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Rethinking the Ethiopian Privatization

Minga Negash, Seid Hassan, Abu Girma and Ezana Kebede have made a case for “Rethinking the Ethiopian Privatization,” focused on state owned enterprises. “Privatization in a networked or captured economy of course transfers public assets in disguised and opaque ways to those who are already connected. Privatization without institutional reforms may only relieve the government from temporary illiquidity but does neither affect the efficiency nor make the market contestable nor prevents throwing away public assets at questionable prices.”)

Plan to outsource public sector computers has cost money, not saved it

A plan to outsource South Australia public sector computers has cost more than it saved. Treasurer Rob Lucas “said, rather than saving $11 million a year as promised, the scheme has cost taxpayers an extra $48 million more than doing nothing. He said an independent report has warned the project has a “high chance of failure” and might cost taxpayers another $40 million to $80 million. Mr. Lucas said pre-election promises of 400 jobs had also not been realised.”

The government has announced that it will privatize a broad swathe of public companies

Responding to serious financial pressure and a shortage of foreign exchange, the government has announced that it will privatize a broad swathe of public companies. “But a party in the ruling coalition is calling for an emergency meeting, saying the dramatic reforms were decided on without full consultations. The statement by the Tigrayan People's Liberation Front (TPLF) appears to be the biggest challenge so far for Prime Minister Abiy Ahmed.” The World Bank urged Addis Ababa “to make good regulatory frameworks if it is to reap the economic growth from its privatization.”

Source: DW.COM

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