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Month: May 2006

Third World cash exodus ‘points to laundering’

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By Philip Thornton, Economics Correspondent
The Independent

Money flowing into UK bank accounts from developing countries has surged in the past few years, dwarfing Britain’s official aid budget, figures show.

The amount flowing in from poor countries in areas such as Africa and South America surged more than $115bn (£61.2bn) last year to $385bn.

The scale of the exodus of capital from countries with major social problems will raise fears of massive corruption and money laundering that will hurt the welfare of the world’s most vulnerable people.

The New Economics Foundation said deposits had risen noticeably over the past five years, with inflows from Cameroon up 516 per cent, from Ethiopia rising 103 per cent and Nigeria up by 47 per cent. The UK aid budget has also risen sharply – 37 per cent between 2000 and 2004 – but the $6.4bn paid out in 2004 is tiny compared with the inflows.

Andrew Simms, the NEF policy director, said: “There’s a huge irony that the UK’s aid budget has gone up while there is this scale of money coming back. This is the first time the scale of capital movements has really come to light. It raises the potential for a scandal.”

He said the volume of cash coming out of Africa pointed to the existence of an “awful alliance” between the giant mining companies, the elite in the developing world and agents in rich countries such as the UK. “If there’s evidence of the fingers in the tills of developing countries, the feet are usually well planted in the West,” he said. “There are some legitimate questions to be answered.”

The UK Treasury said financial liberalisation could lead to significant gains for developing countries. “The same process of liberalisation that leads capital to flow to the UK also leads to significant flows from the UK to developing countries,” a spokeswoman said.

She said total UK bank claims on South Africa have risen from $1.8bn to $54.1bn in the three years to September 2005, and on India from $9.6bn to $19.3bn over the same period.

The NEF said all the issues magnified the need for transparency in countries benefiting from debt relief and greater aid payments to ensure the money was reaching the intended destination.

It also said the outflows from Bolivia, which recently elected a left-wing leader, had raised the possibility of a repeat of the exodus of money from Brazil after the election of Luiz Inacio Lula da Silva.

Shimagle reflects on May 15

GETZ # 6–A

By Donald N. Levine (aka Liben Gebre Etyopiya)

May 15, 2005 was marked by an extraordinarily large voter turnout for an unprecedentedly open multi-party election. As we know, the sweetness of that event turned sour; a year later, we suffer from its traumatic aftermath. From the perspective of a caring observer, I propose to take stock of the situation, to ask all to acknowledge possible mistakes, to express appreciation for what has been done, and to begin a year of constructive efforts toward national development and further development.

Let me start with my own deeds and mistakes.
During visits to Ethiopia in January and February of this year, I was able to mediate some communication between the Kaliti prisoners and the Prime Minister; to help secure medical help for some of the prisoners; to discuss with the Prime Minister ideas for furthering democratization and economic development; and to help establish in Awassa a peace center for youth which MP/Professor Beyene Petros described as offering a “novel approach to peace making in this troubled land.”

At the same time, I made a number of mistakes. I said things at various points that upset a number of Ethiopians whom I count as my friends. This led them to accuse me of being a stooge of the EPRDF, an enemy of Tigrayans, an ill-informed partisan of the opposition, and in one case even “the number one enemy of the Ethiopian people.” If I had expressed myself more carefully, some if not all of those hurt reactions could have been avoided.

Let me now mention some achievements and mistakes made by the EPRDF regime, the opposition parties, and the EU observers.

In contrast to previous elections, the EPRDF regime made efforts to offer opposition parties access to the public media. They also took the initiative to invite a number of international observers to monitor the elections. Despite their perception that certain CUD leaders had conspired to change the government by unconstitutional means, the EPRDF leadership encouraged them to take their seats in Parliament and thereby secure immunity against charges. And when CUD electees failed to do what was necessary to take over the administration of Addis Ababa, they extended the deadline for such accession more than once.

On the other hand, the government sent away some of the legitimate election observers. They made a rash decision to impose martial law the very evening of Election Day. The provocative event at Addis Ababa University that led to the first violence in early June was not investigated. Their security forces reacted too extremely to post-Election protests, when government security forces killed or wounded a great number of innocent civilians. They escalated antagonism with dangerous statements likening the opposition to genocidal forces elsewhere in Africa.

In contrast to previous elections virtually all the opposition parties participated in the 2005 election. They thereby set a wonderful precedent for future engagement in the national political process. They also showed statesmanship in their decision not to make resolving the disputes over contested seats a precondition for their participation in the Parliament.
On the other hand, to the detriment of that process, some winning opposition candidates cut their participation short. They refused to take the seats in Parliament to which they had been duly elected, despite the unanimous judgment of two public meetings in July with the most educated and mature elements in their constituency that they should do so. They refused to assume their official responsibilities for governing the city of Addis Ababa. They called for protest actions in November that led to the deaths of several civilians and policemen.

Some of those who refused to take their seats in Parliament are now in prison. Insofar as anything they did was actually in violation of the law, I believe it important to respect the forms of a systematic, independent–and, we hope, speedy–judicial review of their deeds as a step toward advancing the role of an independent judiciary in this country. On the other hand, following the trial and its outcomes they should publicly and officially be encouraged to rejoin the national political process.

It is important, finally, to acknowledge the contributions of all those Ethiopians and foreign observers who undertook the arduous task of serving as observers in that historic election. To be sure, some members of the European Observers Election group erred by rushing to judgment prematurely and otherwise acting in an unprofessional way, committing violations of their code of conduct which officers of the EU subsequently acknowledged. Those actions had significant adverse consequences for the aftermath of the election, for which I believe Ethiopian citizens have had to pay an enormous price.

It is understandable that each of the parties holds on to the injuries suffered in this complicated historic episode. My recommendation would be to follow the example of forgiveness that Ethiopian leaders have traditionally shown to those who harmed them. All must forgive, because the nation must move on.

Ethiopians must work together to face their daunting challenges: poverty and unemployment; food insecurity and famines (see Getz #6); poor and insufficient education; distressingly inadequate medical care; inter-ethnic conflicts; environmental degradation; and cultural renewal. Ethiopia must strengthen her position as a voice for peace and stability in one of the most tragically conflicted regions of the globe. These great challenges require the collaboration of Ethiopians of every ethnic and religious background and every political persuasion, including numerous fellow citizens in the Diaspora.

Despite the upsurge of ethnic politics in the past generation, it is abundantly clear that the bonds of Etyopiyawinet are alive and well. Indeed, they may in many quarters be stronger than ever. I salute the people of Ethiopia for maintaining those bonds and for carrying on with their traditional attachment to justice, their cheerfulness in adversity, and their determination to carry on. I say with all my heart: Idme le-hulatchu, idme le-Etyopiya!!

Kinijit leaders in Kaliti prison selected new Kinijit international leadership

The Kinijit leaders who are unjustly languishing in Kaliti jail are sending out a message this weekend to all Kinijit worldwide committees announcing their selection of a new leadership that will lead the party until they are released.

The new leaders are Ato Daniel Assefa (a prominent member of the 60-member CUD council in Addis Ababa, currently on a working visiting in the U.S), Ato Andargachew Tsegie (member of Kinijit-Europe leadership, who was instrumental in designing Kinijit’s organizational structure before the May 15 elections), Dr. Gebrye Wolderufael (a prominent physician residing in the Washington DC area), Major Joseph Yazew (current chairman of the Kinijit North America), Ato Berhane Mewa (current secretary general of Kinijit North America), and Dr. Moges GebreMariam (a physician and current treasurer of Kinijit-North America).

The new leaders will divide responsibilities among themselves, but previously the Kinijit leaders in Kality made it known that Ato Andargatchew Tsige, with his intimate knowledge of Kinijit’s organizational structure and manifesto, as well as his personal knowledge of all key Kinijit activists through out Ethiopia and around the world, is best suited to head the leadership group.

The Kinijit leaders made this decision on Friday.

Important weekend for Kinijit North America

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This weekend, May 13-15, Kinijit’s North America Support Committee will hold a very important meeting to discuss and decide on the future of the committee and its organizational structure. Since Kinijit is a popular party that most Ethiopians look upto to lead the struggle to remove the Meles fascist regime–in collaboration with Hibret– Ethiopian Review has been trying to focus its readers’ attention on the upcoming meeting, which will start tomorrow. Some of the valid, fact-based criticisms by Ethiopian Review were taken by a few supposedly Kinijit supporters who did not understand Kinijit’s principles and vision reacted negatively. All the TPLF cadres in the Diaspora also were mobilized to use this opportunity to fan the disagreement and cause division. But most focused on the crux of the matter, and now as a result, there is a healthy public discussion underway regarding Kinijit’s future. The discussion must continue in order to guarantee that Kinijit will stay a strong party that will help fulfill the aspirations of the people of Ethiopia.


In order for Kinijit to archive that, all its branches and support committees must be democratized. Currently, even though most of the Kinijit committees around the world are genuinely democratic, the Kinijit North America Support Committee is far from being one. It is this lack of transparency and democracy that is the root cause of all the problems and the frictions that spilled over onto public forum. What we are hearing currently is not encouraging. Reportedly, instead of democratizing the North America Support Committee, the current executive committee officials drafted a proposal that will allow all ten of them to remain in their position, but add one member from each time zone. This is not democratic, and will hurt Kinijit’s democratic culture. All of them must be up for election. The Kinijit delegates who are coming to Washington DC for the two-day conference need to make sure that they reject this proposal and demand for a genuinely democratic structure, the same as the Kinijit Support Committee in Europe, or Kinijit support committees in Canada and other countries. Ethiopian Review also encourages Kinijit members to contact their representatives and voice their opinion before the conference takes place–today and tomorrow. The trust of millions of Ethiopians is placed on Kinijit, and every one must try to make sure that this party stays strong.


The above is a personal opinion of ER Publisher.


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Explosions in Addis Ababa

U.S. Embassy Warden Message

This Warden Message is being issued to inform U.S. citizens that local police confirm that there were at least nine explosions in Addis Ababa today. The explosions occurred in the following areas: Piazza, Mercato, Old Airport, Granary/Confusion square and near the Black Lion high school. The explosions resulted in at least one death and several injuries. There have been no reports of American casualties.

The U.S. Embassy in Addis Ababa, Ethiopia reminds Americans to thoroughly check your immediate surroundings, maintain security awareness at all times, avoid suspicious or unattended packages and remain vigilant in public areas. Please be particularly vigilant on Monday, May 15, the first anniversary of the parliamentary elections.

The U.S. Embassy in Addis Ababa will continue to monitor developments and, as appropriate, provide periodic updates on the current situation on the Embassy’s website at http://addisababa.usembassy.gov.

U.S. citizens living or traveling in Ethiopia are urged to register with the U.S. Embassy in Addis Ababa or through the State Department’s travel registration website, , and to obtain updated information on travel and security within Ethiopia. By registering, American citizens make it easier for the Embassy to contact you in the event of an emergency. The U.S. Embassy is located on Entoto Avenue in Addis Ababa; telephone (251-(0)11) 124-2424; emergency after-hours telephone (251-(0)11) 124-2400; fax (251-(0)11)-124- 2435; web site .

Updated information on travel and security for Ethiopia may be obtained from the Department of State at 1-888-407-4747 within the U.S. and Canada, or at 1-202- 501-4444 from other countries. U.S. citizens should consult the Consular Information Sheet for Ethiopia, the Worldwide Caution Public Announcement, the East Africa Public Announcement, and the travel publication A Safe Trip Abroad, all of which are available on the State Department’s Internet site at.

Unity of Purpose & Sustaining Democratization in Ethiopia

By E.K. Yalew

The Importance of Pursuing a National Agenda

The dream France is fostering is one of vision… a powerful concept that moves countries, leaders and people to accomplish great things, especially in transforming their lives and those who live in their societies. To be meaningful, a vision (foresight) must be designed to respond to the real needs of real people at a given time in history. A vision must be shared, clearly understood, owned and, must be able to mobilize spirits, energies, talents, resources and capabilities of people. As critical, a vision must be translated into action.

Translating vision into action requires mindsets and behaviors that are directly related to values and principles. These would include:

•Shared Purpose

•Art of Leadership, including organizational acumen

•Team Work/Collaboration

•Mutual Trust

•Mutual Respect

•Integrity and Honesty

•Transparency and Openness

These values and principles will be discussed in greater detail in Part II of this paper. In Part I, we will diagnose the context and the arguments of why the democratization process in Ethiopia must be pursued with wisdom, patience, perseverance, strategic thinking—always using the National Agenda and Unity of Purpose as guide posts.

Context

When the Chinese popularized the vision that the “people can move mountains”, they believed and trusted the capacity of the Chinese people to achieve great things by harnessing the creativity and wisdom of the people. Look at where China is today. When President Kennedy vowed that Americans will put a “man on the moon,” he believed in the scientific capacity and determination of the United States to do just that. History proved him right. When Nelson Mandela vowed that South African blacks will achieve majority rule and democracy, he believed in the capacity, determination and commitment of the people to free South Africa from Apartheid. He lived to witness a multi-racial democracy that has won the admiration of the global community. When Gandhi challenged the British with his wise strategy of “peaceful resistance,” he believed in the resolve of the people of India to break the chain of colonialism and racism. Today, India is on the way to becoming an economic colossus. It is not too long ago that Martin Luther King made his “I Have a Dream” speech and mobilized the hearts and minds of millions of people around the globe and changed the course of history.

Whatever example we may cite, it is clear that charting and pursuing visions and goals that respond to the real political, economic, social, diplomatic and cultural needs of a society are absolutely critical to any country or people. There are no short cuts to achieve them. They cannot be achieved without mutual trust and respect. They cannot occur without leadership & organization. They cannot be accomplished without participation and inclusion of those that can and should be included. They cannot be achieved without persistence, sacrifice, collaboration and team work.

What does sustaining the National Agenda of Democratization mean to us?

Under the political leadership (s) of the Coalition for Unity and Democracy Party (CUD/P) and the United Ethiopian Democratic Front (UEDF), the Ethiopian people witnessed sharp differences in vision and goals between the ethnic-based political and social architecture of the Ethiopian Peoples Revolutionary Democratic Front (EPRDF) and these Opposition parties. The Opposition Parties offered the Ethiopian people a contrasting vision of an all inclusive, peaceful, pluralist, progressive, democratic, free-market oriented and unified Ethiopian society in which the rule of law and the settling of disputes peacefully will be the norm. The Opposition Parties challenged the leadership of the EPRDF to demonstrate the legitimacy of its Governance in political, economic, social, diplomatic, cultural and development policies and practices. The Ethiopian people were given contrasting and sharply differing choices. We now know the choices they made and the adverse consequences that followed.

The May 15, 2005 General Elections were therefore contrasts in vision and practice between the Governance of the EPRDF and the aspirations and hopes of the Ethiopian people as presented by the two major Opposition Parties in general and the CUD/P in particular. As in other countries, the May 15, 2005 General Elections–relatively free and fair up to that point–offered the Ethiopian people a historical opportunity to express their voices in shaping their future. A year ago, 26 million Ethiopians cast their ballots rejecting the legitimacy of the EPRDF. The onslaught against the leaders of the Opposition, civic society, youth, party supporters and others by the regime begum when it became clear that the vast majority of the Ethiopian people rejected its political, economic and social hegemony and leadership.

Almost a year later, the EPRDF leadership remains as intransigent as ever. It continues its scorched-earth policy of repression in order to perpetuate its political and economic dominance. It continues extra-judicial procedures and practices–fabricating false charges against the CUD/P leadership, journalists, civic leaders and youth. It continues to reject the call of the international community to release all political leaders and to begin dialogue with the Opposition. It cleverly and systematically crafts alternative, dependent, submissive and nominal parties loyal to EPRDF. In doing this, it has found and recruited short sighted and easily swayed allies. This is not, at all surprising. A regime that has lost legitimacy resorts to machinations to sustain itself. In many respects, the EPRDF has begun to resemble the Dergue during its fading phase.

At the same time, the Ethiopian people have shown a remarkable determination to sustain the democratization process at all costs. Many innocent Ethiopians have lost their lives for a noble cause. Equally important, Ethiopians in the Diaspora continue their allegiance to the people’s cause and vision. This persistence and determination will ultimately result in achieving a new, democratic, pluralist and progressive Ethiopian in the years to come.

As we observe the first anniversary of the May, 2005 Elections, it is critical that we make note and reiterate the eight (8) Point Preconditions that the leadership of the CUD/P issued as part and parcel of the democratization process. These are highlighted below:

1. The Restructuring of the Election Board into an Independent body;

2. Freedom of and access to All Media;

3. Independent legal system (free of EPRDF party control);

4. An Independent Commission to investigate the killings of innocent Ethiopians;

5. Non-involvement of armed forces or police in political affairs;

6. Reinstatement of Parliamentary procedures and Governance of Addis Ababa in accordance with the verdict of the people;

7. Release of all political prisoners; and,

8. Independent commission or body to adjudicate the above.

These points and principles remain as valid today as they were then. They are part of the democratization process that we should continue to defend.

What are the vital reasons for sustaining the democratization process?

Pretensions aside, Ethiopia’s economic, social and cultural development show persistent poverty. Despite massive foreign assistance totaling more than US$21 billion over the past 14 years, and the recent significant debt relief, the current Government has failed to better the lives of ordinary Ethiopians.. It is even unable to feed the poorest of the poor. There is ample evidence to show that its agriculture based development strategy has not produced the promised outcomes. In a most recent and thorough study on Poverty in Ethiopia, the authors identified the following structural issues, and indicators of failure under the EPRDF:

1. The Gross Domestic Product per capita today is “still slightly above the levels in the early 1970s, underscoring the deep-rooted nature of poverty;”

2. “The micro and macro evidence paint a picture of limited to no decline in consumption poverty (food and other consumables) since l992);”

3. “The agricultural sector (EPRDF’s economic policy foundation) barely kept up with rural population growth,” despite heavy donor contributions to the tune of US$21 billion since the current regime took power;

4. “Poverty in urban areas increased despite substantial growth in the services sector—largely fueled by Government expansion.”….This expansion in Government expenditure did not benefit the urban poor. On the contrary, the beneficiaries remain to be EPRDF loyalists who invest in selected industries, services and locations, including housing, manufacturing, transport, banking and mining extraction. The current regime’s investment, financial and monetary policies have created a growing urban inequality that any visitor to Addis Ababa and other cities would witness. Party affiliated and supported enterprises continue to benefit from Government procurement policies and practices. There is hardly a level playing field for non-EPRDF loyal Ethiopians regardless of nationality, religion or gender. Sadly, donor contributions of billions of dollars have not benefited the poor, especially rural Ethiopia. In fact, the beneficiaries are largely EPRDF party affiliated and run enterprises, leaders and loyalists.

5. The regime’s loss of Addis Ababa in the May 15, 2005 Elections is in part a manifestation of growing nepotism, corruption, lack of a level playing field for all Ethiopians, and therefore growing and sharp inequality. EPRDF lost legitimacy in Addis Ababa and else where in the country because it proved to be incapable and unwilling to respond to the economic, social and political needs and aspirations of the Ethiopian people. This was at the center of the debates during the elections that the Opposition parties surfaced and the public supported through its voice.

6. Today, HIV/AIDS afflicts at least 1.5 million Ethiopians. A total of 539,000 Ethiopian youth are AIDS orphans, one of the largest in Sub-Saharan Africa.

7. “There is a startling correlation between poverty in Ethiopia and the lack of educational achievement”, especially among girls and women;

8. “At 55-60 percent, pre-school child stunting remains among the highest in Sub-Saharan Africa…” This stunting of Ethiopian children will affect the potential contributions of a future generation of our youth, and therefore the productivity of the national economy;

9. Ethiopian women are among the most disempowered in the world. “With over 75% of women having received no education at all– compared to men at 50%–, the lack of access to educational opportunities for Ethiopian women is one of the major limiting factors in tackling endemic poverty. A Government that cares about its people will devote resources in tackling this limiting factor, instead of investing heavily in national defense, security, intelligence and in its members. The EPRDF does not have the interest, the commitment or the motivation to introduce and implement social policies that address the needs of the vast majority, including women.

10. Despite the demonstrated impact of education in reducing poverty and creating the conditions for sustained growth, Ethiopian society continues to suffer from an educational policy that is ethnic based, narrow in scope and depth, nepotistic and not responsive to the economic and social needs of the country. The study concludes that “education attainment in Ethiopia remains limited “

11. Ethiopians actually suffer from a double phenomenon under the EPRDF. Highly educated and trained Ethiopians leave the country for better and more secure lives abroad. Because of unfavorable political, economic and social policies, Ethiopia is unable to benefit from its investment in human capital. The brain drain is one of the most important results of the current policies of the EPRDF. Second, universal education at the primary level remains to be a pipe dream. On average, male adults complete 1.8 grades; and females complete .88 grade– less than first grade.

12. Numerous examples from the East Asian and other experiences suggest that education is the most critical variable in attaining sustained development. “The empirical study suggests that bringing all female adults to at least a 4th grade education could reduce poverty by 12 percent. Education will help households adopt new technologies and thus enhance productivity in agriculture, etc.” In addition, educated women are most likely to encourage their children to go to school and stay in school. The benefit is therefore not limited to women’s productivity; it is also a sure way of enabling the young to be educated and productive. Educating Ethiopians and creating a good political and governance environment within our country to retain and enable them to participate in all sectors of the economy are sure ways to fight poverty. No amount of foreign aid will be a substitute to this reality.

13. Ethiopia’s single most important capital asset is its people. The attainment of education, the retention and reentry of the thousands of Ethiopians in the Diaspora are vital for Ethiopia’s economic, social and cultural development. Sad, but true, internal objectives in social capital formation and institution building will be virtually impossible as long as the current political architecture of exclusion, disempowerment, and lack of pluralism, democratization and participation remain illusive.

14. The above and numerous other examples suggest that it will be impossible for Ethiopia to reach the United Nations mandated Millennium Development Goals (MDGS) of halving poverty (reducing poverty by half), by 2015. This said, a real break through in the political regime impasse–namely, freeing political prisoners, allowing the democratization process to take roots, and creating the conditions for peace and reconciliation….will mobilize and empower all Ethiopians in shaping their country’s future, and in meeting the MDGS. Without peace, national reconciliation, an all inclusive and democratic political system, Ethiopia’s future will remain bleak. The donor community should be aware that poring good money after bad money does not support the poor in Ethiopia. In fact, there are ample indications that the largesse from the donor community is routinely siphoned to enrich what we call the EPRDF inner club.. The donor community needs to recognize that without good governance–the establishment of genuine democracy in our country–foreign assistance will have little impact in tackling poverty in Ethiopia. Meantime, the EPRDF needs to assume total responsibility for our country’s dependency and poverty.

15. It is therefore clear that the EPRDF has failed in meeting the hopes and aspirations of the Ethiopian people. For this reason, sustaining the democratization process of May 15, 2005 is not a choice. It is a necessity. That is why the National Agenda has to be our guiding post.