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1. African Media Cultures and Chinese Public Relations Strategies in Kenya and Ethiopia

Author:
Hangwei Li and Yuan Wang
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
China has become a global power, but there is too little debate about how this has happened and what it means. Many argue that China exports its developmental model and imposes it on other countries. But Chinese players also extend their influence by working through local actors and institutions while adapting and assimilating local and traditional forms, norms, and practices. With a generous multiyear grant from the Ford Foundation, Carnegie has launched an innovative body of research on Chinese engagement strategies in seven regions of the world—Africa, Central Asia, Latin America, the Middle East and North Africa, the Pacific, South Asia, and Southeast Asia. Through a mix of research and strategic convening, this project explores these complex dynamics, including the ways Chinese firms are adapting to local labor laws in Latin America, Chinese banks and funds are exploring traditional Islamic financial and credit products in Southeast Asia and the Middle East, and Chinese actors are helping local workers upgrade their skills in Central Asia. These adaptive Chinese strategies that accommodate and work within local realities are mostly ignored by Western policymakers in particular. Ultimately, the project aims to significantly broaden understanding and debate about China’s role in the world and to generate innovative policy ideas. These could enable local players to better channel Chinese energies to support their societies and economies; provide lessons for Western engagement around the world, especially in developing countries; help China’s own policy community learn from the diversity of Chinese experience; and potentially reduce frictions.
Topic:
Development, Media, Public Relations, and Engagement
Political Geography:
Kenya, Africa, China, and Ethiopia

2. Armed groups’ modes of local engagement and post-conflict (in)stability: Insights from the Ethiopian and Somali civil wars

Author:
Marine Gassier
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
What distinguishes post-war governments that succeed in establishing a stable political order and prevent recurring conflict from those that do not? This comparative study considers the specific threats that typically lead to the collapse of the post-conflict political order to offer new hypotheses on the conditions that affect post-war governments’ ability to sustainably restore stability. The threats considered include (i) fragmentation of the main actors in the conflict, (ii) inadequate demobilization, and (iii) enduring dependence of the post-war government on local brokers. Post-war regimes are more vulnerable to such risks after wars in which the dominant armed groups have established themselves by co-opting local power structures and drawing on existing socio-political networks, as this process redistributes power from the central to the local level. Empirically, this paper uses a novel dataset documenting the practices through which rebel groups may alter local power structures to highlight the connection between this wartime process of transformation and patterns of conflict recurrence. In addition, it contrasts the transition of the Tigray People’s Liberation Front from rebellion to government in Ethiopia in the 1990s with the trajectory of the armed movements in Somalia that also overthrew the incumbent military regime but then failed to establish a viable state.
Topic:
Conflict Prevention, Armed Forces, Conflict, Post-Conflict, and Instability
Political Geography:
Africa, Ethiopia, and Somalia

3. Ethiopia’s Grand Renaissance Dam. The Law, History, Politics and Geopolitics behind Africa’s Largest Hydropower Project

Author:
Francesca Caruso
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Since 2011, the construction of the Grand Ethiopian Renaissance Dam (GERD) has provoked a diplomatic crisis between Ethiopia, Egypt and Sudan, adding fuel to the already combustible geopolitics of the Horn of Africa. Despite its technical aspects, the GERD dispute has over time become a multi-layered geopolitical crisis where a plethora of actors and dynamics have been influencing the ongoing negotiations. Protagonists are no longer only Ethiopia, Egypt and Sudan, and the resolution of the crisis is now dependent on factors beyond technical solutions. Moreover, the crisis seems to have become an instrument that the three countries are using to deal with issues of national legitimacy, territorial disputes and regional balance. However, while instrumentalisation can be politically expedient in the short term, all parties have an interest an equitable and regionally based, inclusive and cooperative agreement. In order to understand how multilateral organisations can contribute to the finding of an equitable and reasonable solution, a multi-layered analysis – on local, national and regional dynamics – needs to identify the main drivers for Egypt, Ethiopia and Sudan.
Topic:
Diplomacy, History, Water, Infrastructure, Law, Geopolitics, Dams, Conflict Management, and Hydropower
Political Geography:
Africa, Ethiopia, and Egypt

4. Egypt’s Decade of Water Woes

Author:
Hafsa Halawa
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
As the Nile River dispute between Egypt, Ethiopia and Sudan enters a new decade, this paper seeks to map out the Egyptian perspective of the dispute, through an outline of the interventions made, opportunities lost, and challenges posed by the construction of the Grand Ethiopian Renaissance Dam. Looking at Egypt’s domestic water security challenges, regional relationships and the tripartite process, and the role and influence of external actors, the paper describes a decade of diplomatic stagnation as entrenched nationalism creates forms of immovable policy on the River Nile.
Topic:
Diplomacy, Natural Resources, Water, Dams, and Disputes
Political Geography:
Africa, Sudan, Ethiopia, and Egypt

5. The GERD from an Ethiopian Perspective: Actors, Interests and Instruments

Author:
Jesutimilehin O. Akamo
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
For Ethiopia, proposals on sharing the Nile waters and the filling and operation of the Grand Ethiopian Renaissance Dam (GERD) must demonstrate flexibility (that is, be legally non-binding) and distance from the order that existed before the Cooperative Framework Agreement (CFA, or Entebbe Agreement). The GERD represents a move by Ethiopia to enhance economic security, boost its resilience against drought and consolidate its newfound hydro-political influence towards ensuring equitable and reasonable use of the Nile waters by riparian states. Ethiopia has demonstrated intentionality and consistency in its Nile policy under which the GERD falls. The link between the GERD, Ethiopia’s internal crisis and its perception of an international bias tend to threaten the likelihood of a mutually agreed deal. However, building mutual trust, strategic concessions and de-internationalising the GERD talks to the barest minimum are necessary steps to break the stalemate.
Topic:
Natural Resources, Water, Dams, Drought, and Hydropower
Political Geography:
Africa, Sudan, Ethiopia, and Egypt

6. A Survey of Importers: Results of a Survey Conducted in Collaboration with the Ethiopian Economics Association

Author:
Ricardo Hausmann, Tim O'Brien, Tim Cheston, Nikita Taniparti, and Ibrahim Worku Hassen
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Ethiopia suffers from a chronic shortage of foreign exchange (forex).[1] The resulting lack of access to imports prevents firms from accessing imported inputs required for production. This creates a vicious cycle as exporters are constrained by this same problem, which further reduces overall supply of foreign exchange in the Ethiopian economy. The inability to reliably access foreign exchange for imports affects firm decisions on sourcing, capacity, and output. While the cost of this constraint is known to be high on the Ethiopian economy and firms are known to use a range of measures to attempt to bypass this constraint, quantitative assessments of the problem and response actions by firms are limited. It is in this context that an importer survey was conducted with the goal of informing policy decisions. A total of 202 firms with an active importing license were interviewed in March-April 2022. These firms were randomly sampled from firms registered with an importer license. All firms interviewed reported that they were operating below capacity, often well below capacity. Foreign exchange shortages were the main reason respondent firms cited for not operating at full capacity (63% of firms reporting this as their biggest constraint). Forex shortages far surpass the second and third reasons cited for not operating at full capacity — constraints due to the conflict (13%) and COVID-19 restrictions (11%). Firms operating below capacity cited forex shortages as the main constraint, regardless of whether they imported or not in the previous year. This was the most pressing constraint reported by firms of all sizes and sectors surveyed. It was the most pressing constraint faced by exporters and by foreign-owned firms as well as non-exporters and domestic firms. Amongst the total sample of firms with a renewed importer license, more than one-third of respondent firms (37%) had not imported in FY2020-21. Overall, 74% of firms reported experiencing challenges in accessing forex. Access to forex was reported as most challenging for manufacturing firms and smaller firms but impacted all sectors and firm sizes. The losses attributed to forex scarcity at the firm level were largest for agricultural firms, for micro-firms, and for firms that did not import at all in the previous year. In general, the larger the firm sales, the higher the likelihood that they were able import. The survey found different types of imports for different sectors. Manufacturing firms imported a large share semi-finished goods as imports as compared to agricultural firms that primarily imported finished goods. The survey results find that foreign exchange shortages and an inability to import are most severe for the manufacturing and agriculture sectors, small and micro-sized firms, and all non-exporters. However, the constraint is also the top problem facing all firm types in the survey, including exporters and foreign-owned firms. The primary means of accessing foreign exchange where it did occur was through specialized forex accounts or ‘diaspora’ accounts. The second most common means of accessing foreign exchange was through retention accounts available to exporters. The black market featured in many responses, but questions across the survey suggest that self-reported use of the black market by survey participants is underreported versus actual usage. The ability to source foreign exchange differed significantly by firm size. Exporting firms primarily used retention account earnings, as compared to non-exporters, which relied more on forex accounts. For faster access to forex, most firms reported that they approach banks, followed by turning to the black market. Friends and family abroad also served as a source of forex for one-quarter of firm respondents, and that foreign exchange was often used immediately. Foreign exchange access from banks is nevertheless a major pain point for firms. Most firms (55%) requested forex from a bank in the past year. On average, fulfilled forex requests took three months to be processed when they were fulfilled, but many firms reported that they have an unfulfilled request that has been in the system for more than a year. These firms are especially likely to report foreign exchange access as their top challenge. The survey finds that individual firms do not tend to use both official and black-market foreign exchange sources but rather tend to access all their forex at the (lower) official rate or all at the (higher) black-market. Large firms import most of their products at the official rate. By contrast, most small and micro firms import through other means. Manufacturing firms are also more likely to import all their production through other means and outside of the banking system. Non-exporting firms tended to import through other means than the official rate and outside of the banking system at a higher prevalence than exporting firms. The survey gleaned new insights on the implicit exchange rate that firms face as they navigate official and black-market channels of foreign exchange access. The survey does not allow for a precise estimate of the transaction-weighted exchange rate facing the economy but finds firm-level estimates align with previous macro-level estimates. The implicit exchange rate was higher for non-exporting firms, which show a greater willingness to pay a higher exchange rate to access imports. This signals the importance of the retention account for exporters to guarantee an import price closer to the official exchange rate. When asked about the maximum rate firms would pay to guarantee access to forex, some groups of firms were willing to pay higher amounts, including all non-exporters, firms that imported in the past year, and those that declared forex access a challenge. When compared to the implied rate they paid in the past year, many firms are willing to pay more than the implied rate to guarantee access to forex. Firm perspectives on policy changes to the exchange rate underscored challenges faced by policymakers. Current policy has been one of a crawling peg, with changes within the last several years to increase the rate of devaluation. The survey asked respondents about their support for faster devaluation, for a one-off movement to unify the official rate with the black-market rate, or about alternative exchange rate systems such as a floating exchange rate. Most respondents (71%) opposed maintaining the current regime, yet no option received majority support. Most firms appear to want both a stronger exchange rate and easier access to foreign exchange despite a tradeoff between these two priorities. The largest share of support for policy change was to adjust the exchange rate such that the official rate matches the black-market rate.
Topic:
Development, Economics, Imports, and Collaboration
Political Geography:
Africa and Ethiopia

7. Development in a Complex World: The Case of Ethiopia: A Compendium of Project Research on Advancing Economic Diversification in Ethiopia

Author:
Ricardo Hausmann, Tim O'Brien, Tim Cheston, Ibrahim Worku Hassen, and Can Soylu
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
This research compendium provides an explanation of Ethiopia’s fundamental economic challenge of slowing economic growth after an exceptional growth acceleration — a challenge that has been compounded by COVID-19, conflict, and climate change impacts. Ethiopia has experienced exceptional growth since the early 2000s but began to see a slowdown in the capacity of the economy to grow, export, and produce jobs since roughly 2015. This intensified a set of macroeconomic challenges, including high, volatile, and escalating inflation. This compendium identifies a path forward for more sustainable and inclusive growth that builds on the government’s Homegrown Economic Reform strategy. It includes growth diagnostics and economic complexity research as well as applications to unpack interacting macroeconomic distortions and inform diversification strategies. Drawing on lessons from past success in Ethiopia and new constraints, this compendium offers insights into what the Government of Ethiopia and the international community must do to unlock resilient, post-conflict economic recovery across Ethiopia. The research across the chapters of this compendium was developed during the Growth Lab’s research project in Ethiopia from 2019 to 2022, supported through a grant by the United States Agency of International Development (USAID). This research effort, which was at times conducted in close collaboration with government and non-government researchers in Ethiopia, pushed the boundaries of Growth Lab research. The project team worked to understand to intensive shocks faced by the country and enable local capability building in the context of limited government resources in a very low-income country. Given the value of this learning, this compendium not only discusses challenges and opportunities in Ethiopia in significant detail but also describes how various tools of diagnostic work and economic strategy-building were used in practice. As such, it aims to serve as a teaching resource for how economic tools can be applied to unique development contexts. The compendium reveals lessons for Ethiopian policymakers regarding the country’s development path as well as numerous lessons that the development community and development practitioners can learn from Ethiopia.
Topic:
Development, Economic Growth, Diversification, and Structural Transformation
Political Geography:
Africa and Ethiopia

8. Identifying Binding Constraints on Digital Payment Services in Ethiopia: An Application of a Decision Tree Framework

Author:
Getnet Alemu, Tadele Ferde, and Alejandro Fiorito
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
While several comparable countries in sub-Saharan Africa have seen a significant increase in financial inclusion, mainly driven by digital financial services, Ethiopia still performs poorly. Even digital payment and transfer services, which lower-income and less literate segments of the population could benefit from, are rarely used. Given the low development level of Ethiopia, numerous supply and demand factors could explain this disappointing outcome. We use a decision tree framework to isolate and analyze potential constraints to find which are binding—that is, which constraints limit the expansion of digital payment services in Ethiopia. Our analysis indicates that supply-side problems are pervasive, and we find that competition problems in the essential digital infrastructure market and in the financial sector are responsible for the inadequate provision of digital payment services in Ethiopia. However, the root cause of inadequate competition, and therefore of low financial inclusion through digital payment services, is institutional deficiencies. The two key institutional deficiencies are the lack of capacity of regulatory and supervisory institutions, and the unwillingness of the central government to enable and promote competition. The dominance of public enterprises, Ethio Telecom and the Commercial Bank of Ethiopia, has kept the prices of digital payment services high, particularly for low-income populations, as fees charged for undertaking low-value transactions are very high and the cost of digital infrastructure (mobile phones and plans) is also substantial. Unless these institutional binding constraints are removed, digital payment services in Ethiopia, and digital financial services more generally, will hit a very short ceiling that limits their enormous potential to improve livelihoods in the country.
Topic:
Development, Finance, Digital Economy, and Digitalization
Political Geography:
Africa and Ethiopia

9. Introducing the Mind-the-Gap Index: A tool to understand urban spatial inequality

Author:
Jeni Klugman and Matthew Moore
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
Where people live exerts a strong influence on multiple aspects of their well-being, including their access to economic opportunities, education, health and other services and to their security, as well as other goals envisioned in the 2030 Agenda for Sustainable Development. In a world with high and growing levels of urbanization, policy makers are increasingly aware that the future of inequality depends largely on what happens in cities. There is also concern that rising spatial inequality can lead to social unrest, rioting, increased crime, and erode trust among separated societal groups. The World Bank estimates that half of the area that will be urbanized by 2050 has not yet been built, which implies major opportunities for the policies and decisions affecting cities to shape the world we live in. First, this paper synthesizes several research papers regarding what we already know–drawing on recent research from UNDESA and others–to outline the extent of spatial disparities, the ways that spatial inequality shapes today’s cities, and the key factors driving spatial disparities. Additionally, the paper introduces a new index designed to capture key dimensions of spatial inequality, along with analysis of results from three pilot applications in Addis Ababa, Jakarta, and Mexico City which highlights the importance of granular and up-to-date data, as well as the accumulating nature of disadvantage in poor neighborhoods.
Topic:
Inequality, Sustainable Development Goals, and Urban
Political Geography:
Indonesia, Ethiopia, and Mexico

10. Gender and Extremism in Ethiopia

Author:
Hilina Berhanu Degefa
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
European Institute of Peace (EIP)
Abstract:
This paper endeavored to provide a gender analysis on the role of women in violent extremism (VE) and government-led efforts on Preventing and Countering Violent Extremism (P/CVE) in Ethiopia. It draws its findings and recommendations from three main research methods: a literature review, observation, and one-on-one semi-structured interviews with actors involved in VE and P/CVE efforts across six Regional States in Ethiopia. The study firstly examines the role of women in extremism in Ethiopia, emphasising how and why women are involved in VE, including the gendered nature of association with VE groups. Among those that have been researched are the hardening of in-group identity, sense of community and seeking recognition, romanticism and fascination with a charismatic leader, as well as a sense of victimhood as a result of government action or inaction, including gender-specific violations. All are contributing factors; mostly compounded and cumulatively present in individual cases. Secondly, the study engages with the current standing P/CVE efforts led by the government, analysing the types of womanhood that the state mobilises and produces in the name of, and as part of, P/CVE efforts. While the research has been less conclusive in establishing a commonly agreed-upon definition of VE from respondents, it recommends the need for intersectionality-informed gender analysis in understanding women’s participation in VE as well as in the designing and implementation of P/CVE measures
Topic:
Governance, Women, Leadership, Gender Based Violence, and Gender
Political Geography:
Africa and Ethiopia