Sunday, 1 January 2017

Public participation to realize the goals of GTP II




                                                                                                                           Taye Kebede

One of the things Prime Minister Hailemariam Desslaegn mentioned at his recent speech to the parliament was about the works that will be carried out during the second Growth and transformation Plan (GTP II). The prime minister mentioned that modernizing the agriculture is the main deal when it comes to ensuring the country’s economic structure transformation.



In relation to this, he added that expanding irrigation farming and agro-processing industries will be given attention as well. So, in this article, I will try to probe into the second growth and transformation plan in regards to what the prime minister said.



As it’s known, the development plan dictates that with regards to agriculture the source of the development is based on the development work that is done on the families of farmers and pastorals. If we even optimally use the technologies we have and implement the extension system as per the directive put on the plan, we can reach high productivity and production rate. So, it is planned to facilitate the development by solving the problems that are hindering the productivity of crop and animal development, natural resource development and irrigation work.



There is a plan to produce and distribute new technologies side by side with models technologies that are close to manufacture. There is plan to focus on the development of animals and other industry input and export products in a bid to improve the production capability in addition to increasing the productivity of strategic food grain. Expanding small and medium scale industries that uses agricultural products as inputs is our competitive advantage to develop the manufacturing industry. It is also planned to hugely involve local investors.


As there is a capacity to manufacture factory bodies and spare parts that aren’t optimally used locally, tasks that are identified as challenges like copying and designing technologies, manufacturing and distributing the manufactured products are put as a main directive. It is believed that such type of procedure will enable to build upon new types of investments.

Side by side to this, the development of the manufacturing sector should be hastened by importing capital goods that can’t yet be manufactured here. Thus, ensuring the sector’s transformation by strengthening the capacity of engineering and factory workings and reaching at the needed manufacturing level has been out as the main attention.

Of course as a result of the huge effort put in to expand the infrastructure during the first growth and transformation plan, satisfactory result has been gotten. However, it can’t be said that the deficiencies in relation to the infrastructural service has been completely solved. So, considering that the investment the sector demand is huge and also needs huge amount of foreign currency, internal capacity should be build (especially the capacity to execute projects).



As it’s known, although many works have been done in this regard, the sector’s trained manpower and implementation capacity is still limited. Thus, in relation to grand project design and construction, it is planned to carry out the development plan with own capabilities.



It is planned to strengthen good experiences and solve the challenges seen within the sector in order to grow the economic infrastructure at the needed level. Undertaking huge amount investment within the sector, import-substitution and lessening the strain on the high demand for foreign currency will be given attention moving ahead.



And with this, lessening lack of trained manpower and financial limitations within every infrastructure sector, searching for project finance & strengthening administrative capacity and transfer of knowledge and technology etc … will be undertaken.



In order to bring the economic development needed to realize the vision to enter middle income status as a country, it is planned to focus and work with the aim of bringing comprehensive growth and competitive economy.



As the expected involvement of the private sector in the infrastructure sector is huge, there is a plan to give the needed encouragement to increase their engagement in the sector. In this regard, it is also planned to bring knowledge and technology transfer by attracting foreign direct investment.

Of course many infrastructures will continue to be provided by the government in the second development plan. However, it is planned to identify infrastructural projects that will be undertaken by public-private partnership. In addition, the plan also shows that international and continental goals that are linked with infrastructural development will be undertaken by incorporating them with the national agendas.



In general, it is planned to implement infrastructural development works in the value it has to attract investment, create new market opportunities, lower price of goods, create competitiveness, and create regional economic integration. With this, it is also planned to focus and expand roads, trains, ---port, air transport, energy, telecom, water and irrigation works.



As a result of the previous development plan, public and private investment has grown. And this has developed the sector by creating conducive condition to strengthen the construction industry. The government is working on various capacities building works to increase the sector’s capabilities.

As it’s known, currently our country’s economy is in a state of rapid and sustainable growth. And this demands competitive construction capacity. As a result, the government has formulated a plan that will govern the construction policy and is working to implement it.



Although the industry is growing and is playing its own role in creating jobs, the sector has many problems. The main problems are limited capacity, low technology base, low level facilitation and effectiveness and high level wastage.

And these problems have impacted the effectiveness and competitiveness of the manufacturing sector. Thus, it is planned to create developmental investors and build their capacity to solve the problems and strengthen its competitiveness.


It is planned to ensure the growth of the manufacturing sector. And in order to realize this, there is a plan to undertake huge investment works through local and selected foreign investors. It is also planned to build their capacity of the existing and the new industries technology usage, productivity, quality leadership and competitiveness. There is a plan to enable higher education institutions to contribute their part in this.


These are the core points that are put on the development goal in regards to the agriculture sector, infrastructure and manufacturing sector. And no plan can be realized without the participation of the people. So, every citizen should play their part for its success just like they did during the first phase of the plan.



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