Module Number: Module II

Course Duration: 365 Days

Name of Instructor: Teame Baraki

Course Description

Dear Learners, Welcome to Grade 12 Economics Module Two!

Structured into four detailed units, Module Two begins with Unit Five: Tax Theory and Practice. In this unit, you will explore essential concepts of taxation, including definitions, principles, objectives, and classifications. You will learn about the characteristics of a good tax system and examine the major categories and sources of taxes. Additionally, you will analyze approaches to tax equity, such as the benefits and ability-to-pay approaches. A thorough examination of the tax system and structure in Ethiopia will also be conducted, alongside discussions on types of taxes, tax accounting practices, and the challenges associated with taxation in the country. This foundational knowledge will provide a solid basis for understanding the role of taxation in economic development.

Unit Six: Poverty and Inequality follows, where you will explore the multifaceted concept of poverty. This unit covers various forms of poverty and their measurement, with special emphasis on Sen’s approach to poverty and well-being. You will examine the complexities of inequality, learn about different measures, and analyze global and regional poverty trends. Notably, the unit highlights the specific challenges faced by women and the unique context of poverty and inequality in Ethiopia. Furthermore, you will discover the vital role of indigenous knowledge in poverty reduction, enhancing your understanding of culturally relevant strategies for addressing economic disparities.

Unit Seven: Macroeconomic Reforms in Ethiopia provides a historical overview of national development objectives and strategies, from the imperial period through to the current reforms initiated for 2021 to 2030. This unit includes a thorough examination of Ethiopia’s home-grown economic reforms, macroeconomic changes, and fiscal decentralization. You will evaluate the advantages and disadvantages of a decentralized system, gaining insights into the complexities of Ethiopia’s economic reform landscape.

In Unit Eight: Economy, Environment, and Climate Change, you will investigate the critical relationship between economic activities and environmental sustainability. This unit covers rural and urban development concerning environmental impacts and the interplay between population dynamics and resource management. You will learn about global warming and climate change, including their causes, indicators, and consequences. Additionally, this unit addresses vulnerability to climate change and explores strategies to mitigate its impacts, with a particular focus on Ethiopia’s environmental challenges. Concepts of a green economy and green growth will be introduced, emphasizing sustainable development practices.

Overall, this module emphasizes the practical application of economic theories to real-world issues, fostering critical thinking and analytical skills essential for informed decision-making. By integrating local examples and practical applications, this module not only prepares you for academic success but also empowers you to contribute meaningfully to Ethiopia’s economic and environmental development in the future.

Course Objectives:

Dear Learners,

At the end of the successful of module two, you will be able to:

• Define the concept of taxes.
• Articulate the objectives of taxation.
• Differentiate between various types of taxes.
• Identify the basic principles of taxation and the characteristics of an effective tax system.
• Analyze the nature and challenges of taxation in Ethiopia.
• Discuss the meaning of poverty and its measurements.

• Evaluate the meaning and measurement of income inequality.
• Identify the social groups primarily affected by poverty and inequality.
• Compare and contrast global, regional, and national poverty figures.
• Assess the role of indigenous knowledge and institutions in reducing poverty and inequality in Ethiopia.

• Describe economic reforms in Ethiopia.
• Examine national development objectives and strategies.
• Explore homegrown economic reforms.
• Recognize the role of the private sector in the reform process.

• Analyze the links between economics and the environment.
• Examine the interaction between development, population, resources, and the environment.
• Define climate change and global warming.
• Identify the causes, indicators, impacts, and vulnerabilities related to climate change.
• Evaluate the role of a green economy in sustainable development.
• Explain Ethiopia’s climate change and environmental policies.
• Investigate national policies addressing climate change in Ethiopia.

Unit Five:

Tax Theory and Practice

• Lesson One: Taxes: Definition, Principles, Objectives, and Classifications
• Lesson Two: Approaches to Tax Equity
• Lesson Three: Tax System and Structure in Ethiopia
• Lesson Four: Types of Tax and Tax Accounting in Ethiopia
• Lesson Five: Problems Associated with Taxation in Ethiopia

Unit Six:

Poverty and Inequality

Lesson One: Concept of Poverty and Its Measurement
Lesson Two: Concept of Inequality and Its Measurements
Lesson Three: Global and Regional Poverty
Lesson Four: Women and Poverty
Lesson Five: Overview of Poverty and Inequalities in Ethiopia
Lesson Six: Role of Indigenous Knowledge in Reducing Poverty

Unit Seven:

Macroeconomic Reforms in Ethiopia

• Lesson One: National Development Objectives and Strategies – Historical Review
• Lesson Two: Overview of Home-Grown Economic Reforms in Ethiopia
• Lesson Three: Fiscal Decentralization

Unit Eight:

Economy, Environment, and Climate Change

• Lesson One: Economy and the Environment
• Lesson Two: Global Warming and Climate Change
• Lesson Three: Green Economy and Green Growth
• Lesson Four: Overview of Environment and Climate Change in Ethiopia

Assessment Methods:

• Engagement (brainstorming questions)
• Activity questions
• Quizzes
• Model Exams

Reference Materials:

• Grade 12 Economics Student Text Book Based On New Curriculum
• Grade 11 Economics Textbooks
• Ayalew, A. (2019). Impact of Climate Change on the Ethiopian Economy: An Overview. Journal of African Economies, 28(3), 339-360.
• Bird, R. M., & Zolt, E. M. (2008). Tax Policy in Developing Countries: Looking Back and Forward. National Tax Journal, 61(2), 249-270.
• Ethiopian Revenue and Customs Authority. (2019). Ethiopia’s Tax Policy and Administration. Retrieved from http://www.erca.gov.et
• Federal Democratic Republic of Ethiopia, Ministry of Environment, Forest and Climate Change. (2020). Ethiopia’s Climate Resilient Green Economy Strategy. Retrieved from http://www.undp.org
• Hirsch, A. (2016). Poverty and Inequality in Ethiopia: A Review of the Evidence. Journal of Development Studies, 52(11), 1552-1567.
• IMF. (2022). Ethiopia: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Ethiopia. International Monetary Fund.
• Mastrorillo, M., et al. (2016). The Role of Local Knowledge in Climate Change Adaptation in Ethiopia: A Review of Indigenous Knowledge and Practices. Environmental Science & Policy, 61, 20-30.
• Sen, A. (1999). Development as Freedom. Oxford University Press.
• UNDP Ethiopia. (2021). Ethiopia’s Homegrown Economic Reform: Progress and Challenges. Retrieved from https://www.et.undp.org
• World Bank. (2021). Poverty and Equity Data Portal. Retrieved from https://databankfiles.worldbank.org