of the Ethiopian Growth and Transformation Plan, following the pattern of logic which the Ethiopian government is functioning, it is rather very difficult to assume that current Ethiopia is an example of a market-friendly developmental state rather the regime appears to be pursuing a centrally-planned economic system.
  • neo-liberal open economy,
  • democratically-nested,
  • market-friendly developmental state,
  • structural transformation,
  • Economic Commission for Africa,
  • Growth and Transformation Plan
Publication Date
February, 2012
Citation Information
Asayehgn Desta. "Centrally-planned or Developmental-oriented State: A Review of the Ethiopian Economic System" Journal of Academy of Business and Economics Vol. 12 Iss. 2 (2012) ISSN: 1542-8710
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