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Who is Responsible for the Mess of Ethiopia's Economy?

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01/04/12

  10:42:22 pm, by admin, 4844 words  
Categories: Ethiopia

Who is Responsible for the Mess of Ethiopia's Economy?

Who is Responsible for the Mess of Ethiopia's Economy?

By Anteneh Shiferaw

First of all, anyone who understands how our country’s situation is in a ‘state of complete mess’, could immediately raise other key indispensable questions such as, what about: the overt & covert killing of citizens, the prison tortures, the abusive terrorism law, the very serious human right abuses compounded in, the complete denial of the democratic rights’ of citizens for peaceful assemble and expression of ideas and believes . . . etc., and may take my topic as secondary issue of the day. Yes, that is absolutely right, I accept that; nonetheless, be the whole situation of our country is as miserable as it is, it is also imperative to show how the economic credential of Meles is far below some individuals wrongly perceived him as an intellectual and competent.

To come to my question/title, let me put it this way: which/who is to be blamed and responsible for the mess of the Ethiopian Economy: Is that the Sweetish/Sweeter Test of the Sugar/or the Farmers who had consumed the sugar, or the Wholesalers/Retailers, or the Prime Minster? By saying the Prime minster, I mean, being Meles Zenawi did both of his undergraduate and graduate studies under the prime-ministerial office it is more appropriate to say him the par-time Prime Minster who is astonishingly using the rest of his study time against the interest of Ethiopia and its people.

As to the sugar, so far, two things are very clear to us; i.e., the first is, at one time, the then first TPLF’s Prime Minster Tamirat Layne had officially and publically confessed that “the sweetish test of the sugar had made him to steal more . . . and advised that, though his stealing offense were expected to put him in a new friendship line of order, whatsoever the case is, he had assured his cronies that he was determined not to be used by the opposition camp either”.

Though there is no any secret behind the Ethiopian people who is really embezzling the coffer of the national budget and the economic resources, it is more than pity to hear a person who went to that extent of making himself a scapegoat, by covering up his master’s crime, in a humiliating way.

In fact, I am not sure how a person who has a habit of an easy rider (a person who takes advantages of the situation in which he was not entitled to hide or steal from the society/people) could be helpful to the opposition and the country itself? Anyway, although, he had confessed the stealing scenario, what Mr Tamirat Layne didn’t tell us yet is how many innocent Amharic language speaking citizens were selectively subjected to the century’s inhuman acts of genocide by TPLF, Coo, and under his leadership serving TPLF in the officially known areas of: Arbagugu, Arakat, Arbaminch, and many other areas and similar cases? Specially, by being falsely acting as: an Amhara group and the leader of the Amharic Speaking Society could raise million questions to be answered before a genuine court in the future?

On the other hand, Meles had also blamed both: the sweetish test of the sugar that made our farmers consume it to the extent of wiping out it from the market as well as the retailers/merchants who been accused of doing serious sabotages by hiding out other basic commodities. So, according to the current par-time prime minister too it was the test of the sugar that made the farmers consumed it and the retailers that put the economy at risk/in mess.

Now, the intent of this paper is not (currently) to discuss or ask a legitimate question whether Mr Tamirat Layne‘s had a role in the above mentioned genocide acts or not? That is absolutely a matter of justices in which the ethic of justices will one day itself come up and assert the whole issues when time permits; so, my intent is rather to discuss and show how the par-time prime minster/Meles Zenawi/ blaming the sugar/or alternatively the farmers/ and the retailers for the cause of inflation is absolutely unsubstantial by any means who claims know the ABC of economics. Besides doing so, I will also figure out: some of the main key factors that cause inflation as well as measures to be taken when such scenario/inflation happened in any given country, both from economic point of views.

To begin with, first of all it is very difficult and be naïve to say (unless and otherwise there exists a special event that trigger) inflation is an over a sudden event that bits the economy; rather it is a day to day build ups scenario done behind the scene of each economic activity unless and otherwise it is wisely monitored and met as it goes. In spite of this, beside encouraging and giving incentives to a given citizens to engage in the national economy investment with confidence monitoring all activities of the free market economy system by an independent economic professional body/economist/ on quarterly bases, at least, is an absolute economic management activities that needs to be made. This monitoring tasks includes: measuring consumers’ confidence of purchasing power, generation a report on inflation index to decide as to what would be the corresponding interest rate in that given period, identify import/export deficit, lower/higher unemployment data, budget and trade deficit, demand & supply gapes or streamlining, the impact of circulation of money volume in the public domain/hand as well as shortage/excess of deposit of local/foreign currency in the National Bank, . . . etc. Monitoring these events is a key market economy activity that needs to be done consistently and persistently than imposing price cupping in the system.

On the same token, one of the key features of socialist/communist economic policy is to monitor the effective implementation of price cupping in the economic system. This cupping is imposed because unlike the free market economy policy key, if not all, existing Means of Productions and Distributions Lines are belongs to the socialist government. As a result of this, the pricing of items must meet with the production and distribution policy inputs. Nevertheless, what difference the Ethiopian economy from the socialist one/kind is that all means of productions and distributions lines of the previous military governments’ were all transformed by the name of privatization policy (including the new ones) into the hands of TPLF’s EFFORT mega group companies which is set to exploit the Ethiopian People without the presence of other competent competitors in the sector.

Here, what happened, EFFORT be without any competent competitor around it, though Meles hasty price cupping and threatening measures and words were directly to harass and punish the retailers/merchants as it had happened (as many retailers’ license were revoked and shops broken and vandalized by TPLF’s polices and soldiers), however, later he had realized that as a result of his destructive action the retailers had decided completely to be out of such a market system. The retailers are out of the market system mean, indirectly or directly, almost all means of productions of TPLF’s EFFORT Mega group companies and its wholesaler personnel were affected most in which his temptation to prolong the price cupping system was unsustainable and rather affecting the sell volume of his/EFFORT’s companies on a daily bases. As a result of this, he was forced to revoke the price cupping system due to Conflict of Interest rather than trying to pretend he had lifted the price cupping on a genuine economic policy failure bases.

To see how this conflict of interest incurred, first let us look in brief how the retailers were unfairly threatened and their licences were revoked by Meles and his cadres: as a retailer, they are using to buy goods/items from TPLF’s/EFFORT’s wholesaler’s stores at a given price. Being they bought the items from TPLF’s wholesalers’ stores at a given price they have to sell that item bearing some sort of genuine profit out of it. Otherwise, their waste of time and money is nothing in a true economic transaction terms. Sadly, however, what Meles did, instead of studying (if he ought to) the whole transaction scenario from the point of first distribution/transaction to the point of reaching to the consumer’s hand he had deliberately had kept the wholesalers behind a safe zone/hand and targeted the retailers all alone unjustly. As a result of this unjust and harsh punishment, some retailers got bankrupted with in that short given time and some threaten to leave the business altogether. Though this was done against to the retailers, as I said above, eventually TPLF’/EFFORT’s mega group companies where affected too due to sell volume dropped around them in which Meles was forced to revoke his price cupping paradigm due to conflict of interest. Otherwise, the revoked could have not been done out of pretending admitting genuine economic policy failure.

Note that, consumers’ high purchasing power confidence may increases the volume of money circulating in the market, in which this may trigger inflation symptoms; however, as long as the inflation symptoms are dealt/monitored according by a well-managed market economy system high consumers’ confidence mean do stimulate the economy and have a positive incentive for the growth of the general national economy rather than what Meles claimed that the farmers purchasing power biting the sugar sector and the general economy for inflation was unacceptable to hear from a person who claims know the ABC of economic management/knowledge credentials. Meaning, unlike his claims, what triggering/fuelling inflation most is the drive up of cost of basic food items as a consequence of deteriorating/shortage of supplies, mainly due to mismanagement of the economy and lack of incentive in the productions lines.

In spite of this, the actual misery situation of our farmers is extremely difficult to explain in such a few words. It is simply shocking and unbelievable. i.e., unlike his fabricated claims, the farmers are the most affected section of our people, by skyrocketing inflation, mainly in two aspects: the first is due to lack of CASH to spend to sustain their immediate lives (because if there is any yearly yield, TPLF collects all their products during an early period of production with a very cheap price by reinforcing the repayment of TPLF’s own fertilizer costs) coupled with the high cost of living and lack of incentive from the ruling TPLF government such as: plot of land, technical advice and assistance, and cash loan.

Moreover, being so far we had identified that the high cost of basic food items is one of the key factors that triggers inflation any/a cent used without bearing the economic value principle is another factor that needs to be considered too. i.e., Money for value/item or labour/ vice versa value for money is the fundamentals of the economic theory. Meaning, money be gotten in the form of illicit/corruption way is contradicting the above theory and make it very difficult, if not impossible, to manage the economy of a given country. i.e., the circulation of money in an illicit way/i.e., in the form of bribe or in the form of incentive for TPLF’s cadres by printing paper money is another catastrophic scenario of Ethiopian case, as well as some other countries of the world of such type of governments who does not have the knowhow to manage an economy system/market economy system. For instance, soon after Gaddafi of Libya seized power 1969, when he was advised that there was no enough money in the National Coffer to pay his soldiers he had immediately ordered his bank managers to print more money so that they pay his soldiers more money; even without knowing what could be the implication of printing more/or less money to the national economy mean? Sadly, this is what is happening in Ethiopian case too, even after Meles stayed 20 years in power as the so-called leader!

When Meles lectured his parliamentary colleagues about the staggering inflation of the country, he said “one who knows the ABC of economics credentials wouldn’t suggest as: ‘at the presence of inflation there won’t be (feasible) economic growth’.” And . . . continued his speech and suggested that “even the presence of high economic development will (in mostly cases) exhibit inflation, or followed by inflation . . . etc.”

As anyone could understand, the whole point of the above paragraph is just a futile attempt to convince us to accept his claims that “although there is staggering inflation there is economic development in the country”. According to claimed data: growth is 11 per cent while inflation is 40 to 45 per cent in the given period. So how growth is achieved while CASH Money circulating in the public hand or deposited in National Bank is devalued by 40 to 45 per cent in unprecedented manner of Ethiopian history?

Here, the next most obvious question any one could ask/raise to Meles is: If there is really any economic development under his TPLF lead government in Ethiopia, say it 5 or 11 per cent, 6 or 12 per cent, or whatsoever any double digits growth he claimed, why is the living conditions of our people is extremely miserable and deteriorating day after days, month after months, year after years, and decay after decay since he subdued the nation by sectarian military means? And the other fundamental question which needs to be answered is: What are the key economic management measures to be taken when such staggering inflation threatening to the degree to collapse the whole economy of the nation? Why was price cupping imposed on retailers/merchants/ to control inflation that does not go in line with the claimed free market economy policy paradigm?

So, as I said from the very beginning, I will disprove his economics management credentials and also try to put an overview of the measures to be taken when such inflation hitting the economy of a given country is exhibited.

Key economic measures/decisions to target inflation

As stated above, there are causes/events that may trigger inflation; whatsoever the case is, when a given country’s economy goes down to the road of inflation what it makes it most frighting scenario is that it MAY trigger unemployment issues. As inflation exhibited and hits the national economy it immediately makes the unemployment issue much worrying. When inflation builds up and became out of control coupled with unemployment rise it pushes the economy to the bad word i.e., recession unless and otherwise the national economy is run by an aid budget/economy like our Ethiopian case which depends on the GOODWILL of donor countries and DO LESS in the economic management side and SPEND MORE time on the correspondence/distance education/ study.

Mind you, as EFFORT is running business using donor’s countries money, without any competitors around it, coupled with getting more incentives from the ruling TPLF government, for sure there is growth around it. However, as EFFORT deposits its extra capital in overseas banks, in the form of foreign currency and also don’t pays genuine taxation fees as revenue into the national economy, the 11 per cent growth continuously for last 8 years which Meles talked (paradoxically) do neither taken as a growth of the National Economy nor have any positive impact with 99.6% of our population, duelling Masses.

The economy being in recession mean, there is no enough revenue in the form of tax: less tax and higher unemployment mean either the government SPEND more money to keep public service employees and important public economic sectors & infrastructures . . . etc. In an economy of this type, i.e., if it is believed that inflation is the key derive for such scenario it should be met with a very tough economic measure (aggressively) to target inflation, to bring down inflation.

To target inflation (i.e., to bring down inflation), there are two fundamental economic theories to be deployed, or adopted alternatively. Meaning, the choice of the theory depends on each case and the decision taking body itself. The first theory is, the Nobel Prize-winning economist Milton Friedman’s theory: i.e., controlling inflation by setting a firm target for volume of money in circulation (i.e. reduce the volume of money which is outside the National Bank Control), and the second one is: pushing up rates as high as it target inflation.

Now, in the following subsections I will try to discuss a bit of each theory:

Firm target for volume of money in circulation

To achieve this, i.e., to reduce the volume of money circulation in the public hand, there are series of measures to be taken. However, what we have to know from the outset, the measure depends on the status of the country’s economy size and weakness. i.e., if a given country’s economy is well-developed and strong enough to sustain economic activity pending, the best way to reduce the circulation of the money in the public hand is that the government must takes the first initiative by reduce government’s spending in the public sector, which may go (even) to the extent of stopping borrowing as well as spending in the economic activities: delay public economic development activities. i.e., put development plan on hold till situation stabilized back. Mind you, this on hold must be done in a delicate ways so that it doesn’t aggravated recession. Besides, to support such government’s initiative, the National Bank can also play its own part by buying back its national currency to deposit it at its National Bank by using its reasonable amount of cumulated foreign currency deposits. The whole idea of this economic theory is to reduce the overheated economic activities that had triggered inflation is one way of reducing the volume of money circulating outside of the national bank.

While the government and the National Bank (jointly) do this, on the other hand, the government must encourage the private sector to do the usual business activities/performance in a better productivity way as it generates the much needed revenue for the national economy. What the government can do here is monitor the activities of the private sectors so that they are successful in their economic activities. This can be done by: providing expert advice, studying new market outlets by using diplomatic means, finding cheaper resources, encouraging them to use the full capacity of productivities with quality than quantitative, and provide more training to be more productive . . . etc. Meanwhile, this theory is also deployable when responsible nationalist government thinks that the National Resource is overexploited/depleted/ unwisely and felt responsible to keep it for the generation to come.

Nevertheless, if the national economy is weak /underdeveloped/ like ours, the responsible government in power can continue with its public development plan but with much more CONSERVATIVE way in its FISCAL POLICY. Meaning, every cent must be spent on a basic and necessity item or development plan. Taking tough decision on corruption and similar issues is put as government policy of the regime, and lead the mixed economy system (i.e., the public, the private, and the joint ventures) in more harmonic, balanced, and delicate ways; both leads in a fair/genuine free market economy system with conservative fiscal policy.

pushing up rates as high as it target inflation

Contrary to the above theory, this theory doesn’t target sources of money suppling channels. Instead, what it does (most) is monitoring Inflation Rate and increase/or decrease correspondingly the Interest Rate as it goes. The key strategic point of doing this is, if interest rate do not increased as inflation increases the public will be forced (or be in panic/panicky and choose) to withdraw their money from the bank and rush to hold it either on assets form or even change it into foreign currency before inflation crisis hit the economy tough (according to the public psychological thinking). The most recent example to such scenario is it is enough to remember what had happened in Argentina about 10 years ago. The public rushed doing this mean, immediately two catastrophic things triggered: the first is, cost of basic food items will be skyrocketed; and second, the national/local currency will be coming useless (be ordinary paper), because in such economic uncertainty the public prefer foreign currency to local one.

One of the key figures who used this theory b is the prominent economic adviser Mr Paul Volcker who brought inflation down from nearly 14 per cent to 2 per cent after president Carter was defeated in a humiliated way in the ballot box due to lack of economic management credentials, while Mr Volcker’s economic management had helped the then president Ronal Reagan be re-elected for the second term. When I briefly put Mr David Uren’s idea, the economics correspondent, “Volcker was the key engineer who had forced US Federal Reserve agreeing to absorb up $US billions of the banking losses”. That means, Mr Volcker economic credential/experience is not only helpful to bring inflation of Ethiopian kind down to its knees but also has coined the new unthinkable economic crisis fighting methods (the austerity methods) of absorbing big banks and firms losses by responsible government firms/such as Federal Reserve/ or EU Central Bank than leaving them to be at a state of bankruptcy, because they claim it is too big to loss/fall in which this had helped the US economy to go in the right direction to be back on track again. Unlike the EU’s banks, USA banks and financial firms are now in a good position with good money up running again for business to be as usual.

Now, to come back to our Ethiopian staggering inflation case, none of the above mentioned theories were adopted/accepted. Especially, had Meles thought to follow any true economic decisions other than the price cupping it is a bare fact that the second theory would have been out of his choice from the outset, without any consideration; because if the Ethiopian National Bank increases Interest Rate in line with Inflation increases Meles thinks that the most, if not the only, bank loan beneficiary TPLF’s EFFORT mega group companies were believed to be affected by the increase of the interest rate. Hence, rather than adopting genuine economic policy of either the first or the second theory Meles had imposed the price cupping to make the retailers/merchants a scapegoat without any justification. This is my justification that Meles’s economic management credentials is far below than some individuals wrongly perceived him as competent.

When it comes to the agriculture sector and the land/farmers issues, as the local farmers strong participation in the sector are being the pillar of any country’s economy growth they are (were meant to be) given the first priorities to be encouraged (be given different types of incentives and training) to have their own agricultural firms/holds of different scales than any of the foreign firms. i.e., under a true nationalist leader who cares about the wellbeing of (his/her) people and sovereignty of a nation foreign firms options are always considered after priorities being given to the local ones. This is the obvious task of a responsible government of any given nation/country unless and otherwise the person in power is an agent’s of foreign element/s. However, in Ethiopian case, our farmers are now totally pushed/forced to become a daily labourer to foreign firms in their ancestral land. As many concerned Ethiopians, international scholars, and human right activist are still using to write more about the land grapes of the century’s crime I am not going to discuss it now either. Nevertheless, what I would like to underlined here is that, Meles and his ministry of agriculture’s Isayas Kebede are the prime responsible individuals for this century’s crime against a nation and its people.

TPLF’s leader and his cadres do have (and implemented) many ways and means to deceive our people. In this regard, the so-called currency/Birr devaluation process is almost one of the trickiest and simplest of all kinds ever happened in the currency devaluation processes. To do the trick, what Meles and his cadres had been doing (at different times) were, when they do have a hidden plan to devaluate the value of Birr they first try their best to buy/collect the foreign currency (as much as they can) from every directions, including in the black market. Then, once they completed this phase they deliberately disseminate false information (countrywide) as the value of dollar is speculated to be decreasing; this helps them to get the rest of the foreign currency that had not yet been bought at the first phase. After they make sure that everything thing is done at their capacities, within 8 – 13 days later, they instead devaluate the value of Birr and be millionaire/ billionaire out of the unfair devaluation trick, within a couple of weeks. So one concludes that devaluation is not to regulate the market but serve them as means of enrichment with a tricky/dirty game. Last but not least, the trick hadn’t yet stopped at the level of only changing one currency with another one but goes to the extent of replacing/changing the National Bank’s Treasury GOLD deposit with Copper within short span of time.

First of all, I don’t understand a leader who is claiming had adopted the principles of free market economy system do the currency devaluation (trick) every given period? In real free market economy system the currency of that given country has to be floating and its paper money value depends/determined on the day to day sell value of it at the open market like a commodity. In fact, this does not mean that if there is need to give more Competitive Incentive (advantage) for the export market local currency devaluation won’t be done. Nevertheless, if we take the Ethiopian case, it is neither free market economy system nor the people have the freedom and equal rights to participate in a true and fair business climate. Meanwhile, when we talk about floating, some countries (the best example here be China) deliberately fix their currency/Yuan/ below the actual market price in order to encourage (keep the competitive advantage for the) export market. Here, when we talk about floating and fixed rate system of currencies of different countries, those whose economy doesn’t depends on import and export market their currency doesn’t change significantly either. For instance, although Hong Kong currency/Dollar/ (HKD) is floating, as its business is highly on the international stock market (being not like the mainland China on export type or other country’s import) its currency never had changed almost for the last thirty years without any government interference. So, the reason why I mentioned the HKD’s case is that when currency devaluation is done it immediately exhibited either the domestic economy is set/adjusted/ for a more competitive foreign market or negatively the local/domestic economy is shrinking due to lack of economic policy leadership and management (like the Ethiopian one).

Last but not least, the Abay Dam Bond issue is one of Meles’s current economic sabotage used to cheat innocent Ethiopians at both ends, domestically as well as in the diaspora. What it makes it more surprising is, Meles pushing key riparian states (the Nile Basin Region) agreement/initiative aside and trying to re-negotiate with Egypt unilaterally is a futile mistake done at the expense of our good relationship with countries mainly: Uganda, Kenya, Tanzania, as well as Rwanda. These countries see Meles’s unilateral negotiation with Egypt as a serious betrayal done behind scene against their newly signed important agreement, between the above mentioned key countries.

Besides, what I want to advice innocent fellow Ethiopians, especially in the diaspora is that, when someone bought bond from democratically elected government the bond is absolutely (100%) guaranteed by reliable financial institutions. However, unlike the guaranteed bond of the above case/type who is going to guarantee the Abay Dam Bond when TPLF and Meles forced to cede power by either broad masses uprising for change or even let us think with the unthinkable peacefully ones too? So, be aware what you are doing now, this is really a crime against our people. Doing any (be it big or small) business with TPLF in such unjust way won’t be acceptable when the time comes. Everything will be scrutinized. If there is a true will to help the Abay Dam (and other future dams) to be done, first and for most, Help Ethiopians (our people) to have a democratically elected leader who can bring a real change to life of our people and keep the sovereign of the country safely guarded.

To wrap up, Meles is not an economist who can manage the economy, and also not politician who can brings political solution to our country problem. So the reality is, whether by historical accident of new political order of the Cold War era or with military support of historic enemy countries Meles was able to control the country and was also given a fair crack of the whip and proved his incompetency in both cases; i.e., incompetent in terms of finding: political, and social solutions for the existing problems; and has also demonstrated himself that he is not an economist either, but a locally born and grown racist. So, he has to cede power unconditionally and leave Ethiopia for responsible Ethiopians who are democratically competent to lead the country in the right direction.

23 comments

Comment from: ment4you [Visitor]
ment4you

“Meles is not an economist who can manage the economy, and also not politician who can brings political solution to our country problem.”

Well stated it is in the best of everyone and the country if this guy steps aside. He is an obstacle to progress and unity!

01/04/12 @ 23:20
Comment from: Safia [Visitor]
Safia

Double-digit economic growth, last 7 years in row (WORL BANK, IMF)…

NO, YOU ARE NOT smarter than economists at WORLD BANK & IMF.

01/04/12 @ 23:30
Comment from: DeYilma [Visitor]
DeYilma

I am just laughing my head off…what an article?

The source of this article is patently Eritrean TV. A trade mark of SHABIA is posting such a tail & headless article. Sane Ethiopians wont do that.

After all, It’s not a surprise - Comrade Mengistu has written a book too.

01/05/12 @ 00:20
Comment from: C'est moi senait [Visitor]
C'est moi senait

A remain GDP and a beggar economy is like a wild fire among blinds.

01/05/12 @ 01:31
Comment from: NoStRaDaMuS [Visitor]
NoStRaDaMuS

Who said Ethiopia is in a mess? Since when did a problem automatically become a mess? Or you are just talking about your wish?
By the way, to the pseudo-economists here, do you know why we don’t care? Because you lack originality. You just critique to what EPRDF is doing. You don’t have an alternative. Just like the rest of us, you wait for the ruling party to come up with some sort of plan and jump on it.

01/05/12 @ 01:44
Comment from: Heny [Visitor]
Heny

Anteneh Shiferaw,
you look a calf, new entrant politician, dude. Which messed economy are you talking about? There is no messed Economy in Ethiopia if are talking about it. May you wrote this flooshly lengthy article in 1991 and finished it yesterday. Ehmm..what another addition to the mass of disgruntled fools!!!!

01/05/12 @ 06:32
Comment from: Jigjiga [Visitor]
Jigjiga

You are simply a tribalist’ Ahmara maan! we know that some of you the Derg remnant,still you can’t swallow a non ahmara ethnic person to be ruled the country.But,that’s your problem forever and of course, its not the problems of the new Ethiopia peasants.

We know that Ato Melese isn’t an economist but we do know also that he’s an smart politician.Thus your statement in here I copied “, Meles is not an economist who can manage the economy, and also not politician who can brings political solution to our country problem” what that it tells me is how much hatefulness of Tigray ppl that your heart it caries but who cares!.

01/05/12 @ 08:01
Comment from: nashvillianethiopian [Visitor]
nashvillianethiopian

Whose economy is not in mess? USA, EU etc.So stop crying. Your point here is not the economy, it’s spread hatred to the GOE.

01/05/12 @ 09:21
Comment from: HAK [Visitor]
HAK

Thank you for your time to share your expertise. It is an interesting and informative article to read on…

For everyone who wants to learn more about the reason why not only Ethiopia’s but also the majority of African nations’ economic developments has been in regression, it is worth to read this excellent book , “Dead Aid: Why Aid Is Not Working and How There Is a Better Way for Africa.”

Not only have I learned the secrets as to why, but also has helped me to know more general knowledge about the field of Economics..

Here is a short summary of the content from Amazon.com

“In the past fifty years, more than $1 trillion in development-related aid has been transferred from rich countries to Africa. Has this assistance improved the lives of Africans? No. In fact, across the continent, the recipients of this aid are not better off as a result of it, but worse—much worse.

In Dead Aid, Dambisa Moyo describes the state of postwar development policy in Africa today and unflinchingly confronts one of the greatest myths of our time: that billions of dollars in aid sent from wealthy countries to developing African nations has helped to reduce poverty and increase growth. In fact, poverty levels continue to escalate and growth rates have steadily declined—and millions continue to suffer. Provocatively drawing a sharp contrast between African countries that have rejected the aid route and prospered and others that have become aid-dependent and seen poverty increase, Moyo illuminates the way in which overreliance on aid has trapped developing nations in a vicious circle of aid dependency, corruption, market distortion, and further poverty, leaving them with nothing but the “need” for more aid. Debunking the current model of international aid promoted by both Hollywood celebrities and policy makers, Moyo offers a bold new road map for financing development of the world’s poorest countries that guarantees economic growth and a significant decline in poverty—without reliance on foreign aid or aid-related assistance.

Dead Aid is an unsettling yet optimistic work, a powerful challenge to the assumptions and arguments that support a profoundly misguided development policy in Africa. And it is a clarion call to a new, more hopeful vision of how to address the desperate poverty that plagues millions.”

01/05/12 @ 11:00
Comment from: aman [Visitor]  
aman

Well. When we talk about economy lets not be too political. Economics has its own formula. With all its up and down. That’s what we see now on world economy so even eprdf can be appreciated and criticized for the policies there is also positive things happened in Ethiopia weather you like it or not. Ok when you talk about effort even if it is a monopoizes at some level. It has be one a local economic force in the future the monopoly will eased because of competitive nature of economy. The reason why it was associated with the party is the fund was generated by the party there nothing wrong with that as long as it contributed to the economy. Think about the job market it created to many ethilpians. I believe it should be free of government monopoly to create a good atmosphere to the economy. The other thing we need to focus is meles is not someone who is to blame for everything there are times he made terrible decisions on many occasions he will be responsible for what he did but what we have to do take advantage and be prepared. Have a dialogue on our reality. For eg some people keep talking about asseb and Eritrea that is a political process there will be a time the two people will need each other but if we make like election campaign motto it will hurt our credibility and no different than war drum so that’s why I don’t some people in medrek so. Lets not be emotional.

01/05/12 @ 14:02
Comment from: mesfin_b [Member]  
mesfin_b

By now if not the whole world, any habesha knows the culprit for this demise is none other than the “baboon” at arat kilo.

United we shall see a better Ethiopia.
Ethiopian Spring Now.

01/05/12 @ 15:10
Comment from: prince of konso [Visitor]
prince of konso

the same old loosers cry. my friend you dont have any new idea . all the things mentioned in your long boring article is just every day looser"s cry.

01/05/12 @ 15:13
Comment from: Bethihu [Visitor]
Bethihu

Anteneh Shiferaw,

As you sound like you have no clueless about the history of Ethiopia, your questions should been, who is responsible for the fast development that going on in today’s Ethiopia?!
.
.
.
.
.
The answer is, the responsible - ethical Ethiopian people who have no time for complaining, and crying that they teaming up with the great leaders of the current ethiopian government.

So, your stone aged economic analysis has no productive input which will help the Ethiopian people than you & co are trying hard to discredit the hard working leaders and the
Ethiopian people….

God bless the worled!!


01/05/12 @ 17:38
Comment from: TEDDY [Visitor]
TEDDY

The Crime Minister ,his evil wife ,the agazi officers ,the TIGRE mafiosis and the Aderby Bandas always busy of looting the country and apauvrishing the peoples !!!!

01/05/12 @ 18:01
Comment from: john john [Visitor]
john john

You the only one responsible for blind delusion mess get a life no one is going buy your twisted propaganda under any circumstance.

01/05/12 @ 19:17
Comment from: gashe_mamo [Member]  
gashe_mamo

Sir,
It is really annoying to have so many forward slash signs and bracket signs. It was disturbing me while I was reading.

01/05/12 @ 21:37
Comment from: ras babi abdalla babiker [Visitor]  
ras babi abdalla babiker

wake up Africa…..

01/06/12 @ 00:28
Comment from: virginia [Visitor]
virginia

Look How The woyane/TPLF colonialist calling a meeting in Tigre Embassy In USA

TDA DC CHAPTER COMMITTEE CALLS ALL MEMBERS AND SUPPORTERS FOR A GENERAL MEETING.
DATE: SATURDAY JANUARY 14
TIME: 2.00 PM
PLACE: EMBASSY OF ETHIOPIA 3506 INTERNATIONAL DR. NW WASHINGTON, DC 20008

01/06/12 @ 12:58
Comment from: addiszemen [Member]  
addiszemen

I’m glad none of the Nazret readers bought this ginbot7 looser’s above so called article. Except the empty brain TEDDY the pimp and thr dergue abyot tebaqi Mesfin B uchilaw.
Speaking of economy mess or crisis, you can relate that only to the big European countries like Italy, Spain, Greece, Portugal, etc…
Ethiopia is only mentioned these days, about our economical growth and developmental endeavor being one of the five fast growing economys in the world. Can you dig that?

01/06/12 @ 13:39
Comment from: George [Visitor]
George

You may claim that the country’s economy is in a mess because of your contempt for the PM, his party and his routes. The fact is the economy has never been better at any time in the history of the country than at the moment. Your views only reflect your blind hate. As a result people who read your deliveration would question your integrity in the face of the truth about the astonishing economic growth of the country during the past 7-10 years. Surely you cannot convince many people on this issue. It is time you swallow the truth and find other means to discredit the government and the PM. People do not care who the PM is. They want a good leadership and a peaceful continuation of the economic growth to benefit from it. My advice for people like you is that you should stop claiming that everything the government has been doing is bad for the country. People would trust in what you write if only you can say a spade is a spade where only it deserves to say.

The economic hardship to day is world-wide and against all odds Ethiopia is growing faster than any country in the world, but of course a person with the right mind cannot expect every citizens of the country would be better off within such a short period of development. One can safely say that the direction of the government is more less right and the future should be brighter if peace/stability and growth continues because of the tale tale signs observed.

God Bless Ethiopia always, peace and development for its people.

01/06/12 @ 13:41
Comment from: chikunu [Visitor]
chikunu

who would be responsible? I would say non other than woyanes regime and the American government foreign policy.

The evil american policy ,which making people to suffer, in order to get their interest.In the recent interview with retired ambassador Herman cohn,asked by the journalist,if america intervening with Ethiopians rampant human right violence,he said that strategic interest far more important than human right.

if it is intended people in the world to live a peace and harmony life America has to fall otherwise there won’t peace and stability any where in the world.they are Evilsssssssssssssssssssss…..blood suckers,inhuman, barbaric,liars…

01/06/12 @ 15:14
Comment from: Gemech [Visitor]
Gemech

Mr.Shiferaw,
You are obviously not an economist or a writer. For what you wanted to say a page would have been more than enough. You started by telling us you were going to discuss the state of the Ethiopian economy but you went on tolking the politics of the disgruntled diaspora, a subject which we are all already well aware. It is everywhere from Eritrean radio and television to diaspora TV and web sites. The sum total of which is you don’t like what you see or hear about Ethiopia.
The only tangible thing you said is that inflation should be closely monitored before it gets out of hand. which is valid.Even then you didn’t supply facts and figures so we or the Ministry of finance and the national bank can consider your suggestion.

And anyway, you are within your rights to criticise Meles for his mistakes. But you can’t deny the well known fact that he is an economist. Why do you think he is representing Africa at international conferences?
Hak
We are not talking about Post independence African economies. The discussion is Ethiopian economic growth in the last 20 years. You can say the double digit growth seen in Ethiopia is a mere propaganda. That’s up to you. But you can’t compare the recent situation in Ethiopia with the 1960s newly independent African states.

01/06/12 @ 18:23
Comment from: netsa [Visitor]
netsa

The writer lacks discipline, in how to organize his ideas in coherent manner, it reads like craze person speaking. I’s painful to read and follow, Makes one wonder about his sanity. If you have something important to say take time to tell it right, in your case let some one else write it for you. And for the persons at Nazret .com you should do better job of editing before you post. I don’t now what that will do for Ethiopian economy, but it will make your site respectable, in the eyes of some people who came here to read.

01/16/12 @ 19:25

rebtel

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