Overview of the Sector
Economic development endeavor requires assessment of both national and international development issues, and making changes to fit in. The world has become a village, in that any change in any given nation affects the other, directly or indirectly. Hence, it is fundamentally necessary for a country to adjust its development efforts so that it can match with the global world.
Ethiopia, since 1991, has been working hard to extricate poverty and achieve sustainable efforts so that it can match with the global world. However, international development opportunities are fluids that demand vigilance and constant improvement in the approaches of development efforts. And thus, the ministry of finance and economic development that contributes to the development efforts of the nation is responsible making changes that can push the economic development efforts of the nation forward.
The ministry, besides allocating budget, introduces new and efficient ways of utilizing resources to both federal and regional governments. A “Pool Service”, is one of the ministry’s innovations. This is a system of providing procurement services to different public zonal offices. The strategy helps reduce public resources wastage as expenses that could be incurred by various offices are avoided.
However, adopting new work procedures is not enough by itself; it has become important to improve increasingly the existing financial, procurement and stock management of t he country so as to cope up with the changing world. Moreover , the inputs gained from the business process Reengineering and the and the accommodation of new working procedures that can facilitate the duties of financial institutions have made it necessary to make improvement in the finance, procurement and stock management system of the nation.
As a result, the ministry recently has introduced Financial Administration Proclamation and Procurement and property Administration Proclamation Amendment drafts. The objective of the amendment proclamations is to respond to national and international changes in the financial system. The introduction of the amendment proclamations enables the country to close the gaps that might be observed in the finance, procurement and property management of the nation and to create internationally accepted financial working system.
Therefore, the amendment proclamation on the finance, Procurement and property management system is very timely with respect to the national and international demand for three improvement of the financial system.