የኢትዮዽያውያን ዴሞክራቶች ድረ-ገፅEthiopian Democrats' Website

Liberal Manifesto for Africa drafted in AddisAbaba, Ethiopia

Wed, 09 May 2012 00:15:00 +0000

May 2012

On 5 May 2012, members of the Africa Liberal Network (The Network) from across East Africa and the Horn of Africa met in the historic city of Addis Ababa at the invitation of the Ethiopian Democratic Party (EDP). Together, they came to agree a draft Liberal Manifesto for Africa based on their parties’ own guiding principles. This document sets out twenty proposals to implement those principles.

The delegates included representatives from the Orange Democratic Movement (ODM) of Kenya, the Civic United Front (CUF) of Tanzania, the Seychelles National Party (SNP), Liberal Democratic Transparency (LDT) of Uganda, and the Liberal Democratic Party (LDP) of Sudan, as well as welcome observers the Peace, Unity and Development Party (KULMIYE) of Somaliland. This document will be submitted to the Africa Liberal Network General Assembly in Abidjan, Cote d’Ivoire, in October 2012, for debate, amendment and adoption.

A Liberal Manifesto for Africa

On the African continent, Liberal Democratic parties actively campaign to promote political and civil rights, develop a democratic culture and ensure good governance. African liberals believe that development must be founded on the principles of economic, environmental and social sustainability. Governments should promote free markets within an overall policy framework that enables all individuals to participate fully in economic life. Finally, liberals aim to promote peace and stability across the African continent, and call for greater regional integration and cooperation as a way to ensure long-term prosperity. In order to achieve these objectives, the Network has agreed the following key principles and actions:

Political Reform and Civil Rights

The Africa Liberal Network believes that Africa’s long-term development can only be assured when political and civil rights are secured for all people. Power comes from the people and is expressed through regular, free and fair elections. The Network believes in the rights of the individual; rights which are not given to each of us, are not given to any of us.

1. Separation of Powers: The different and independent roles of the Executive, Legislative and Judiciary must be respected. Elected Heads of State should only serve a maximum of two terms in office, not exceeding five years each, so as to prevent the concentration of power in the hands of one individual for a prolonged period. The Legislature, as an assembly of representatives of the people, should play a greater role in oversight of the Executive, in addition to creating laws. The Judiciary should be impartial and independent.

2. Elections: Elections should be open, transparent, and meet the provisions of the African Charter on Democracy, Elections and Governance. The Network calls for full ratification of this Charter and the implementation of its provisions, and for AU monitoring processes to be fully compatible with the highest international standards.

3. Freedom of Expression and Association: Free expression of ideas should be realised for the people of Africa through the establishment of diverse outlets for expression, with equitable access to the media for all citizens.

4. Political Parties: There must be recognition of the vital importance to democracy of political parties as a vehicle for the promotion of ideas. We believe that political parties have a responsibility to represent the views and needs of constituents. The Network calls for the establishment of fair and equitable conditions for all political parties to play their role freely and effectively. At the same time, there must be clear separation of the functions of the ruling party and Government; public resources must not be abused to meet the objectives of one party. The Government has an obligation to act in the interests of the whole population.

5. Rights: The Network upholds the protection of all fundamental human and political rights, as set out in international declarations such as the UN Declaration on Human Rights. The application of fundamental human and political rights of Africans as individuals should not be unduly constrained by the state in its desire to promote common goals. Liberals believe that recognised and secure private property rights are vital, not only to economic development, but also to underpin individual civil and political rights.

6. Devolution of Power: The Network believes that devolution of power creates wider opportunities for individuals to participate in local affairs and to contribute to the development of communities. Mechanisms should provide for the equitable distribution of national resources.

7. Good Governance and the Rule of Law: The Network is committed to the highest standards of professional conduct in public administration. Openness, accountability, an independent civil service, and the rule of law are essential tools in the fight against corruption. Impunity must be addressed and those found culpable of misconduct should face the full force of the law.

8. Civil Society: The role of civil society should be recognised in all states. The Network calls for the provision of a legislative framework which will enable civil society groups to operate freely and effectively and promote the betterment of society through advocacy for the rights and needs of the people.

Economic Development

Liberals believe in the promotion of free enterprise and fair trade. The Network wishes to promote widespread prosperity through the development of entrepreneurship and the empowerment of the private sector.

9. Trade: African liberals are committed to increase intra-African trade by easing of barriers to international exchange of goods and services. The Network will seek to persuade the World Trade Organization to allow preferential tariff reductions between African states.

10. Economic Freedom: The Network believes that each government in the region should encourage the development of markets, without favouring particular businesses, in order to encourage individual entrepreneurs in all sectors.

11. The Enabling State: We believe that government has a vital role to play in enabling all people to participate fully in the economy. This must include enabling economic opportunity for all in a diversified economy, ensuring adequate provision of education, health services and support for disabled people and senior citizens; and addressing unemployment.

12. Public-Private Partnerships: Liberals supports public-private partnerships and see a need for governments to invest in areas that do not attract private investment but are essential for the public.

13. Agricultural Development: The Network will support investment in agricultural technology and skills to improve productivity and profitability. The Network will encourage the development of agricultural processing companies in rural areas to provide jobs. This will reduce over-dependence on limited land and rural-urban migration.

14. Environmental Sustainability: African liberals will work to preserve our natural resources for posterity. We will campaign for water, land and ecosystems to be used sustainably; for investment in clean energy generation; and for governments and peoples to earn their fair share of the profits of minerals, through levying of taxes, rents and charges on extractive industries as appropriate. The Network believes that enterprises should practise corporate social responsibility.

Peace and Stability

The Network wants Africa to be a peaceful and stable continent. The Network and its member parties are committed to working with sovereign states, international and regional organisations, civil society groups and non-state actors to end violent conflict both within and between African states. Where conflict does emerge, the Network is committed to supporting conflict resolution at every level, beginning at the local level, from traditional to national and international institutions.

15. International Relations: The Network calls for the respect of international law and norms, as well as the territorial integrity and sovereignty of African states; while recognising the validity of the Responsibility to Protect Doctrine (R2P) that regimes can forgo their sovereign rights if they commit extreme violence against their own populations. The Network demands an end to proxy conflicts and their negative impact on individual lives and continental prosperity.

16. Regional Integration: The Network believes that regional integration is the key to long-term peace and prosperity and calls for the creation and enlargement of free trade blocs as a prelude to ending protectionism on the African continent. The Network wants to unite the people of Africa and calls for greater investment in communications and infrastructure, in addition to the easing of visa restrictions. The Network actively supports the creation of new institutions and treaties which ensure greater cooperation between nation states to address transnational threats such as terrorism, piracy, corruption, environmental degradation and the illicit trafficking of people, drugs and arms.

17. Humanitarian Values: The Network calls for greater preparedness and cooperation in cases of humanitarian emergency. The Network defends the right to seek refuge in neighbouring countries, while recognising that this requires an urgent coordinated response in order to minimise the stress on those affected, the host state, and the international community.

18. Human Rights: The Network urges the further development of the international legal system and wants to ensure that when credible evidence emerges of grievous human rights violations or crimes against humanity, a comprehensive investigation follows, with the accused judged by a competent court. Where this is not possible at the national level, the Network believes that regional and international courts should assume this role. Those found guilty should be held responsible for their actions while ensuring that the threat of punishment does not perpetuate a conflict which could otherwise be resolved.

19. Conflict Resolution: The Network actively supports all indigenous efforts to address the legacy of violent conflict; including attempts to rehabilitate and reintegrate individuals culpable for crimes against their own communities during civil conflicts. The Network recognises the positive impact of the process of truth and reconciliation, whilst acknowledging that this may not be appropriate in every case.

20. Arms Trade: The Network calls for African governments to re-examine their military expenditure urgently and reallocate resources towards promoting greater peace and stability on the African continent, including AU- and UN-mandated peacekeeping forces which can help to stabilise conflicts. The Network urges stronger international action to curb the arms trade which is a scourge on African development. Furthermore, the Network calls on all African states to cooperate with global efforts to ensure greater transparency in this industry.

________________________________________

The participants would like to thank the following individuals for their assistance in drafting this document: the Africa Liberal Network President, Dr Mamadou Lamine Bâ; the Head of Policy at the Liberal Democrats, Mr Christian Moon; and the Chair of the Social Liberal Forum, Dr David Hall-Matthews.

Ethiopian Democratic Party ( EDP) To host International Meeting In Addis Abeba

Sun, 29 Apr 2012 14:35:00 +0000

Mr Mushe Semu ,President of Ethiopian Democratic Party, announced that his party will host a three day international meeting at the Intercontinental Hotel , from 5th May to 7th of May 2012. The meeting will involve eight nations and experts from the United kingdom Liberal Democratic party. The aim of the meeting, is to develop Democracy, Liberalism and the development of a Liberal Manifesto for Africa.

Dr David Hall- Mathews chairman of policy work group and Mr Christain Moon, head of policy, at Liberal Democratic Party of UK and Dr Lamina Ba, President of African Liberal Network, will attend the meeting.

The delegates includes Dr Joseph Misoi, International officer, from ODM of Kenya, (ODM leader is the Prime Minster of Kenya). Mr Roger Mancienne, senior advisor and policy Coordinator representing Seychelles National Party will also attend (SNP won 43.8% of vote and forms the main opposition in Seychelles parliament). Mr Warfaa, the Vice-Chair of central committee and Mr Artan of the central, committee of Kulmiye, the ruling party in Somaliland, will also be represented.

This is the first meeting of its kind by any Ethiopian political party to be hosted in Ethiopia. It is being held in partnership with British Liberal Democrats, with funding from British Parliament under The Westminster Foundation For Democracy partnership fund.

In a letter announcing the event, The Liberal Democratic party in London stated “…sees this meeting as an opportunity to promote greater awareness of liberalism in Ethiopia, a cradle of African civilisation and the second most populous country on the continent. As such, we intend to organise a public meeting with Ethiopian civil society and journalists, at which delegates will be able to share a platform with important figures from our hosts, the EDP.”

The nine member executive committee of EDP will take part in all the meetings. The meeting is expected to cover important aspect, necessary for establishing Liberalism in Ethiopia. These will include pragmatic Liberal policy development, based on the Ethiopian public demand and current issue; pragmatic Liberal policy to solve Ethiopia’s economic, political and social problems.

EDP and the eight African Liberal parties will formulate a draft Pan-African Liberal Manifesto. Dr Lamina Ba President of African Liberal Network will present his on going work on African Liberal Manifesto . Dr Lamina who recently collaborated with Louis Michel Member of the European Parliament, former Belgian Minister of Foreign Affairs and EU Commissioner for Development.

EDP members in Ethiopia and Diaspora were delighted to hear the news. Many expressed their happiness to see an Ethiopian political party host such a meeting on African Liberal Manifesto. It is a national achievement for all Liberty loving Ethiopians. As one EDP supporter emotionally told a meeting “we the new generation Ethiopians are delighted to play our role in 21 century to eliminate dictatorship from the African continent. Our forefathers played an important role in fighting Colonialism and Apartheid. Liberty, Democracy and Governance are the new challenges and battleground for Ethiopians and our continent, Africa”.

Mrs Sophia Yelma, Deputy Leader of EDP in Britain, as a Guest of Liberal Democrat Party

Tue, 20 Mar 2012 23:40:00 +0000

Source - Ethiopian Democratic Party

Deputy Leader of Ethiopian Democratic Party (EDP), Mrs Sophia visited the United Kingdom as a guest of British Liberal Democrat Party, who form part of the coalition government of United Kingdom.

During her visit, Mrs Sophia has been able to explain to liberals in Britain, the struggle for a better political system and improved socio-economic conditions, in Ethiopia and EDP's role in it.

EDP's liberal manifesto, which the Coalition for Unity and Democracy(CUD) or KINIJIT in Amharic, fully adopted in 2005 and also the manifesto in 2010 election, as well as the widely applauded TV debate, are notable contributions for Liberalism in Ethiopia. EDP continues to espouse peaceful, principled and stable political culture.

EDP's growing international association with liberalism in Africa and Europe is another evidence that shows the strength of EDP as the leading liberal party in Ethiopia. In particular, its association with liberals in United Kingdom has made EDP a pioneer in Ethiopian opposition politics.

Liberals In UK

The United Kingdom is widely recognised as the birth place of modern Liberalism. The father of Liberalism, William Gladstone, is widely ranked by British historians and political scientists, as one of the pre-eminent and respected prime minsters of the nation. The first Liberal government in the UK was formed on December 1868, eight months after the Battle of Magdela, where Ethiopian national Hero and Father of Modern Ethiopia, Emperor Thedros fell. [The prime Minster who ordered Britain into war against Ethiopia in 1867, was the conservative Benjamin Disraeli, who lost election six month after Magdela].

The current Leader of the Liberal Democrats, the Right Honourable Mr Nick Clegg is the deputy Prime Minster of UK.[The Conservative leader, Mr David Cameron is the Prime Minster of UK]. Many members of the Liberal Democrats party hold positions in the current UK coalition cabinet government. These include Secretary of state for Business, Dr Vince Cable, and The Chief secretary to the treasury Danny Alexander.

EDP Individual freedom and Liberalism In Ethiopia

EDP's pioneering work in forming Liberal alliance internationally is expected to strengthen and build liberalism as a formidable alternative in Ethiopia, to left wing revolutionary ideology, which has created political dictatorships’, weakened Ethiopian national integrity and caused economic ruin over the last 35years.

Mrs Sophia held a number of meeting and group discussions with members of Liberal party. Among the officials she met were Deputy Prime Minster of UK, Right Honourable Nick Clegg, Dr Vince Cable secretary of state for Business, Tim Farron President of Liberal Democrats, Baroness Shirley William former leader of the house of Lords, UK upper house and finally Lord Wallace spokes person for Foreign & Commonwealth office.

Mrs Sophia also met officials with special interest on Ethiopia. These included Lord William Wallace, spokes person for Foreign and Common Wealth office of Britain and the powerful Chairman of International Development select committee of the house of commons (British Parliament), the Right Honourable Malcolm Bruce. Mr Bruce has made numerous visits to Ethiopia and is one of the best informed officials in UK on issues related to Ethiopia.

It was a year ago in March 2011 that the United Kingdom government announced that Ethiopia will be the number one recipient of aid from the UK. The UK announced then that Ethiopia will receive $2Billion of aid in the next four years.

It is great credit to EDP leadership that it has successfully opened a channel with aid donor like the UK, to express positive and negative aspects of EPRDF policy in Ethiopia, especially policies funded through aid and their impact on individuals and civil society.

In a question raised by EDP delegation, on the role of Aid to Ethiopia, Mr Malcolm Bruce called on the Ethiopian government to show restraint and refrain from abusing its power and political monopoly. He also called on the Ethiopian opposition to engage in constructive dialogue and present mature alternative policies to the Ethiopian people.

EDP delegate acknowledge the wisdom of consensus politics, for alleviation of poverty in our nation but expressed its concern on the destructive political culture, inherited from left wing ideologues of the past stifling political debate in Ethiopia. In addition, EDP stated that poverty in Ethiopia is not only due to nature but also high stake, zero sum game of political dialogues as well as its malevolent grip on poor administration and absence of accountability.

Ethiopians might be victims of nature and failing rains, once in every eight or twelve years but the greatest cause has been the daily misrule, maladministration and ideological dogma of a succession of regimes. In particularly failure of regimes to rise to the challenge, facing the people of Ethiopia. Political expediency has replaced the goal of serving the Ethiopian people interest.

Instead of finding practical and pragmatic solutions to their problems, Ethiopians continue to be chained to ideological iron rule and dogmatic straitjacket which had cost millions of lives and suffering in the past and continues to do so today. “Developmental state” and “revolutionary democracy” are the latest incarnations of overbearing and ideologically driven regime, Ethiopians have lived in the last 35years.

EDP, based on its liberal principle, continues to call for the rule of law , accountability, governance, economic and political freedom of every individual Ethiopian to be instituted and respected.

EDP strongly believes that poverty and underdevelopment in Ethiopia can only be tackled, on the bases of the free and consensual participation of every Ethiopian. National development plan without the freewill, participation of every Ethiopian is doomed to fail. A free Ethiopian is the precondition for economic development.

Dying Democratic Hope Must Be Saved

Wed, 14 Mar 2012 00:45:00 +0000

Source: Addis Fortune;

It is only liberal democracy that can rekindle the hope for a better future in Ethiopia, argues Mersea Kidan - mersea.kidan@gmail.com - a postgraduate student of systems engineering and technology management in the United States. The responsibility of implanting liberal ideology lies on the shoulders of the young generation of Ethiopians, he deduces in the second part of his two-part commentary.

Dying Democratic Hope Must Be Saved

Scholars continue to debate over the needs of democracy and prosperity. With the domination of Western liberal ideology in the past quarter century, democracy is a prerequisite for economic prosperity, it has been widely accepted. But, recently, a new paradigm is emerging that counters that it is only a prosperous society that can be democratic.

Regardless of which is a prerequisite for the other, neither can be sustained without the other, both paradigms agree. Economic prosperity cannot be sustained without democracy, and democracy cannot be sustained without economic prosperity. So, the need to build a democratic society is inevitable, and the ideology that has been proven time and again to be essential in creating a democratic society is liberal democracy.

The ruling party in Ethiopia seems to be convinced that economic prosperity can be achieved without building a democratic society. Accordingly, it is determined to transform the economy and let democracy wait until the economy prospers.

Besides, the regime that preceded the current one was a socialist regime that pursued a command economy. These situations rendered the country both politically and economically skewed to the left. That means that the country has an economy that is controlled by the state and a political environment that is under the complete control of one party.

If the economy is to have an optimal intervention of the state and the politics to have a balance of individual rights and group rights, there should be balanced forces in both sides of the ideological competition. But, at present, the leftist forces completely dominate the competition.

This calls for the need to build strong, balancing right-leaning ideological forces. If this generation aims to build a democratic and prosperous society in Ethiopia, building strong right-leaning parties is a must.

The need for a strong liberal democratic movement is not just a theoretical argument but a practical one, too. A significant part if not the majority of Ethiopians who cherish the view of an integrated, free society are defeated by ethnic nationalists and are left with no viable political leadership to stand up for their rights.

The repulsive nature of Revolutionary Democracy is that it divides societies into two opposite sections and considers the one section as legitimate and the other as illegitimate. The current administration treats an ethnic-nationalist as a legitimate Ethiopian and an Ethiopian-nationalist as illegitimate.

It denies the latter the right to pursue its agenda. Ethiopians living under such a dichotomy need a strong liberal democratic party to lead them and defend their interests. Hence, building a strong liberal democratic movement is an urgent task that this generation needs to take head-on.

Even then, all axioms comparing politics with shocks need to be uprooted. Of course, they rightly tell the nature of Ethiopian politics, which are defined by antagonism, contempt, mistrust, hypocrisy, and, above all, violence. As a result, most young men and women have remained aloof of it. The most difficult task for leaders of this generation is to reverse this trend.

The task has two components. One is actually changing the political culture into civilised politics. The second component is to convince people that politics is not a dirty job but rather a science and art by which states are formed and managed.

The new generation needs to commit to politics of tolerance, mutual respect, honesty, and sincerity. It needs to tolerate and entertain different ideas.

It is honesty and sincerity that can shift people’s perception of politics from a dirty job to an esteemed responsibility. Aside from shaping the character of Ethiopian politics, this generation also needs to commit to peaceful movement. It not only needs to act peacefully but also stand in defence of peace.

Creating and leading a political movement is not an easy task. Starting the daunting task of creating a party from scratch is almost impossible. So, it is a must to make use of existing political movements and parties.

The key issue in doing so is identifying the political forces that are free from the previous generations’ antagonistic psyche. The ways and means that these political forces follow to fulfil their purposes are not of less importance, either.

The purpose of a political party is the most important issue that needs to be assessed carefully. Those who see political power as a means to fulfil a higher purpose and those who see political power as a purpose in and of itself should be identified separately.

But, prior to that, political parties that have true a existence and those that are virtually a collection of not more than few individuals need to be filtered. Surely, with this criterion, all but a few political parties existing in Ethiopia will fail. Hence, dealing with the few surviving parties is imperative.

With Ethiopia at a crossroads to a better future or a worse one, the youth need to be engaged in politics to change the course for the better. There is no better time than now because the leading generation is phasing out, and there is a need for a strong liberal democratic movement. If someone does not act, the country could end up under one-party rule. Now is also the time because the slender hope that Ethiopia could democratise is about to die.

If the younger generation does not rescue that hope, now, frustration will prevail. As often is the case, frustration begets anger and anger begets violence. The politics of violence is indeed a destructive cycle that is difficult to get out of. That is a scenario that Ethiopia must break at any cost.

By Mersea Kidan

He is a postgraduate student of systems engineering and technology management in the United States.

Old possessions bound to be converted into lease holdings

Sun, 11 Mar 2012 15:10:00 +0000

Source: Reporter;

In a discussion held on March 2 on a draft regulation prepared by the Ministry of Urban Development and Construction to implement the new Urban Land Lease Holding Proclamation No. 721/2011, it was indicated that though the law is not applicable to old possessions, they are likely to be converted into lease holding despite a recent assurance by Prime Minister Meles Zenawi to the contrary. According to the proclamation, which has been confusing for many, the modality of converting old possessions into lease shall be determined by the Council of Ministers on the basis of a detailed study to be submitted by the ministry; provided however, that the process of such study may not preclude a revision of the existing rental rate applicable to old possessions.

During the discussion participants raised several questions in connection with a section of the draft regulation stating that old possessions would remain valid until such time that a decision is made one way or the other after consultations with the public. Some asked: “The draft regulation cannot put to an end the controversy surrounding old possessions. The proclamation explicitly provides that old possessions will not be converted into lease holdings. Prime Minister Meles has also confirmed this in parliament. So why didn’t the proclamation say so? Why beat around the bush”?

However, Mekuria Haile, Minister of Urban Development and Construction, said that both he and the PM had indicated that old possessions are not covervied by the proclamation. He asked whether it was fair to ask the government to make promises not to enact any kind of law in the future. He went on explain it was important that discussions are held with the owners of old possessions on the matter so as to reach a consensus.

The Minister further stated that there is no provision in the proclamation stipulating that old possessions would morph into lease holding in the coming two, three or four years. However, he pointed out that the draft regulation states that the owners of old possessions can be required to pay lease upon an agreement to that effect following discussions between the public and the government.

Heavy loads on low income earners

Sun, 11 Mar 2012 15:05:00 +0000

Source: Reporter;

With its effects still being felt in the economy, it is not at all a distant memory how the devaluation of the birr against the relatively mighty dollar by a record 16.7 percent promptly shook the market and, unlike never before, drew the attention of economists in particular and the general public in general. It was on the next day of the unprecedented move by policy makers that the country’s giant air and sea transport providers, Ethiopian Airlines and Ethiopian Shipping Lines, introduced a 16.7 percent increase on fares payable in birr, an amount equal to the rate the birr was devaluated against the potent dollar. In fact, it was not only the two national flag carriers which introduced new fares to service seekers paying in birr, but also other international service providers immediately that took a similar step.

And not many days went before the price of all imported commodities, goods and services soared by 16.7 percent initially, only to hike further eventually.

And, surprisingly, the price of locally produced commodities, goods and services took a similar course in days, thereby cutting the purchasing power of the birr altogether by 16.7 percent and above. That was a heavy blow, especially to low income earners, a good number of whom are simply unable to feed their family three times a day.

In the wake of the devaluation, the prices of major construction materials skyrocketed with steel, cement and paints getting dearer by a minimum 20 percent.

A National Bank of Ethiopia directive that saw importers left with almost no choice but to pay in dollars for the freight shipped by Ethiopian Shipping Lines had also been pointed as another factor for the sharp price increment. Importers and manufacturers who set their own profit margins for their goods had seen that margin erased by the unexpected devaluation.

But the devaluation turbulence did not stop there.

The 16.7 percent devaluation of the birr against major foreign currencies caused inflation to rise into the double-digits on both imported and locally manufactured goods, further delivering a merciless blow to the poor.

Following the bold move taken by the government, some economists and institutions deemed the “sharp” devaluation “uncalled for” and feared it might had adverse impacts, while the IMF welcomed the move saying that it would bolster the economy’s competitiveness [in the world market] if supported by an appropriate monetary policy.

The obscured fact

Amid such arguments over the policy makers’ move rife over the last couple of year, a disturbing truth has been lurking in the dark since.

Over ten years have been counted since parliament enacted the Income Tax Proclamation No. 286/2002 which exempts persons who earn 150 birr and less a month from paying tax. The 150-birr threshold is presumably the minimum amount a person whether working or jobless—should earn or be provided with monthly to survive, even if such welfare is unheard of in Ethiopia.

While the assumption that the 150-birr threshold is justifiable given that the rising cost of living would have been an alarming issue then, the fact that it has remained fixed to date to is undoubtedly a cause for serious concern.

With the devaluation and all that severely hitting the low income earners and the poor, it should be clear to whoever is concerned that taxing this group could even be fatal, if it had not been already.

With inflation surging relentlessly over the past ten years, coupled with the recurrent devaluation of the birr including the grand one mentioned, estimates by very conservative economists put the 150-birr threshold then at 400 to 500 birr now, hence underscoring the need to adjust accordingly the minimum wage in Ethiopia (which stands somewhere around 280 birr) and the need to review the income tax policy again and exempt those earning less than “the least cost of living index.”

“I just wonder what is the assumption behind the [current] income tax policy,” says Wolday Amaha, Executive Director of Ethiopian Micro Finance Institutions. “What I do know is that it should be revised every time the cost of living is changing. One can simply tell the assumption is to support low income earners by exempting them from tax and highly taxing high-income earners to subsidize the poor. But, I think, the current income tax system is rather target-oriented.”

The leading economist says that the tax collecting agency might have a certain target for a specific year and all it does is try its best to hit that target.

The income tax system should be devised to help mitigate inflation as monetary policy alone would not curb it alone, according to him.

A macro-economist who wished to remain anonymous on his part said that the income tax “is simply outdated.”

“With inflation eroding income, it should have been revised every time or phase by phase long ago, as is the case in other countries,” he told The Reporter. “Furthermore, every low income earner is paying the same tax whether he/she has children or is unmarried. That makes the tax system outdated. This should also be considered.”

Michael Melaku, a macro-economist and former researcher at the National Bank of Ethiopia, couldn’t agree more as well. “I do remember that GTZ had long ago been commissioned to prepare the study for minimum wage legislation long ago and the 150 birr was the threshold for the minimum cost of living index then. But it should have been definitely revised since.”

Some say that would have been the case if there were strong trade unions in the country.

That makes it more than a serious call to policy makers.

City administration sacks city manager, other high officials

Sun, 11 Mar 2012 14:55:00 +0000

Source: Reporter;

After a five-day evaluation session of the Council of the Addis Ababa City Administration, the administration’s general manager and five other senior land administration officials were sacked. Sources told The Reporter that the officials were removed because of alleged corruption. However, the administration disclosed that the officials were sacked due to inefficiency and underperformance.

During the evaluation that was chaired by the mayor of Addis Ababa, Kuma Demeksa, and senior officials of the ruling Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF), Haile Fissieha, general manager of the administration, and his deputy Abebe Zeleul, Qasim Fete, general manager of Land Administration and Construction Licensing Authority and his deputy Yirgalem Birhanu, Alemayehu Alemu deputy manager of Urban Renewal and Land Development Bank Office, Sahile Sersha, deputy manager of City Plan and Information Institution, and Abebe Kebede Jaleta, deputy manager of the Addis Ababa City Design and Construction Development Office, were among those who are sacked . Furthermore, the mayor’s deputy, Abate Setotaw, was relieved of his position as manager of the Capacity Building Bureau.

All the sacked officials from the different offices including those from the different sub-cities were accused of being inefficient and corrupt. Sources disclosed that more officials might have been sacked from their positions as a result of the evaluation exercise.

In the half-year performance report of the current fiscal year, Kuma Demeksa stated that the administration had faced three major challenges impeding the achievement achievement of its plans. He explained that the challenges were rent-seeking, underperformance of officials and shortage of construction inputs.

Cyclic Politics Wedges National Future

Wed, 07 Mar 2012 01:30:00 +0000

Source: Fortune;

Changing the way of doing politics in Ethiopia is vital since the traditional way of doing politics has resulted only in destruction and instability, argues Mersea Kidan - mersea.kidan@gmail.com - a postgraduate student of systems engineering and technology management in the United States. It is upon the new generation that the hope for a better future lies, he reckons in the first part of his two-part commentary.

Cyclic Politics Wedges National Future

Ethiopians diminished from a great civilisation to one of the poorest societies in the world. This journey to the oblivion of poverty accelerated, beginning from the time often known as the Era of Princes. This Era is significant, as it marks the time when anarchy prevailed and aggression won out as the only preferred way to hold state power.

Since then, Ethiopia has been ravaged by consecutive wars between princes, kings, and political parties. Everyone who aspired to power, whether a militia leader or a political party, resorted to aggression to get it.

This long history of coercive politics intensified with the adoption of the Marxist-Leninist ideology of the youth of the 1950s and 1960s. The antagonistic worldview upon which Marxism-Leninism dwells contributed to the intensification and acceleration of the vicious cycle of usurping power by aggression. All regimes had little tolerance towards opposition and neither did the opposition have the willingness to compromise.

As this nature is typical of the Ethiopian political elite, the country has been immersed in a cycle of violent regime change and civil wars.

Today, however, the country is at a crossroads. It could either break the vicious cycle and head towards prosperity and politics of tolerance or continue to lurch in the cycle of violence.

It is at a crossroads also because there is an opportunity to break the vicious cycle, as the current regime has ratified a constitution that recognises the right to form political parties and the right for political parties to contest for political power, peacefully. But, for this opportunity to materialise, all stakeholders need to play their roles.

The ruling party needs to respect the rights of citizens to form and strengthen political parties and create a favourable environment for those politicians who conduct peaceful political movements. In contrast, opposition parties need to recognise the existing government and respect the constitution.

As far as it looks, neither wants to really commit to these requirements. The reason behind this seems to be the historical mistrust that has prevailed between the political parties, which are being led by the former Marxist-Leninist politicians.

This situation does not seem to change, and if allowed to continue, it will guarantee the continuation of the vicious cycle. For all practical reasons, it is the new generation, which has no vengeance mentality that should take the responsibility of breaking the cycle of hostile politics.

No doubt that it is imperative for knowledge and experience to be transferred from generation to generation for effective continuity of a state. The former generations have done a tremendous job in defending the territorial integrity of the country. They have shown great affection to their country and to their people.

But, they also have led the country into the quagmires of poverty, due to their incapability to evolve both technologically and politically. They maintained the political culture of the middle ages into the twentieth century and did not even maintain the technological state that their predecessors had reached.

The adoption of Marxism-Leninism by the last generation of the 20th century has further intensified the antagonistic politics that were already rampant in Ethiopian politics. In the 1960s, almost all of the youth of the country adopted socialism and waged war on whoever did not stand with them. Since then, civil war and hostility have been the order of the day.

Even after the demise of the military dictatorship of the Derg, it was albeit hoped that these parties would commit to peaceful politics. Nay, they are still at loggerheads on almost every issue.

The relationship between the politicians who used to advocate socialism has turned into personal disdain and contempt. Hence, unless a miracle happens, the possibility of any trust developing between these politicians is nil. This fact, as a consequence, makes the possibility of common ground for political space between these politicians of that generation almost zero.

This situation poses a great challenge for the new generation. The challenge is that, if this generation follows the track of its predecessors, it will keep coercive politics going. That is why the new generation must design its own way of doing politics, as the main lesson to be learned from the previous generation is not to repeat its failure to promote civility and tolerance in politics.

Unfortunately, most of the political parties existing in the country are being led by the same politicians that operate in the old format. If the new generation joins either of these political parties, then, it means that it has yielded to the centripetal force that pulls it towards the vicious cycle of hostile politics.

The EPRDF’s recent bravado about the transfer of power to the new generation has proven to be mere propaganda. Neither is there a sign that those in the opposition have the willingness to let the new generation to take leadership. Even if they do, it is not a good idea for members of the new generation follow their path. So, it is a must for the new generation to form its own political movement that promotes contemporary human values.

If this generation is to break the vicious cycle of violent regime change and civil war, it is imperative that it commits to two critical behavioural changes.

The first behavioural change is to uproot the addiction to radical change. All previous regime changes were accompanied with radical structural changes. Most of the current political parties are waiting for the time to radically change what the EPRDF has been building so far. This behaviour of Ethiopian politicians should end with the passing generation.

The new generation ought to learn from the mistakes of the previous regimes. It is notable that previous changes have caused nothing but the devastation of the economy and further intensification of political conflicts. Current and future generations should opt for evolutionary reform rather than radical change.

Evolution takes time but also gives time to reconcile conflicts of interest. It also allows building upon previously developed resources.

The second behaviour change that this generation needs to bring about is to eradicate the vengeance mentality that has prevailed for centuries. The dualistic nature of politics in Ethiopia has made it so difficult to ascend to power without violence.

Whenever power seekers use every alternative to usurp power, the incumbents defend their power with every possible means. The violence that comes out of the conflict between the two forces causes tremendous losses. Thus, the incumbent will face revenge if it loses its power.

That has been the story of Ethiopian politics, and it will continue unless this generation breaks the vicious cycle. That is why the new generation has to change the psychological makeup. Instead of externalising all the bad things that have happened, it needs to internalise them and share the blame as a society.

All of those who commit wrongs are the products of the society. So, they must be forgiven. It is up to the new generation to forgive all of the past mistakes and start looking forward. Peaceful movements that can guarantee a future without revenge must be the road ahead.

By Mersea Kidan

Ato Mushe Semu EDP Leader Held an Important Meeting with British EDP Support Committee.

Sun, 26 Feb 2012 16:55:00 +0000

Ato Mushe Semu EDP Leader Held an Important Meeting with British EDP Support Committee.

EDP leader Ato Mushe Semu held a meeting with United Kingdom EDP Supporters. In a meeting which took an hour and half, Ato Mushe covered many areas of activity EDP has been undertaking and its work schedule for the coming months.

In a remarkable message, Ato Mushe informed members of EDP supporters in Great Britain wide ranging activities so far completed.

Among the activities highlighted were newly organised and elected EDP local committee in Addis Abeba, Awasa and Desse. New office opening in South Region as well as strengthening of offices in Dire Dawa, Addis Abeba, Desse, Tigray and Awasa (second office).

Furthermore, the final completion of the work of high level task force, preparing public communication strategy. As a first phase of its work, the task force will release public fliers, about the struggle in Ethiopia for democratic political space and individual liberty on the bases of EDP manifesto. EDPs commitment, to present to the people of Ethiopia an alternative to the current regime of EPRDF.

EDPs new leadership has taken a major step preparing the ground work and its activist, to campaign against the failed economic and political policies of EPRDF. EDP will make the forthcoming local and regional election a rallying point to shore up opposition to the current policies.

EDPs leadership focus, in strengthen its own base and organising its activist through out the country is part of a plan to prepare for a major challenge in forthcoming regional election.

Ato Mushe also highlighted, an out come of a prolonged negotiation, for a televised debate format on national TV as well as radio. EDP has successfully negotiated and won to be a participant in these important national TV debates. Out of a number of scheduled debates, EDP will take part in six of them. The TV and radio debates are expected to cover nine selected agenda items, covering major national issues including economic, political, Land Ownership, defence, foreign and public services.

Ato Mushe also reiterated that, EDP will push up the agenda, the ill conceived and backward step of the recent urban land lease proclamation. EDP is prepared to be a focus and channel of resistance to land lease proclamation, which has a damaging effect on economic development as well as political progress, especially by making home owners in cities subservience to the government, similar to rural peasants which have been subjected to years of coercion through parallel methods of fertiliser distribution and other social service provisions.

Finally Ato Mushe invited Diaspora EDP supporters to engage and be part of the new strategy plan for the next two years. The call coming after Ato Mushe’s brilliant presentation of EDPs recent work was met by enthusiasm.

In a post conference debate and in the last ten days, UK EDP supporters have pledged and contributed a major financial and material support. The meeting with Ato Mushe has so invigorated UK EDP support groups that they have restarted monthly contribution, special pledge to current activities and organising themselves to support the struggle in Ethiopia and bring about a peaceful transition.

The material contribution made by EDP UK since the meeting has been received and functioning in Ethiopia as we speak. Ato Mushe for his part has sent a thank you letter on behalf of EDP leadership committee to UK EDP supporters.

EDP UK supporters have now taken steps to organise Diaspora supporters of EDP, in Europe and North America to re-engage them and provide a forum to take part in the coming activities. EDP UK supporters are currently engaged in supporting the opening of offices, activist and workers, through sponsorship. In addition EDP UK has organised a private PAL talk meeting for 26th of February 2012 to share its work with EDP supporters in Diaspora.

Luck of self reflection, source of Medrek and AEUP leadership's wrong self image

Sun, 26 Feb 2012 16:40:00 +0000

ራስን ካለማየት የመነጨ ስህተት

በሳራ ይሳቅ፣ የኢዴፓ ሕዝብ ግንኙነት ኮሚቴ ሰብሳቢ

እሑድ የካቲት 11 ቀን 2004 ዓ.ም. በታተመው የሪፖርተር ጋዜጣ ላይ በፖለቲካ ዓምድ ሥር የተለያዩ የፖለቲካ ፓርቲ ኃላፊዎች ስለ ፖለቲካ ፓርቲዎች የጋራ ምክር ቤት የሰጡትን አስተያየት በማቀነባበር የተዘጋጀውን ጽሑፍ በጥሞና አንብቤያለሁ፡፡ ምንም እንኳን በጽሑፉ የኢዴፓ ፕሬዚንት አስተያየት የተካተተ ቢሆንም፣ ኢዴፓ የጋራ ምክር ቤቱ አባል በመሆኑ ምክንያት አንዳንድ የፓርቲ መሪዎች የሰጡት አስተያየት ፓርቲያችንን በቀጥታ የሚመለከት በመሆኑ፣ በጉዳዩ ዙሪያ የፓርቲያችን አመራር ኮሚቴ ተወያይቶ አቋም እስከሚይዝ ድረስ ዝም ማለት ተገቢ ስላልሆነ፣ ካለብኝ ኃላፊነት አንፃር ይህን አስተያየት በግሌም ማቅረብ ተገቢ ሆኖ ተሰምቶኛል፡፡ ከቀረቡት አስተያየቶች መካከል የመኢአድ ዋና ጸሐፊ አቶ ተስፋዬ ታሪኩ የጋራ ምክር ቤቱ በወሰነው መሠረት በአባል ፓርቲዎች መካከል የሚደረገው ውይይት ኢሕአዴግ ከአጋር ፓርቲዎች ጋር ከሚያደርገው ውይይት ተለይቶ መታየት እንደማይገባ የተናገሩት ቀርቧል፡፡ አቶ ተስፋዬ በተጨማሪም ኢሕአዴግ ትክክለኛ የፖለቲካ ውይይት እንዲካሄድ ከፈለገ በአገሪቱ ውስጥ ያሉ ጠንካራ ፓርቲዎች የሚሳተፉበትን ውይይት ሊያመቻች እንደሚገባም ገልጸዋል፡፡

የመድረክ ሊቀመንበር ዶ/ር ሞጋ ፍሪሳም ስድስት ፓርቲዎችን በአባልነት ለያዘው መድረክ 3,672 ብር በድጎማ ተሰጥቶ የኢሕአዴግ ጥገኛ ለሆኑ ለሌሎች ፓርቲዎች ከፍተኛ ገንዘብ መሰጠቱ እንዳስገረማቸው መናገራቸውም ተጽፏል፡፡ እሳቸውም ኢሕአዴግ ጠንካራ የፖለቲካ ፓርቲዎች በአገራዊ ጉዳዮች ላይ የሚወያዩበትን ሁኔታ ማመቻቸት ያለበት መሆኑን አሳስበዋል፡፡

በእነኚህ አስተያየቶች ላይ አንዳንድ ሐሳቦችን ከማቅረቤ በፊት ሁለት ነገሮችን በግልጽ ማስረዳት እፈልጋለሁ፡፡ የመጀመርያው በቅርቡ ኢሕአዴግና ኢዴፓን ጨምሮ የጋራ ምክር ቤቱ አባል በሆኑ ፓርቲዎች መካከል በሬዲዮና በቴሌቪዥን የሚደረገው ክርክር እንጂ ውይይት አለመሆኑን ነው፡፡ ክርክሩ ፓርቲዎች በመካከላቸው ያላቸውን የአስተሳሰብና የአቋም ልዩነት ኅብረተሰቡ እንዲረዳላቸው የሚያደርጉበት ነው፡፡

ሁለተኛው ጉዳይ ለፓርቲዎች መንግሥት የመንቀሳቀሻ ገንዘብ እንዲሰጣቸው የሚያደርግ አዋጅ በዚህ አገር ያለ መሆኑን ነው፡፡ ለፓርቲዎች ገንዘብ የሚከፋፈለው በዚህ አዋጅ መሠረት እንጂ በኢሕአዴግ ፍላጎትና ስጦታ አይደለም፡፡ ገንዘቡ የተከፋፈለው ፓርቲዎች በጋራ ምክር ቤት ተወያይተው ባፀደቁት መመዘኛ መሠረት ነው፡፡ የፖለቲካ ፓርቲዎች የመንቀሳቀሻ ገንዘብ ከመንግሥት ስለሚያገኙበት የኢትዮጵያ ምርጫ ቦርድ በደነገገው ደንብ ቁጥር 5/2001 አንቀጽ 15 መስፈርቶቹ ተዘርዝረዋል፡፡ ከመስፈርቶቹ ዋነኛው የፖለቲካ ፓርቲዎች በፌዴራል ምክር ቤትም ሆነ በክልል ምክር ቤቶች ያሏቸው መቀመጫዎች ብዛት ነው፡፡ ሌላኛው በምርጫ የሚያቀርቡት እጩ ብዛት ነው፡፡ ገንዘቡ የተከፋፈለው በምርጫ ወቅት ባይሆንም በምርጫ ወቅት የነበረውን መስፈርት ለመጠቀም የምክር ቤቱ አባል የሆኑ ፓርቲዎች ተስማምተዋል፡፡ በምክር ቤቱ አባል የሆኑ ፓርቲዎች በፌዴራልም ሆነ በክልል ምክር ቤቶች ወንበር የሌላቸው በመሆኑ፣ ገንዘቡ የተከፋፈለው በ2002 ምርጫ ባቀረቡት ዕጩ ብዛት መሠረት ነው፡፡ በመስፈርቱ መሠረት የምክር ቤቱ አባል ከሆኑ ተቃዋሚ ፓርቲዎች መካከል በ2002 ምርጫ ብዙ ዕጩ ያቀረበው ኢዴፓ በመሆኑ ከሌሎች የበለጠ ገንዘብ ማግኘቱ ተገቢ ነው፡፡

በአዋጁ መሠረት በምክር ቤት ወንበር ያለው ፓርቲ የመንቀሳቀሻ ገንዘቡን የማግኘት መብት ያለው በመሆኑ፣ መኢአድ በአንድ የክልል ምክር ቤት አለው በተባለው አንድ ወንበር ምክንያትና መድረክም በፌዴራል ምክር ቤት ባለው አንድ ወንበር ምክንያት የጋራ ምክር ቤቱ አባል ባይሆኑም፣ በምክር ቤቶች ባላቸው መቀመጫ ብዛት መሠረት ገንዘቡ የተሰጣቸው መሆኑን ለመረዳት ችለናል፡፡ የገንዘብ ክፍፍሉን በተመለከተ ያለው እውነታ በአጭሩ ይህ ሆኖ ሳለ የመድረኩ መሪ ምንም እንኳን ለመድረክ የተሰጠው ገንዘብ እነሱ ይገባናል ከሚሉት ያነሰ ከሆነ፣ ይህንን አንስተው መከራከርና ገንዘቡ የተከፋፈለበትን ሒደት መተቸት ሲችሉ ከእኛ ይልቅ አንዳንዶቹ የኢሕአዴግ ጥገኞች ስለሆኑ ብዙ ተሰጠ ብሎ የሌሎችን መብት በመጋፋት ያቀረቡት ውንጀላ ትክክል አለመሆኑ ብቻ ሳይሆን፣ መድረክ አሁንም የሌሎች ተቃዋሚ ፓርቲዎችን መብት ለማክበር ዝግጁ አለመሆኑን ያሳያል፡፡

ከላይ አስተያየታቸውን የጠቀስኩላቸው የፖለቲካ መሪዎች ኢሕአዴግ ከፓርቲዎች ጋር እንዲወያይ ፍላጎታቸውን መግለጻቸው መልካም ነገር ነው፡፡ በመርህ ደረጃ እነሱ ውይይትና ድርድርን ለመቃወም ምክንያት እስከሌላቸው ድረስ እነሱ በራሳቸው ምክንያት ሳይደራደሩ ቀርተው፣ ሌሎች በራሳቸው ምክንያት ከገዢው ፓርቲ ጋር ቢወያዩና ቢደራደሩ ስህተት ይሆናል ማለት ነው? ይህ በአገራችን ዲሞክራሲያዊ ሥርዓትን ለመገንባትና የመቻቻል ፖለቲካን ለማስፈን ሊኖረን ከሚገባው አስተሳሰብ አንፃር ምን ያህል ትክክል ነው? መኢአድና መድረክ የጋራ መድረኩ አባል ላለመሆን ያላቸውን አቋም ለመጋፋት አንፈልግም፡፡ ሆኖም ግን የጋራ መድረኩን እኛ ስለሌለንበት ዋጋ የለውም እያሉ መሆናቸውንና ክርክርና ውይይትም እኛ እስከሌለንበት ድረስ ዋጋ የለውም ማለታቸው ተገቢ ያልሆነ ብቻ ሳይሆን፣ ትልቅ የፖለቲካ ስህተት መሆኑን ማሳሰብ እንፈልጋለን፡፡

በተለይም የመኢአድ ዋና ጸሐፊ ውይይቱን ኢሕአዴግ ከአጋር ፓርቲዎች ጋር የሚያደርገው ውይይት ተደርጎ መታየት እንዳለበት ያቀረቡት አስተያየት እጅግ የሚያሳስብ ነው፡፡ እዚህ አገር የአጋር ፓርቲነት ደረጃ ተሰጥቷቸው ከኢሕአዴግ ጋር በአጋርነት የሚሠሩ ፓርቲዎች አሉ፡፡ እነኚህ የኢሕአዴግን ሐሳብ ሙሉ በሙሉ የተቀበሉና በኢሕአዴግ ሥልጣን ሥር የራሳቸውን ክልሎች የሚያስተዳድሩ ናቸው፡፡ በእነኚህ ፓርቲዎችና በኢሕአዴግ መካከል የሚያከራክር ነገር መኖሩንም ሆነ ክርክር ሲደረግ ሰምተን አናውቅም፡፡ በመካከላቸው ያለው አንድነትም ሆነ ልዩነት ለዚህ የሚበቃ መሆኑን መረዳትም ያስቸግራል፡፡

እንደ መኢአድ ዋና ጸሐፊ አባባል እንደ ኢዴፓ ከኢሕአዴግ ጋር ሰፊ ልዩነት ያላቸው ፓርቲዎች በዚህ መልክ ክርክር ወይም ውይይት ቢያደርጉ ይህ አጋር ሊያሰኛቸው ይገባል ማለት ነውን? መኢአድ የጋራ ምክር ቤቱን ለመመሥረት መነሻ የሆነውን የሥነ ምግባር ኮዱን ከኢሕአዴግ ጋር ተወያይቶና ተደራድሮ ፈርሟል፡፡ መኢአድ ይህንኑ ያደረገው የኢሕአዴግ አጋር ስለሆነ ነበር? ትናንትና መኢአድ የሥነ ምግባር ኮዱን በፈረመበት ወቅት እኛ ሳንፈርም እናንተ አደረጋችሁ በሚል ጭፍንነት በመኢአድ ላይ ውርጅብኝ ሲያወርዱ የነበሩ ኃይሎችን መኢአድ ምን ብሎ እንደነበር አቶ ተስፋዬ ይረሱታል ብዬ አልገምትም፡፡ አሁን እዚህ ደርሶ ከኢሕአዴግ ጋር የሚደረግን ውይይት ሁሉ እኔ ካልተሳተፍኩበት በቀር ከአጋሮች ጋር የሚደረግ ውይይት መባል አለበት የሚለው የመኢአድ አስተሳሰብ ከየት እንደመጣ ግልጽ አይደለም፡፡ መኢአድ ያኔ የሥነ ምግባር ኮዱን ሲፈርም ዓላማው የኢሕአዴግ አጋር ለመሆን ነበር?

የመኢአድ ዋና ጸሐፊ ኢሕአዴግ ከደካሞች ጋር ሳይሆን ከጠንካሮች ጋር ይደራደር ሲሉ መኢአድን በጠንካሮች ተርታ መድበው ከሆነ የሚገርም ነው፡፡ ለመሆኑ የጥንካሬ ማሳያም ሆነ የድክመት መገለጫ ምንድን ነው? ከመድረክም አንፃር አንድ ጥያቄ ማንሳት ተገቢ ነው፡፡ ለመሆኑ የስድስት ፓርቲዎች ጥምረት መሆንና የጋራ ምክር ቤት አባል አለመሆን እንዲሁም ከኢሕአዴግ ጋር መከራከርና መወያየት ጥገኝነት ነውን?

መድረክም ሆነ መኢአድ የጋራ ምክር ቤቱን አስፈላጊነት ላያምኑ፣ አሠራሩንም ሊተቹ መብት አላቸው፡፡ ኢዴፓ ይህን ዲሞክራሲያዊ መብታቸውን ሊጋፉ አይፈልግም፡፡ ነገር ግን የጋራ ምክር ቤቱን አስፈላጊነት አምነው የሚሳተፉ ፓርቲዎች ይህ መብታቸው መሆኑን ሊያውቁና ሊያከብሩ ይገባል፡፡ የጋራ ምክር ቤቱን አስፈላጊነት ያለማመንና አሠራሩንም የመተቸት መብታቸውን ለመጠቀም በምክር ቤቱ የሚሳተፉትን መፈረጅ የግድ አያስፈልግም፡፡

ይህ የፍረጃ አስተሳሰብ የአገራችንን ፖለቲካ የተጣባውን የዜሮ ድምር አስተሳሰብን ያመለክታል፡፡ ኢዴፓ መኢአድም ሆነ ዶ/ር ሞጋ የሚመሩት መድረክ በዚህ አስተሳሰብ ኢትዮጵያን የመገንባት ችሎታ እንደማይኖራቸው ያስረዳል፡፡ የሁለቱ ፓርቲዎች ኃላፊዎች የሰጡት አስተያየት ምንም እንኳን ግልጽ ፍረጃና ውንጀላ ቢሆንም፣ ለሁላችንም ጥሩ የሚሆነው ሕዝባችንን እጅግ ካሰላቸው የተቃዋሚ ፓርቲዎች የእርስ በርስ ውዝግብ መራቅ ነው፡፡ በእኛ በኩል የተሰጠው አስተያየት ሌላውን እንጂ ራስን ካለማየት የመነጨ በመሆኑ፣ እንዲህ ዓይነት ስህተት ያለውን አስተያየት ትርጉም በአጽንኦት እንዲረዱ አሳስቦ ማለፍ ለጊዜው በቂ ይመስለኛል፡፡

Building Institutions to Ensure Sustainable Growth

Sat, 04 Feb 2012 06:55:00 +0000

Building Institutions to Ensure Sustainable Growth

By: Abis Getachew Makuria: abisgetachew@yahoo.com

Though there are different factors that determine the economic growth, economists agree that huge capital accumulation is the source of economic growth in the proximate growth models. Some countries are able to attract massive capital while others fail to do so. According to the principles of fundamental sources of growth, political, legal and in general institutional setup are the most important factors in attracting foreign direct investment (FDI).

Ethiopia is exhibiting an average of 11.5% of economic growth attracting large amount of foreign investment for the last 5 years. Is this because of the institutional setup that prevails in the country? By looking at the institutional framework of Ethiopia it is possible to reject this hypothesis. The essence of institutional framework refers to stability, market predictability, smooth flow of information and enforcement of law.

Stability: refers to both political and economic stability. In Ethiopia it is very hard to say there is political stability that can attract huge FDI from abroad. Political instability is not expressed on street protests or the existence of gorilla fighting, but having 99.6% of the parliament seat by the hand of the ruling party shows that there is political instability in the country one way or another.

The high and volatile inflation that is becoming one of the characteristics of the country’s economy is the other evidence of the macroeconomic instability in the country. Such instabilities reduce the confidence of investors to come. Even commercial banks face difficulties in incorporating the volatile inflation on the interest rate they charge from the lender that makes them have tight lending policy. (Fortunately, due to interference of government on banks this transmission is not much visible). In general, instability reduces the optimal point of achieving economic growth.

Market predictability: Different markets (the goods and the labor market) are not predictable in our country mainly due to the government interventionist policies. To name some of these policies; the unprecedented price cap and the large and unexpected amount of tax that is levied on the business community. These measures created panic on all stakeholders in the business chain; from the producer to the consumer. In an economy full of such panics it’s difficult to get the expected FDI.

Flow of information: Flow of information from policy makers/government bodies to the business community and the ordinary citizens is not smooth. A good example for this is the recent land lease policy. Government bodies, even at the ministerial level, couldn’t explain well about the policy. This creates uncertainty on citizens. In a situation where citizens are uncertain about their country’s policies, it is unwise to expect foreign investor to come and invest in the country.

Law enforcement: In the New Institutional Economics, governance is all about enforcement of the law. Having laws, regulations and rules by themselves do not ensure the rule of law. Investors and citizens become confident when the rule applies to all without any discrimination. But the fact on the ground shows that the judicial body of the government is under complete control of the executive branch. There is no guarantee for an investor to be protected from injustice that may be committed on it by the executive branch. And it has become a norm to see the aristocrats doing injustice on citizens and non citizens alike.

Having these in mind one can say that Ethiopia is far away from fundamental sources of growth that help to attract FDI. In contrary, the data reveals that the country is attracting huge FDI. This “Ethiopian Paradox” is a great puzzle for all? The writer of this article forwards two hypotheses for the growth highly linked to the global phenomenon.

The first is the transfer of the global economic power balance from West to East. China and India are the top foreign investors in the country, by number of investments they have. China is currently the second big economy in the world and with the current growth trend it is expected to be the first before long.

China with ill suited institutions is highly attracted by not only the natural resources of Ethiopia but also with the ideological match between the ruling parties of both countries. China has invested in many African countries but apart from natural resources sector, Ethiopia has the lion’s share of China’s investment in Africa. Though it has to be appreciated that we are attracting investment, it is up to the government to check the wellbeing and sustainability of the economic growth.

Secondly, the East with high reserve in their Central banks is left with no choice of investment. The financial crisis and the debt crisis in the West, has forced the rising giants in the East to tighten their financial investment in the West. This situation invited the East to involve in real investment which is Africa well suited for such investments. Our country is one of the preferred African countries with the reason of the virginity of its land and proximity to market. Though the institutional setup is incomplete, it is mainly the lack of choice that has made Eastern countries to turn their face to us. This lack of choice of course has given a “policy space” to our government.

This global situation is good chance for our country to sustain the started economic growth by building institutions. By doing so, investment can be attracted from different parts of the world. If investment is attracted from one or two countries then any kind of economic downturn in these countries will have a direct negative impact on ours too. Thus, by creating institutional system it is possible to reduce the risk associated with dependency on one or two countries FDI.

Any rational man doesn’t doubt the strong commitment of the government to tackle poverty and to achieve high economic growth. There is also a wide consensus among all Ethiopians that there exists an economic growth. But the concern comes when its sustainability question is raised.

It is known that any concern of citizens will have a direct negative effect on the capital accumulation process. Thus, to ensure the sustainability the feeling of belongingness must bear in all citizens. In order to achieve this, strengthening the institutional system is of no choice. Democratic style of governance is one way of institutional framework. Such a system is not only a deal of majority vote, but must also include sense of individual liberty and freedom of citizens to comment on any issue about their country without any fear. The world has experienced that an institutional setup developed in a democratic system is the most sustainable way of ensuring economic growth, so that development can follow. This is the best time that Ethiopia can learn from the world and from its history for the wellness of its children.

The author of this article is responsible for this commentary.

By: Abis Getachew Makuria abisgetachew@yahoo.com

Vicious Inflation Therapy Prompts Fiscal Conservatism

Wed, 01 Feb 2012 20:15:00 +0000

The years after the great depression of the 1930s were dominated by Keynesian economic thinking, which suggests that there must be a continuous increase in the level of inflation in order to achieve economic growth and, hence, to reduce unemployment. In other words, there exists a positive long-term relationship between inflation and economic growth.

However, this thinking was questioned by monetarists in the early 1970s when inflation could not reduce the level of unemployment. Inflation has a negative effect on the growth of the economy, the episode of high inflation and high unemployment during this period suggested. The leading economist at the time, Milton Friedman, reckoned that “inflation is always a monetary phenomenon.”

Is this saying true in the case of Ethiopia?

At least two pieces of evidence could help to reject this. National Bank of Ethiopia (NBE) has the power to craft the monetary policy of the country. The mission of the Bank is to assist the economic growth of the country and also reduce the level of inflation.

However, the bank faces a problem in reconciling these two conflicting targets due to the lack of governmental commitment to keep it independent. Some developing countries have shown great success in reducing inflation and enhancing economic growth by making their central banks independent from the hands of government. Good examples include Ghana and South Africa.

If the central bank is independent, the government will be restricted from borrowing money from local sources.

The Ethiopian government finances its expenditures mainly through borrowing. This borrowing is both from local and international lenders. The central bank stands as the main source of the government’s local borrowing.

Such financing, in return, is causing inflation in the economy since it is only by printing money that the bank finances the governments’ ambitious expenditures. If the central bank was independent, this problem would be solved, since government borrowing would be restricted beyond a certain limit.

Obviously, the measure could push government expenditures down, with inflation reduced even further, so as to assist the economy to grow at a faster rate. The lack of independence at the central bank, as it stands, is tempting the government to finance its expenditures by printing money. This is one of the reasons that inflation is not a monetary phenomenon in Ethiopia.

However, it is very difficult to make NBE independent unless it has professional staff. Lack of professional manpower in the country might be one reason not to extend independence to the Bank at this particular moment.

But, the government should display a strong commitment to reducing its direct and indirect borrowings from the bank, in order to reduce inflation. Expansionary fiscal policy must be abandoned by the government.

The Ethiopian government has taken several measures to reduce the level of inflation in past years. Most of the measures are monetary in nature, including raising the interest rate from three per cent to four per cent to boost savings in the economy. However, this has not curbed inflation.

The reserve requirement was the other monetary policy of the central bank meant to reduce the credit availability in the economy. However, this, too, failed, by forcing the government to put a credit cap on bank lending.

Dismayingly, it was also not able to reduce the inflation rate. In fact, inflation reached 64pc during the time of the credit cap on commercial banks, the data reveals. It was evident that monetary measures failed to control inflation.

The treasury bill market is the other monetary policy instrument. Yet, it is not expected to reduce inflation. Instead, it is expected to pour fuel on the fire of inflation.

The market that restarted with the financial liberalisation of 1991 is being used to finance the government budget deficit.

Unlike any other developing country, the Ethiopian government issues treasury bills in order to finance its deficit. They are deployed to inject money into the economy and liquidate it. Yet, the practice is in complete contradiction with the theory.

If inflation in Ethiopia has always been a monetary phenomenon, the policies taken should have curbed it. But, these policies have not served this purpose.

“What should be done in order to reduce inflation?” one may ask. “Where does the large amount of money in the economy come from? Does it exist because of the large amount of credit available to the private sector? Is it because of a reduced supply of goods? Is it due to high government expenditures?”

Inflation is mostly caused by fiscal balance deficits, much research undertaken in this area indicates. It is almost impossible to find research evidencing that Ethiopian inflation is a monetary phenomenon or an imported one, except from interviews of some government officials in the media.

Inflation in Ethiopia is, thus, largely a fiscal phenomenon. If there is a real commitment by the government to reduce it, monetary policy must not be used but, rather, fiscal policy.

Fiscal conservatism is the only choice that the government has to reduce the level of inflation. One thing must be noted in reducing the level of inflation, though, and that is the sacrifice ratio.

Any economic policy might impose a negative impact on one variable to achieve another targeted variable. Similarly, if inflation is reduced through fiscal conservatism, it is expected that economic growth will decline, as well.

The question is which one is better. Even developed and industrialised countries face this choice. But, the way they resolve it is far different from what has been done in Ethiopia. It is all about the costs and benefits of the policy for each individual.

It is not the government that decides for the people that economic growth is better than inflation or vice versa.

In democratic systems, all choices, including economic ones, are made based on the needs of the people. As it appears, the basic objective of all Ethiopian political parties is to have low and stable inflation, together, with rapid economic growth.

But, one cannot have their cake and eat it, too. The choice is important.

In light if this, the EPRDF has a strong commitment to economic growth, while the Ethiopian Democratic Party (EDP) stands as the lone opposition party in combating inflation. This was observed in the previous Parliament, when Lidetu Ayalew, the then-president of the EDP, compared inflation to blood pressure, while Prime Minister Meles Zenawi compared it to a simple seasonal flu.

The essential choice between economic growth and reducing inflation can only be correctly made by the people. Choosing on behalf of the people a complete preference for economic growth will only make all stakeholders lose in this game.

By Abis Getachew Makuria

abisgetachew@yahoo.com

Government Suppresses, Supersedes Not!

Tue, 10 Jan 2012 15:45:00 +0000

Source: Fortune;

Dear editors,

If we compare Ethiopia and the United States in living standards, sampling mansions of Bole District in Ethiopia and shanties on the south side of Chicago in the US, we might end up concluding that Ethiopia has a better living standard. Such was Getachew Alemu’s comparison of efficiencies of the state and the private sector in his opinion piece headlined, “Where Government Supersedes” (Volume 12, Number 609, December

31, 2011).

“Any rational human being would opt for the state, at least in poor countries such as Ethiopia,” Getachew declares, in what seems like intentional naiveté. It is all based on an observation made from just one private sector website and another of a government office.

Leaving the inadequacy of the sampling aside, the premises on which the arguments are made are found to be even sillier. The fact that a private company failed to have an updated website, whereas one government office did, has nothing to do with efficiency or inefficiency of the private sector or the state. If there is anything that it indicates, it is merely the effectiveness or ineffectiveness of the leadership and workers at the company and the government office.

It is fair to imagine that “it is ungainly to the society when such a person who is careless enough not to update his company’s website for five years is given state power.” But, the conclusion that this imagination leads to is not that the state should have a greater role than the private sector.

The conclusion is, rather, that “when incapable people are given state power, it is more ungainly to society than when they own private holdings. The more the state is dominant, the more dangerous it will be when led by incapable or ill-intentioned individuals.”

No question that the private sector in Ethiopia is “poorly organized, corrupt, and habitual.”

The question to ask, however, is: “Is the government not worse?”

What do tides of reality tell about the government’s record with respect to corruptness?

A broader look at the question, whether strengthening the private sector brings efficiencies or not, would lead to an opposite conclusion than that in Getachew’s opinion. Let the economic sectors on which the private sector has a comparatively higher role and sectors where the state monopolizes be compared.

Banking is one good example. Despite the strong intervention of the state, the fact that the private sector has participated has contributed much more efficiency, seen in the operations of banks. It would be wrong to assume similar efficiency would have been achieved if the state had monopolized the financial industry. The situation in the sectors, which the government monopolizes, proves such an assumption wrong.

The telecom industry is a good example. The state, presumably for political reasons, has maintained a monopoly of

the telecom industry. The result is that Ethiopia remains as one of the countries with lowest telecom technology usage.

Tides of reality show that areas where the private sector is playing a significant role are flourishing, while those that are monopolized by the state are stagnating.

Compare printed media and television. Is it not fair to state that the printed media is more advanced than the stagnant television industry? Imagine if Addis Zemen was the only newspaper around as ETV is the only television service and there was no Fortune or The Reporter. Where would the writer of this article funnel such an opinion as this one?

Compare the banking industry, which has shown tremendous growth with the participation of the private sector and the telecom industry which not only remains stagnant but also holds other sectors back from thriving with new technologies.

Do these comparisons not show that where the private sector participates the industries flourish and where it is absent they stagnate? Is it not evident that the inefficiency of the state is not merely a logical theory but a gigantic reality in the current Ethiopian economy?

Considering other views expressed by Getachew, I am compelled to assume that he is trying to point out the failures

of the private sector in order to pressure it to become a vibrant force that could play a progressive role in the Ethiopian economy.

If this observation was not cofounded with statements that promote state domination, it would have been a superb observation. Identifying the weaknesses of the private sector and recommending better ways to alleviate them is one thing that can be considered a just cause for the right reason. Promoting state domination in an already state dominated economy is another thing that can be best expressed as an unjust cause for the wrong reason.

Of course, there is no contradiction in promoting a strong government where there is a strong private sector. The contradiction comes when one calls for state domination over the private sector. The best scenario is a balanced relationship between the state and the private sector. The present situation in Ethiopia is far from such a scenario, and if one, especially as articulate as Getachew, needs to promote one thing, it should be the strengthening of the private sector.

The assertion that “the government supersedes” cannot be any farther from reality. The fact of the matter is rather that the government suppresses.

Mersea Kidan

mersea.kidan@gmail.com

Minnesota, USA