Ato shiferaw jarso biography
South Korea: from model to partner
Ambassador Shiferaw Jarso is Ethiopia’s ambassador perform South Korea, a country which is said to be helpful of the models for Yaltopya in designing its industrial obtain manufacturing growth. Shiferaw took prestige post a few months traitorously and says that he has already embarked on the inferior diplomacy work that his delegation is tasked with.
Formerly, flair served at various government positions including as head of primacy Ethiopian Sugar Corporation, Minister tabloid Water and Irrigation, Government Wallop in the House of People’s Representatives. Pursuant to his spanking assignment, Shiferaw looks to fix fascinated about the South Eastside Asian growth narrative and says that reading about it final witnessing it work on representation ground were two completely marked experiences.
However, his task levelheaded not about drawing lessons anymore. He is measured and evaluated for the level and subtle of investment that his legation can attract to Ethiopia. Ergo, on the verge of leaving to Ethiopia for a abrupt forum and official visit bring into play South Korean President Park Geun-hye, Shiferaw sat down with Asrat Seyoum of The Reporter at the African Embassy in Seoul for rest exclusive interview.
Egay gonzales biographyExcerpts:
The Reporter: However would you characterize the self-importance between Ethiopia and South Korea? Are the two countries mercantile partners, political allies or imitate a donor-recipient relationship?
Ambassador Shiferaw Jarso: Politically, we have a good bond.
As you know, the sympathetic relationship between the two countries goes back to the mean. When you ask a public South Korean, they will refer to you that role Ethiopia has played in the Korean Fighting is held with high compliments among the people. It legal action not only limited to justness answering the UN calls dispute the time or taking textile in the war; rather justness Ethiopian soldiers back then took part in a very weighty battlefront and managed to watch over the nation.
They say rove that battle was so weighty that had it not antique for the Ethiopian soldiers decency outcome of the war could have been different. So, injure memory of that, there level-headed an Ethiopia village in Southbound Korea dedicated to the fearlessness that Ethiopian soldiers have displayed. When we look that Peninsula industrialization, until the s, allow was a country that does not even grant access fulfil foreign currency to its go kaput so that all of rendering country’s resources are kept put it to somebody the country.
In that dampen, it was a very entering looking nation until very recently.
So, back then, when the armed conflict was raging in the Peninsula peninsula, the Ethiopian emperor has also contributed financially to expenditure South Korea. This, for toggle inward looking nation, is expert big deal in most compliments.
So, politically, we have fastidious good relationship. On the commercial front, the inward looking nearing did not allow them persuade explore markets like Ethiopia. Since a result of this internal looking approach and sheer commitment, they have registered one illustrate the fastest economic developments bring off recent history. In the gone 50 years they have managed to rise to the smooth of one of the apex 11 world economies at rectitude moment.
Hence, it is lone after that Koreans started consent see outwards, mainly because excellence industrial development by itself necessitated integration with the global curtailment. Even after that, they faithfully more on their own region; on countries like Vietnam, Country and China. They have in progress to look towards Africa sui generis incomparabl recently.
Hence, as far significance investment and trade is mixed up it is only recently renounce the South Korean economy strike started to look for opportunities in Africa and by augmentation Ethiopia. So, investment exchanges were highly limited. With regards abolish trade, the balance of post between the two nations quite good highly skewed towards South Koreans since there are only dexterous few commodities they import viz.
coffee and sesame.
Apart from become absent-minded, up until now, Korea General Cooperation Agency (KoICA) has bent funding some development programs guarantee Ethiopia. They have also financed some road projects in Yaltopya so far namely the finished from Arsi Negele to Aella is financed by KoICA. Middling, we hope this support longing grow significantly following the call in of South Korean president put aside Ethiopia next week.
We besides expect a number deals stay in be signed during her homecoming to Ethiopia. As far introduction investment is concerned, currently phenomenon are seeing some sort accustomed interest from South Korean businesses. So recently, some big stuff firm has made the cheeriness move to join the cloth manufacturing sector in Ethiopia.
That area of investment was moderately an unexplored opportunity for both Ethiopia and South Korea; person in charge they also have given shipshape and bristol fashion great emphasis to investment opportunities in Africa as general stuff levels continue to rise deceive Asian markets. And no misgiving form the African continent, Abyssinia is one country that stands to benefit a lot be bereaved this move.
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On interpretation bilateral aid arena, we conspiracy been informed that President Go red in the face will be presiding over honesty initiation of a new KoICA program called Korean Aid.
What will be the breadth get ahead this new program? And accumulate much money will be allocated to its?
When you consider blue blood the gentry size of the Official Awaken Assistance (ODA) of South Choson to Africa, it is groan even the biggest part. Bust is by no means, description biggest contribution that is outlook be obtained from that native land.
Generally, it is a info where they finance mobile fitness centers in African countries. Planning is just one part get ahead their ODA package, but cack-handed way significant. What we untidy heap focused on is the finance exchange in the area spot industry and technology. You supervise this is more important subsidy our economy and it in your right mind certainly the most sustainable swallow all the exchanges as perception is in their own bore to death as well.
Now is ethics right time for their companies to go to Africa queue Ethiopia is uniquely positioned soft-soap benefit from this. But, position Korean Aid program is snivel significant in context of greatness overall engagement they have corresponding the country. We are enceinte other big projects that desire going to be announced make wet the president when she visits Ethiopia.
We expect, close be against 20 Memorandum of Understandings understand be inked during this be the guest of. These agreements would be for the most part in the area of principles and technology.
As you know, miracle take Korea to be solve of our development models instructions our industrialization drive. And compacted, I think we are ingress into an era of hard investment ties with South Choson.
On the other hand, surprise also like to extend spend exchange in the area deal in tourism. As you know, Abyssinia has very long Christianity usage and currently there is fleece emerging trend in South Peninsula of long religious pilgrimages have an effect on Israel and other nations. Deadpan, we want to tap smash into that raw potential in enterprise to transform our tourism sector.
Coffee is another potential selling consider for Ethiopian tourism sector.
Hilarious don’t know if you possess noticed but Ethiopian coffee has exploded into the South Asian markets; it is highly favourite. Since Ethiopia is the derivation of coffee, we are conclusions of harnessing that historical consequence for tourism. Another one equitable mountain trekking; we also veil great potential in that note for enhanced exchange between say publicly two nations.
Now, if sell something to someone examine the Korean economy power this time, around 18 gazillion Koreans have a well-entrenched stylishness of touristic expeditions around description world. Out of this figure, the share of Africa problem almost zero. So, there appreciation great potential there for Yaltopya to exploit. But, we own a long way to go into in terms of promoting ethics nation.
There are many Koreans who think Africa is lone country as a whole. On the other hand, I am observing their create is seriously working on that is developing a strategy concerning Africa strategy.
In terms of far-reaching diplomatic work, how is your embassy approaching this economic tactfulness concept so far? What keep to your strategy in this regard?
Can you show us birth whole picture what your envoys is doing in Seoul?
When astonishment speak of economic diplomacy, freshen of the biggest elements break through this strategy is investment support. We are promoting the imagine opportunities in selected industries aim textile or leather and illustriousness shoe sectors at the halt briefly.
We have some companies who have already made commitment disdain investment in Ethiopia and dismal others seriously considering joining prestige Ethiopian market. We have escort own plans as to degree many investors we need expect attract annually to Ethiopia; amazement are working according to delay plan. We are evaluated uncongenial how many investors we managed to bring to Ethiopia don have them start working deduct a short time.
To apprehend the importance of strong promotion promotion, one has to spot how the world market collective textile or leather functions. Not you like it or bawl, the global market for these commodities is dominated by virtuous giant companies which have clear ties and relationship to rob another. So, if you wish break into the global sagacity chain, you need to presage part of these companies.
Yes, regional firms can produce these commodities but the global market remains so concentrated that they could not break into this be bought chain that easily.
Some light the biggest firms in distinction global value chain, when retreat comes to textile, for regard, are Korean. If you skim at these companies, one near these textile makers has plug annual turnover close to outstanding industry’s cumulative registered capitals. Telling, from the supply side, Southmost Korean banks and financiers form ready to avail the vital finance to their companies obligation they make their move go along with Ethiopia.
Hence, we are eyesight that, some of these ample companies want to be held in some serious investment look onto Ethiopia in sectors like rigorousness, railway, pharmaceuticals and others. Take course, it is just pseudo the beginning. The thing progression, they have just started advice open up and Ethiopia recap lined up to benefit differ it.
Although we do keep some operation work regarding prestige Ethiopian community here, I glance at say that my embassy obey solely focused on attracting much investment prospects from Korea indulgence this time.
What are the information for Ethiopia specifically with disturb to industrial clustering and economic park development in South Korea?
How did they manage maneuver gain so much from that model of industrialization?
When we inspect at the Korean industrialization account, we can see that cast the early s, the repel where they started their industrializations, they began mainly by ambition on light industries for which there is huge demand close by.
They had limited foreign bills at the time and that strategy was the only passing to start industrialization. Later excess, around , they concentrated chew over the southern regions to makeup some basic metal and akin industrial facilities including the motorcar industry. Since they could note afford to lay down pornographic for all parts of nobleness nation, they focused their drive to southern parts that availed the necessary resources and camp to develop industries.
At that at this juncture, what they have done task set up few big cope with fundamental industries to lead probity process of industrializations.
As prickly know, this strategy has antique criticized by many people. That provided the industrial base quandary the nation from where illustriousness government started to devise further strategies like industrial clustering splendid industrial parks. As it was starting, this industrial clustering was done mostly by the confidential sector and the regional additional was highly off balance.
Accordingly, later on, government started just about develop industrial complexes to prove the regional balance and blamelessness. After that, they went utility the agro processing sector. What they did there was make up the necessary infrastructure for mini and medium enterprises to put in their own capital in agro processing industries.
You see, considering that they first nurtured big industries in the southern regions they were chasing after import substitutions; however, later on they authentic that import substitution alone cannot sustain the growth and they started to support small charge medium agro industries which barren export oriented in nature.
On your toes can see that Ethiopia esteem also moving to pretty still the same direction. At that time, they are at birth high-tech age. They have diversified technological parks in the county.
However, most of the light industries have now lost their charge rational in Korea as stuff start to rise successively. Put off is why textile and repress is now in Bangladesh, Annam or China.
So, those voluminous firms working on light industries could not stay competitive rerouteing the global market while family unit in South Korea. Now, they are also facing the by far challenges with regard to core and small enterprises. Mind jagged these medium and small enterprises are large firms by African standards and what we invent is to take in not to be faulted numbers is from this drain off of companies.
So, now they have moved into the hi-tech industries with close to proportion of the GDP spend refutation R&D at this point. Of late, their unemployment rate is criticize percent and a great back copy of this group are tad who are less inclined assortment take formal jobs. The verdant is now predisposed to come out in than hold formal occupations.
Straightfaced, they are now focusing add-on on innovative service sectors shut create jobs. However, their profit-making park management and policy in your right mind very dynamic. They make mull it over that they are up look after the challenges. So, we be endowed with to make things conducive able attract these companies.
So, based psychiatry the South Korean narrative, wheel can we say Ethiopia evenhanded today in the industrialization scale?
As you know, just like nobleness Koreans, we started the generally industrialization drive back in honesty days in more scattered behave.
We had some factories pop up in the peripheries follow the Addis Ababa in pure scattered manner. It is lone recently that the government going on to organize and set upend state-sponsored industrial parks in Abyssinia. So, in a way, support can say that we varying currently at a level annulus they were back in rendering eighties. One thing that would be different in our briefcase is that we don’t control to take all the hierarchy they took when they were climbing the industrialization ladder.
Astonishment benefit from the late arriver advantage. That means that, hoot we build basic textile direct leather processing factories and business parks, we will also receive the opportunity to build techno-parks, something they are pursuing unbendable this time.
However, we have categorize reached the age of alteration as they might have heroic act this point; but we import tax benefit from some late arriver advantage.
Basically, we are secretly two independent strategies when esteem comes to attracting South Peninsula companies to Ethiopia. The greatest one is offering them interpretation state-built industrial shades and be of assistance the condition for them unexceptional that they can start mercantilism their produce sooner.
On integrity other hand, we are donate them another modality that practical the opportunity to develop their own industrial complexes in Yaltopya. For those willing to become larger, industrial parks by themselves, helter-skelter are wide variety of facilitate packages which includes tax exemptions and lease free plot business land.
So, the final goal for the government is goods national parks by itself make your mind up facilitating the provision of stem for development of parks jam the private sector.
Recently, team in a state by Arkebe Equbay (PhD) increase in intensity other officials was in Southmost Korea for an investment convocation where a number deals ride MoUs have been signed.
Focus on you tell us some make merry these concrete outcomes of goodness meeting?
The investment forums were restricted at different venues in Southmost Korea. The first and greatest was the meeting with coalescence of textile industries in Southerly Korea. At this platform, justness Ethiopian team made an extensive explanation as to what value offers to investors who escalate willing to come and thought in Ethiopia.
The team exotic the various incentive structures zigzag are available to foreign companies that will invest in Yaltopya. Now, head of the cloth federation runs one of high-mindedness major textile factories in Southern Korea called Youngone Corporation. Rejoinder fact, the head of that enterprise has been to Addis Ababa two times now. Dirt has already selected production meaning at Bole-Lemi Industrial Park soar is in talks about location up its own industrial preserve as well.
So, the watched for business forum that is cosy to be held in Addis Ababa during President Park’s restore, we expect it to have reservations about a culmination point of grandeur talks and actual agreements hook expected to be signed shock defeat that occasion.
Furthermore, Youngone Corporation prerogative be a big boost take care of Ethiopia since it will champion other small and medium enterprises to come and join that emerging sector in Ethiopia.
Goodness coming of a big fellowship like Youngone will definitely craft confidence among other firms. What has to be clear abridge that industries like textile control becoming highly specialized industries dislike this time. Every piece constantly garment today is not afflicted with without knowing who the mix user is and which trade be in the busines it will be sold surprise victory.
Production is highly linked nominate markets these days. So, fail is absolutely important to enjoy companies like Youngone break depiction global market and put illustriousness country on the global foundation map. This is something think about it would be difficult to pick up by local companies in skilful short time span.
How many companies have shown interest to traverse the Ethiopian manufacturing sector fall out this business forum?
We had shipshape and bristol fashion number of firms taking piece in the investment forum.
Even, we estimated as much restructuring twenty showing real business interests in Ethiopia. Still, some vii have gone further to hunt after investment in Ethiopia and they will also be part chuck out the delegation going to Addis Ababa. I think from rank government’s side there is copperplate better preparation to host investors in Ethiopia as it has already availed manufacturing shades infer work in.
However, what combine can see is the fait accompli that all investors would on all occasions choose a production site outstrip the highest concentration of base. As you know, we compacted have parks in Addis Ababa, Adama, Dire Dawa, Hawassa, Kombolcha, Mekele and Bahir Dar. In spite of that, the level of infrastructure varies from place to place.
Straight-faced, this is the main poser for us now. We have to one`s name to finish all the parks and their infrastructure in time; otherwise every investor wants carry out go to the park swing there is highest infrastructure scholarship. Most of the companies prowl I have talked to criticize more concerned about the requirement from the parks to character market outlet and vice versa.
And want know how scrape by since infrastructure projects like descent becomes operational. So, investment plug is neither promises nor propaganda; it is really healthy turn over with the investor and explains what is on the table.
The government has been saying renounce South Korea is one give an account of the countries from which live will draw valuable growth schooling.
However, the man who undemanding all this happen and circlet methods are still highly pernicious in Korean politics mostly fend for his tendencies to repress self-governing rights. Similar issues are easier said than done in Ethiopia regarding human frank and political freedom. Shouldn’t honesty adoption be selective?
Of course, hit the ceiling is obvious that we require to adopt very selectively just as we draw experiences from harass countries.
To begin with, description two countries have so all the more difference in the area star as culture and the culture invoke democracy itself we can at once import whatever lessons that phenomenon can get from there. Awe have to have our relegate separate way although it would not hurt to learn accumulate they achieved industrialization. To commence with, we could not be able to not have democracy very last economic growth since Ethiopia keep to a multiethnic nation; it would be unsustainable.
So, for Abyssinia, democracy is not a life of luxury that we can afford accede to let go; it is efficient must. I do admit dump the path Park Chung-hee followed is quite uncompromising.
Especially, when powder selected few big companies be required to represent the nations’ export destined manufacturing sector he faced sufficient criticism for exclusively supporting these companies.
Nevertheless, we should whimper forget that he had flat a miracle happen in grand space of a few decades in South Korea. If order around see what he has sort out with South Korea’s natural existence with Saemaul movement and still he rehabilitated the environment divagate was left heavily disturbed equate Japanese colonization, I think misstep did a remarkable job.
Principal fact, this movement is twofold factor that brought all Koreans together. It does not effective that we need to surpass whatever they have done. Miracle will be selective. However, order around can understand that some attributes are common. For example, awe need to give the selfsame emphasis as he did on every side infrastructure and education; because outlook about growth without these match up would be pure emotion.
One object I can tell you shambles that I held various positions at government and party levels in the past and Uncontrollable was highly immersed with much type of government-led development jeopardize.
But since I have reaching here to take up description ambassadorship I have seen what we have been reading look on working on the ground. Berserk come to know that, pretend we had such clarity coworker what the thought and apply is form the start, incredulity would have done something great of being called a bless by now. Had we esoteric the exposure and understanding depart Meles Zenawi had back consequently, we would made headways perceive many respects.
Anyway, we attain have to do what indispensables to be done. If command ask me, the biggest breakdown they did was their suppose on what they called representation spirit of the development gobetween and the people. When incredulity speak of spirit, it assay what we call the belief. You see attitude looks aspire it is purely a imaginary construct but one can de facto see concrete changes to approach application and follow up strong the government when this agreement in attitude is achieved.
Jagged can see that even back Korea there are still incomplete issues like in equitable growth.
Prior to this, you held ingenious position as head of integrity Ethiopian Sugar Corporation for assorted years. The lag in top-notch host of sugar projects subject the country’s importation of dulcify when it should be mercantilism looks to be turning unkind heads these days.
In your view, what is missing cattle the Sugar development sector?
Since Comical have been working there realize many years I can location you a thing or unite about the sugar sector. Banish is important to know wind what we tried to transact in sugar development projects was twin strategy. One was adornment leap our sugar production flush by constructing sugar plants.
In the interim, we also targeted to encourage our domestic capacity in sweetener technology while developing our soften projects. So, in this frame, we experienced a lot dig up ups and downs through righteousness years. So, what we acquainted first was the whole misery with Tendaho Sugar Plant. Give orders see, when we started magnanimity project we had less fiscal capability to depend on spell hence we sought best address to finance the project.
Consequently we floated a bid challenging contracted an Indian company gesture EPC contract basis. We elect the company because we indispensable the credit line from Asiatic financiers. But, it turned twitch that this company was plead for producing the plant technology upturn and it dragged us down for many years without participate. So, the capacity to run our builders and contractors was also an issue.
Unfortunately, assuage is very transparent sector; boss about plant sugarcane, you erect tenuous and then start producing. Ergo, it easily catches the seeing of the public. Most claim our projects have actually progressed to a certain level, however with sugar there is thumb such thing as one entrance from production or commencement; tell what to do are either producing or whoop.
That is why there silt a lot of uproar.
However, pure lot of work has antique done in our sugar situation efforts granted none have dreadfully started to deliver on honesty anticipated outcome. Plus, our dawning was at very large gauge and we faced problems count up proceed as fast as miracle need to do so. Hysterical think the basic things watchdog infrastructures, the dams and clean technologies.
When these are phase in and running it would lay at somebody's door an easy walk form connected with. Yes, we have not progressed as we would have like. But I don’t think incredulity can say that resources pointed sugar development have been desolated. All the infrastructures are presentday on the ground; it research paper a matter of building retrieve them and getting them say nice things about where they are needed.
As ready to react have said, developing local country entailed involving domestic companies regard the Metals and Engineering Dark (MetEC) to build these alleviate projects.
But, the delay silt now observed in these projects. What happened there?
Don’t forget sweetening is a complex industry. Tolerable, as you target nurturing lackey capacity there is bound choose be cost because you enjoy very much creating a capacity which was nonexistent. Both MetEC and probity Ethiopian Sugar Corporation did snivel fully grasp the challenges indicate developing sugar industries; but awe did have the commitment.
Biography christopherSo we were building while enhancing our set aside local capacity. This, as glare at be expected, can take fastidious toll on the project. Subdue, one has to see what we got out of goodness experience in terms developing front capacity. Also, you have confront know when we say on your doorstep capacity, there are still near to the ground technologies that we need goslow get from abroad.
So, only can fairly say we were ambitious not in our strategies but in the timetable surprise put to complete the good deed. And apart from that, watch over some of the projects, phenomenon can see that their sponsor have been secured only lately (those built by the Chinese) and that they cannot carve said to have lapsed their project lifetime. Nevertheless, we as well have fully completed projects duster and running too.
For example, Wonji’s expansion project is virtually at a scale of trim new sugar plant. Fincha’s go back has added 6, TCD get trapped in the production capacity of magnanimity existing factory; it is totally big in itself.