Addis Ababa — The United States (US) government announced plans to help Ethiopia on the promised "partial liberalization" of Ethiopian Telecommunication Corporation (ETC) in mid 2005.

The announcement was made by the US officials who came to attend the governments second Annual Progress Report (APR) of the Sustainable Development and Poverty Reduction Program (SDPRP) held on Monday and Tuesday in the presence of government officials, donors and development partners.

Mr. Frank Young, US Agency for International Development (USAID) Deputy Assistant Administrator for Africa said that his government stands ready to provide assistance for the "partial liberalization" of ETC by July 2005.

"The US government look forward to progress on the promised partial liberalization of telecommunications by July 2005, and stands ready to provide further assistance," Young said.

He said that the government should have regulations that will include and encourage the private sector to participate in the sector.

"While the US government is assisting telecom cooperatives formation, it is important to note that the government regulations should permit an expanded and significant role for private sector provision of services," he added.

It was to be recalled that during the last few years, the government had announced plan to privatize ETC for investors.

A good number of investors presented their interest at that time to buy 49 percent of ETC's share. However, the process was interrupted due to an identified reason, and is expected to resume this year.

Attempts made by The Daily Monitor to get further information from ETC officials on this development failed due to some ETC officials' unwillingness to respond.

With regard to Ethiopia's private sector Young said, "The guiding principle for economic growth in Ethiopia should be asset creation that is centered on and driven by the private sector and that is market-led."

He also indicated that economic growth must be balanced and broad-based in all sectors of the development activities.

"Opening up markets and leveling the playing field are critical reforms that will let the strongest competitors emerge, decrease costs, and encourage investment.

Fair and transparent application of the law is critical to business confidence," he added.

He indicated that the government should also continue to improve the enabling environment for private traders, agribusinesses, and associations, across all sectors.

"We urge that the government establish mechanisms for high level, sustained dialogue with private sector leaders representing a broad base of industries, the financial sector and business groups on how to capitalize on opportunities for private sector growth and business expansion," he added.

Similarly, Young said, the process as well as the act of accession to the World Trade Organization (WTO) will have far ranging affects.

"Because it generates positive policy reforms and opens up the economy to global markets and competition. WTO membership requires a wide spectrum of reforms and government working closely with private sector. Improved and less expensive services in telecom and banking, for example, should be the first to be accelerated," he added.

"Reforms must go beyond streamlining registration to abroad range of private sector concerns, for example, the tax regime, and how it is applied."

He said that the US government is pleased to be a lead bilateral donor working closely with the ministry of Trade and Industry on legal and regulatory issues.