Ethiopia fact of the day

Unusually for Africa, Ethiopia has sustained a high investment rate: currently 38 per cent of gross domestic product.

Here is more from Paul Collier at the FT.


At the rates things are going in 40 years Ethiopia will have a higher per capita GDP than France.

More precisely, if they can replicate the experience of the last 25 years, in another 40 years they'll qualify as a 3d tier economy like India's today, rather than a sub-5th tier economy which they are right now.

Concerning 5th tier economies. What is the difference between California and the Titanic? The Titanic had its lights on when it went down.

Yet, California, unlike the Titanic, will rise again.

That's actually pretty great news and implies a somewhat higher degree of confidence in Ethiopia than much of Africa where what money people do have, they often like to invest outside of their nation.

What if Yoda was 6 feet tall and smoked weed.

Much of the investment is government infrastructure. The grand renaissance dam is the largest in Africa. Light rail is another infrastructure project. As for industry, much of industry is wholly or partially owned by the government, although the government has been selling government owned industry to foreigners, such as China. China is both the largest outside investor and trading partner. As for technology, the government is the biggest customer. That's not to diminish the role of private investors, but I wouldn't want readers to ignore reality.

In Ethiopia and elsewhere we are witnessing another Hamilton vs. Madison vision for economic growth, and Hamilton seems to be winning.

Net foreign investment is currently running at about 4% of gdp per year. The lump sum of planned Chinese investment is $2.3 bn, or < 3% of one year's worth of domestic product. The World Bank has remarked public-private partnerships only in the energy sector, and the one-off amounted to < 1% of all investment in 2014.

Nah, you still can't mimic British English.

And you'll never be a cuck like me!

....And 100% of the Nobel peace Prize

38% or 38ยข ?

The 70s called. They want their jokes about the capital of Bolivia back.

I'd be interested to hear what you thought of the comments under that FT article, Tyler.


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