The monthly Addis Weg round table discussion entitled “Rising Costs of Living: Causes and Remedial Actions” held today
The monthly Addis Weg hosted by the Press Secretariat Unit of the Office of the Prime Minister focused on the causes of rising living costs and potential solutions. Rosa Mekonnen, EBC journalist moderated the panel, which included Dr. Nemera Gebeyehu, State Minister for the Ministry of Planning and Development, Melese Menale, Senior Macroeconomic Advisor for the National Bank, and Yirgalem Enyew, Cooperatives Marketing Director for the Ethiopian Cooperative Commission. The panelists highlighted the nature and causes of inflation as well as remedial actions. Incompatibility between demand and supply, product distribution and marketing deficit, budget administration deficit, unnecessarily long supply chain process, and issues of increasing production and productivity were thoroughly discussed.
The government's short and long-term actions, as well as the nation's role in alleviating the situation, have all been discussed. Long-term government interventions include homegrown economic reform and increased production and productivity. The government's immediate solutions include summer wheat and cereal production, subsidizing and distributing consumer goods, giving franco-valuta privilege for basic consumer goods, and attempting to improve and shorten the supply chain. The public was urged to have realistic expectations about what the government can do and to participate in activities that increase productivity, such as urban farming, as well as to exercise their regulatory roles. Expert opinion from field experts focused on the impact of international events on the Ethiopian economy, consumer subsidy and purchase, consumer goods marketing and distribution as well as measures to ensure supply and demand balance.
