A delegation led by Prof. Wang Min from the National School of Development of Peking University visited PSI on August 18, 2023.
Welcoming the delegation, H.E. Prof. Beyene Petros, Director General of the Policy Studies Institute extended a warm welcome to the distinguished guests from Peking University. Prof. Beyene expressed his honor and privilege to host the study visit organized by the Institute of South-South Cooperation and Development and stressed its importance in promoting research cooperation and understanding between their institutions.
Prof. Beyene provided an overview of PSI’s mission and highlighted the Institute's role in conducting rigorous research and policy analysis to generate knowledge for evidence-based policy making and implementation. As a think tank, PSI plays a critical role in the Ethiopian policy landscape, contributing to evidence-based decision making and the development of effective policy frameworks.
The historical and cultural ties between China and Ethiopia, dating back to ancient times, were acknowledged. Prof. Beyene pointed out that relations between the two nations have lasted throughout history and China provided political and moral support to Ethiopia during its struggle for independence. The establishment of official diplomatic relations in 1970 paved the way for exchanges and cooperation in political, economic and social affairs.
Prof. Beyene highlighted the importance of China as one of Ethiopia's key economic partners, with significant cooperation in areas such as infrastructure development, manufacturing, agriculture and energy. He mentioned China's contributions under the Belt and Road Initiative, including satellite launches, assistance in combating COVID-19 and construction of various projects in Ethiopia.
Looking ahead, Prof. Beyene emphasized the need for close cooperation between PSI and Chinese think tanks to generate new knowledge that could be useful for policy making in Ethiopia. He suggested joint research projects, exchange of scholars, and policy dialogs to develop shared expertise and a deeper understanding of each other's priorities and challenges.
Finally, Prof. Beyene expressed his gratitude to the delegation from Peking University, and the Ministry of Foreign Affairs of the Federal Democratic Republic of Ethiopia and the Chinese Embassy for their support in organizing the visit. He wished the guests a fruitful and enriching experience during their study visit, filled with valuable insights and meaningful interactions.
Following Prof. Beyene Petros, Dr. Netsanet Jote, lead researcher of the Policy Studies Institute, briefed about Policy Studies Institute. In the presentation, Dr. Netsanet explained that PSI has been actively involved in various research projects and policy studies. She said according to the 2020 Global Go To Think Tank Index Report by James G. McGann from the University of Pennsylvania, PSI was compared to other Sub-Saharan Think Tanks in terms of its organizational structure and ranking. The report highlighted that PSI ranked 1st from Ethiopia and 9th from sub-Saharan Africa.
Dr. Netsanet said PSI has undertaken more than 80 research and has been involved in 32 projects as of the year 2015 Ethiopian calendar. Furthermore, she mentioned that PSI has contributed to policy development through its research outputs. It has provided input for policy, strategy, guidelines, directives, and has been instrumental in the amendment of various proclamations and policies, such as the Lease Proclamation, Science, Technology and Innovation Policy, Manufacturing Policy, Property Protection Proclamation, and others. PSI has also played a role in providing education policy implementation plans and advocating for exemptions and tax reductions for certain sectors, such as E-vehicles.
Dr. Netsanet highlighted that PSI has established collaborations and partnerships with various institutions, both nationally and internationally. It has signed Memorandums of Understanding (MoUs) with organizations like the Cooperative Bank of Oromia, Yonsei University, Addis Ababa City Government, and the Ethiopian Environmental Protection Authority, among others.
Besides, PSI has organized international conferences, workshops, and policy workshops in collaboration with different stakeholders. It has engaged with national and local stakeholders, including government offices such as the Prime Ministers' Office, Ministry of Agriculture, Ministry of Industry, universities, and research organizations like the Ethiopian Science Academy and Ethiopian Economic Association.
In addition, Dr. Netsanet said that PSI has established links with international stakeholders, including Mannheim, the World Bank, the New Climate Economy, the International Development Research Center, University of London, the African Center for Economic Transformation, the Chinese Embassy in Ethiopia and others.
Dr. Netsanet's presentation provided an overview of PSI 's research activities, policy contributions, collaborations, and international engagement, and highlighted the Institute's significant role in policy studies and development in Ethiopia.
Then, Prof. Wang Min, the head of the delegation, gave a speech about Peking University and the National School of Development of Peking University. He said he has visited Ethiopia many times and mentioned that PSI is one of the most important think tanks in Ethiopia. He also stated that PKU offers extensive programs for undergraduate, graduate and doctoral students. He also elaborated on the current relationship between China and the US. He said China is now indirectly exporting to the US. Direct trade relations between China and the U.S. are declining. Prof. Wang also said that China is currently working to restructure global supply chains. He also said that Ethiopia and China have many things in common. Prof. Wang Min said today’s visit to PSI is a good start to strengthen the relationship between PSI and PKU. He said the biggest think tanks in China are owned by the government. He also said that labor costs in China are currently rising, and his university is working on projects to solve this problem as well.
Afterwards, more than a dozen graduates from Peking University and other Chinese Universities currently working at PSI thanked the delegates and expressed their willingness to cooperate with Peking University. Dr. Alemnew Mekonnen, a graduate of Peking University thanked the delegates for their support and guidance during his doctoral studies. He said, "Dear Professors of Peking University, you have provided us with your excellent brain. Thank You!”
The delegation asks several questions to PSI researchers. The questions revolve around Ethiopia’s tax system, lack of foreign exchange, problems related to mega projects, ethnic diversity and governance issues, institutional building, Ethiopia’s agricultural system, financing issues, FDI issues, etc.
One of the delegates asked a question: Different countries have different ideas about good governance. In Western countries, for example, it is about democracy through elections and accountability. In China, scholars mainly focus on national capacity, etc. So he asked what good governance means to PSI researchers.
The researcher from PSI replied that there are many bottlenecks and constraints in governance, rule of law, and strengthening institutions. There are many areas of study and currently they are working with some of them, partly because of their capacity and partly because of the sensitivity of the issues.
The researcher from PSI said that they are focusing on only a few of them, also in collaboration with other institutions. They said, “One of the studies we did some time ago was on the rule of law and trying to understand some of the thorny issues in enforcing existing locks.”. That can be the criminal law, that can be the provisions in the constitution, that can be the staff, and the regional aspect is like that.
The researcher from PSI also said that the other area they are currently working on is the national dialog. They said that they are working with the National Dialogue commission to provide them with research support in terms of understanding the stakeholders, the rights and responsibilities of the different stakeholders that will be involved in the dialog. Another area they are working on is protecting the rights of the different ethnic groups that exist in Ethiopia. They said that in China there are 56 ethnic groups. In Ethiopia, there are officially 76 ethnic groups and unofficially more than 80.
The PSI researchers said that we do not have a national framework to address the interests of minorities and protect them, and that is why we have a lot of unrest in different regions of the country. So we are trying to understand and also draw lessons from other countries. They said, “we have the ombudsman offices, the House of Federation, the people's representatives, and also the different levels of parties.” So we are also doing some research to understand the sciences, and also some of the prospects in these different jurisdictions.
One of the researchers of PSI said that the Ethiopia's institutions are very dependent on the leaders and not on the rules and regulations they have. There is no institutional continuity in Ethiopia. Every time there is a change. The researchers also explained the evolution of the public and private sectors in Ethiopia. They said hard currency is still a challenge, not only for the private sector, not only for foreign investors, but also for local investors and citizens. they said it is a serious problem.
The researchers said more than half of foreign direct investment in Ethiopia is concentrated in the capital. Unlike China, where regional provinces have the mandate to attract regional direct investment, the law in Ethiopia does not allow regions to attract direct investment independently, which is why most direct investment in Ethiopia is concentrated in the capital. The researchers said, "We cannot solve these foreign exchange problems unless we invest in the country's productive capacity in the long term or short term. But compared to regional players in Nigeria or other East African countries, land is cheap for investment in Ethiopia.” They added that foreign exchange demand continues to increase due to domestic reforms.
A participant in the FDRE foreign minister in the change management office said he understands the challenges and opportunities very well and the country is working to solve those challenges. He said that many of the mega projects in Ethiopia have been carried out by Chinese companies and appreciated the high-rise buildings and BRI projects in Ethiopia.
One of the senior researchers from PSI, Dr. Tadesse Kuma, also said that many countries have their own challenges. He said that there are two major challenges in Ethiopia: first, development finance. He added that there are a number of investments, but these investments are concentrated in a few sectors. They are not really spread across all sectors in terms of spatial distribution.
Dr. Tadesse added that the second area of interest at the national level is private sector development. He said, "We do have private sector, but it is still in its infancy, most of the private sector involvement is limited to the hotel service sector.”. He added that the sector has also less capacity and less technology.
Dr. Tadesse explained that 95% of the total Ethiopia's national production comes from small farmers who produce mainly to feed their families and not for the market. So, bringing potential, high-capacity, technology-driven private investment into agriculture will remain a question of development. Dr. Tadesse said our culture is to invest in an area that has no risk. Agriculture is a very risky area, and he asked the Peking University Professors how they can deepen these two topics in the context of policy issues.
The half-day visit ended with networking and lunch.