If ten million people donate 100 birr, we will only succeed. God will help us – said actor Solomon Bogale.
Lack of a developed market system
Most developing countries have a long history of economic domination. When these countries enter the market-led economic system, their markets will be disrupted as they do not already have a well-organized and strong market system. In countries where the market is dominated by the government, the market for the masses is weak. When they enter the free market with this poor market management system, there is a serious economic crisis.
The market system in Ethiopia, for example, is not responsive to inflation. According to economic science, as the price of a product increases, so does the amount of production. An increase in product prices will cause the manufacturer to produce more. In the Ethiopian market, however, commodity prices have increased, but we have not seen an increase in production. This shows how volatile the market is. It is the broker and the trader, not the producer, who are benefiting from the price increase. Although there are many producers in the Ethiopian agricultural sector, there are few distributors. There are also few importers of basic commodities. Some sectors are in the hands of a few. The sheer number of actors and brokers in the market chain puts pressure on the market. The value and reliability of these products to the market without adding value to the product has played a key role in exacerbating inflation.