Ethiopian commenced its Structural adjustment program in the early 1990s. (G.C). The first task was to shift from the earlier command economy to a market oriented economy.

This entailed shifting the balance between state owned enterprises and the private sector in favor of the later. By the late 1990s (G.C) the policy reform of deregulation and liberalization of the government were more or less completed, subsequently the emphasis shifted to the institutional reforms.

Institutional reforms have been driven by the quest for fast economic growth and good governance. The focus has been on civil service and justice reform, decentralization and empowerment, and protection of human right. In particular, civil service and justice reform aim to improve transparency, accountability and efficiency while fiscal decentralization and decision making at the district level is expected to enhance public participation and development at the grassroots level.

The combination of liberalization and deregulation of markets and institutional strengthening of decentralization have significantly improved the conduciveness of the development environment

As it can be witnessed, the private sector, the small farmers, and unemployed urban youth and women have began to obtain the benefits through establishing microenterprises as well as through employment opportunities particularly in the construction sector- construction of roads, houses, telecommunication and hydro-electricity projects etc.

Taking in to account the achievements of the previous development efforts, the government of Ethiopia has launched and started implementing the growth and transformation plan (GTP) with stretched goals to be achieved in the period of 2010-2014. The GTP envisioned the completion of the structural change from agricultural led to industry led economy, through increased productivity in main economic activity, rapid expansion of social and physical infrastructure particularly focusing on rail ways, roads and supply of electric energy and ICT.

In GTP period the economy is planned to grow at annual average rate of 11% (base-scenario). Meeting this target by itself demands great deal of commitment and efforts of all development stakeholders of the country including our university Thus, this document is all about establishing Institute for Economic Research of Bahir Dar University- one of the dimensions which the University can contribute to the success of GTP in particular and development of the nation at large.


IER is expecting to work closely with ANRS and its constituents and government of Ethiopia. Moreover, Business and Economics college of BDU and other universities, and their post graduate students, research institutions (local and international), private sector, local and international NGOS, multilateral and Bilateral organizations, and community based organizations are identified to be stakeholders/potential partners of IER