An Assessment of the Process of Privatization in Ethiopia

AN ASSESSMENT OF THE PROCESS OF PRIVATIZATION IN ETHIOPIA

By HISHE HAILU

A Thesis Submitted to the School of Graduate Studies of the Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Master of Arts in Regional and Local Development Studies.

Addis Ababa June 2005

DECLARATION

I, the undersigned, declare that this thesis is my original work, has not been presented for a degree in any other university and that all sources of materials used for the thesis have been duly acknowledged.

Name: Hishe Hailu Signature: ________________

Confirmed by advisor: Name: Dr. M.D.Bavaiah Signature:-________________

Place and Date of Submission: Addis Ababa University, June 2005

ACKNOWLEDGEMENTS

I would like to thank my advisor Dr.M.D.Bavaiah for his advice. I would also like to express my gratitude from the bottom of my heart to my brother engineer Asfaw Gezae for his unconditional support throughout my stay in the campus. My thanks also go to Ato Tesfamariam Tsegai for providing me with the necessary materials and for expediting my access to the UNECA library. Thanks again to the UNECA librarians in general and Ato Kebere Getachew in particular for his support. Finally, I would like to appreciate all the experts, members of the business community, basic labor union leaders, and workers of the four enterprises, key informants and restitution claimants for their cooperation in making my study meaningful.

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TABLE OF CONTENTS

CHAPTER ONE 1 1. Introduction 1 1.1 Statement of the Problem 4 1.2 Objectives of the Study 6 1.3 Significance of the Study 6 1.4 Methodology 7 1.4.1 Data Sources and Type 7 1.4.2 Sample Size 7 1.4.3 Questionnaires and Discussion……………………………………………………….7 1.5 Methods of Analysis 8 1.6 Limitations of the Study 8 1.7 Organization of the Study…...…………………………………………….………….......9 CHAPTER TWO: LITERATURE REVIEW 10 2.1 Meaning of SOE 10 2.2 Background to Public Enterprises 9 2.3 Objectives of Public...