Assessment of the Effectiveness of Government Intervention in the Market the Case of ‘ALLE’ Bejimla whole sale Enterprise in Ethiopia
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Date
2015-05
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Addis Ababa University
Abstract
The main purpose of this research is to examine the effectiveness of the Ethiopian government’s
direct intervention through ALLE Bejimla in the market as a supplier of consumable commodities
so as to control price inflation through fostering competition. .Both descriptive and case study as
well as quantitative and qualitative dimensions were applied as methodology of this research. The
objective of establishing ALLE Bejimla by the government is mainly to facilitate modern trade,
supply quality food and near food products at competitive prices to increase the affordability of
goods to consumers. The findings of the research particularly in relation to the effectiveness of
government intervention , the contribution and impacts of ALLE Bejimla on the reduction of
inflation, the contribution of more frequent inspection and visit of retail stores for better retail
price , challenges of working capital of the enterprise, the impact of proximity of ALLE stores to
the retail agents on the retail prices, and finally the impact of lack of awareness about the product
and services of the enterprise on the bargaining capability of consumer and transparency of retail
price. Eventually the research recommended the need for establishing better tools of monitoring
retail agents, the importance of awareness, how to undertake and suggest alternatives and
additional means of distribution at reach, propose means of resolving challenges of working
capital, and noted the requirement of periodically conducting impact assessment
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Keywords
Bejimlawholesale, Enterprisein