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Donors plan to withhold $375m from Ethiopia



  05:23:57 am, by admin   , 575 words  
Categories: News, Ethiopia

Donors plan to withhold $375m from Ethiopia


"Because of the situation, trust has broken down so we are trying to find other ways of doing it (funding)," another western development official said.

"If they cancel the budget support they have promised, it will have (an) insignificant impact ... on the budget," Sufian Ahmed Ethiopia's minister for finance and economic development Source: Reuters

Donors plan to withhold $375m from Ethiopia
By Andrew England in Nairobi
Published: December 29 2005 02:00 | Last updated: December 29 2005 02:00
Financial Times

Donors are to withhold direct budgetary support worth about $375m (€317m £218m) from Ethiopia following the government's brutal crackdown on opposition supporters last month, western development officials said yesterday.

Until the situation improves, the donors - which include the World Bank, the European Union and the UK - will look to disburse the funds in other ways to continue tackling the country's massive poverty challenges, Ishac Diwan, the World Bank's country director, said.

The move is a further blow to the credibility of Meles Zenawi, Ethiopia's prime minister, who was once regarded as a visionary African leader and was appointed to the UK's Commission for Africa.

"Because of the situation, trust has broken down so we are trying to find other ways of doing it (funding)," another western development official said.

At least 46 people were killed and thousands detained during several days of politically motivated violence in the capital in November. Some 40 others were killed in similar clashes in June, which erupted after disputed elections in May.

More than 100 people, including opposition leaders and journalists were charged last week with treason, genocide and other offences, despite calls from donors that political detainees should be released.

Opposition groups made unprecedented gains at the elections, but later alleged the process was rigged and called for peaceful protests. The government blamed the opposition for the violence and used extreme force to put down rioters, deploying huge numbers of police, as well as soldiers armed with sniper rifles, on the capital's streets.

The heavy-handed manner in which the supposedly-reformist government handled the crisis shocked many and raised serious concerns about Mr Meles's democratic credentials.

The quandary for donors, who pump about $1bn in development aid into the country annually, is how to be seen to be taking a tough stance towards the government while at the same time continuing to work to alleviate poverty in the impoverished nation.

"We are very concerned and have taken principled positions, along with our development partners, on the recent disturbances," Mr Diwan said. "It's a very important issue today in several African countries: how to at the same time get good economic growth and improvements in governance in order to achieve sustainable development."

Despite the crisis, Ethiopia was one of 19 countries the International Monetary Fund approved 100 per cent debt relief for last week - part of an agreement reached by the Group of Eight nations to cancel multilateral debt to the world's poorest nations.

The IMF, to which Ethiopia owed $161m, makes its decisions based on macroeconomic stability, not governance issues. The World Bank, to which Ethiopia owes about $3.5bn, is due to announce its decision on debt relief next year.


Some Facts
Ethiopia owes 3.5 Billion to The World Bank
Ethiopia owed $161m to IMF which was cancelled last week
Foreign donors finance about one third of Ethiopia's annual budget
Ethiopia is ranked the seventh poorest country in the world

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Comment from: the trinity [Visitor]
the trinity

i am happy with the donors decision

because the money goes direct to the

poor rather than melese’s account to

kill innocent ethiopian

12/29/05 @ 05:35
Comment from: Getu [Visitor]

Who should be responsible for such punishment of our country?
A.The dictator (Kids killer) Example Meles or
B.The democrat (debate winners) Example Dr. Birihanu
C.The people who vote for Democrats
Example Addis Ababa
D. The people who vote for dectator
Example: Adewa ( of course they didn’t get alternative candidate)

12/29/05 @ 05:44
Comment from: Sitotaw [Visitor]

Congratulations to Shabia, the dirty diaspora who have been working hand in hand with shabia to get the world stop aiding Ethiopia.

Congra to Shabia websites particulary Ethiomedia and Ethiopian Review, rather Eritrean review.

Congra to the dergists who escaped from justice and now doing the same crime from abroad.

BUT, don’t delude yourselves into believing that the decisions will destroy Ethiopia from map. Nothing will happen and life will continue as usual.

Sitotaw from Home, Addis

Posted from Ethiopia

12/29/05 @ 05:51
Comment from: balcha [Visitor]

Thank you Donners for taking this bold action on the jungle minded albanian comminist trained brutal meles zenawi.

12/29/05 @ 05:51
Comment from: mamo [Visitor]

thanks to anti-ethiopia party CUD
and its master SHABIA for this news.
the time come to get rid off this banda PARTY out of ethiopia and dump it where it belong [TO drug addict street, little ethiopia in washington DC]

12/29/05 @ 06:02
Comment from: Mulu [Visitor]

If the aid comes through NGOs to ETHIOPIA ,from the point of view of the poor Etiopian has no problem.

12/29/05 @ 06:04
Comment from: Sorressa [Visitor]

This is good news for those fugitives who disguise themselves as Ethiopians and working against the country’s national interest.

It is neither good nor bad for us at home. If we work hard, we can overcome the difference that might be created by the stoppage of the aid.

We should also learn that we should never remain slaves to the white people’s donations.

Hell with the enemies of Ethiopia including the so called diaspora. Wushoche.

12/29/05 @ 06:04
Comment from: dido [Visitor]

Well, I have to congradulate the diaspora for their effort to stop aid to Ethiopia.
Perhaps we are the only people in the world who beg donors not to help our country.
It is sad really for the poor and mostly rural people of Ethiopia who would suffer the consequence.
Aid cut will surely heart EPRDF, but it would take time, but meanwhile it is the ordinary Ethiopian who would suffer.
Shame, shame and shame

12/29/05 @ 06:08
Comment from: hailu [Visitor]

CUD is working with SHABIA to destroy ethiopias economy.
there is a planned demonstration against CUD in addis very soon.

12/29/05 @ 06:16
Comment from: jambo [Visitor]

the anti democratic and anti-eth. forces must be by now very happy.
it is allways the same old story
anti-ethiopian forces are acting once more togeater to put us down.
Shabia, the dirty diaspora who have been working hand in hand with shabia to get the world stop aiding Ethiopia.
it is time for all ethiopian democratic forces to work hard and show the world that what ethiopia need is only its peopel to overcome poverty.
we must fight the media against the democratical movement of the ethiopian ppl.once and for all.

long live the democratic movement
peace for ethiopian ppl.

12/29/05 @ 06:24
Comment from: jambo [Visitor]

see you soon by anti schabia derg,esepa demonstration in addis

Peace for the ethiopian peopel

long live the ethiopian peopel democracy

12/29/05 @ 06:30
Comment from: degu [Visitor]


12/29/05 @ 06:47
Comment from: JOE [Visitor]

The Amhara elite will not stop their struggle to regain power and they willing do that by any means necessary. They belive that it is thier God given right to rule Ethiopia. They don’t trust any other ethinic group to do the job. There cult like false admiration and misguided love for the country is killing our nation.
I use to think the problem was that people were brain washed by previous rulers but now i start to think it is more than brain wash… is more like demonic.

I call on 0n all the Amhara elite (as Moses called on Pharone)……..LET THE PEOPLE GO GO!!!!


12/29/05 @ 06:54
Comment from: helen [Visitor]

“Joe” you make a mistake
you mine;
“i call on all eprdp elite ( as Moses called on Pharon ) LET THE PEOPLE GO GO GO !!!!

no more money for your killer kommando!!!!

12/29/05 @ 07:04
Comment from: kidst [Visitor]

meles is responsible for every thing happen in Ethiopia for 31 years.

12/29/05 @ 07:25

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