Research Proposal On Ethiopia’s Accession WTO: Potential Challenges And Opportunities

Ethiopia’s Accession WTO: Potential Challenges and Opportunities

 

Introduction

There are significant economic challenges remains in every country, which is very far from their goals in fostering the more competitive and continuous growth in economy, deregulation and reduction of corruption. There is a less involvement of government in assessing the ongoing efforts to increases the political stability. And joining in the aspiration of the WTO in terms of accession named different requirements and outcomes. 

Background and Statement of the Problem

From the experience of the other countries in accession, there are potential helpful role of WTO or the World Trade Organization in developing a domestic concern about the reform. However, it remains vulnerable because it is plagued by the present potential challenges and opportunities (IMF, 2004). In Ethiopia, the WTO accession plays a critical role in market accessibility, investment, government revenue, and poverty. Thus, the country is welcoming other option to avoid such drastic situation and expecting to pose a strong foundation on their economy.

Objectives of the Study

The main objective of the study is to find ways to open the other windows of improvement in Ethiopia in the presence of the WTO. And to make it possible, the study also aims to recognize the potential challenges that the WTO might and the opportunities it can deliver to Ethiopia.

Significance and Delimitation of the Study

The study view itself as a medium to project any potential strategy in which the Ethiopia or other country can use as a guide in terms there are certain problems plagued their economic structure. However, the study is also limited in delivering the ideas about the WTO accession on Ethiopia. In all countries in the world, it is very crucial to invigorate the other opportunities all at the same time. The reforms in labor markets, legal or regulatory bodies, and institutional framework is difficult to assess in encourage foreign investment and enhancing the role of the private sector.

Research Design and Methodology

The Ethiopia and its economic sector must measure the different estimation before and after the WTO accession. The researchers will compare the different impacts happened in financial sector of the country. The focus is allotted in financing because most of the impacts of the WTO are reflected in terms of monetary reserves, credit policy, financial sources, investments and revenues, and banking system. In addition, the financial policy of the country is the considered as the main driver of the economy and being part of the country’s performance more specifically, in global markets.

Research Method and Sampling

The researchers may go directly to the country’s governmental department to determine which department or sector is more likely engaged in the use of the financial sources. Through that, the recent reports can be acquired, collected and being subject for analysis. Also, through the collected data, the growth and loss of the GDP and GNP can be determined only if the researchers will go beyond the comparison of the WTO accession.

Discussion and Analysis

It is important in every country to lessen the poverty rate in their country. The poverty is the main hindrance or challenge of the developing countries in embracing the globalization. Therefore, it is believed that Ethiopia should welcome the improvement or the opportunity to improve the investment environment through the recognition of stronger banking systems (IMF, 2004).

There is a more significant impact in the export and import process of Ethiopia upon the accession of the WTO. Although the WTO increases the competition in domestic market, still the outcome will be different. The idea for better market of exportation is a “no” because the country is a duty-and-quota-free access, and a “yes” because there is a unilateral preferences (Bienen, 2009). In the long-run, the WTO will affect the market access and can enhance the predictability of the market in which enables them to plan ahead.

Moreover, the benefits that WTO might bring to Ethiopia is to develop the trading as mush as improving to be competitive in the global market. Therefore, it encourages more flows on foreign direct investment and makes the assurance that the manufacturers and producers can be more competitive in the area of international marketing. On the other hand, there are also challenges of WTO accession. The main challenge that the Ethiopia faces is the lack of competitive advantage, scale of economy, cutting edge technology, marketing efficiency, and efficiency in production and distribution system (Teshome, 2007).

Conclusion

From the above research, it clearly summarizes that Ethiopia must recognize the importance of the benefits that the WTO accession might bring and not the cost it incurred. The costs are not always on the side of the financial system but also in managing the procedures and opportunities offered by the WTO to meet the demands.

References:

Bienen, D., 2009. Preparedness of the Ethiopian Private Sector to Benefit from WTO Accession. [Online] Available at: http://74.6.146.127/search/cache?ei=UTF-8&p=ethiopia+accession+wto%3Apotential+challenges+and+opportunities.ppt. [Accessed 06 Jan 2010].

IMF, 2004. Chapter 1: Economic Prospects and Policy Issues, International Monetary Fund. World Economic Outlook. [Online] Available at: www.questia.com. [Accessed 06 Jan 2010]. 

Teshome, A., 2007. The Compatibility of Trade Policy with Domestic Policy Interventions in Ethiopia. [Online] Available at: http://www.fao.org/es/ESC/common/ecg/494/en/FINAL_TESHOME_Trade_Policy_Paper___Ethiopia.pdf. [Accessed 06 Jan 2010].

 

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