Document Type
Article
Source
Journal of International Management Studies
ISSN
1993-1034
Volume
11
Issue
1
Publication Date
2011
Department
Barowsky School of Business
Abstract
Recently, the Ethiopian Government drafted a five year plan (2010 to 2015) to achieve the country’s economic growth. When Ethiopia’s Growth and Transformation plan was analyzed in light of the new growth theory and traced historically in terms of the push and pull factors that contributed to the flight of skilled Ethiopians to more advanced countries, it was found that over the years Ethiopia has funded the education of its nationals only to see them contributing to the growth of developed countries. Being stripped of skilled human capital, leaving it ill prepared to face globalization and survive in the new global economic order, it was concluded that Ethiopia will be unable to achieve its economic growth and transformation plan by 2015. Given the outcome of the analysis, it was proposed that to ensure a longterm sustainable macroeconomic growth pattern, the Ethiopian Government must establish a welldeveloped infrastructure base and have a reserve of highly talented human capital, in order to grow in global knowledge. In addition, to innovate effectively, Ethiopia needs to form links with well-known global universities, international consultants, and other friendly overseas organizations. If these types of friendly environmental factors are integrated systematically and harmoniously, with pertinent human rights policies, there is no doubt that Ethiopia can entice the Ethiopian Diaspora to return to their motherland. The ability to harness the intellectual capital of the returnees with their contacts from the outside world would bring about very competitive ventures. Ethiopia therefore would achieve its Medium Growth and Transformation plan but also in the long run endure sustainable development.