Abstract
AbstractThis article investigates how the Ethiopian People's Revolutionary Democratic Front's (EPRDF) attempt to build a developmental state influenced and shaped its relationships with the Ethiopian private sector. Through a case study of the chambers of commerce system in Ethiopia, the research reveals that the EPRDF's relationship to the private sector was characterised by the twin objectives of (1) curbing the private sector's power to prevent challenges to the EPRDF rule and (2) mobilising the private sector as part of the ruling coalition's developmental state programme. However, these twin objectives, were, in several cases, perceived as mutually exclusive by the EPRDF which, at times, led to a focus on control at the expense of developmental objectives. The ensuing lack of embeddedness posed problems for the operationalisation of the developmental state policies, reducing the EPRDF's ability to institutionalise collaborative relationships with the private sector.
Highlights
Featuring sustained growth rates of around % between and, Ethiopia used to be among the fastest growing economies worldwide, earning it the nickname ‘African Lion’ (Seid et al )
Instead of promoting Ethiopian private sector development, the Ethiopian People’s Revolutionary Democratic Front (EPRDF) regime had built its development operations on state-owned enterprises, party endowment funds and party affiliated businesses, as well as the attraction of foreign direct investment, leading Clapham ( : ) to conclude: ‘Conspicuously lacking, is the alliance between government and the domestic private sector that has been identified as a key driver of Asian developmental states’
The EPRDF is said to have failed in providing consistent support to the private sector in the country, so far there exist very few studies focusing on private sector development under the developmental state paradigm in Ethiopia (Sutton & Kellow ; Gebreeyesus & Iizuka )
Summary
Featuring sustained growth rates of around % between and , Ethiopia used to be among the fastest growing economies worldwide, earning it the nickname ‘African Lion’ (Seid et al ). The Minister of Trade and Industry at that time was one of the architects of the law, and together with the council of Ministers he took the decision to align the chambers to the system of ethnic federalism and to introduce sectoral associations representing the manufacturing sector to reflect developmental state priorities
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