What are the similarities and differences in Ethiopia's business environment between the time of the Derg regime and the current regime of the Federal Democratic Republic of Ethiopia?

Similarities:
1. Both regimes have had a strong focus on state-led development and intervention in the economy.
2. Both regimes have faced challenges related to corruption and lack of transparency in the business environment.
3. Both regimes have implemented policies aimed at promoting domestic industries and reducing reliance on imports.
4. Both regimes have faced criticism for their handling of human rights issues, which has had an impact on the business environment.

Differences:
1. The Derg regime was a Marxist-Leninist military dictatorship that nationalized most industries and implemented strict controls on the economy, while the current regime of the Federal Democratic Republic of Ethiopia is a federal parliamentary republic with a mixed economy that allows for private ownership and investment.
2. The current regime has implemented economic reforms aimed at liberalizing the economy and attracting foreign investment, while the Derg regime was more focused on self-sufficiency and isolation from the global economy.
3. The current regime has made efforts to improve infrastructure and create a more business-friendly environment, while the Derg regime's policies often hindered business growth and development.
4. The current regime has faced criticism for its handling of ethnic tensions and political instability, which has had an impact on the business environment in Ethiopia.

Similarities

- Central role of the government: Both the Derg regime and the current regime of the Federal Democratic Republic of Ethiopia have played a significant role in the business environment. The government has a strong influence on economic policies, regulations, and the allocation of resources.
- Importance of agriculture: Agriculture remains a vital sector of the economy in both periods. The government has implemented policies to support the agricultural sector, such as providing subsidies and promoting irrigation.
- Limited foreign investment: Foreign investment has been limited in both periods due to factors such as political instability, government restrictions, and a lack of infrastructure.
- Challenges in access to finance: Access to finance is a major challenge for businesses in both periods.
- High levels of informality: Informality is prevalent in both periods, with a significant portion of the economy operating outside of the formal sector.

Differences

- Political stability: The current regime has brought about a period of relative political stability compared to the Derg regime, which was characterized by political turmoil and human rights abuses.
- Economic liberalization: The current regime has implemented economic liberalization policies, which have opened up the economy to private investment and foreign trade.
- Improved infrastructure: Infrastructure has improved significantly under the current regime compared to the Derg regime. This includes improvements in transportation, energy, and communication networks.
- Increased role of the private sector: The private sector has played a more significant role in the economy under the current regime.
- Increased foreign aid: Ethiopia has received significant foreign aid under the current regime, which has helped to support the government's development efforts.

Overall, while there are some similarities between the business environment under the Derg regime and the current regime in Ethiopia, there have also been significant differences, particularly in terms of political stability, economic liberalization, infrastructure, and the role of the private sector.