Chamber Calls for Critical Policy Revisions on Goods, Labor and Financial Mkts.

A study commissioned by  Addis Chamber has tried to  thoroughly explore the underlying factors  affecting the local goods, labor and financial markets.

The market  efficiency is directly related to the market factors and the nature of consumer prices.

According to the study, a strong institutional  framework,  agricultural productivity , competitive financial actors   are determinant  factors for an efficient market to prevail in the Ethiopian context.

Accordingly, weak regulatory system on the market chain , which gave rise to the unfair  increment of consumer prices and  ultimately contributed to the  unprecedented inflation.

According the world Bank  assumption,   market efficiency  of a country  is primarily  gaged by the price stability of that  country.

Ethiopia ‘s  rank in the global   goods market efficacy index  is 150th and found unsatisfactory.

Inflation is also another factor to undermine the commodity market.

The higher inflation , the more difficult for country to  perform in the international markets.

The proliferation of parallel market is also contributing to  the inefficiency of commodity market .

According to the research findings, the rural-urban migration , absence of the minimum wage and political instability are the major causes for  the weak labor market we are having today.

The country’s  labor market inefficiency   stands  between 3 and 4, that is lower when compared to other countries.

The mismatch in labor –employment relation , the rigidity in employment , which is between  20and 30, continued brain drain, averaged  2.6, that is an indication that the local  job market  does not attract educated people.

Therefore the research report has recommended among other things , the need to  critical revision of laws, regulation and policies related to goods, finance and labor markets by the government.

Private business companies have to also work hard in ensuring competency and professionalism in corporate leadership.

Several intervention were made by the audience, to which explanations were given from the resource persons.

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