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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