Manufacturing Productivity
The manufacturing sector's performance paralleled developments in other parts of the country. In the revolution's early days, the dislocation caused by nationalization, the flight of managers, the wars in Eritrea and the Ogaden, and local strife in many areas disrupted production and hurt productivity. Zemecha production campaigns, which focused on increasing capacity utilization, characterized the late 1970s. As a result of these campaigns, Ethiopia achieved growth rates of 27.3 and 10.5 percent, respectively, in 1978/79 and 1979/80. By 1985 capacity utilization estimates of many industries ranged between 70 and 100 percent, and many plants operated in three shifts. These figures were high by African standards.
Manufacturing productivity began to decline by 1980 because of a downturn in agricultural production and a shortage of foreign exchange to import raw materials. Analysts expected the manufacturing sector's productivity to decline further in the 1990s as equipment aged and spare-parts shortages grew. In response to the downward trend, in 1987/88 the government planned to invest 342 million birr in industrial enterprises to increase production capacity. In 1989 the government issued Proclamation No. 11, which set forth policies intended to attract foreign investment.
Read more about this topic: Manufacturing In Ethiopia
Famous quotes containing the word productivity:
“It is ultimately in employers’ best interests to have their employees’ families functioning smoothly. In the long run, children who misbehave because they are inadequately supervised or marital partners who disapprove of their spouse’s work situation are productivity problems. Just as work affects parents and children, parents and children affect the workplace by influencing the employed parents’ morale, absenteeism, and productivity.”
—Ann C. Crouter (20th century)