Chapter with concentrations in a few countries.

Chapter One1.

IntroductionRoads are considered an essential public asset for administrative and strategic reasons and village accessibility has been a primary goal of rural road investments linked to minimum needs and basic minimum services programs (Asif, F. 2012).There are approximately 700,000 kilometers of rural roads out of a total of over 1.02 million kilometers of road in SSA with concentrations in a few countries.

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Three countries (Nigeria, Cameroon and Côte d’Ivoire) have more than half the rural roads in West Africa, while Zaire, Zimbabwe, Madagascar and Tanzania account for more than two thirds of East African rural roads. The density of rural roads is low compared with other parts of the world. Nigeria has about 90 meters of rural road per square kilometer, but an acceptable ‘target’ density, based on Indian experience in areas with similar population densities to those in Nigeria, and would be about 730 meters. Density also varies widely within countries. In Kenya, highly populated provinces with abundant natural resources have 400 to 500 meters per square kilometer, falling to less than 30 meters in non productive areas.

Sparse populations and low agricultural productivity mean that the burden of providing and maintaining an adequate rural road network falls more heavily on SSA populations than it does, for example, on the heavily populated and productive countries of Southeast Asia. Whereas road lengths per head of population are high, they are still low per unit of area (John,Juan,; Sydney,1990.4).The need for a better rural transport infrastructure in SSA is pressing and obvious. The structural transformation from subsistence to market economy is dependent on transport. The potential gains in agricultural outputs and incomes, which is unlikely to occur without improved roads, would be sufficient to make the economic case for the level of expenditure mentioned above.

In practically all countries, a rapid expansion of rural road networks would not be feasible unless adequate financial and institutional arrangements for planning construction and maintenance can be put in place (ibid).The sparse densities and the low level of income in rural areas imply a heavier burden per capita. The all around weakness of rural infrastructure management capabilities severely constrains resource mobilization and maintenance. Hence, while Africa is underequipped in relation to its potential it is overburdened by the little infrastructure that it possesses (ibid).The developing world, and especially the African continent, has a very poorly developed infrastructure, compared to middle- and high-income countries.

On average, Sub-Saharan Africa has a road density of only approximately 200 meters of paved roads per km2 compared to 1400 meters in high-income OECD countries (Fay and Yepes, 2008 as cited in Hannah, 2014). Recently, enhancing transport infrastructures has been a vital strategy for sustainable development and poverty reduction in developing regions. Reducing poverty by half is one of the Millennium Development Goals in 2015. There is wide recognition that the poor not only have low level consumption but they are also less connected with inadequate access to basic services. The international community has thus been providing considerable support to build roads, rail ways, bridges, power plants, and some basic infrastructures with the objective of promoting economic growth (Lulit, 2012).1.

1. Background of the studyThe Ethiopian Roads Authority (ERA) is a legally autonomous organization established on January 26, 1951. Ever since its establishment, the Authority has gone through a series of structural changes, the most recent one being in July 2011 by the Council of Ministers Regulation No. 247/2011. This regulation agrees with the split of the operational and regulatory wings as two independent entities, leaving ERA to focus on Road Network Development and Asset Management rather than construction and maintenance of same.

Hence, the main objectives of ERA, as stated in the aforementioned regulation, are to develop and administer roads, create conducive conditions for the coordinated development of roads network, and ensure the maintenance of standards in road construction (Azeb, 2006).The Government of Ethiopia has well recognized that limited road network coverage andpoor condition of the existing road network has been an impediment to economic recovery and economic growth. Therefore, to address the problems in the road sector; theGovernment has launched the Road Sector Development Program (RSDP) in 1997. Sincethen, four phases of RSDP were implemented over the period of 1997 – 2015 and the fifthphase; RSDP V has been implemented since July 2015 ( ERA:2016:1).

RSDP has been financed from domestic sources including GOE, Road users through Road Fund Office and community, and foreign sources including bilateral and multilateral institutions. The Government has been major financer of RSDP followed by the World Bank. Development partners including the World Bank (WB), European Union (EU), African Development Bank (ADB), Nordic Development Fund (NDF), Bank of Arab for Economic Development in Africa (BADEA), OPEC Fund for International Development (OFID) and the Governments of Japan, Germany, U.K, Ireland, the Saudi Fund for Development, the Kuwait Fund and the Government of China have been involving in financing the Program. The recent donor which joined this effort is Abu Dhabi Fund (ERA 2016).Roads are clearly a critical enabling condition for improving living conditions in rural areas. However, the distribution of socioeconomic benefits resulting from a rural road is a separate issue, and there are no guarantees or inherent mechanisms to ensure that these benefits will be distributed equitably between the poor and the non-poor in communities.

According to (World Bank, 2005. 4). The Government has a set vision to make public, economic and social services physically more accessible to the rural population. There remains a critical need to provide rural communities with transportation infrastructure and services that ensures permanent accessibility to social and government services, economic and business services, and better opportunities for employment and income generation. In response to this need, and as part of the RSDP-IV, Government is embarking on a Universal Rural Road Access Program (URRAP) that sets out to connect all Kebele by roads of a standard that provides all-weather, year round access, meets the needs of the rural communities, are affordable and maintainable.As a catalyst, the URRAP is designed to improve rural livelihoods by reducing isolation for rural populations and to provide year round access to their markets, social and other services. The program focuses on poverty reduction and is an important poverty alleviation catalyst.

It is seen as an essential pillar for delivery of GTP and our MDG targets and furthermore underpins Government’s actions and vision for expansion of all sectors of the economy (ibid).The program recognizes the challenges faced by isolated communities and their constraints in trying to take part in our economic growth. The program provides a response to the voice of the rural poor who demand and have a basic right to access to transport, social and other services. As part of the RSDP, URRAP “joins up” and harmonizes all rural road infrastructure development under a single umbrella. The program unifies all efforts that provide improved road access (ibid).URRAP is not prescriptive in its approach. It recognizes fully the local context, local needs, local capabilities and local realities and builds on and rolls out the experiences and lessons learned on the ground in Ethiopia through a number of key pilot programs and projects implemented over the last five years or so.

The program promotes application of innovation, knowledge and learning (ibid).URRAP is realistic and achievable in that it provides the opportunity to establish sustainable road access at an appropriate standard and affordable cost. The inclusion of labour-based approaches, community contributions and an expanded participation by the private sector are key elements.

The program captures the preservation of assets through streamlining of sustainable maintenance and management systems, such as implementation of length-man approaches (ibid). The program is multi-dimensional in its outlook and inclusive in its approach. It removes barriers and promotes participation from communities, private sector and all layers of government and as such is a facilitator for development. In its approach the program promotes road user safety, equality and protection of our environmental assets.

The vision for the Universal Rural Road Access Program is a clear and simple one: To free the country’s rural peoples from their access constraints, reduce rural poverty, improve welfare and opportunity, stimulate agro-productivity and share growth – a growth in which poor people benefit. In its mission, the Universal Rural Road Access Program will connect all Kebele by all-weather roads and will provide communities year round access. Road infrastructure will be of appropriate standards to meet the needs of the rural communities and will be affordable to build and maintain

CHAPTER classified into seven types. There are

CHAPTER ONE1.0 IntroductionThis chapter contains a schorlarly understanding of what is social media ,the origin and history of social media,the types of social media channels,the characteristics of social media the negative impacts of social media and the attitude of youth towards social media1.1 What are social media and new media?According to Junco et al.

2011 social media are “a collection of internet websites,services and practices that support collaboration,community building,participation and sharing.example of social media channels today as noted by Joosteen,( 2012),ranges from networking platforms such as facebook to video sharing sites such as you tube. Rice (1984) defined new media as communication technologies that enable or facilitate user to-user interactivity and interactivity between user and information.

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1.2 Types of social mediaAccording to many schorlars social media channels include a diversity of application with different core fiunction and structures ,for example social media channels today include facebook,myspace, linked in,and web blogs just to mention,therefore,there are many types of social media used for different functions; for instance social media for chatting,social media for sending videos e.t.c.

Therefore social media have been classified by schorlars depending on their functions,based on this social media are classified into seven types.There are seven types of social media ,the first type includes the wikis.according to Mayfield,2008;Pfeil,Zaphiris,&Ang,2006 wiki is a communication mechanism to create web based content that require allows its users to create ,modify and disseminate information,a good example of this social media is the wikipedia,another type of social media are web blogs, these according to John V.

Pavlik 2013 are web pages of short, frequently update postings by an individual that are arranged chronologically,blogs contain thoughts ,links to sites of interest or whatever the blogger wants to write,a good example is word press.Another type of social media are discussions boards and web forums.John V.Pavlik 2013 describes it as ” a type of online “bulletin board” where internet users can post mesages that can be seen by others coming to the discussion board and in which they can post response to previous messages or posts or create their own discussions on a new topic,an example of this social media is the WELL(Whole earth ‘lectronic link).Another type of social media are socialnetworking sites, according toBoyd;Ellison,2007, they are sites that  enable users to articulate a network of connections of people with whom they wish to  share access to profile information, news, status updates, comments, photos, or other forms of content,example of such site is facebook.Another type of social media is the chat rooms,according to John V.

Pavlik,2013 he describes chat room as “a virtual room”in which acommunity of users can visit and talk to each other through text messages in real time,an example of this social media is yahoo.another social media type are the microblogs.Microblogs according to John V.

Pavlik,2013 is a technology that allows frequent update of shorter posts and content,an example in this is twitter.the last type of social media is email.John V.

Pavlik describes it as an exchange of messages via telecommunication between two people.1.3 General characteristics of social mediaMayfield ,2008 outlines the characteristic of social media into five: participation,openess,conversationality,community and connectedness.Participation according to Burgoon 2000,participation is the extent to which senders and receivers are actively engaged in in the interaction as opposed to giving monologues,passively observing or luking,its participatory nature allows interested parties an opportunity to engage in an interaction.For example encouraging conrtributions and feedback from everyone who is interested.

Another characteristic of social media is openess.Openess according to Mayfield,2008 is defined by the perceived ease of giving and receiving information and comments by its media has few barriers that limits one to access information or make comments, so information can easily travel between sources and users(MeadowsKlue,2007).For example when we have the younger generation sharing information about their lives online via social media sites like facebook.Another characteristic of social media is connectedness,Teixeiria,(1992) describes connectedness as interpersonal ,community and general social ties.connectedness allows people to connect to the outside world and to easily expand their experiences.For example in facebook when we receive friend requests from friends or from friend of a friend.

another characteristic of social media is conversationality,Mayfield ,(2008) describes it as the transmission or distribution of of information to an audiece by two way conversation rather than one direction.he gives his description with comparison to traditional media channels which was a one way communication mechanism or rather linear communication ,traditional media channels includes television,radio and newspaper just to mention.The last characteristic of social media is community and commonality, social media allows individuals and organizations to identify and communicate with the people whom they want to be associated with.(Mayfield, 2008) says it does so by offering a mechanism for individuals and organizations to form communities and to develop relationships effectively with others who share some commonality with them. For example, most social networking sites were launched to support demographics in an intimate, private community, such as the early Facebook for college students (Boyd ; Ellison, 2007). While social media helps foster communities, its aim is not simply on creating communities which are more continuous and regular in nature, and centered on a concept or common goal, as opposed to a collection of content. For example, viewers that post various online comments on a news story or video have something in common but might not necessarily be seen as belonging to a community.

In other words, social media provides an effective means of developing communities, but its core utility is in linking individuals and organizations with others that share a certain commonality, as determined by their temporal needs and interests at the time of interaction.1.4 The origin and history of social mediaSix Degrees was the first social media site that was founded by a financial analyst and legal professional Andrew Weinreich, and was launched in 1997. Six Degrees was created based on the theory that every person in the world could be connected to each other by just six degrees of separation. The site lasted from 1997 until 2001.Six Degrees was the first to combine personal profiles, instant messaging, friends lists and the ability to search other members friends lists.Six Degrees may have been created a bit before its time. As the site grew, the world of online advertising was in its infancy and Weinreich was unable to keep the site afloat .

Later after the closure of Six Degrees another founding father Adrian Scott came up with Ryze which was started in 2001,it was started to help connect business professionals .According to his book About Ryze,2013,”Ryze helps people make connections and grow their network.You can network to grow your business,build your career and life find a job and make sales,or just keep in touch with friends.”After that social media sites began to explode with popularity with friendster being launched in 2002 by a Canadian computer programmer Jonathan Abrams. The service allowed users to contact other members, maintain those contacts, and share online content and media with those contacts.The site was also used for dating and discovering new events, bands and hobbies.

Users could share videos, photos, messages and comments with other members via profiles and 2003,several other sites were launched,linkedin for instance was laumched in 2003 by several founders, Reid Hoffman, Allen Blue, Konstantin Guericke, Eric Ly and Jean-Luc Vaillant it was specifically aimed for business users to form professional networks and business connections.Later the same year MySpace is conceived by staff from Intermix Media (nee eUniverse), including marketer Chris DeWolfe and former computer hacker Tom Anderson.In 2004, Mark Zuckerberg launched ‘The Facebook’.

The Facebook was created as social networking for college students.”The facebook”, as it was originally known; the name taken from the sheets of paper distributed to freshmen, profiling students and staff. Within 24 hours, 1,200 Harvard students had signed up, and after one month, over half of the undergraduate population had a profile.The network was promptly extended to other Boston universities, the Ivy League and eventually all US universities. It became in August 2005 ,US high schools could sign up from September 2005, then it began to spread worldwide, reaching UK universities the following month.

As of September 2006, the network was extended beyond educational institutions to anyone with a registered email address. The site remains free to join, and makes a profit through advertising revenue.YouTube wasis another social networking site launched in 2005. It was founded by Jawed Karim, Steve Chen and Chad Hurley. They were employees of PayPal. It was a social sharing that let users freely upload and share a video.In 2006 Twitter was launched , it was known as social networking and microblogging site. It let its member to share and exchange 140 character messages.

This short message was called as Tweets.More social sites continuued to be launched ,In 2010 several other sites were launched these included instagram,and google buzz.Instagram founders Kevin Systrom and Mike Krieger unleashed the photo-sharing platform that, though they didn’t know it at the time,Instagram lets registered users upload photos or videos to the service. Users can apply various digital filters to their images, and add locations through geotags. They can add hashtags to their posts, linking the photos up to other content on Instagram featuring the same subject or overall topic. Users can connect their Instagram account to other social media profiles, enabling them to share photos to those profiles as well.

The other one is Google Buzz,it was a social networking, microblogging and messaging tool that was developed by Google and integrated into their web-based email program,gmail, users could share links, photos, videos, status messages and comments organized in “conversations” and visible in the user’s inbox.On October 14, 2011, Google announced that it would discontinue the service and that the existing content would be available in read-only mode. Buzz was discontinued on December 15, 2011 and superseded by Google In 2011, Google launched new product of social networking named Google plus (Google+). Google plus let you have a video chat (hangout) and exchange information.In 2012, The first social scrapbooking that gained 10 million users faster in history launched. This social scrapbooking’s name is Pinterest.

In Pinterest, you could create and share album of photos.More of social sites continue to be launched.1.5 Negative impact of social media on youth today

CHAPTER the Study Inflation is an inevitable phenomenon


Introduction1.1. Background of the StudyInflation is an inevitable phenomenon that can exist in the process of economic activity. Dealing with inflation it is important to assess the nature and historical background of inflation rate in different countries. However, before any description is given it is better to have clear understanding of the meaning of inflation. (Mankiw, 2007) Gives a simple definition of inflation, as, overall increase in price level or it is simply an increase in the average level of price. However, others say that inflation means a process of continuously rising price or equivalently, of a continuously falling in the value of money (Tutor2u, 2015).

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The rate of inflation-the percentage change in the overall level of price varies greatly over time and across countries. As recent reports of different national and international institution shows, inflation rate in emerging market and developing countries is low and moderate recently. For example, in the year 2014, 2015, 2016 and 2017 inflation rate was 4.

7%, 4.7%, 4.3% and 4.2% respectively. But this trend may not represent the experience of all emerging market and developing countries, such as, Venezuela had experienced inflation in 2015, 2016 and 2017 where inflation rate was 111.

8%, 254.4% and 652.7% respectively which is very sever .

On the other hand, advanced economies (DCs) and G7 countries inflation trend was 0.3, 0.8 and 1.

7 percent in the year 2015, 2016 and 2017 respectively. It seems low and increase slowly. However, Turkey and Ukraine inflation rate rose 10.9% and 12.8% in the year 2017, which was high (IMF, 2017).Inflation rate in Ethiopia has been on the increase trend and fluctuating due to various reasons. During the Imperial era, the inflation rate was very low because of low government deficit and tight monetary policy that the government was pursuing. However, the rate of inflation was oscillating from a low -5.

16% in 1971 to as high as 10.67% in 1973, following the 1973 oil crisis and political unrest (IMF, 2017).During the Derg regime, the inflation rate shifts up ward though it was fluctuating from year to year. In the 1980s the Ethiopian economy experienced an inflation rate that is below 7.8% except specific years of a sudden shot in price up to 18.4% were registered particularly, in 1985 during which a devastating famine took place and reaching its low level of -9.1% in 1987.

The possible reason for this low but fluctuating inflation was that the government controlled the price and goods are provided to the public at a fixed price by the government it’s self. Further, the lower and fixed exchange rate has also contributed to the lower inflation rate (IMF, 2017).Following the current government took power in 1991 the inflationary pressure was expected to be very high in the 1990s. However, inflation decreased from 21% in 1992 to 10% in 1993 and reached its low level of -6.4% in1997 (IMF, 2017). Inflation development in Ethiopia following the Ethiopian millennium has been exhibiting high inflation rate. In the year 2007, 2008, 2011 and 2012 inflation rate was 17.

2%, 44.4%, 33.2% and 24.1%, according to Prime Minister Melles Zenawi, the cause of this rampant inflation rate are a growing economy, greedy merchants, and/or farmers who demand higher prices for their products or in increase in demand. However, inflation in Ethiopia is decline and somehow fluctuating in the past consecutive three years i.e. 2015, 2016 and 2017 inflation rate was 10.

1%, 7.3% and 8.1%, respectively but it is still high. On the other hand, CSA data shows the general inflation in Ethiopia is weighted by food inflation and as compared to non- food inflation, in this respect, for example, 2014/15 and 2015/16; food inflation was 12.5% and 7.2% respectively while non- food items inflation was 8.2% and 7.

8% respectively. During the given year, general inflation rate was 10.4% and 7.5%. Nevertheless, the important thing is to know what the effect and implication of inflation in the Ethiopian economy is? Therefore, the purpose of this study is to offer some contribution to the macroeconomic determinants of inflation on the Ethiopian economy for the year 1975 to 2017 and which variables strongly influence, and which weakly influence the rate of inflation in Ethiopia in order to imply appropriate policy measures.


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