Development Policy and Globalization

Abstract

Ethiopia’s development strategy gives center stage to private capital as the engine of transformation of the manufacturing sector. ¹ Thus, the state is actively engaged in removing any obstacles to accommodate the needs of both private capital and direct foreign investment. This policy emanates from a fundamental understanding that contemporary global economies are interdependent and highly competitive at the same time. In a globalized economy, the only option for Ethiopia to get out of its current situation is to transform itself industrially, providing value-added manufactured goods to domestic and international markets and becoming competitive.