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What’s Wrong with the IMF’s Approach to Ethiopia?

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The International Monetary Fund (IMF) recently gave Ethiopia a pat on the back, praising its economic reforms and tighter monetary policies. But let’s take a closer look—this isn’t the shiny success story it’s made out to be. In fact, it feels a bit like cheering for a marathon runner who’s barely made it past the first mile and is limping already.

First, the exchange rate gap. Yes, the IMF applauds Ethiopia for narrowing the gap between the official and black-market rates, but let’s not pop the champagne just yet. What’s really happened? The official rate is sliding toward the black-market rate, yet a gap of 12-15% remains. It’s like patching a leaky boat with duct tape—it’s still taking on water. Can this really be considered “fixing” the economy? Businesses struggling to access foreign currency would certainly disagree.

Then there’s the talk about “better management of the economy and improving the business environment.” Seriously? Tell that to the entrepreneurs grappling with inflation, dwindling purchasing power, and red tape that could stretch to the moon. Statements like this might look good on IMF stationery, but they’re not fooling the people living with the consequences.

A particularly troubling aspect of the IMF’s assessment is its praise for Ethiopia’s tight monetary policies. While controlling inflation and reducing central bank borrowing are important, these measures risk pushing the country into austerity at a time when growth is desperately needed. Ethiopia’s economy requires robust public investment, especially in infrastructure and agriculture, to create jobs and reduce poverty. Tight money policies could stifle this growth, further exacerbating economic challenges.

Most glaringly, the IMF fails to address Ethiopia’s ongoing security crises in the Amhara and Oromia regions. These regions are among the most agriculturally productive in the country, yet they are mired in escalating violence and instability. The conflict not only disrupts livelihoods but also undermines the very foundation of economic growth and food security. It is puzzling, if not outright negligent, that the IMF overlooks these significant factors in its analysis.

So, what’s wrong with the IMF? Its approach appears overly focused on technical economic indicators, sidelining the broader socio-political context that directly impacts economic performance. By ignoring the severe security issues and the lived realities of businesses and citizens, the IMF risks promoting policies that may look good on paper but fail to address Ethiopia’s core challenges. A more nuanced, inclusive, and grounded approach is urgently needed to truly support Ethiopia’s recovery and growth.

Why does unpleasant news on floriculture remain as swarming like a plague of locusts?

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The floriculture industry in Ethiopia began in the early 1980s when state-owned farms started producing and exporting flowers to Europe. The sector flourished in the early 2000s with large-scale exports of cut flowers. The post-2003 period is characterized by a high entry of foreign firms and spectacular growth in exports.

Currently, the flower sector has been demonstrating steady advancement over the years in its contribution to the national economy and has become the second-largest exportable item, next only to coffee in Ethiopia. The sector creates job opportunities for more than 60,000 people and generates 467 million USD in foreign currency annually.

Despite the immense contribution of the floriculture sector, quite a number of people do not feel good about the role of flowers in the Ethiopian economy and society since 2005. The claim began in 2005 when Ethiopia undertook its general election. During the election campaign, some opposition parties alleged the ruling party with disgusting arguments and claimed that flower investments harm our country’s land and environment. These opposition parties viewed the entrance of many foreign flower-producing and exporting companies from neighboring African countries as a result of the negative role played by farms in their respective country settings. Some argue that flowers are not a national priority.

Nonetheless, the floriculture sector is still in its infancy in Ethiopia. People who feel negatively about the role of flowers were primarily influenced not by their experience or practical contact with observed reality but rather by the 2005 Ethiopian election campaign, which was actually a manipulative propaganda tactic used in politics. Many professionals argue that doubt, fear, and uncertainty are strategies to influence people’s perceptions by spreading negative, dubious, or false information.

Today, not only ordinary people, but also authorities, academicians, and reputed professionals in development and service sectors in every corner of the country are all influenced by the spread of rumors during the 2005 election campaign propaganda and are not confident in speaking loudly about the positive side of the flower business and its contributions to the nation.

To date, the total command area under flower production is about 1,600 hectares, which is insignificant in size, constituting roughly 0.0002% of the total area of the country. The most unnoticed wonder is that some of the land and soil beds that have been used for flower production so far are now being used for the production and export of strawberries to Europe and the Middle East. With stringent environmental regulations and close monitoring, many flower farms are now returning to sustainable closed systems.

The current pressing question seems to be: why does unpleasant news on floriculture remain swarming like a plague of locusts? The answer is crystal clear: bad news spreads faster than wildfire. Many critics in the social field argue that this is typically related to people’s negative bias. According to this argument, one plausible reason why bad news spreads faster than wildfire is that people have a natural tendency to pay more attention to negative information. This bias means that people often remember and react more strongly to bad news, which can lead to increased sharing. Negativity can trigger a strong emotional response, making it an effective way for news outlets to engage their audiences.

Other authors argue that sharing bad news can serve as a form of social gesturing, where individuals communicate their awareness of important issues or dangers. This can create a sense of urgency or concern within social networks. Other writers relate the issue to mass media. Media outlets often prioritize negative stories because they attract more viewers and engagement. This can lead to a cycle where bad news is more prominently featured, further encouraging its spread. Social media is highly accessible and loosely monitored, which can contribute to the spread of misinformation. Others explain it as people being more motivated to discuss and analyze challenges or threats than positive developments. This tendency can lead to more conversations and, consequently, more sharing of bad news. Similar critics often describe it as the viral nature of content, meaning content that evokes strong emotional reactions is more likely to go viral. Since bad news often triggers such reactions, it can spread through social media and other platforms more rapidly than positive news.

In many places, we have all heard this unpleasant news. While most consider it harmless, it can affect the well-being of the sector. Learning to tell the difference between fact and untruth can be a real boost both mentally and physically. What happens when rumors are harmful? What if they damage a company’s reputation, survival, or normal operation? If you’re on the receiving end of untrue gossip, what do you do?

When it comes to unrealistic news, the effects can be both immediate and long-lasting. In most cases, an unrealistic story can rile up your sentiments and change one’s temperament. Depending on the strength of one’s feelings, the story, and the reaction it elicits, it can stick in one’s head even after one finds out it’s false. One may even remember those feelings if they see another story about the same subject.

But this does not mean all history about floriculture is rosy; there are still unfavorable situations to deal with in the flower sector. We are now living in the internet era. The internet enables people to collaborate and share information about bad and new things with others across the globe. This means anyone can highlight injustices, spread anxiety, better understand useful and bad practices, and connect with other professionals we may have never otherwise met or been exposed to similar events.

Finally, no matter what the sectors are, realistic research and information give us more power because the more we know, the more we can effect positive change both on a sectoral and societal level.

Mekonnen Solomon is a horticultural export coordinator at the Ministry of Agriculture. You can reach him via MOA-ehdaplan@gmai.com

Mike Tyson, Jake Paul fight was the most-streamed sporting event ever, Netflix says

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The highly anticipated boxing match between former heavyweight champion Mike Tyson and YouTuber-turned-boxer Jake Paul will be remembered for more than its unique card.

The bout shown on Netflix was the most-streamed global sporting event ever with 65 million live concurrent streams and 108 million total live viewers around the world, according to a Netflix release. The Amanda Serrano and Katie Taylor fight before the Tyson-Paul match averaged 74 million live global viewers, the most-watched professional women’s sporting event ever in the U.S. with 47 million viewers, the company said.

The event notched several other wins, including being the biggest boxing gate in history outside of Nevada.

Both Tyson and Paul made eight-figure paydays, according to Most Valuable Promotions co-founder Nakisa Bidarian, whose company promoted the fight. Serrano and Taylor received record pay for women’s boxing, he said.

This event was crucial for Netflix as it prepares for its Christmas Day stream of National Football League games, its first time showing the most-popular sport in the U.S. live. Viewers complained of buffering issues, but Chief Content Officer Bela Bajaria said she is not concerned about the company’s ability to stream the NFL games.

Netflix is not the first streamer to wade into live sports. Amazon has carried Thursday Night Football games since 2022, and NBCUniversal’s Peacock streamed an NFL playoff game last season.

50,000 participate in 24th edition of Great Ethiopian Run

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The 24th edition of the Great Ethiopian Run International 10-kilometer road race was held Sunday in Addis Ababa, with 50,000 runners participating in Africa’s largest road race.

According to the organizers, this year’s race drew the highest turnout yet, attracting well-known athletes from 20 countries, including Kenya and Uganda, as well as participants from various other nations.

Biniam Mehari emerged victorious in the men’s race, marking his second win at this prestigious event in Ethiopia. In the women’s competition, Asayech Ayichew crossed the finish line first, securing her first victory in the race.

“I found the race very inspiring. I am very happy I won the race for the second time. It was a fierce competition,” said Biniam Mehari, noting that he had undergone rigorous training to prepare for the event.

He added that such races provide valuable opportunities for young athletes to develop successful sporting careers.

Haile Gebrselassie, a two-time Olympic gold medalist in the 10,000 meters and founder of the Great Ethiopian Run, emphasized the event’s significance in enhancing Ethiopia’s international image and promoting tourism.

“The Great Ethiopian Run remains the greatest race in Africa, attracting 50,000 runners this year. We have been the largest in Africa for 20 years,” Haile Gebrselassie said.

Kenyan marathoner Ruth Chepngetich, the new women’s world record holder in the marathon, attended the 24th Great Ethiopian Run as a guest.

“I am so excited to come to Ethiopia and see Africa’s biggest road race. I used to hear about the race from my friends,” Chepngetich said.