The Implications of Problems of Good Governance in FDI Flow and Transfer of Knowledge to Ethiopia

Abstract

In light of the significance of good governance in facilitating the transfer of knowledge and capital to Ethiopia, there is pressing need to make reforms aimed at improving governance. Specifically, there is a need to change the repressive culture that has passed from generation to generation, having representative government with well-functioning democratic institutions and doing away with failed Marxist oriented policies. In order to achieve this goal, there has

to be proper checks and balances among the three branc

es of the

state and

efficient

executive branch that implement government policies effectively. There has to be also clear

demarcation between party and government activities and the civil service need to   e out of

political influence and employment need to be made only based on merit rather than political loyalty. Existence of an independent judicial organ that uphold rule of law is also critical in

terms of building

confidence

among investors and the Diaspora to freely enter

into the

country and engage in variou activities that facilitates transfer of capital and knowledge.