Investment Climate and Business Environment after 1991: Institutional Development in the Post Liberalization Period in Ethiopia with Special Reference to Health and Education sectors

Abstract

With the liberalization of the Ethiopian economy after 1991, even though encouraging results have been registered, institutional constraints are observed in the stagnant records in social development. Social sector development that started to engage the private sector requires careful assessment of the institutional set up of the education and health sectors. This study focuses on examining institutions having a supportive, control or regulatory, or coordinator roles in the private sector in the areas of health and education in Ethiopia and lay basis for further study. Qualitative analysis of the literature review consists of discussion on social and economic environment, the political policy, macroeconomic framework and the juridical bases, which will be used to assess the opportunities they had set out and to inform pointers to further enhance and deepen their effectiveness. The findings mainly indicate that as different from the other private sub-sectors associations such as manufacturing, the private health and education sector institutes have less active institutes to interact with the government, among themselves, and with the society, and the recently established institutes lack the experience to accomplish this, and pinpoints to more collaborative work with stakeholders.