Evaluate the effectiveness of the ALEKS Tutoring System to improve middle

school math assessments.

The problem of improving assessments in many subjects is urgent, as it takes too much
time for the teacher. Also, teachers strive to make their lessons more productive and
interactive. The ALEKS software provides math courses of various school levels. This
system can be used as a virtual tutor or used only for evaluating students’ knowledge.
Describe the functions of the ALEKS tutoring system and how it works. What
possibilities does this system give both to the teacher and student? How are tests
evaluated? Evaluate its effectiveness.

Discuss the pros and cons of uniforms in public high schools in the US.

This topic is one of the most discussed topics in education. One of the tasks of the
school uniform is to unite children of different social statuses. Also, it puts emphasis on
learning and communication between students, and doesn’t concentrate on clothes. On
the other hand, it has a list of negative sides. Evaluate the cost of implementation of
uniforms in a particular public school. You can consider the following criteria or find your
own: quality, cost, type of uniform, influence on the discipline, individuality, etc. On the
other side, you can analyze the impact of wearing uniforms in a particular public school
on students’ grades and other performances.

Analyze the relationship between SAT scores and college graduation rates.

For this topic you will need to use your analytical skills and gather enough data for this
research. For this topic you will need to explore the correlation between student
graduation SAT rates from a particular school and student level data from first year
classes. The received data should show the existence of the bridge between SAT and
college retention. In your research you can consider students’ academic achievements,
gender, race, and socioeconomic status. Also, you will need to analyze previously
conducted research in a similar topic.

Explore how to inspire students to choose teaching as a future career.

This research should be aimed to find the core points that can help students to find out
that teaching is their future career. You can build questionnaires and conduct interviews
to find the necessary data. Find questions that will help you discover what makes
students think of teaching as their career choice. Have teachers influenced their choice?
How? What classroom experiences have lead to this decision? Think about the
motivation of these students, and don’t forget to set the limitations of your study in order
to get correct results.

Security 1
Perspectives on stock market in
Ethiopia
By
 user1
 -
August 8, 2019
1154

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Despite being the largest economy in East Africa, Ethiopia does not have a stock
market. While the government is poised to set up the country’s first stock
market by 2020, experts advise that the necessary preparation have to be
conducted first.

In Ethiopia, a commercial law that governed share companies was formulated

around 1960. Then after, sugar factories introduced stock market and sold their
shares. But the initiative was short-lived as the Dergue, the communist military
junta, dismantled it as soon as it came to power. In 1993 Ethiopia embraced a
free market economy and currently, there are more than 1000 share
companies.

Besides its economic value, economists consider the presence of a capital

market would facilitate wealth distribution in an economy. On the other hand,
others argue that capital markets will not have significant economic
contributions in developing countries where there are few companies with the
capacity to take part in capital markets.

Dr. Atelaw Alemu, an economist at Addis Ababa University tells The Ethiopian

Herald  that stock market opens the door for individuals, and companies to
accumulate capital and the government to earn more income from tax. “It
enables people to own a company by contributing some amount of capital. In
such a way, individuals will have a chance to invest more or sell their shares in
the stock market.”

He further says that the stock market is a means to create a secondary market.
“Currently, there is no mechanism for shareholders to sell their shares. The
primary market is where companies sell their shares and hence shareholders
have no right to sell their shares. Hence, the presence of a stock market or a
secondary market will totally alter this situation.”

Besides, secondary markets also give others an opportunity to invest in new

business ventures and help companies raise more capital. “So far, such a
market doesn’t exist in Ethiopia. Having a population of more than 100 million,
Ethiopia might be the only country that does not have a stock market.”

According to Dr. Atlaw, the presence of a stock market also significantly raises
government revenue in the form of tax. Hence, when the wealth of companies
increases, so does the government’s income. But Atlaw states that as anybody
cannot just come and involve in the stock market, first, the criteria for doing so
need to be set.

Zafu Eyesuswork Zafu, a businessperson who has a wealth of experience in the

banking and insurance industry, says a team of high-level experts has been set
up and is seriously engaged in studying the establishment of a stock market in
Ethiopia.

While a study has already been conducted some 20 years ago, the team is
receiving international expertise advice from prominent international financial
institutions, to update and add value on it.

Noting that lack of trust, understanding on the functioning of the stock market,
and interest from the advocates of developmental states to shift the resource
base to others, he says such ideological stance has hindered the progress of the
stock market in the past.

However, the stock market is a place where capitalists get in the front seat.
Now, the financial flow will be decided by the will of the people, not by the
government, he adds.

The presence of stock market improves resource utilization and financial

management. It helps investors to invest their money in a place they want. It
also attracts foreign capital to the country. Some people might raise the
negative aspects of having a stock market, but the advantages outweigh the
disadvantages, Zafu stresses.

The first priority in establishing the stock market, he says, is registering those
parties that want to get involved and making sure that they meet the criteria.
On the other hand, there are still those who oppose the idea of establishing a
stock market in a developing country like Ethiopia.
General Secretary of African Chamber of Commerce, Kibur Gena recently told
the Amharic Daily Addis Zemen that it is not the right time to establish capital
markets in Ethiopia as the number of companies that meet the criteria to
engage in capital markets is limited.

The criteria include respecting rules and regulations, paying taxes and having a
bookkeeping system that meets international standards. “For instance, most
companies in Ethiopia are not willing to reveal their profit to evade tax.” Hence,
as there are few companies that could take part effectively, capital/ stock
markets will have a very limited role for economic development and distribution
of wealth, argued Kibur.

The capital markets in most African countries have not been delivering
meaningful contributions to the economies as most of them do not have a well
organized financial system. All most all are small capital markets, he said
adding hence, even if Ethiopia establishes capital markets, the outcome would
not be any different. “Moreover, in the first place, it requires the presence of
large companies in Ethiopia to attract foreign companies to its capital market.”

Currently, the companies’ shares are in the hands of few and these are the
groups who are calling for capital markets to be established as they already own
a large number of shares and currently there is no way for them to trade and
make money out of them. “A capital market established for this purpose will not
have any meaningful economic significance,” Kibur warned.

Yet, Zemedeneh Negatu, Chairperson of Fairfax Africa Fund said being part of
the global economy, the country needs a stock market.

“If we are part of the global economy, we should not be that unique. We are
joining the World Trade Organization. We are doing a lot of things that we
should have done a long time ago. We are going to join the global capital
market club. We have a bigger GDP than Kenya; there are only two sub-
Saharan African countries which have bigger GDP than us — Nigeria and South
Africa. I think it is time. We have companies ready to be listed in the stock
exchange.”

According to Zemedeneh, there are a number of new institutions required for

running a successful capital market. “We first need to set up a regulatory
institution.” The stock exchange can be incorporated by the private sector but
the regulation has to be done by the government. “We need to have stock
brokerage firms and investment banks. Stock traders have to be trained and
the local accounting and auditing firms have to build their capacity,”
Zemedeneh said during a recent summit.

He also believes that financial media has to be established. “The financial media
has to be established or the existing ones should extend their financial news
coverage. Financial media is also a key component.”

According to Zemedeneh, there are 50 to 70 local companies which can be

listed in the stock exchange. “All the banks and insurance companies, which are
well regulated, can offer an IPO (Initial Public Offering) the day the Addis Ababa
stock market is ready for launch,” Zemedeneh said.

The Ethiopian Herald, August 8/2019

BY GIRMACHEW GASHAW

THE ROLE OF STOCK MARKET IN THE ETHIOPIAN ECONOMY

Ayele Tadesse

(AYELE_TADESSE@europe.notes.pw.com)

Hungary
INTRODUCTION

This paper deals with some ideas of stock market by comparing the present
situation in Ethiopia. The paper does not cover the whole area, but raises
some aspects of the stock market approach.

In this short paper, we shall first concentrate on the concepts of stock markets
and in the second section, we shall discuss its relevance to the Ethiopian
economy.

THE CONCEPT OF STOCK AND STOCK MARKET

Maybe some of us are familiar with the term "Stock exchange" or "Stock
market" from news papers, other forms of mass media or from any other
information sources. For those who have taken basic courses in Economics or
Business, it would be very familiar. At any rate, let me start from the simplest
idea. What are stocks?

To begin with the definition, stocks are equity claims on net income and
assets of a corporation. To make clear the concept of equity let us put the
equity this way. Equities are interests in, claims upon, assets. Stocks, in the
context of this topic, refer to particularly corporate stocks which are one of the
principal capital market instruments. A capital market is designed to finance
long-term investments, but not short-term investments, by businesses,
government and households. Business can start a new or expand by
obtaining funds directly from households. One way to do so is by selling
common stock to the public.

A common stock is an evidence of part ownership in a corporation. It entitles

the owner to vote on certain corporate decisions and to share in any profits.
There is also another way to obtain funds - by issuing bonds. Bond is an
evidence that a promise has been made by a corporation to pay a specified
amount of money in recognition of a loan to the business.

Who are the suppliers and demanders of funds in the capital market? The
principal suppliers and demanders of funds in the capital market
encompasses well-established and lesser known individuals, institutions,
pension funds, insurance companies, households, saving and loan
associations, commercial banks, different businesses, and government.
Families and individuals, for example, tap the capital market when they
borrow to finance a new home or automobile or some other personal or
business matters. The largest segment of the capital market is devoted to
mortgage loans on both commercial and residential properties. Mortgages are
loans to individuals or business firms to purchase housing, land, or other real
structures, where the structure or land serves as collateral for the loan. In
other words, mortgages are a certificate evidencing a loan in which real
property - land, buildings, or equipment - serves as security for repayment of
the loan.

SOME ASPECTS OF CAPITAL MARKET

What are the main criterion to establish such capital markets in the economy -
particularly in the case of Ethiopia? The following are the most important
criterion.

- That of the existence of many private companies and individual firms. Those
firms should be free from government influence. Individuals should have the
right to buy and sell their own properties without the pressure of official
authorities.

- Land and house should not be in the hands of the government. On this
aspect, in Ethiopia almost all land and houses are under the control of the
government. The changing of these policies is vital to any privatization
process.

- Infrastructure such as communication lines, information exchange ways etc.

should be accessible.

- Political stability on the country is important for foreign investors.

- All economic sectors such as trading, industry, service, agriculture must be

out of the government hand. Individuals, in any one of the economic sectors,
have an ultimate contribution to the economic development.

- Small scale firms must be established and encouraged since those firms are
the backbone of the economy.

- Government policy, particularly to economic construction, is a very dominant

and important to the improvement of infrastructure.

Those points seem simple slogans but they are the necessary realities toward
the economic development in Ethiopia. The country like ours, nowadays,
political stability and positive political policy is the key question as the
economic policies are the output of political stability.

EXPECTATIONS

"Assumption" in economics is honorable concept or term. Let us assume that

the above criterion are fulfilled. What is the effect in the economy?

Trading of funds in the capital market makes possible the construction of

factories, office buildings, highways, bridges, schools, homes, and apartments
or in other words the construction of infrastructure. The capital market trades
in both wholesales loans and securities and retail loans and securities. It
might be very difficult to predict what would be the consequences of the
outcome. But one thing is true. It does not have any negative implications.

To see some of the optimistic features:

- It creates jobs and hence is a remedy to a decline in employment levels.

- It has a significant contribution to the general health of economy, to

infrastructure construction etc.

- It increases the competition among business firms.

- It smoothes the conflict among different people groups (i.e. nationalities),

since the concept of "everything is business" will be sculptured in peoples
mind.

REFERENCES

1) Frederic S. Mishkin, The Economics of Money, Banking and Financial

Markets, 3rd Edition,1992. pp. 54-56.

2) Roger H. Hermanson, James Don Edwards & L. Gayle Rayburn. Financial

Accounting, 3rd edition, 1987 pp. 511-525.

3) Peter S Rose, Money & Capital markets, The Financial System in the
Economy, 2nd edition, 1986, pp. 555- 586.

4) Roger LeRoy Miller, Robert W. Pulsinelli, Modern Money and Banking,

1985, pp. 56-59
BONDS NEWS

JUNE 5, 2015 / 3:20 PM / 5 YEARS AGO

Ethiopia eyes bond trading

in cautious capital markets
4 MIN READ
opening



* Bond market could expand pool of funds for state

* Foreign investors likely to be excluded

* Government keeps tight rein on economy

* PM open to starting bourse, but will take time

By Aaron Maasho and Drazen Jorgic

ADDIS ABABA/NAIROBI, May 29 (Reuters) - Ethiopia is

seeking to create a secondary market for local currency
Treasury bonds, possibly in a year or so, the World Bank
said on Friday, a move seen as a cautious step towards
liberalising one of Africa’s fastest growing economies.

Ethiopia, once brought to its knees by communist purges and

famine, has become an increasingly attractive destination for
foreign investors although the government tightly controls
what sectors they can invest in. There is no stock market.
 Prime Minister Hailemariam Desalegn told Reuters last
month that Ethiopia was open to having a bourse but said it
would take time.

Lars Christian Moller, the World Bank’s lead economist and

programme leader for Ethiopia, told Reuters the World Bank
and the International Monetary Fund had offered advice to
Ethiopia’s central bank on developing a secondary debt
market that could help the government raise funds.

A spokesman for the central bank, the National Bank Of

Ethiopia, had no immediate comment when asked about the
plan.

“The benefit from the goverment’s perspective is that you

can tap into more investors, so in that sense you can run a
higher domestic fiscal deficit,” Moller said.

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That could help the state keep up the pace of its ambitious
infrastructure investments, which have pushed annual growth
to about 10 percent and built new roads, railways and dams.

A secondary bond market could start in about a year but

foreigners would most likely be barred, Moller added.

Foreigners are already blocked from investing in banks or

retail, while the telecoms industry is a state monopoly.

Investors in Ethiopian Treasury bonds are mostly state

institutions which keep the debt to its maturity, which means
the government has firm control on setting interest rates. The
last transaction made on the interbank market was in 2008.
 Under plans for a secondary bond market, the price of traded
debt would be driven by market forces not only the central
bank.

“That would be an important further step in the direction

away from the 1991 communist socialist planning mode to
the market-based approach,” Moller said.

But there is no sign that other financial restrictions would be

lifted. Banks must now invest the equivalent of 27 percent of
their loan portfolios in low-yielding state bonds, used to fund
development but which experts say hinders lending to
business.

A secondary bond market, where market rates prevail, would

expand the pool of funds for the government to tap by
drawing in a broader range of private investors beyond the
banks.

ADVERTISEMENT

Last year, Ethiopia tapped the international bond markets for

the first time with a $1 billion Eurobond.

The prime minister said in May, during a vote in which his

EPRDF coalition extended its quarter century in power for
another five-year term, that he did not rule out setting up a
stock market but businesses need time to mature.

“What matters is that you should have a strong private sector

before having a stock market,” he told Reuters on May 24.

Reporting by Drazen Jorgic and Aaron Maasho; Editing by Edmund Blair and Andrew Heavens
Our Standards:The Thomson Reuters Trust Principles.
Ethiopia: There are alternative
financial instruments
By

 user1

 -

April 3, 2019

669

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 It is a globally established fact that finance is paramount in bringing economic

development and in efficiently allocating and using rare capitals. Ethiopia, like
its fellow developing countries, has little capital. It faces a wide gap between
the availability of financial resources and its desire to create economic
opportunities for its average citizens.
So, promoting access and use of financial services, especially among its poor
people, is vital for the country’s ambition of achieving inclusive economic
growth. To this end, the country should work to generate and mobilize every
available financial resource, both local and foreign, and tackle financial access
barriers at the same time.

According to a recent study, for instance, at least 100 trillion USD in financing is
available from institutional investors across the world, which is more than
enough to cover the 4.5 million USD in financing needed by developing
countries each year to achieve the Sustainable Development Goals (SDGs) by
2030.

In order to tap into this vast pool of private capital, or to mobilize any other
available resources, a new mind-set is required – a new mind-set that look
beyond traditional forms of financing.

Obviously, as a developing country, Ethiopia should look into innovative ways to

tap into this vast pool of capital, and its own economy, so as to mobilize
available financial resources and provide a wide variety of investment choices to
its entrepreneurial workforce.

One avenue for this could be alternative investment. The concept of alternative
investment offers an extremely broad and diverse group of financial products
and services. And as one segment of financial service, it can help mobilize
capital for the country’s burgeoning tech start-ups, small and micro enterprises,
and mid to big enterprises.

As alternative investment/financial service or product can include anything from

private equity and hedge funds to venture capital and investment banking,
Ethiopia can take benefit hugely by tailoring it to its economic realities and
needs. Of course there needs to be better risk management to go along with it.
Dr. Teshome Adugna, an Economist, believes that such alternative is necessary
for the country as the banking service that is provided in Ethiopia is narrow and
limited. Except for handling deposits and offering credit service, there are not
many services that are provided, he added.

People need to get access to finance through various avenues, and to that end,
various banking service is needed in Ethiopia. “And the economy needs it.”
Countries like Nigeria and Kenya for most use non-banking finance to manage
their economy, he opined.

There is a shift from traditional to alternative mode of financing, with non-

banking services dominating the financial market.

As to Mushe Semu, an Economist, alternate financial service like investment

banking for instance is necessary; “For me, it is all comes down to the market
demand for such services, and the ability to provide it.”

Further elaborating, he said that

 if the government makes it open as a policy directive, and if there is resource
prepared for it, it is inevitable. “They should not exactly be like the ones in US
or Kenya; as there are things that can be done by our own capabilities. After all,
the bulk of investment banking is about providing financial consultancy services
to clients.”

He argued that starting now is important so that the country will be in a better
place gain experience, build up on it and reach the heights other countries have
reached, and ultimately gain its benefits. “If we do not start now, when are we
going to?” he asks.

Finance is powerful, and depending on how the financial system monitors the
players and diversifies risks, it can be a cause of economic havoc as much as it
can be a catalyst of economic growth.
Tesfaye Hailemichael, Accountant and Managing Director of Cornerstone
Advisory Services, for his part said that it should be done phase by phase in line
with the country’s economic capabilities, and should start from establishing
capital market. For instance, there are bonds the government sells. “You can
buy the Grand Ethiopian Renaissance Dam Bond, but you cannot get cash for it
because you cannot sell it. So, a market to sell and buy bond should start.”
Since the prerequisite for it would not be too much like the Initial Public Offering
(IPO) and the others, it should be started from it and go from there, he notes.

Alternative financial instruments like corporate bonds and hedge funds should
not be entertained in Ethiopia currently. So, the process should go phase by
phase in clearly defined and well-thought out plan, where professionals have
participated in the design, Tesfaye remarked.

All in all, the high diversity feature of alternative financial products and services
can help Ethiopia mobilize capital resource it needs to unleash its
entrepreneurial potential. And while capital emerging from the alternative
financial landscape can increase access to finance for average Ethiopians, there
should be a better risk management and regulation mechanism in place in order
to fully exploit its benefit, and divert its unintended consequences.

The Ethiopian herald April 3/2019

By Robel Yohannes