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Echoes of ProgressPrime Minister Abiy Ahmed’s recent address to Ethiopia’s parliament emphasized his administration’s economic achievements and outlined ambitious future plans while downplaying the country’s significant social and political challenges. Here are the key points:1.Economic Growth and Development: Abiy projected an 8.4% growth rate for the fiscal year, exceeding IMF forecasts of 6.5%. He highlighted successes in agriculture, industry, and services, citing specific targets like 300 million quintals of wheat and major increases in milk and coffee production. However, these figures have been questioned by other government agencies and international organizations.2.Tax Collection and Revenue Goals: To improve tax collection, Abiy acknowledged the prevalence of the informal economy and administrative inefficiencies. The government aims to collect 1.5 trillion birr in taxes by the end of the fiscal year, despite a decline in Ethiopia’s tax-to-GDP ratio.3.Foreign Loans and Job Creation: Abiy reported securing $4.5 billion in foreign credit, a significant increase from last year. He expects $27 billion in foreign investments from macroeconomic reforms and plans to create over four million jobs, partially through agreements with other countries.4.Subsidies and Economic Reforms: Recognizing the need to support citizens through economic changes, Abiy outlined a subsidy plan of 400 billion birr to cover essential goods and services, including fuel, fertilizers, and medicine.5.Political Issues and Peace Efforts: The Prime Minister addressed ongoing conflicts in Amhara and Oromia, emphasizing negotiations with rebel groups, facilitated by organizations like the African Union. He promoted peace over conflict, asserting Ethiopia’s strength while pushing for political unity and stronger institutions.6.Vision of National Transformation: Abiy expressed admiration for Singapore’s development model over China’s, emphasizing gradual, peaceful reform. He dismissed criticisms of a corridor project in Addis Ababa and urged religious institutions and political parties to unify rather than divide.While Abiy highlighted achievements and future growth, critics noted that the speech downplayed ongoing conflicts and economic struggles in regions like Amhara and Tigray, focusing instead on a narrative of progress and transformation amidst adversity.
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