“Ethiopia has recorded impressive growth during the past few years” – IMF
INTERNATIONAL MONETARY FUND (IMF)
Press Release No. 08/115
May 19, 2008
Statement at the Conclusion of the 2008 Article IV Consultation Mission to the Federal Democratic Republic of Ethiopia
An International Monetary Fund (IMF) mission team, led by Mr. Robert Corker, visited the Federal Democratic Republic of Ethiopia during May 7-19, 2008, to conduct discussions for the 2008 Article IV consultation. At the conclusion of the visit, the mission issued the following statement:
“Ethiopia has recorded impressive growth during the past few years—the fastest for a non-oil exporting country in Sub-Saharan Africa. Growth has been supported by structural reforms and infrastructure development, as well as favorable agricultural conditions. Rapid growth has contributed to poverty reduction and progress toward the Millennium Development Goals (MDGs). However, it has also been accompanied by rising pressures on prices and international reserves, exacerbated by sharply higher world oil prices. In March, the 12-month increase of overall inflation was 30 percent, with food price rises of 40 percent (year on year) having a particularly strong negative impact on the urban poor. Reserves were below 2 months of imports.
“The consultation discussions focused on policies to reduce inflation while preserving the growth momentum. In this regard, the mission supports the authorities’ objectives to return to single-digit inflation and rebuild reserves to three months of imports. It recognizes the measures taken so far to achieve these objectives, including through actions to slow broad money growth to below 20 percent.
“To place inflation on a firmly declining path the mission advised the authorities to support efforts to reduce monetary growth through a tightening of fiscal policy in FY2008/09 (July-June). It also recommended the authorities seek additional external financing on a grant or concessional borrowing basis to buffer the severe effects of high world oil prices on the balance of payments and soften the impact of domestic policy tightening on economic activity. Such financing, for example, could facilitate needed investments in the power sector without crowding out private domestic borrowing.
“Over the medium term, the mission expressed support for the government’s overall strategy to strengthen the foundations for growth—with an increasing role for the private sector—while preserving macroeconomic stability. Key aspects include scaling up public sector investment in infrastructure, health and education, while maintaining a sustainable debt position, and boosting overall economic activity through commercialization of agriculture and fostering the non-farm private sector.
“The mission emphasized that it will be critical to strike a judicious balance between demand-dampening and growth-enhancing measures in the next few years to achieve macroeconomic stability and permit a return of international reserves to a comfortable level. This will allow the Ethiopian economy to become more resilient to shocks.
“The mission would like to thank the authorities for frank and open discussions, as well as the warm hospitality extended to the team.”
19 thoughts on “IMF’s cruel joke on the people of Ethiopia”
I thought it was TPLF that was playing cruel jokes with the Ethiopian economy. Little did I know IMF was actually in charge :)
In a related news, CNN reports millions of Ethiopian children are starving right now. What does the boss, IMF, has to say abot that?
Populationz controlz?? big boss?
The IMF, like the World Bank, is controlled by a few rich countries by virtue of their overwhelming share of the Fund’s total capital, since voting is weighted according to the capital shares that countries own. As such, with 28% of the capital, the US has a dominating say in the IMF’s overall policies and direction. And we know US policy towards this fascist Woyanie.
I am not surprised at all by the report. Such reports and strategies prescribed to developing countries are crafted in Washington DC. One political economist wrote that “The IMF Secretariat in Washington works in secret, drawing up policies for the 80 countries under its control, largely without their participation and without the knowledge of the world. The IMF “agreements” with the countries are not normally, publicly revealed.” Because, they are not in the interest of these developing countries. Now IMF, World Bank and WTO become more and more political instruments to the richest.
Never let IMF fool you. We know the truth.
God bless Ethiopia!!
criminals. you are giving billions of dollars to the criminals in the name of poor ethiopians and sharing billions of dollars among them selves. IMF AND WORLD BANK CRIMINALS
when the foreigners wrte bad stuff, you are the first one to quote them and expand on the story. But, when there is a remotely good thing by anyone, they are lying.
For a fairly younger man, you are the embodiment of your father generation. this kind of politics is what is hurting Ethiopia.
These the so called IMF and WB officials are mediocre who are stashing their pockets with millions of dollars in collaboration with tyranny meles zenawi and his likes from loan and donation money collected purportedly to “save lives in poor countries.”
The IMF exaggerating or even telling lies? No, don’t you say! How is that? We can not expect the “saviors of the downtrodden” to lie in favor of their servant, the lowly Weyane?
When one thinks about it though, that really should not come as a total surprise. All one has to remember is that they can not admit of a failure of a policy they design and support. Doing otherwise would make look bad. That is how they stay in their job. Think about the so called NGOs, for example. Have you ever seen them living in the city slums and seeing them living like most of the, say, ordinary Ethiopians live? Of course you haven’t seen them because, they never do. They rent some of the most expensive villas in town, can afford at least two servants (domestic and guard/gardener). They drive expensive (usually some SUV type) vehicles. They never have to worry about the skyrocketing fuel cost for their vehicles. They usually have some sabbatical leave where they fly back to Europe or USA all at the expense of the so called “Aid” that is supposed to be given to “poor and downtrodden” folks. Oh no, they call that “Overhead expenses”! It is true one has to have some “Overhead expenses”. But that expense must be much smaller than the expenditure used to help the “downtrodden” people. Regrettably, it is not uncommon, where as high as 80% of the fund is used so that the “Signoras” and “Signores” of the day can have some good time at the expense of the people they claim they are supporting!
But, if one dares to restrict or even get rid of them, then one is calling his death warrant for they and their government would do everything they can to make life miserable for you as if it was not miserable enough!
comment #4 OMG if i were you i wouldn’t speak. reading your comment makes me want to slap you on yur uglllllly face.
“you are the embodiment of your father generation”
you make me laugh for even coming to this web site and write. and what is hurting Ethiopia is having people like you have a low expectation of how the country should be. you are dispicable
It’s very sad, indeed. UN reports that over 60 million children are starving and 23 children have already perished in Shashemene alone. Food price is sky-rocketing, and both urban and rural people are starving. Ethiopia’s economy is overwhelmingly agricultural. And then where the hell is the impressive growth coming from? The overwhemingly dominant agricultural sector cannot even feed the population. Thus the hype and too much talk about impressive growth is bull-shiit.
Ethiopia is NO exception. Researches abound, IMF has never been an engine of growth. IMF sponsored countries have been marks of failure than success. Researches of prominent macroeconomists, like Prof Rober Barro, attest to this IMF failure.
Obbo Bulcha I couldn’t say more.People Like that person that has posted comment #4 makes me sick.I can tell you from his/her write he or she has no idea about what is going in Ethiopia under TPLF ruling leaded by Meles or she or her is here to pretened a fool.If I said Teddy Afro is in jail he or she would say “I’m not sure… he could be….I don’t know.”IMF and TPLF are using the poor Ethiopians to collect money from so called the first world/rich countries.Most of the money doesn’t reach the poor Ethiopians but ends up in hands of IMFs and TPLF leaders and their cheerleaders.I wounder how do these IMFs and TPLF leaders sleep at night after cheating millions of poor Ethiopians?May God Help Us All.
World bank and donor nations have given the regime in Addis Ababa at least 200 billion US dollars. This has not helped Ethiopians at all. May be its about time to ask regime of Tigre tribe what they’ve done with such staggering amount of money and how come still over 10 million Ethiopian children are in danger of starvation?
Or,,,
Open,,, the world bank vaults and tell Meles Zenawi and his lucky mujehadins to take as much money to prosper Ethiopia and wait and see…. I think world bank have rats as their planners who are feeding empty rehtorics to the world, enriching thugs right and left.
world bank shame, shame, shame …alover again shame..
foreward this dismay to their holes.
It is really a crude joke as stated by the editor. The IMF and World bank are the instruments of the United States and other western countries. They support and fund puppet regimes like the one led by Meles Zenawi and paint their rosy pictures for us to believe them. The IMF and World Bank policies have contributed to more impoverishments and deprivations. Under their economic policies, a handful amass wealth and power while the rest are made to hit the bottom of poverty and hunger. The IMF and the World Bank are the life lines of the regime of Meles Zenawi not because they want to combat poverty and famine in Ethiopia. They are there to prop up the dictator and prolong his misrule. The best option left to us is to destabilize their puppet regime and target their mission in Ethiopia. The money supply to the ruthless regime can only dry up when they are forced to leave Ethiopia. The west and their destructive institutions in Ethiopia should be singled out and targetted as our enemies.
the answer to theses and other blatant lies is found in abook titled ‘The confessions of an economic hit man’ in which IMF and other international organizaions cook the books to fit their agenda. I recommend the book to your readers. I am not surprised.
Woyane is an honest servant, IMF and World Bank will use
cosmotic help this hated regime to survive. No country developped with these organaizations help.
This will be the main news in Woyane holed Media for the coming three months!!!! Here is my surprise: if this type of organizations are saying like this, what do we expect from the Woyane Gangs??? Shame on IMF!!!!!!!!!
I think it is very same version of melese. May be Melese is the one who gave them the data.
For the sake of the ethiopian people please stop lying and make childish game on us.
What is ur point? Where isIMF wrong? focus on the substance. If we r growin as IMF says, so be it. Stop shouting and tell us where IMF went wrong.
Of course, this kind of news wouldn’t surprise most Ethiopians, who are bound to anlayse the real situation happening on the ground in Ethiopa. It is very much depressive to listen always that the misery of the poorest of the poor is allowed to continue forever by united hands of tyrants and the big world financial flow conctrolling instituations. IMF, World Bank and WTO, they are born and sustained in action to oppress the poorest of the poor and protect the interests of the wealthy nations all over the world. If they want to change Ethiopia and its people for the good, they can make it over night. What we want them to do for us is leave us alone. If you want to really help Ethiopia, help the freedom fighters to through away Woyane from the Palace. After that, we will show you how we can govern ouselves and make our mother land and its people prosperous.
Everyone,
There is no point posting article here without letting IMF/World Bank what they are doing. They need to be told by Ethiopians. Make them embarrassed, post it on the West media the game they are playing on Ethiopians by conspiring with Meles.
Starvation claiming Ethiopia’s tiniest:
please see here :http://www.cnn.com/2008/WORLD/africa/05/21/ethiopia.hunger.ap/index.html