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Ethiopia: The Art of Bleeding a Country Dry

Posted on , Updated on by Alemayehu G. Mariam

Alemayehu G. Mariam

Ethio-Corruption, Inc. (Unlimited)

“The people of Ethiopia are being bled dry. No matter how hard they try to fight their way out of absolute destitution and poverty, they will be swimming upstream against the current of illicit capital leakage”, wrote Economist Sarah Freitas who co-authored an upcoming report with  Lead Economist Dev Kar of Global Financial Integrity (GFI). The GFI report entitled, “Illicit Financial Flows from Developing Countries over the Decade Ending 2009,” previewed in the Wall Street Journal, found that

Ethiopia, which has a per-capita GDP of just US$365,  lost US$11.7 billion to illicit financial outflows between 2000 and 2009. In 2009, illicit money leaving the economy totaled US$3.26 billion, which is double the amount in each of the two previous years… In 2008, Ethiopia received  US$829 million  in official development assistance, but this was swamped by the massive illicit outflows.  The scope of Ethiopia’s capital flight is so severe that our conservative US$3.26 billion estimate greatly exceeds the  US$2 billion value of Ethiopia’s total exports in 2009.”

Two weeks ago in my commentary, “Why is Ethiopia Poor?”, I highlighted the fact that the Legatum Institute (LI), an independent non-partisan public policy group based in London, had recently ranked Ethiopia a pretty dismal 108th/110 countries on its 2011 Prosperity Index (LPI). Last year, the Oxford Poverty and Human Development Initiative (OPHDI) Multidimensional Poverty Index 2010 (formerly annual U.N.D.P. Human Poverty Index) ranked Ethiopia as the second poorest (ahead of famine-ravaged Mali) country on the planet. According to OPHDI, the percentage of the Ethiopian population in “severe poverty” (living on less than USD$1 a day) in 2005 was 72.3%.  Six million Ethiopians needed emergency food aid in 2010 and many more millions needed food aid in 2011 in what the U.N. described as the “worst drought in over half a century to hit parts of East Africa”.

The cancer of corruption is deeply embedded in the marrow of the Ethiopian body politic. The recently released  Transparency International (TI) 2011 Corruption Perception Index report on Ethiopia confirms the findings of GFI and other anti-corruption international organizations. For the past decade, TI has ranked Ethiopia at the bottom of the barrel of countries ruled by the most corrupt governments. In fact, for the past ten years Ethiopia’s score on the TI index has remained virtually unchanged (TI ranks countries on a 0 (“highly corrupt”) to 10 (“very clean”) scale.

TI Corruption Index Score for Ethiopia by Year

2011     2.7

2010     2.7

2009     2.7

2008     2.6

2007     2.4

2006     2.4

2005     2.2

2004     2.3

2003     2.5

2002     3.5

In light of the 2011 GFI and TI reports, is there any doubt today why Ethiopia is the second poorest nation in the world? Is it rocket science to figure out why Ethiopians are the second poorest people on the planet? Ethiopians are poor because they have been robbed, ripped off, flimflammed, bamboozled, conned, fleeced, scammed, hosed, swindled, suckered, hoodwinked, victimized, shafted and taken to the cleaners by those clinging to power like bloodsucking ticks on an African milk cow. Is it not mindboggling that the US$3.26 billion stolen out of Ethiopia in 2009 was double the amount stolen in 2008 and 2007!?!

The Art of Bleeding Ethiopia Dry

I have long argued that the business of African dictatorships is corruption. In a November 2009 commentary entitled “Africorruption Inc.”, I wrote the following about corruption in Ethiopia:

The devastating impact of corruption on the continent’s poor becomes self-evident as political leaders and public officials siphon off resources from critical school, hospital, road and other public works and community projects to line their pockets. For instance, reports of widespread corruption in Ethiopia in the form of outright theft and embezzlement of public funds, misuse and misappropriation of state property, nepotism, bribery, abuse of public authority and position to exact corrupt payments and gain are commonplace. The anecdotal stories of corruption in Ethiopia are shocking to the conscience. Doctors are unable to treat patients at the public hospitals because medicine and supplies are diverted for private gain. Tariffs are imposed on medicine and medical supplies brought into the country for public charity. Businessmen complain that they are unable to get permits and licenses without paying huge bribes or taking officials as silent partners.

Publicly-owned assets are acquired by regime-supporters or officials through illegal transactions and fraud. Banks loan millions of dollars to front enterprises owned by regime officials or their supporters without sufficient or proper collateral. Businessmen must pay huge bribes or kickbacks to participate in public contracting and procurement. Those involved in the import/export business complain of shakedowns by corrupt customs officials. The judiciary is thoroughly corrupted through political interference and manipulation as evidenced in the various high profile political prosecutions. Ethiopians on holiday visits driving about town complain of shakedowns by police thugs on the streets. Two months ago, Ethiopia’s former president Dr. Negasso Gidada offered substantial evidence of systemic political corruption by documenting the misuse and abuse of political power for partisan electoral advantage. Last week, U.S. State Department spokesman Ian Kelley stated that the U.S. is investigating allegations that “$850 million in food and anti-poverty aid from the U.S. is being distributed on the basis of political favoritism by the current prime minister’s party.” [As of December 2011, over two years after the investigation was launched, the State Department has not publicly released the results of its  investigation.]

Deceit, chicanery, paralogy and sophistry are the hallmarks of Meles Zenawi’s regime in Ethiopia. The cunning dictator has been able to shroud his corrupt empire by pursuing a propaganda policy of mass distraction and by staging one farcical political theatre after another. Zenawi has successfully distracted public attention from rampant corruption by

Making wild allegations of terrorism against his critics, persecuting and prosecuting his opponents and by jailing and exiling independent journalists (a couple of weeks ago, Zenawi shuttered Awramba Times);

Proclaiming a bogus Growth and Transformation Plan that will “double economic growth by an annual average of  14.9 percent” by 2015;

Selling Ethiopia’s most fertile land for pennies above the table and for millions under the table;

Panhandling the international community for famine and humanitarian aid and misusing that aid for political purposes;

Taking massive loans from international banks without     any significant accountability on how it is spent;

Trying to shame and intimidate Western bankers and donors by hectoring them of the evils of  “neoliberalism”;

Proclaiming the construction of an imaginary hydroelectric dam over the River Nile;

Sending troops to occupy Somalia and threatening war with other neighboring countries;

Vilifying international human rights groups, election observers and officials of multilateral organizations who disagree with him;

Dispatching swarms of officials to panhandle the Ethiopian Diaspora for nickels and dimes to buy dam bonds;

Systematically extracting foreign remittances sent by Diaspora Ethiopians;

Staging political theatre by a toothless anti-corruption agency to hoodwink complicit Western donors and loaners.

Etc., etc.

The Economics of Corruption

The Economist Magazine in its November 7, 2006 editorial described “the Ethiopian government as one of the most economically illiterate in the modern world.”  In 2009 at a high level meeting of Western donor policy makers in Berlin where, a German diplomat suggested that Ethiopia’s economic woes could be traced to “Meles’ poor understanding of economics”. They are all wrong!

No one knows corruption, the economics of kleptocracy, better than Zenawi.  The facts of Zenawi’s corruptonomics are plain for all to see: The economy is in the stranglehold of businesses owned or dominated by Zenawi family members, cronies, supporters or hangers-on. According to the World Bank, business enterprises affiliated with Zenawi’s regime control “freight transport, construction, pharmaceutical, and cement firms receive lucrative foreign aid contracts and highly favorable terms on loans from government banks.” Dataprovided by Zenawi’s regime  showed that by the end of the 2009 fiscal year, Ethiopia’s  outstanding debt stock was pegged at a crushing USD$5.2 billion. The USD$11.7 billion stolen over the past decade could easily retire that debt. Ethiopia is Africa’s largest recipient of foreign aid at nearly $USD4 billion in 2009, and the second largest foreign aid recipient in the world after Afghanistan.

Is There a Way to Stop Ethiopia from Bleeding?

The international community “naively” believes that corruption in Ethiopia and the rest of Africa could be controlled and significantly reduced by anti-corruption programs. The U.N. Convention Against Corruption (2003)requires signatories to “develop and implement or maintain effective, coordinated anti-corruption policies that promote the participation of society and reflect the principles of the rule of law, proper management of public affairs and public property, integrity, transparency and accountability.” Ethiopia signed the U.N. Convention in 2003. The Africa Union Convention on Preventing and Combatting Corruption (2003)  established a regime to empower African countries to “prevent, detect, punish and eradicate corruption and related offences in the public and private sectors.”  The Convention prescribes that “in order to combat corruption and related offences in the public service, State Parties” shall “require public officials to declare their assets at the time of assumption of office during and after their term of office  in the public service.” Ethiopia signed the AU Convention in 2004. Neither of these Conventions has even made a dent in controlling the metastasizing corruption in Ethiopia.

Zenawi knows the power of corruption. He has effectively used corruption allegations to neutralize and eliminate his political opponents. He used his “Federal Ethics and Anticorruption Commission” to railroad his comrade-in-arms and former defense minister, Seeye Abraha, to jail for six years on unsubstantiated allegations of  corruption. When then-Judge Birtukan Midekssa, and later Ethiopia’s first female political party leader and long suffering political prisoner, released Seeye for lack of evidence, Zenawi rammed legislation through his rubberstamp parliament  to deny Seeye bail and keep him in pretrial detention. He later fired Judge Birtukan.  In 2008, Zenawi’s anticorruption commission reported that “USD$16 million dollars” worth of gold bars simply walked out of the bank in broad daylight. A number of  culprits were fingered for the inside bank job, but no one was ever prosecuted. In February 2011, Zenawi publicly stated that 10,000 tons of coffee earmarked for exports had simply vanished from the warehouses. He called a meeting of commodities traders and in a videotaped statement told them he will forgive them because “we all have our hands in the disappearance of the coffee”. He warned them that if anyone should steal coffee in the future, he will “cut off their hands”.

For years, I have documented and railed against corruption in Ethiopia. In December 2008, three years to the month, in a weekly commentary entitled, “The Bleeping Business of Corruption in Ethiopia”, I wrote:

The fact of the matter is that the culture of corruption is the modus operandi in the Ethiopian body politics. Former president Dr. Negasso Gidada clearly understood that when he declared in 2001 that ‘corruption has riddled state enterprises to the core,’ adding that the government would show ‘an iron fist against corruption and graft as the illicit practices had now become endemic’. In 2007 when Ethiopia’s auditor general, Lema Aregaw, reported that Birr 600 million of state funds were missing from the regional coffers, Zenawi fired Lema and publicly defended the regional administrations’ ‘right to burn money.’…. Ironically, in 2003, Ethiopia signed the U.N. Convention Against Corruption; and a couple of months ago, a conference on institutions, culture, and corruption was hosted jointly in Addis Ababa by the United Nations Economic Commission for Africa and the Council for the Development of Social Science Research in Africa.

The fact of the matter is that absolute power corrupts absolutely. Zenawi has absolute power in Ethiopia.  Pleading for transparency and issuing moral exhortations against corruption will have no effect on the behavior of Zenawi or any of the other African dictators. Indeed, to plead the virtues of accountability, transparency and good governance with Zenawi and Co., is like preaching Scripture to a gathering of heathens. It means nothing to them. They are unfazed by moral hectoring or appeals to conscience. They sneer and jeer at those who rail and vociferate against corruption. Preaching to the corrupt, to put it simply, is an exercise in total futility!

In my November 7 commentary “To Catch Africa’s Biggest Thieves Hiding in America!”, I discussed the importance of initiating and cooperating with the U.S. Justice Department (DOJ) in civil forfeiture actions to seize corruptly obtained cash, personal or real property of any person or entity that can be traced to “specified unlawful activity”. These civil court actions extend to foreign offenses involving extortion, money laundering, or the misappropriation, theft or embezzlement of public funds by or for the benefit of a public official of a foreign government. (18 U.S. C. sections 981 (a) (1) (c); 1956; 1957.)  The U.S. has recently filed action to seize personal and real property of Teodoro Nguema Obiang Mangue, the 43-year old son of President Teodoro Obiang Nguema Mbasogo of Equatorial Guinea.

Carefully review and analysis of GFI and TI data sources reveals that public assets and funds stolen from many African countries, including Ethiopia, are often hidden in banks located in the U.S. and Europe, although the clever African dictators are now diversifying by taking advantage of  financial havens in countries experiencing rapid growth and industrialization. Much of the corruption activity centers around money laundering (that is,  illegal or dirty money is put through a complex cycle of financial transactions or washed and is transformed into legitimate or clean money).

The basic idea in money laundering is to minimize the chances of detection of stolen public assets and funds by breaking the direct link between the kleptocrats or “corruptocrats” and their collaborators by disguising the true ownership. Using financial consultants, shell companies (bogus companies that exist to simply create the appearance of legitimate transactions through fake invoices and balance sheets), fraudulent official documentation, wire transactions, and “smurfing” techniques (breaking up large amounts of money into smaller, less-suspicious amounts in the names of multiple persons) etc., those who have stolen public assets and funds try to sever or camouflage their loot from its illegal source by placing it in international financial institutions. The aim in money laundering is at least twofold: 1) gain anonymity and hide the audit trail in case of a criminal investigation, and 2)  plough the “clean money” into the legitimate economy by buying homes, investing in legitimate businesses, starting businesses and so on.

If the problem of corruption is to be addressed effectively in Ethiopia and the rest of Africa, it is not going to be at the fountainhead of the corruption itself but in the ocean where the river of corruption terminally flows. As one cannot expect the fox to safeguard the henhouse, one cannot similarly expect Africa’s dictators and corruptocrats and their collaborators to safeguard public assets and funds. A big part of the answer to the question of corruption lies in the Laundromats of financial institutions where the dirty money is washed. That’s why I believe it is the civic and moral duty of every Ethiopian and African to help the U.S. Justice Department catch Africa’s biggest thieves hiding in America. It is very easy to do, and do it anonymously.  Individuals with information about possible proceeds of foreign corruption in the United States, or funds laundered through institutions in the United States, should contact Immigration and Customs Enforcement, Homeland Security Investigations (ICE HIS) toll free at 866-347-2423 or send email to: [email protected]. If calling from outside of the U.S., the number is: 802-872-6199  

BLOW THE WHISTLE ON AFRICA’S BIGGEST THIEVES HIDING IN AMERICA!!!

Previous commentaries by the author are available at:

www.huffingtonpost.com/alemayehu-g-mariam/

and

http://open.salon.com/blog/almariam/

 

 

$11.7 billion stolen from Ethiopia: Wall Street Journal

Posted on , Updated on by Negash

Ethiopian Illicit Outflows Doubled In 2009, New Report Says

By Christopher Matthews | Wall Street Journal

Ethiopia lost $11.7 billion to outflows of ill-gotten gains between 2000 and 2009, according to a coming report by Global Financial Integrity.

That’s a lot of money to lose to corruption for a country that has a per-capita GDP of just $365. In 2009, illicit money leaving the country totaled $3.26 billion, double the amount in each of the two previous years. The capital flight is also disturbing because the country received $829 million in development aid in 2008.

According to GFI economist Sarah Freitas, who co-authored the report, corruption, kickbacks and bribery accounted for the vast majority of the  increase in illicit outflows.

“The scope of Ethiopia’s capital flight is so severe that our conservative US$3.26 billion estimate greatly exceeds the US$2 billion value of Ethiopia’s total exports in 2009,” Freitas wrote in a blog post on the website of the Task Force on Financial Integrity and Economic Development.

The report, titled “Illicit Financial Flows from Developing Countries over the Decade Ending 2009,” drew on data from the World Bank and the International Monetary Fund on external debt and trade mis-pricing to calculate illicit capital leakage. The study, which will be released later this month, measures the illicit financial flows out of 160 different developing nations.

Ethiopia is one of the poorest countries on earth as 38.9% of Ethiopians live in poverty, and life expectancy in 2009 was just 58 years.

“The people of Ethiopia are being bled dry,” Freitas wrote. “No matter how hard they try to fight their way out of absolute destitution and poverty, they will be swimming upstream against the current of illicit capital leakage.”

Ethiopia’s Awramba Times: More Powerful Than…

Posted on , Updated on by Alemayehu G. Mariam

Alemayehu G. Mariam

 AT1Awramba Times: More Powerful Than Ten Thousand Bayonets

“Four hostile newspapers are more to be feared than a thousand bayonets,” fretted Napoleon Bonaparte, dictator of France, as he summed up his determination to crush that country’s independent press. For dictator Meles Zenawi, Awramba Times, the tip of the spear of press freedom in Ethiopia, is more to be feared than ten thousand bayonets. Two weeks ago, Awramba Times, the last popular independent weekly, stopped publication after its outstanding managing editor and recipient of the 2010 Committee to Protect Journalists’ International Press Freedom Award, Dawit Kebede, was forced to flee the country. Dawit was tipped off about  Zenawi’s decision to revoke his 2007 “pardon” for a bogus treason conviction and throw him back in jail.

Needless to say, all dictators and tyrants in history have feared the enlightening powers of the independent press. Total control of the media remains the wicked obsession of all modern day dictators who believe that by controlling the flow of information, they can control the hearts and minds of their citizens.  But that is only wishful thinking. As Napoleon realized, “a journalist is a grumbler, a censurer, a giver of advice, a regent of sovereigns and a tutor of nations.” It was the fact of “tutoring nations” — teaching, informing, enlightening and empowering the people with knowledge– that was Napoleon’s greatest fears of a free press. He understood the power of the independent press to effectively countercheck his tyrannical rule and hold him accountable before the people. He spared no effort to harass, jail, censor and muzzle journalists for criticizing his use of a vast network of spies to terrorize French society, exposing his military failures, condemning his indiscriminate massacres of unarmed citizen protesters in the streets and for killing, jailing and persecuting his political opponents. Ditto for Zenawi!

But enlightened leaders do not fear the press, they embrace it; they don’t condemn it, they commend it; they don’t try to crush, trash, squash and smash it, they act to preserve, protect, cherish and safeguard it. Enlightened leaders uphold the press as the paramount social institution without which there can be no human freedom. “Were it left to me to decide whether we should have a government without newspapers, or newspapers without a government,” asked Thomas Jefferson rhetorically, “I should not hesitate a moment to prefer the latter.” George Washington was no less enthusiastic in recognizing the vital importance of the free press in “preserving liberty, stimulating the industry, and ameliorating the morals of a free and enlightened people.” It should come as no surprise that the Frist Amendment to the U.S. Constitution imposes a sweeping prohibition: “Congress shall make no law…  abridging the freedom of speech, or of the press…” NO government, NO official and NO  political leader in America can censor, muzzle or persecute the press.

The American press, protected by the plate armor of the  First Amendment, dutifully serves as the peoples’ eyes, ears and voices. In America, government trembles at the prospect of press scrutiny. In Ethiopia, government terrorizes the press. In America, government fears the press. In Ethiopia, the press fears government. In America, the press censors government. In Ethiopia, government censors the press. In America, the press stands as a watchdog over government. In Ethiopia, government dogs the press. That is the difference between an enlightened government and a benighted one.

Faced with a Jeffersonian choice, dictator Zenawi decided there shall be no independent newspapers or any other independent media in Ethiopia; and the only government that will exist shall be his own enchanted kingdom of venality, brutality, criminality and inhumanity. For years now, Zenawi has been shuttering independent newspapers and harassing, jailing and exiling journalists who are critical of his dictatorial rule earning the dubious title of “Africa’s second leading jailer of journalists.” On September 29, 2011, The Economist reported:

An open letter by international journalists to the Ethiopian foreign minister highlights broader abuses: ‘Ethiopia’s history of harassing, exiling and detaining both domestic and foreign reporters has been well-documented. Ethiopia is the second-leading jailer of journalists in Africa, according to the Committee to Protect Journalists. Over the past decade, 79 Ethiopian reporters have fled into exile, the most of any country in the world, according to CPJ data. A number of these have worked as stringers for international news agencies. Additionally, since 2006, the Ethiopian government has detained or expelled foreign correspondents from the Associated Press, the New York Times, the Daily Telegraph, Bloomberg News, the Christian Science Monitor, the Voice of America, and the Washington Post. We are also concerned by the government’s recent decision to charge two Swedish journalists reporting in the Ogaden with terrorism.’

Zenawi has indefatigably continued to swing the sledgehammer of censorship and finally succeeded in smashing and trashing Ethiopia’s free press. On November 11, 2011, the Committee to Protect Journalists reported, “A judge in Ethiopia’s federal high court charged six journalists with terrorism on Thursday under the country’s antiterrorism law, bringing the number of journalists charged under the statute since June to 10.” On November 15, newspaper satirist Abebe Tolla, better known as Abé Tokichaw, fled Ethiopia fearing imprisonment in retaliation for critical news commentaries. On November 21, Dawit Kebede, was forced into exile. Zenawi had long dangled the bogus 2007 pardon as a Sword of Damocles over Dawit’s head.

3cOver the years, I have written numerous commentaries in defense of the free press and press freedom in Ethiopia. A year ago this month, I penned “The Art of War on Ethiopia’s Independent Press” predicting the eventual shuttering of Awramba Times and Zenawi’s final solution to his problem of press freedom in Ethiopia:

Against the onslaught of this crushing juggernaut [of press repression] stand a few dedicated and heroic journalists with nothing in their hands but pencils, pens and computer keyboards, and hearts full of faith and hope in freedom and human rights. The dictatorship is winning the war on the independent press hands down. Young, dynamic journalists are going into exile in droves, and others are waiting for the other shoe to drop on them. The systematic campaign to decimate and silence the free press in Ethiopia is a total success. One by one, the dictatorship has shuttered independent papers and banished or jailed their editors and journalists. The campaign is now in full swing to shut down Awramba Times. The dictatorship’s newspapers are frothing ink in a calculated move to smear and tarnish the reputation of the Awramba Times and its editors and journalists. For the past couple of years, Awramba Times staffers have been targets of sustained intimidation, detentions and warnings.

Today Zenawi stands triumphant over the ashes of Awramba Times; and the destruction of press freedom in Ethiopia is now complete. There is no doubt Zenawi has won the war on Ethiopia’s independent press by total annihilation. But Awramba Times and its  young journalists also stand triumphant. They have fought and won the most important war of all – the war for the hearts and minds of 90 million Ethiopians. Team Awramba Times fought Zenawi with pens and pencils and computer keyboards. They brought a ray of light into a nation enveloped by the darkness of dictatorship. They defended the truth against Zenawi’s falsehoods and exposed his lies and deceit. They stood up for the peoples’ right to know against the tyranny of ignorance. They  made Zenawi squirm, squiggle, wiggle, fidget, twitch and go through endless sleepless nights. Zenawi persecuted and prosecuted them as enemies of the state, but they shall forever remain the true and loyal friends of the people. Zenawi accused them of being terrorists. That is true: They struck terror with the truth in the dark heart of tyranny. They unleashed terror in the minds of tyrants with demands for legal and moral accountability.

In the title of his commentary in the very last issue of Awramba Times, Dawit asked a simple but profound question: “Frankly, whose country is this anyway?” In the piece, Dawit explored many issues of vital interest to all Ethiopians. But in some of the most stirring words ever written against tyranny, Dawit informed the world why he decided to flee the country he loved so much:

When a man cannot live in his own country in freedom, faces privation and feels completely helpless, and where government, instead of being a shelter and sanctuary to its people, becomes a wellspring of fear and anxiety, it is natural for a citizen to seek freedom in any place of refuge.

Long before Dawit, Benjamin Franklin, “The First American” and one of the Founding Fathers of the United States and the man who declared, “Rebellion to tyrants is obedience to God”, summed it all: “Where liberty is, there is my country.” So Dawit, welcome to America, the land of free press!

A Tribute to Awramba Times and Its Young Journalists 

I write this commentary not to denounce the wicked villains and enemies of press freedom in Ethiopia, but to praise and celebrate the heroes and heroines of Ethiopia’s independent press. I write this commentary not as a eulogy to the late Awramba Times but as a living and loving tribute to the heroic and dedicated young men and women who shed blood, sweat and tears and overcame daily fears to keep Awramba Times and press freedom alive in Ethiopia.

But how does one give tribute to the young heroes and heroines who risked their lives to defend press freedom and human rights in Ethiopia?

I wish I possessed the “eloquence of diction, that poetry of imagination or that brilliance of metaphor” to express my deep pride and joy in Awramba Times and its young journalists. I wish I possessed the talent, the insight and sensibility to tell the world of the sacrifices and contributions of these young people for the advancement of press freedom not just in Ethiopia but in all of Africa, and indeed the world.

Lacking that eloquence, I ask myself: What words can I use to express my gratitude and appreciation to these young people who toiled day and night to speak truth to tyranny? What can I possibly say to console these young truth tellers in a country that has been rendered the land of living lies? How can I show my respect, admiration and awe to these young people who soldiered for freedom and human rights in Ethiopia armed only with pens, pencils and computer keyboards? How do I acknowledge the historic contribution of the young journalists of Awramba Times and others like them who struggled beyond measure to keep the candle of press freedom flickering in the darkness of dictatorship?

Thank You Awramba Times!

AT3Team Awramba Times[1] 

Thank you Awramba Times! Thank you Dawit Kebede, Woubshet Taye (recently jailed by Zenawi), Gizaw Legesse, Nebyou Mesfin, Abel Alemayehu, Wosenseged G Kidan,  Mekdes Fisseha, Abe Tokichaw and Mehret Tadesse, Nafkot Yoseph, Moges Tikuye, Tigist Wondimu, Elias Gebru, Teshale Seifu, Fitsum Mammo and [not pictured] Ananya Sori, Surafel Girma and Tadios Getahun. I thank you all; but I thank you not out of  formality, obligation or courtesy.   No, I thank you for

being the voice of the voiceless, the powerless, the voteless, the nameless and faceless. You kept on preaching the good news even when the tyrant sought to replace the peoples’ courage with cowardice, their faith with doubt, their trust in each other with suspicion and their hopes with despair.

teaching us all the meaning of  responsible journalism. You pages shined with integrity, accuracy and truthfulness. You informed us of the most pressing issues of the day. You offered us critical but balanced perspectives to make us think and understand. You did it all with professionalism, with malice towards none.

teaching us the meaning of ethical journalism. You revealed the truth and told the story without sensationalism and distortions. You held yourselves accountable by maintaining high standards and being responsive to your readers. You showed supreme moral strength in the face of corruption, preached truth to tyranny and made superhuman efforts to open the minds of the narrow-minded.

showing Zenawi what it means to have and be a free press. You have taught him that a free press is a mirror to society. Whenever he looked in the mirror of Awramba Times, he saw the image of brutality, inhumanity, criminality and venality. But the mirror does not lie; it only reflects what it sees. Smashing the mirror does not obliterate the image; it only fragments it into 90 million pieces.

giving us a platform on which to exchange policy ideas and discuss problems of governance.

being a class act! When the pathetic, vulgar, pandering and pitiful state media launched its vilification and fear and smear campaign and brayed to have Awramba Times shuttered, you responded with decency, civility, dignity, propriety, honesty, integrity, rationality and humanity. You even treated the tyrants with respect, honor, dignity and courtesy. What a class act you all are! I have never been more proud!

All of the young journalists of Awramba Times are my personal heroes and heroines. As I write these words, I am overcome with emotion of admiration, pride and joy; but Team Awramba Times does not need my praise or recognition. Team Awramba Times does not need my words to document their heroic struggle; they have inscribed their own glorious history of press freedom on the calloused breast of tyranny. Because of Awramba Times, generations of young Ethiopians to come will learn and appreciate the true meaning of human freedom and the need to maintain eternal vigilance over tyranny.

Awramba Times shall rise from the ashes of tyranny, and press freedom will be reborn on the parched landscape of dictatorship in Ethiopia. A new world rising over the horizon as the sun sets on tyranny and dictators sweat to cling to power in the Middle East. The wind of freedom shall blow southward from North Africa. A brave new world of knowledge, information, ideas and enlightenment awaits young people all over Africa. In this new world, ignorance, the most powerful weapon in the hands of African tyrants, is useless. It is easy to misrule, mistreat and enslave a population trapped in ignorance. But “A nation of well-informed men who have been taught to know and prize the rights which God has given them cannot be enslaved. It is in the religion of ignorance that tyranny begins.” It was the religion of ignorance and its high priests in Ethiopia that Awramba Times and its young journalists were sworn to oppose and expose.

I have never met any member of Team Awramba Times. But I have read every issue of Awramba Times since it became available online. Awramba Times was not only a source of news, informed analysis and opinion for me, I regarded it as the ultimate symbol of press freedom in Ethiopia. Those of us who are blessed to live in a land where press freedom is valued higher than government itself pledge to uphold our oath proudly inscribed on a frieze below the dome at the Jefferson Memorial in Washington, D.C.: “I have sworn upon the altar of God eternal hostility against every form of tyranny over the mind of man [and woman].” Amen!

Thank You Awramaba Times! Thank you Dawit, Woubshet, Gizaw, Nebyou, Abel, Wosenseged, Mekdes,  Abebe, Mehret, Nafkot, Moges, Tigist, Elias, Teshale, Fitsum, Ananya, Surafel, and Tadios. I also thank the indomitable Eskinder Nega (recently imprisoned by Zenawi), Serkalem Fasil, the internationally acclaimed journalist, former political prisoner and wife of Eskinder Nega, Sisay Agena and so many others!

I salute you! I honor you! I stand in awe of  your achievements and struggle for press freedom in Ethiopia!

Long Live Awramba Times! 

[1] Photo Lineup: Standing R to L: Woubshet Taye (deputy editor of AT, recently imprisoned by Zenawi) , Gizaw Legesse, Nebyou Mesfin, Abel Alemayehu, Wosenseged G Kidan,  Mekdes Fisseha, Abe Tokichaw and Mehret Tadesse. Foreground: R to L: Nafkot Yoseph, Moges Tikuye, Tigist Wondimu, Elias Gebru,  Teshale Seifu and Fitsum Mammo.

 

Why is Ethiopia Poor?

Posted on , Updated on by Alemayehu G. Mariam

First, Why is Africa Poor?

George Ayittey, the renowned Ghanaian economist and president of the Free Africa Foundation swears that “Africa is poor because she is not free”. Like Ayittey, Robert Guest, business editor for The Economist, in his book The Shackled Continent (2004), declares that “Africans are poor because they are poorly governed.” He argues that “Africa is the only continent to have grown poorer over the last three decades” while other developing countries and regions have grown richer. Much of Africa, it seems, was better off at the end of colonialism than it is today.

For Ayittey and Guest, the tens of billions of dollars in Western aid to Africa have done very little to improve the lives of Africans; at best, aid has served to “bankroll tyrants” and facilitate experimentation by “idealists with hopeless economic policies.” Statism (the state as the principal change agent) and dictatorship have denied the African masses basic political and economic freedoms while the few privileged kleptocrats (or thieves that have pirated the ship of state, emptied out the national treasury and plundered the economy) live the sweet life of luxury (la dolce vita), not entirely unlike the “good old” colonial times. As Ayittey explains, much of Africa today suffers under the control of “vampire states” with “governments that have been hijacked by a phalanx of bandits and crooks who would use the instruments of the state machinery to enrich themselves and their cronies and their tribesmen and exclude everybody else.” (“Hyena States” would be a fitting metaphor considering the African landscape and the rapacious and predatory nature of the crooks.) Simply stated, much of Africa languishes under the rule of thugtators (thugtatorship is the  highest stage of African dictatorship) who cling to power for the single purpose of using the apparatuses of the state to loot and ransack their nations. Such is the unvarnished truth about Africa’s entrapment in perpetual post-independence poverty and destitution.

Could it be said equally that Ethiopia is at the tail end of the poorest countries on the planet because she is not free and gasps in the jaws of a “vampiric” dictatorship? In other words….

Is Ethiopia Poor, Hungry, Ill and Illiterate Because She is Not Free and Poorly Governed?

A couple of weeks ago, the Legatum Institute (LI), an independent non-partisan public policy group based in London, released its 2011 Legatum Prosperity Index (LPI) which ranked Ethiopia a pretty dismal 108th/110 countries.[1] LPI’s findings are sobering as they are heartbreaking. Ethiopia has an “unemployment rate [that] is almost 21%, which is the sixth highest rate, globally.” The “capital per worker in Ethiopia is the fourth lowest worldwide.” The country has “virtually no investment in R&D.” The ability of Ethiopians “to start and run a business is highly limited… [with a] communication infrastructure [that] is weak with only five mobile phones for every 100 citizens”; and the availability of internet bandwidth and secure servers is negligible. Inequality is systemic and widespread and the country is among the bottom ten countries on the Index. The Ethiopian “education system is poor at all levels and its population is deeply dissatisfied.” There is “only one teacher for every 58 pupils at primary level, there is a massive shortage of educators, and Ethiopian workers are typically poorly educated.” Less than a “quarter of the population believe Ethiopian children have the opportunity to learn and grow every day, which is the lowest such rate in the Index.”

On  “health outcomes, Ethiopia performs very poorly. Its infant mortality rate, 67 deaths per 1,000 live births, and its health-adjusted life expectancy of 50 years, placing Ethiopia among the bottom 20 nations.” The population has high mortality rates from “Tuberculosis infections and respiratory diseases. Access to hospital beds and sanitation facilities is very limited, placing the country 109th and 110th (very last) on these measures of health infrastructure.” The core problem of poor governance is reflected in the fact that “there appears to be little respect for the rule of law, and the country is notable for its poor regulatory environment for business, placing 101st in the Index on this variable.”

But it is not only the LPI that has ranked Ethiopia at the rump of the most impoverished and poorly governed  nations in the world. Last year, the Oxford Poverty and Human Development Initiative (OPHDI) Multidimensional Poverty Index 2010 (formerly annual U.N.D.P. Human Poverty Index) ranked Ethiopia as the second poorest (ahead of famine-ravaged Mali) country on the planet. According to OPHDI, the percentage of the Ethiopian population in “severe poverty” (living on less than USD$1 a day) in 2005 was 72.3%.  Six million Ethiopians needed emergency food aid in 2010 and many more millions needed food aid in 2011 in what the U.N. described as the “worst drought in over half a century to hit parts of East Africa”. The World Bank this past June concluded that  “Ethiopia’s dependence on foreign capital to finance budget deficits and a five-year investment plan is unsustainable.” The Bank criticized dictator Meles Zenawi’s “dependen[ce] on foreign capital or other means of financing investment in an unhealthy, unsustainable way.” Ethiopia is the world’s second-biggest recipient of foreign aid, after Afghanistan, according to the Organization for Cooperation and Economic Development rankings of developing nations because its “leaders” have perfected the art of international mendicancy (panhandling).

That is not all. Every international index over the past several years has ranked Ethiopia at the very bottom of the scale including Transparency International’s Corruption Index (among most corrupt countries), the Failed States Index (among the most failed), the Index of Economic Freedom (among the most economically repressive), the International Bank for Reconstruction and Development Investment Climate Assessment (among the most unfriendly to business),  the Ibrahim Index of African Governance (among the most poorly governed African countries), the Bertelsmann Political and Economic Transformation Index (among countries most in need of reform) and the Environmental Performance Index (among countries with poorest environmental and public health indicators).

Of course, none of that comes as a surprise to those who are familiar with the  fakeonomics of Meles Zenawi. Zenawi says all of the Indexes, the World Bank and the International Monetary Fund (IMF) are wrong. He boldly claims the Ethiopian “economy recorded an average economic growth rate of 11 percent over the past seven years.” But that incredibly rosy growth rate figure, often repeated and republished mindlessly and unquestioningly by the international media, is based exclusively on statistics manufactured by Zenawi’s statistics department. This past June, the IMF debunked Zenawi’s imaginary economic growth estimate of 11.4 percent for 2009 “saying 7.5 percent is more realistic.” The IMF “forecast is even lower growth of about 6 percent for the coming year” because of a “more restrictive business climate”.

Economic principles, facts and realities are irrelevant to Zenawi. According to “Zenawinomics” (a/k/a “Growth and Transformation Plan”), there are bottomless pots of gold awaiting Ethiopians at the end of the rainbow in 2015: The Ethiopian economy will grow by 14.9 percent (oddly enough not 15 percent). There will be “food security at household and national level.” There will be “more than 2000 km of railway networks would be constructed” and power generation will be in the range of “ 8,000 to 10,000 MW from water and wind resources during the next five years.” The “whole community has mobilized to buy bonds. This huge savings and mobilization is used for infrastructure development… We are getting loans from China, India, Turkey and South Korea, so all these foreign savings are also mobilized… So I think we can perform on the ambitious plans that are in place.”

Zenawinomics is the economics of a magical wonderland, very much like Alice’s Wonderland: “If I had a world of my own,” said Alice “everything would be nonsense. Nothing would be what it is because everything would be what it isn’t. And contrary-wise; what it is it wouldn’t be, and what it wouldn’t be, it would. You see?”

Maybe you don’t see. That is the whole point. In what Zenawi describes as “one of fastest growing non-oil economies in Africa,” inflation is soaring, and by mid-2011, Zenawi’s Central Statistical Agency reported that the annual inflation rate had increased by 38 percent and food prices had surged by 45.3 percent. There are more than 12 million people who are chronically or periodically food insecure. Yet, Zenawi is handing out “large chunks” of the most fertile land in the country for free, to be sure for pennies, to foreign agribusiness multinational corporations to farm commercially and export the harvest. This past July, the U.S. Census Bureau had a frightening population forecast: By 2050, Ethiopia’s current population of 90 million population will more than triple to 278 million, placing that country in the top 10 most populous countries in the world. It just does not make any sense.

In May 2010, the Economist Magazine rhetorically asked: “Ethiopia’s prime minister, and his ruling Ethiopian People’s Revolutionary Democratic Front (EPRDF) expect a landslide victory in the general election due on May 23rd, and are likely to get one (they actually “won” it by 99.6 percent!). The bigger question is whether another five years of EPRDF rule will help ordinary Ethiopians, who are among the poorest and hungriest people in the world.”

Ethiopia Can Prosper Only If She Has Good Governance

The United Nations Development Programme and other international lending institutions define ‘governance’ as the “exercise of power or authority – political, economic, administrative or otherwise – to manage a country’s resources and affairs.” Good governance has to do with the “competent management of a country’s resources and affairs in a manner that is open, transparent, accountable, equitable and responsive to people’s needs.” There is substantial empirical research showing that political freedom, strong social and political institutions and proper regulatory mechanisms significantly contribute to economic growth. Stated simply, good governance and “good” (sustainable) growth are based on mutually reinforcing principles.

Where there is good governance, there is substantial political and legal accountability and much greater respect for civil, political and property rights. Leaders are held politically accountable to the people through fair, free and regular elections; and an independent electoral commission ensures there is no voter fraud, voting irregularities, vote buying, voter intimidation and voter harassment. Institutional mechanisms are in place to ensure the rule of law is followed and those exercising political power and engaged in official decision-making perform their duties with transparency and legal accountability.  Where there is good governance, citizens have freedom of association and the right to freely exchange and debate ideas while independent press, and even state-owned media, operate freely along with robust civil society institutions to inform and mobilize the population.

Good governance is an essential precondition for sustainable development. Stable and democratic governing institutions protect political and economic liberty and create an environment of civic participation, which in turn “determines whether a country has the capacity to use resources effectively to promote economic growth and reduce poverty.”   On the other hand, bad or poor governance stifles and impedes development and undermines competition in the marketplace. Where human rights and the rule of law are  disrespected, corruption flourishes and development inevitably suffers aspolitical leaders and public officials siphon off resources from critical school, hospital, road and other public works and community projects to line their pockets.  But where there is good governance, not only is economic development and growth accelerated, even chronic and structural problems of  food insecurity (famine) that have plagued Ethiopia for decades can be controlled and overcome. As Amartya Sen has argued no substantial famine has ever occurred in any independent country with a democratic form of government and a relatively free press.

Because there is little or no political accountability, Ethiopia suffers from poor governance and remains at the bottom of the indexes of the most impoverished nations  in the world. Programs intended for “poverty reduction” have been misused for political mobilization and rewards for voting for the ruling party. The country has been unable to promote broad-based economic growth because business attached to the ruling party have a near-total monopoly and chokehold on the economy making fair competition for non-ruling party affiliated entities in the market an exercise in futility. Because there is little respect for property and contract rights, those non-aligned with the ruling party feel insecure and disinclined to invest. The ruling regime has made little  investment in human resources through effective policies and institutions that improve access to quality education and health services as the LPI data shows. As a result, the rate of flight of professionals, intellectuals, journalists and political dissidents, is among the 10 highest in the world. The  International Organization for Migration has said it all: “There are more Ethiopian doctors practicing in the US city of Chicago than in Ethiopia.”

Ethiopia is universally regarded as one of the least free countries in the world and ranks at the very bottom of the 10 most repressive countries in the world for citizens’ freedoms in expression, belief, association, and personal autonomy. The respected Committee to Protect Journalists says, “Ethiopia is the second-leading jailer of journalists in Africa.” There is little regard for the rule of law as the LPI data confirms. In other words, those who occupy official positions have little respect for the country’s Constitution or laws, or show any concern for the fair administration of justice. The judiciary is merely the legal sledgehammer of the dictator and ruling party. The judges are party hacks enrobed in judicial garb with the principal mission of giving legal imprimatur to manifest official criminality. In sum, the rule of law in Ethiopia has been transmuted into the rule of one man, one party.

Few should be surprised by LPI’s conclusions that the “levels of confidence in the military and judiciary are both very low” and “Ethiopia is the country where expression of political views is perceived by the population to be most restricted.” None of the facts above matter to the dictators in Ethiopia because they are ready, willing and able to do whatever it takes to cling to power.

LPI’s dismal ranking of Ethiopia merely augments what has been solidly established over the years in the other Indexes. The question is why Ethiopia remains at the tail end of the most impoverished countries year after year. Zenawi’s “Federal Ethics and Anti-corruption Commission” (FEAC) conflates corruption and poverty in seeking to pinpoint the answer to this question. FEAC says the major sources of corruption in Ethiopia are “poor governance, lack of accountability and transparency, low level of democratic culture and tradition, lack of citizen participation, lack of clear regulations and authorization, low level of institutional control, extreme poverty and inequity, harmful cultural practices and centralization of authority.” Not quite! Poor governance, lack of accountability and transparency (a/k/a corruption), lack of citizen participation and the absence of the rule of law are the root causes of extreme and widespread  poverty, underdevelopment, aid-dependency, conflict, instability, starvation and injustice in Ethiopia. Have free and fair elections, allow the independent press to flourish, institutionalize the rule of law and maintain an independent judiciary,  professionalize and depoliticize the civil service, the military and police forces and Ethiopians will be well on their way to permanently defeating  poverty and making starvation a footnote in the history of the Ethiopian nation.

Ethiopia is poor, hungry, ill and illiterate because she is poorly governed and not free!

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[1] The Legatum Index is based on 89 different variables covering the economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom, social capital and so on. The Institute uses data collected by the Gallup World Poll, World Trade Organization, World Development Indicators, GDP, World Intellectual Property Organization, UN Human Development Report, World Bank, OECD and World Values Survey.

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