Performance Indicators Of Investment Climate And Business Environment Improvement In Private Higher Education And Private Health Service Provision In Addis Ababa 1991-2007

Course ID
Ethiopian Economics Association (EEA)
Tenkir Bonger

Driven by the restructuring of the world economy with massive incremental output and demand in Asia by China and India in particular, in the last seven years or so, the Ethiopian economy has been experiencing a remarkable average growth rate of 7.5% [World Bank:2010]. The growth rate in the post 1991 period as a whole has been significantly higher. This is all the more interesting because it is posited on small holder based agriculture without much, albeit a ‘curse, of minerals’ such as in Angola and Nigeria. Within this broader context, this study is about institutional development around Investment Climate and the Business Environment [ICBE] in the establishment and growth of segments of the vital two social services – private higher education [PHE] and private health, in Addis Abeba, Ethiopia in the post 1991 period. ICBE encompasses aspects of institutions as they relate specifically to the start up, growth, development and performance or otherwise of businesses and their capacity to drive the pace of economic and social progress. Applying the works of institutional economists to Ethiopia, when the modern policy regimes are taken together at the onset of this ICBE study, the Ethiopian economy had traversed ideological swings, political and policy reversals and abrupt macro-, meso- and micro-management system changes all of which did not augur well to drive it towards stability, sustained growth and productivity. The ICBE in the baseline period of this study has thus been overlaid on abruptly changing policy regimes. Partly as a result of improved ICBE, noticeable positive changes in governance, expansion in private higher education [PHE] and private health provision, efficiency gains, more effectiveness in the physical and social infrastructure are reported. Moreover, there are trends towards improved regional & gender equity, accountability in PHE and health delivery services, some levels of innovativeness and development and sustainability.
Notwithstanding these, the absolute quality and standard of education and health provision leave a lot to be desired. The noticeable achievements have been attained with some challenges which need to be addressed in the forthcoming fine tuning of ICBE improvement policies and institutional engineering.
Rather than absorbing the leftover from the Government sector, genuine and effective partnership between Government, the private sector and employers need to be remodeled with a certain level of autonomy for each. Government needs autonomy to ensure that its social goals are not subsumed by the profit objectives of PHE and private health firms. The latter require autonomy to tailor their services in order to meet the specific demands of the market. The ultimate beneficiaries of the process, employers and students can enrich the institutional packaging through bringing in their up-to-date need in the state of the art and the content of education

Corporate Author: Getnet Alemu & Worku Gebeyehu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher: Ethiopian Economic Association (EEA)
ISBN/ISSN: 978-99944-54-19-8
Primary Descriptors: health, private; Health delevery serivices

Secondary Descriptor: Higher Education, Private

Geographic Descriptors: Ethiopia, Addis Ababa
Cataloge Date: 02/27/2013
Broad Subject heading: Growth , Development
Call Number: 330.963 PRO 2011
Serial Key Title: Proceedings of the Eighth International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: II
Publication date: 2013-06-27 23:11:00
Forum or Discussion date: 2013-02-27 15:43:10
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annualy
Author: Tenkir Bonger, Gezahegn Ayele, [et al.]

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