Democracy is a controversial topic, especially for advocates of free market capitalism and the West in general, and rightfully so. What is democratic capitalism? It is a political, economic and social ideology that combines a democratic political system with a free market economy, a system with many opposition political parties and a free press. It is a very appealing system. In fact, it is undeniable that, in the last half century, democratic capitalist systems have been the sole economic growth engine for both developed and emerging countries. Continue reading What is Missing in Eritrea is Market Freedom, Not Political Freedom→
Criticizing Eritrea for absence of free market economy is like tying a boxer’s hand behind his back, throwing him into the ring, and blaming him for losing.
By George F Tesfa,
Although each of these countries has a unique path of development from their founding, the political ideologies of their founding fathers are similar, to the point of being identical: equal access to education, health care, housing, and clean water through state ownership of most of the economy.
ERITREA is aiming at creating a modern, private sector-led economy (Macro Policy 1994; National Indicative Development Plan 2014-2018). Attaining this objective is, however, compromised by an inadequately enabling investment and business environment, United Nations sanctions, and overall weak macroeconomic conditions.
Real GDP growth is projected to increase from 2.0% in 2014 to 2.1% in 2015, double the rate recorded in 2013, because of increasing investments in the mining sector. Over the medium term, the government sees further prospects in improved trade with Middle-Eastern and Asian countries, additional mining activities, the growth of the food sector and the development of the tourist industry. Continue reading Eritrea’s 2015 Economic Outlook→
THE total outstanding external debt surged from 5.6 Billion USD in 2009/10 to 14 Billion USD in 2013/14, according to the data Horn Affairs obtained from the Ministry of Finance and Economic Development.
More than half of the amount is directly owed by Ministry of Finance, while the rest belongs to public enterprises.
The government of Eritrea declares the adoption of proclamation No. 173/2013 aimed for the full liberalization of foreign currency in the country effective as of today.
In line with the proposed fiscal policy reforms for this year, the new law pertains on the opening of foreign currency deposit accounts, domestic commercial transactions and/or contracts, currency remittance and exchange, as well as the declaration of currency of travelers arriving into and departing from Eritrea. Continue reading Eritrea Adopts Liberalization of Foreign Currency→
Following its recent determination to introduce a far-fetched reform in the country’s financial policies, the Eritrean government further announced that it will soon undertake an aggressive privatization process for most of the government owned industrial enterprises.
Minister of Trade and Industry, Mr. Estifanos Habte, disclosed that the privatization process would proceed on the basis of either buying shares or sole proprietorship.