Governance in Public Sector: Implications on Private Sector Development in Ethiopia

Abstract

There is almost a universal agreement on the significance of ensuring good governance for private sector development and the overall economic development of states. The lack of good governance affects the performance of a state in executing its core functions and its ability in meeting its major economic and social goals. Corrupt practices in public institutions, lack of transparency, accountability and responsiveness of public institutions to the demands of the private sector continue to have a significant impact on the operation and development of the private sector in Ethiopia. The National Business Agenda (NBA) report 2017of Ethiopia clearly indicates that lack of good governance, among other issues, is one of the most outstanding challenges which continues to significantly constrain the growth potential and the contribution of the private sector to the national economy of Ethiopia. While it is true that good governance includes broader issues related with the operations of government and the private sector, the research identifies crucial aspects of good governance in public sector that should form the focus of the study. Accordingly, the study on governance in public sector and its implications on private sector development in Ethiopia will focus on specific thematic issues and indicators of good governance that have particular relevance to private sector development in Ethiopia.