• Further liberalise the foreign exchange market such that the Birr can gravitate towards an equilibrium rate that enhances export competitiveness; (Ministry of Finance; NBE) and, • Allow graduated foreign participation in financial institutions, starting with a low equity share. • Further strengthen linkages between the industrial sector and the resource base of the economy (Ministry of Commerce); • Significantly prune down the negative list to enhance the participation of Ethiopians and foreign nationals in the private sector of the economy; (Ministry of Finance; Ministry of Commerce) • Reorganise and revitalise the Development Bank of Ethiopia so that it can be made to target priority sectors in its lending operations; (Ministry of Finance) • Promote public confidence-building in the activities of the PPESA for the sake of transparency and accountability (Ministry of Finance); and, • Expedite the establishment of a stock exchange and Securities and Exchange Commission (non-existent in Ethiopia) to ensure the open sale of public enterprises being privatised. The Panel is pleading that they be established. (Ministry of Finance) Objective 2: Implement Sound, Transparent and Predictable Government Economic Policies I. Summary of the CSAR 344 According to the CSAR, economic policy-making and implementation in Ethiopia is guided by an enabling legal framework made available or provided by the Constitution. This document clearly spells out the key mandates and procedures for budget formulation and the macroeconomic framework for every fiscal year. The principles of broad participation and consultation increasingly guide national policy and strategy formulation at different planning levels, making policies more predictable and transparent. Consultation mechanisms include making use of the media - TV and radio - to reach out to the population, as well as targeted consultations with the private sector and civil society. The CSAR cites key economic policy making frameworks that guide Ethiopia: the rolling 3-year Macroeconomic and Fiscal Framework (MEFF); the ADLI; the successive Rural Sector Development Programs (RSDP); the SDPRP; and, PASDEP. These all - 145 -