“We Have Wounded the Beast, and That Isn’t Enough” (Lemma Megersa).

In a documentary by Oromia Broadcasting Network (OBN) the president of Oromia Regional State, Obbo Lemma Megersa, speaks about the recent crackdown on rent-seakers and illicit trades. "In Ethiopian history, the most awful and gravely far reaching land abuse that has ever happened is the land of Oromo", explains Lemma.  It is clear who has … Continue reading “We Have Wounded the Beast, and That Isn’t Enough” (Lemma Megersa).

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Political Parties, Business Groups and Corruption in Developing Countries,

Although there are scholars who show that “greasing the wheels” can have efficiency improving outcomes, the general consensus is that corruption produces adverse effects: Rent seeking and corruption have significant social costs that divert valuable resources from productive activities; corruption distorts policy through restrictions on political and economic activity that create barriers to long-term growth; … Continue reading Political Parties, Business Groups and Corruption in Developing Countries,

The Context of Rent Seeking/Collection in Ethiopia- Part-II

By Habtamu Alebachew Ethiopia's growth rate for the year 2012/2013 was 8.5% lower by about an average of 3% from previous records in the decade. On this serious issue of concern, Primer Hailemariam Desalegn said the rate was unacceptable though it was still a good record as a state leader without specifying the key actors … Continue reading The Context of Rent Seeking/Collection in Ethiopia- Part-II

The Context of Rent Seeking/Collection in Ethiopia – Part-I

By Habtamu Alebachew With the key definition of 'rent-seeking behavior as intention and practice to gain and collect more benefits from development but as a reward for unequally smaller, little or no contribution at individual and group level to the development effort' kept on the note, it has its own distinct features that need more … Continue reading The Context of Rent Seeking/Collection in Ethiopia – Part-I

Can the theory of rent seeking that was developed with the American sociocultural and socio-economic construct as its bases explain the nature of rent seeking behavior in Ethiopia? Part-II

By Habtamu Alebachew Thirdly, there are also structural differences in the types and extents of victims of rent seeking/ collection in the West versus Ethiopia. In Britain, a country of a big mass of civil society, the capitalist class paid the first painful burdens of rent seeking followed by the state, which lost a good … Continue reading Can the theory of rent seeking that was developed with the American sociocultural and socio-economic construct as its bases explain the nature of rent seeking behavior in Ethiopia? Part-II

Can the theory of rent seeking that was developed with the American sociocultural and socio-economic construct as its bases explain the nature of rent seeking behavior in Ethiopia?

By Habtamu Alebachew Firstly, there are fundamental historical and temporal differences between rent seeking/collection in the West and in Ethiopia. In England, for example, controversies aside, the term 'rent' came into academic vocabulary first by the famous economist David Ricardo. Ricardo formulated his 'theory of rent' after he observed a massive transfer of rural farmlands … Continue reading Can the theory of rent seeking that was developed with the American sociocultural and socio-economic construct as its bases explain the nature of rent seeking behavior in Ethiopia?