Impact of economic reforms on economics issues: A study of Ethiopia
African Development Review
PG Department of Economics and Research Centre, S.T. Hindu College, Nagercoil - 629 002, India; Department of Economics, Arignar Anna College, Aralvoimozhi - 629 301, India; Debub University, Awassa, Ethiopia
This paper is an attempt to investigate the impact of economic reforms on the economic issues in Ethiopia. Different economic issues - parameters determining the effectiveness of economic reforms - are separately discussed to measure how far Ethiopia has benefited from the reform policy. A simple and comparative analysis of various economic indicators between the pre-reform and post-reform, that is, between 1985/ 86-1991/92 and 1992/93-2001/02, reveals that those economic reforms have revamped the economy by moving its GDP from its long-standing poor record to a respectful growing state. Nevertheless, the reforms have failed in attaining other direct economic objectives, such as standard of living, external debt, trade balance deficit and current account deficit. Economic reforms have, no doubt, attracted a significant amount of private investment, but its volume started declining within the reform period and so were privatization proceeds. This study suggests that a full-fledged and committed reform is indispensable at the earliest to attaining the full benefits of reform policy. © African Development Bank 2005. Published by Blackwell Publishing Ltd.
economic reform; Gross Domestic Product; investment; poverty; Africa; East Africa; Eastern Hemisphere; Ethiopia; Sub-Saharan Africa; World