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Ethiopia Economy

We Went, We Saw, We Got Chased Out…

Alemayehu G. Mariam

Following the Battle of Zela in 47 B.C. (present day Zile, Turkey), Julius Caesar claimed victory by declaring: “I came; I saw; I conquered.” In 2011, Caesar Meles Zenawi, the dictator-in-chief in Ethiopia, scattered his top henchmen throughout the U.S. and Europe to declare victory in the propaganda war on Diaspora Ethiopians. But there was no victory to be had, only {www:ignominious} defeat at the hands of Zenawi’s {www:tenacious}, resolute and dogged opponents. No victory dances; only a speedy shuffle back to the capo di tutti capi (boss of all bosses) to deliver the message: “We went; We saw; We got chased the hell out of Dodge!”

The purpose of the recent official travelling circus was to introduce and generate support among Diaspora Ethiopians for Zenawi’s five-year economic program pretentiously labeled “Growth and Transformation Plan”. In city after city in North America and Europe, Zenawi’s crew received defiant and pugnacious reception. Ethiopians made the various meeting venues and sites virtual mini-Tahrir Squares (Egypt). Ethiopian men and women, Christians and Muslims, young and old, professionals and service workers, students and teachers and members of various political groups and parties showed up in a united front to confront and challenge Zenawi’s henchmen. One need only view any one of the numerous videotapes online to appreciate the intensity, depth and strength of Diaspora Ethiopian opposition to Zenawi’s regime.

In Washington, D.C., Los Angeles, Las Vegas, Atlanta, Dallas, Seattle, New York, Toronto, London and various other cities, Ethiopians came out in full force and tried to gain admission into the meetings.  Many were singled out and turned back. In a widely-disseminated and cogently argued “open letter”,Fekade Shewakena, a former professor at Addis Ababa University, wrote Girma Birru, Zenawi’s official representative in the U.S., complaining about his discriminatory treatment in being refused admission at the meeting held on the campus of Howard University:

I was formally invited by an [Ethiopian] embassy staffer… I faced the wrath of the protestors as I was crossing their picket lines [to attend the meeting]. Then I met the people who were deployed by the [Ethiopian] embassy to man the gate, and do the sad job of screening participants and deciding what type of Ethiopian should be let in and what type should be kept out. I was told I was ineligible to enter and saw many people being returned from entering. One screener told me… “ante Tigre titela yelem ende min litisera metah” [Tr. Do you not hate Tigreans? What business do you have here?…]

The ethnic stripe test was the last straw for many of the protesters who denounced Zenawi and his crew as “murderers”, “thieves” (leba) and “opportunists” (hodams). Inside the meeting halls, those who asked tough questions were singled out and ejected by the organizers, often violently. Some were physically assaulted requiring emergency medical assistance. Nearly all of the meetings were disrupted, cancelled, stopped or delayed. To sum it up, those who made peaceful dialogue impossible, made angry verbal exchanges inevitable.

Zenawi in September, His Troops in April?

It will be recalled that in September 2010 when Zenawi came to the U.S. to speak at the World Leader’s Conference at Columbia University, he set off a firestorm of opposition among Ethiopians in the U.S. Busloads of Ethiopian activists descended on New York City to confront Zenawi, but they were kept away from the campus. A massive campaign (reminiscent of the anti-war protest days at Columbia in the late 1960s) was undertaken to mobilize Columbia students, faculty and staff to put pressure on the university administration to disinvite Zenawi.

Zenawi’s invitation also provoked strong reaction among non-Ethiopians. Prof. Ted Vestal, the distinguished and respected scholar on Ethiopia, outraged by Zenawi’s invitation wrote Columbia President Lee Bollinger: “The only way you can redeem the damaged reputation of the World Leaders Forum is by publicly making known the shortcomings of Prime Minister Meles and his government in your introductory remarks–a refutation similar to what you did in introducing President Mahmoud Ahmadinejad of Iran in 2007.”

World-renowned Columbia economist Prof. Jagdish Bagwati wrote in disgust: “It seems probable that the President’s [Bollinger] office was merely reproducing uncritically the rubbish that was supplied by one of these Columbia entrepreneurs [Columbia Professors Joseph Stiglitz (Zenawi’s sponsor) and  Jeffrey Sachs] whose objective is to ingratiate himself with influential African leaders regardless of their democratic and human-rights record, to get PR and ‘goodies’ for themselves at African summits, at the UN where these leaders have a vote, etc.”

I vigorously defended Zenawi’s right to speak at Columbia because I believed the opportunity could offer him a teachable moment in the ways of free people:

I realize that this may not be a popular view to hold, but I am reminded of the painful truth in Prof. Noam Chomsky’s admonition: ‘If we don’t believe in freedom of expression for people we despise, we don’t believe in it at all.’ On a personal level, it would be hypocritical of me to argue for free speech and press freedoms in Ethiopia and justify censorship or muzzling of Zenawi stateside. If censorship is bad for the good citizens of Ethiopia, it is also bad for the dictators of Ethiopia.

Following the Columbia episode, one has to wonder why Zenawi would send hordes of his top officials to the U.S. and elsewhere to evangelize on behalf of his regime. It is logical to assume that Zenawi conducted a “vulnerability analysis” of Diaspora Ethiopians before sending out his crew. It is likely that he studied Diaspora attitudes and perceptions toward his regime and the current situation in the country, the ethnic and political divisions and tensions in the Diaspora, the strength of Diaspora elite cooperation and intensity of conflict among them, etc. and decided to make his move. He likely concluded that any potential opposition to the meetings could be handled by utilizing an “ethnic filter” at the door of the meeting halls.

But what are Zenawi’s real reasons for sending his top cadre of officials to North America and Europe? There could be several answers to this deceptively simple question.

Zenawi’s Arsenal of Weapons of Mass Distraction

Careful evaluation of Zenawi’s propaganda strategy shows that the dispatch of officials to the to the U.S. and Europe is part of a broader integrated campaign to undermine opposition in the Diaspora, energize supporters and reinforce favorable perception and action by  foreign donors and banks. Manifestly, the mission of the crew sent to “dialogue” with the Ethiopian Diaspora was to divert attention from the extreme domestic economic, political and social problems in the country and to exude public confidence in the fact that the upheavals in North Africa are of no consequence in Ethiopia. The other elements in this propaganda campaign of mass distraction include belligerent talk of regime change in Eritrea, {www:inflammatory} water war-talk with Egypt, wild allegations of terrorist attacks, wholesale jailing and intimidation of opponents, proposals for the construction of an imaginary dam, attacks on international human rights organizations that have published critical reports on the regime (just a day ago, Zenawi’s deputy said he “dismisses” the 2010 U.S. Human Rights Report as “baseless”) and so on.  The hope is that the more Diasporans talk about the manufactured issues, the less they will talk about the real issues of stratospheric inflation, food shortages, skyrocketing fuel costs, massive repression, information and media suppression, etc. in Ethiopia.

By alternating propaganda topics from day today, Zenawi hopes to keep his opponents and critics talking reflexively about his issues and off-balance. The more outrageous his claims, the more reaction he is likely to elicit from his opponents and critics, and be able to better control the debate and the minds of those engaged in it. To be sure, by sending his travelling circus to the U.S., Zenawi has succeeded in angering, inflaming and riling up his Diaspora opponents. He knows just how to “get their goat”. He manipulates that outpouring of anger, rage and frustration to keep his opponents’ eyes off the prize.

The Propaganda Value of “In-Yo’-Diaspora-Face” Confrontation

By sending a large delegation into the Ethiopian Diaspora, Zenawi is also sending an unmistakable message: “In yo’ face, Ethiopian Diaspora! I can do what I am doing in Ethiopia just as easily in your neck of the woods.” It is a confrontational propaganda strategy tinged with a tad of arrogance. Zenawi seems to believe that the Ethiopian Diaspora is so divided against itself and inherently dysfunctional that it is incapable of mounting an effective opposition to his regime or even his crew’s visit. By unleashing swarms of regime officials in the Diaspora, Zenawi likely intended to further degrade the Diaspora’s ability to conduct or sustain opposition activities, {www:demoralize} and disconcert them and confuse their leadership. On the other hand, if he can muster a successful foray with his crew, he could establish his invincibility and spread pessimism and despair in the Diaspora. But the whole affair proved to be a total failure as have all previous efforts to stage “in yo’ face” confrontation with Diaspora Ethiopians. The Diaspora may be divided but not when it comes to Zenawi’s regime.

Effective Propaganda Tool Against the “Extreme Diaspora”

The other less apparent side of “in yo’ face” confrontation is to make a record of the “extreme Diaspora”. Zenawi will no doubt use this episode to show American and European  policy makers that he is reasonable and statesman-like while the opposition, particularly in the Diaspora, consist of an assortment of wild-eyed, hysterical, fanatical, intolerant, irrational, hateful and mean-spirited extremists. He will argue to American policy makers that he sent his top leaders to engage Diasporan Ethiopians in civil dialogue only to be attacked, insulted and berated. He will hand them copies of  well-edited videotapes of agitated protesters titled: “Behold the Ethiopian Diaspora!” In short, Zenawi will use the protest videos as Exhibit A to demonize, discredit, dehumanize, marginalize, categorize and sermonize about the Evil Extreme Ethiopian Diaspora. At the end, he will offer American policy makers a simple choice: “I am your man! It’s me or these raving lunatics.” Based on historical experience and empirical observations, some American policy makers may actually buy his argument.

Pandering to the U.S., IMF, E.U.

A third objective of the dog and pony show about the “Growth and Transformational Plan” is to please (hoodwink) the U.S., the International Monetary Fund, the European Union and others. It is an elaborately staged drama for this audience to show that Zenawi has a real economic plan for Ethiopia that exceeds the “Millennium Goals” (e.g. eradicate extreme poverty, reduce child mortality, fight AIDS, form global partnership, etc. by 2015). By making gestures of engagement with the Ethiopian Diaspora, Zenawi is trying to build credibility for his “economic plan” and that it has broad support within and outside the country. He deserves billions more in in loans and economic aid. Zenawi knows exactly what buttons to push to get the attention and approval of donors and loaners.

The “economic plan” itself floats on a sea of catchphrases, clichés, slogans, buzzwords, platitudes, truisms and bombast. Zenawi says his plan will produce “food sufficiency in five years.” But he cautions it is a “high-case scenario which is clearly very, very ambitious.” He says  the “base-case” scenario of “11 percent average economic growth over the next five years is  doable” and the “high-case” scenario of 14.9 percent is “not unimaginable”. The hype of super economic growth rate is manifestly detached from reality. The Oxford Poverty and Human Development Initiative Multidimensional Poverty Index 2010 (formerly annual U.N.D.P. Human Poverty Index) ranks Ethiopia as second poorest (ahead of famine-ravaged Mali) country on the planet. Six million Ethiopians needed emergency food aid last year and many millions will need food aid this year. An annual growth rate of 15 percent for the second poorest country on the planet for the next five years goes beyond the realm of imagination to pure fantasy. The IMF predicts a growth rate of 7 percent for 2011, but talking about economic statistics on Ethiopia is like talking about the art of voodoo.

Dialogue, Like Charity, Begins at Home

Like charity, dialogue begins at home. Zenawi should allow free and unfettered discussion of his economic plan as well as human rights record within Ethiopia first before sending his troupe into the Diaspora.  Conversation is a two-way street. If Zenawi wants to talk about his economic plan to Diaspora Ethiopians, he must be prepared to listen to their human rights concerns.

There is not a single Ethiopian who will oppose food sufficiency in that hungry country by 2015 or decline to contribute to the prosperity and development of Ethiopia. Reasonable people could disagree on Zenawi’s “growth and transformation plan”. History shows that similar schemes based on foreign agricultural investments in Latin America have produced Banana Republics. Whether Zenawi’s economic plan will produce a Barley or Rice Republic in Ethiopia is an arguable question. But there can be no development without freedom. There can be no development in a climate of fear, loathing and intimidation, and one-party, one-man domination. Most certainly, there can be no development without respect for fundamental human rights and the rule of law. Though it is very possible to pull the wool over the eyes of people who have very little access to information, it is impossible to fool a politically conscious, active and energized Ethiopian Diaspora community by putting on a dog and pony show.

 

 

Ethiopian Groundhog Year 2010

By Alemayehu G. Mariam

Groundhog Year in Prison Nation

In December 2008, I wrote a weekly column entitled “Groundhog Year in Prison Nation” summarizing some of my weekly columns for that year. I used the “groundhog year” analogy following the title of the motion picture “Groundhog Day” in which a hapless television weatherman is trapped in a time warp and finds himself repeating the same day over and over. I wrote[1]:

2008 in Ethiopia was Groundhog Year! It was a repetition of 2007, 2006, 2005, 2004… Everyday millions of Ethiopians woke up only to find themselves trapped in a time loop where their lives replayed like a broken record. Each “new” day is the same as the one before it: Repression, intimidation, corruption, incarceration, deception, brutalization and human rights violation. Everything that happened to them the previous day, the previous week, the previous month, the previous 18 years happens to them today. They are resigned to the fact that they are doomed to spend the rest of their lives asphyxiated in a Prison Nation. They have no idea how to get out of this awful cycle of misery, agony, despair and tribulation. So, they pray and pray and pray and pray… for deliverance from Evil!

It is December 2010, the end of the first decade of the 21st Century. Are Ethiopians better off today than they were in 2009, 2005…2000?

Does bread (teff) cost more today than it did a year ago…, five years ago? Cooking oil, household fuel, beef, poultry, gasoline, housing, water, electricity, public transport…?

Are there more poor people today in Ethiopia than there were a year ago… five years ago? More unemployment among youth, less educational opportunities, less health care?

Is there more corruption, more secrecy, less transparency and less accountability in December 2010 than in December 2009…?

Are elections more free and fair in 2010 than they were in 2008, 2005?

Is there more press freedom today than five years ago? More human rights violations?

Is Ethiopia more dependent on international charity for its daily bread today than a year ago…?

Is there more environmental pollution, habitat destruction, forced human displacement and land grabs in Ethiopia today than there was in 2005?

Are businesses paying more taxes and bribes in Ethiopia today than in years past?

Is Ethiopia today at the very bottom of the global Index of Economic Freedom (limited access to financing, inefficient government bureaucracy, inadequate supply of infrastructure)?

Let the reader answer these self-evident questions. Suffice it to say, “It is what it is!”

Montage of Scenes From 2010 Time Loop

So here we are in Ethiopian Groundhog Year 2010. As a year-end overview, I decided to select and highlight a few of my columns from the multiple dozens of weekly and other commentaries I wrote in 2010 and published on the various Ethiopian pro-democracy websites, and the Huffington Post[2] where all of my commentaries for the year are readily available.

January 2010 – Looking Through the Glass, Brightly

“Ethiopia is the country of the future,” Birtukan Midekssa would often say epigrammatically. Ethiopia’s number 1 political prisoner is always preoccupied with her country’s future and destiny. Her deep concern for Ethiopia is exceeded only by her boundless optimism for its future… To be the country of the future necessarily means not being the country of the past. Birtukan’s Ethiopia of the future is necessarily the categorical antitheses of an imperial autocracy, a military bureaucracy and a dictatorship of kleptocracy. Her vision of the future Ethiopia is a unified country built on a steel platform of multiparty democracy. Birtukan would have been pleased to explain her vision and dreams of the future country of Ethiopia; unfortunately, she cannot speak for herself as she has been condemned to “rot” in jail.

February 2010- Putting Lipstick on a Pig

Ethiopia’s dictators think we are all damned fools. They want us to believe that a pig with lipstick is actually a swan floating on a placid lake, or a butterfly fluttering in the rose garden or even a lamb frolicking in the meadows. Put some lipstick on hyperinflation and you have one of the “fastest developing economies in the world”. Put lipstick on power outages, and the grids come alive with megawattage. Slap a little lipstick on famine, and voila! Ethiopians are suffering from a slight case of “severe malnutrition”. Adorn your atrocious human rights record by appointing a “human rights” chief, and lo and behold, grievous government wrongs are transformed magically into robust human rights protections. Slam your opposition in jail, smother the independent press and criminalize civil society while applying dainty lipstick to a mannequin of democracy. The point is, “You can wrap an old fish in a piece of paper and call it ‘democracy’ but after 20 years it stinks to high heaven!”

March 2010- Waiting for Godot to Leave

The politics of “succession” to Zenawi’s “throne” has become a veritable theatre of the absurd. The personalities waiting in the wings to take over the “throne” (or to protect and safeguard it) bring to mind the witless characters in Samuel Beckett’s tragicomedy play Waiting for Godot, arguably the most important English play of the 20th Century. In that play, two vagabond characters anxiously wait on a country road by a tree for the arrival of a mysterious person named Godot, who can save them and answer all their questions. They wait for days on end but Godot never shows up… and the two characters keep returning to the same place day after day to wait for him; but they cannot remember exactly what happened the day before. Godot never came. Waiting for Zenawi to leave power is like waiting for Godot to arrive. It ain’t happening. He is not only the savior and the man with all the answers, he is also the Great Patron who makes everything work.

April, 2010- C’est la Vie? C’est la Vie en Prison!

When Meles Zenawi, the arch dictator in Ethiopia, was asked about Birtukan’s health in his prison on March 23, 2010, he was comically philosophical about it. He said Birtukan health is in “perfect condition”, except that she may be putting on some weight. “The health situation of Birtukan, the last I heard, is in perfect condition. She may have gained a few kilos, but other than that, and that may be for lack of exercise, I understand she is in perfect health… I am not surprised that they [U.S. State Department] have characterized Birtukan as a political prisoner, because I understand they have also characterized Ogaden National Liberation Front (ONLF) and Oromia Liberation Front (OLF) terrorists… as political prisoners… But that is life; I think the French say, ‘C’est la Vie.’

May, 2010- Speaking Truth to Power

For the past year, I have been predicting that the 2010 Ethiopian “election” will prove to be a sham, a travesty of democracy and a mockery and caricature of democratic elections. Without my literary and rhetorical flourish, that is now the exact conclusion of the international election observers. The “Preliminary Statement” of the European Union Election Observation Mission- Ethiopia 2010 stated: “The electoral process fell short of certain international commitments, notably regarding the transparency of the process and the lack of a level playing field for all contesting parties.” … Johnnie Carson, the Assistant Secretary of State for African Affairs in the State Department told the U.S. House Foreign Affairs Committee that “we note with some degree of remorse that the elections were not up to international standards… The [Ethiopian] government has taken clear and decisive steps that would ensure that it would garner an electoral victory.” Even Herman Cohen, the former U.S. Assistant Secretary of State who served as “mediator” in the so-called May 1991 London Peace Talks which resulted in the establishment of the Zenawi regime decried the outcome: “… I don’t think it was a fair election.”

June, 2010- Speaking Truth to the Powerless

Now that the hoopla around Meles Zenawi’s “election” is over, it is time for the Ethiopian opposition to take stock and re-think the way it has been doing business. We begin with the obvious question: “What happened to the Ethiopian opposition in the make-believe election of 2010?” Zenawi will argue vigorously that he defeated them by a margin of 99.6 percent (545 of 547 parliamentary seats). If that were the real “defeat” for the opposition, I would not worry much. Losing a sham election is like losing one’s appendix. But there is a different kind of defeat that I find more worrisome. It is a defeat in the eyes and hearts of the people. I am afraid the opposition collectively has suffered considerable loss of credibility in the eyes of the people by making a public spectacle of its endless bickering, carping, dithering, internal squabbles, disorganization, inability to unite, pettiness, jockeying for power, and by failing to articulate a coherent set of guiding principles or ideas for the country’s future.

July, 2010- Hummingbirds and Forest Fires

World history shows that individuals and small groups — the hummingbirds — do make a difference in bringing about change in their societies. The few dozen leaders of the American Revolution and the founders of the government of the United States were driven to independence by a “long train of abuses and usurpations” leading to “absolute despotism” as so eloquently and timelessly expressed in the Declaration of Independence… The Bolsheviks (vultures in hummingbird feathers) won the Russian Revolution arguably defending the rights of the working class and peasants against the harsh oppression of Czarist dictatorship. They managed to establish a totalitarian system which thankfully swept itself into the dustbin of history two decades ago… Gandhi and a small group of followers in India led nationwide campaigns to alleviate poverty, make India economically self-reliant, broaden the rights of urban laborers, peasants and women, end the odious custom of untouchability and bring about tolerance and understanding among religious and ethnic groups. Nelson Mandela and Oliver Tambo led ANC’s Defiance Campaign and crafted the Freedom Charter which provided the ideological basis for the long struggle against apartheid and served as the foundation for the current South African Constitution. In the United States, Martin Luther King and some 60 church leaders formed the Southern Christian Leadership Conference, becoming the driving force of the American civil rights movement.

August, 2010 – Steel Vises, Clenched Fists and Closing Walls

U.S. Secretary of State Hilary Clinton gave a speech in Poland… and singled out Ethiopia along with Zimbabwe, the Democratic Republic of Congo and others to warn the world that “we must be wary of the steel vise in which governments around the world are slowly crushing civil society and the human spirit.”… She pointed out: “Last year, Ethiopia imposed a series of strict new rules on NGOs. Very few groups have been able to re-register under this new framework, particularly organizations working on sensitive issues like human rights.”… Secretary Clinton said the acid test for the success or failure of U.S. foreign policy is whether “more people in more places are better able to exercise their universal rights and live up to their potential because of our actions?” By this measure, U.S. policy in Ethiopia has been a total, unmitigated and dismal failure. The evidence is overwhelming and irrefutable…

September, 2010- Indoctri-Nation

Ethiopia’s Ministry of Education issued a “directive” effectively outlawing distance learning (or education programs that are not delivered in the traditional university classroom or campus) throughout the country… Wholesale elimination of private distance learning programs by “directive”, or more accurately bureaucratic fiat, is a flagrant violation of Higher Education Proclamation No. 650/2009. Under this Proclamation, the Ministry of Education and its sub-agencies have the authority to regulate and “revoke accreditation” of a private institution which fails to meet statutory criteria on a case-by-case basis following a fact-finding and appeals process…. I believe the regime has a long term strategy to use the universities as breeding grounds for its ideologues and hatcheries for the thousands of loyal and dependent bureaucrats they need to sustain their domination and rule. The monopoly created for the state in the disciplines of law and teaching (which I will predict will gradually include other disciplines in the future) is a clear indication of the trend to gradually create a cadre of “educated” elites to serve the next generation of dictators to come.

October, 2010- Birtukan Unbound!

Birtukan was held for months in a dark room with no human contact except a few minutes a week with her mother and daughter. Fear, anxiety and despair were her only companions. Heartache knocked constantly on the door to her dark room needling her: “Did you do the right thing leaving three year-old Hal’le to the care of your aging mother?” Self-doubt kept her awake in that dark room where time stood still asking her the same question over and over: “Is it worth all this suffering? Give up!” But a voice in her conscience would echo thunderously, “Like hell you’re going to give up, Birtukan. Fight on. Keep on fighting. ‘Never give in — never, never, never, never, in nothing great or small, large or petty, never give in except to convictions of honor and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy.'” In the end Birtukan signed Zenawi’s scrap of paper making exception to convictions of honor and good sense. We expected nothing less from such a great young woman…. Prisoners can be brainwashed to say anything by those who control them. Prisoners who have endured torture, extreme degradation and abuse have been known to do shocking things to please their captors and ease their own pain and suffering. Abused prisoners have been known to deceive themselves into believing the cruelty of their captors as acts of kindness. It is called the “Stockholm Syndrome.” When the victim is under the total and complete control of her captor for her basic needs of survival and her very existence, she will say and do anything to please her captor.

November, 2010- Remember the Slaughter of 2005

November is a cruel month. Bleak, woeful, and grim is the month of November in the melancholy verse of Thomas Hood:

No warmth, no cheerfulness, no healthful ease,
No comfortable feel in any member–
No shade, no shine, no butterflies, no bees,
No fruits, no flowers, no leaves, no birds,
November!

//
And no justice for the hundreds massacred in Ethiopia in November (2005).
No redress for the countless men, women and children shot and wounded and left for dead.
No apologies for the tens of thousands illegally imprisoned.
No restitution for survivors or the families of the dead.
No trace of those who disappeared.
No atonement for the crimes of November.
No absolution for the slaughter of November.
November is to remember.

December, 2010- “So What!”

So what are the lessons of Groundhog Year 2010? The first decade of the 21st Century?

Lesson I. Crush your opponents with full force. Alternatively, vegetate them forever.
Lesson II. If you get into America’s face and stick it to her, she will always back down. Always!
Lesson III. “Democratization is a matter of survival.” If democracy stays alive in Ethiopia, Zenawi cannot survive. If Zenawi survives, democracy cannot stay alive.
Lesson IV: If you want democracy, you must struggle and sacrifice for it.
Lesson V. If your rights are being violated, defend them!
Lesson VI. Elections are like children’s marble game where everybody can play as long as the guy who owns the marbles wins all the time.
Lesson VII. If you want to win, you need to organize, mobilize and energize your base. You need to teach, preach and reach the people.
Lesson VIII. You want funding, don’t beg for it; dig deeper into your own wallets.
Lesson: IX. There is one law, one regime, one ruler, one circus master and only one man who runs the show in Ethiopia.
Lesson X: The greatest lesson of 2010 and the first decade of the 21st Century:

DESPAIR NOT! “THERE HAVE BEEN TYRANTS AND MURDERERS AND FOR A TIME THEY SEEM INVINCIBLE BUT IN THE END, THEY ALWAYS FAIL — THINK OF IT ALWAYS.” Mahatma Gandhi.

RELEASE ALL POLITICAL PRISONERS IN ETHIOPIA

[1] http://abbaymedia.com/News/?p=2052
[2] http://www.huffingtonpost.com/alemayehu-g-mariam/

Ethiopia: The Voodoo Economics of Meles Zenawi

“There are lies, lies and implausible lies,” to quote Meles Zenawi, the dictator-cum-economic spinmeister of Ethiopia. Last week, Zenawi told a snickering Parliament a story that is the equivalent of the proverbial bull that gave birth to a calf (or in Amharic “bere welede”): “We will be seeing an economic growth rate of 10.1 percent this year, while inflation will fall to 3.9 percent. This is the result of sound economic policy.” (Sorry, but this is the result of voodoo economics!)

For the past several years, Zenawi has been making hyperbolic claims of economic growth in Ethiopia based on fabricated and massaged GDP (gross domestic product) numbers, implying that the country is in a state of runaway economic development and the people’s standard of living is fast outstripping those living in the middle income countries. In March 2009, for instance, Zenawi’s bragged that he expected the Ethiopian economy to grow by 12.8 percent. The International Monetary Fund (IMF) disagreed in the same month stating that given the global economic crises Ethiopia could expect only about 6% economic growth. Zenawi dismissively countered those who pointed out the discrepancies: “We have differences with the international financial institutions when we predict our economic growth, but we usually agree on the economic growth statistics at the end of each year.” The questions remain: Did the Ethiopian economy grow by 12.8 percent in 2009/10? Could it be expected to grow by 10.1 per cent in 2010/11? Who is keeping track of the economic statistics?

The Central Statistics Agency (CSA) and the “National Accounts Department of the Ministry Finance and Economic Development” are the two institutions in Ethiopia that are responsible for keeping track of the statistical data and providing analysis on economic performance. But neither organization has the institutional capability to collect reliable and accurate economic data, let alone assemble complete and comprehensive data sets which could serve as empirical bases for economic prognostications. This fact was emphatically stated on March 24, 2010 in the official statement of Paul Mathieu, the IMF team leader who, after conducting an evaluation of the current half fiscal year economic performance of Ethiopia, said: “Statistics collection of the country requires transformations, and we advised the government to do that.” Translated from “diplomatese” into ordinary language, Mathieu’s statement makes it plain that the statistics and data generated and used by the regime to describe Ethiopia’s economic performance and make predictions are basically “cooked up.” The simple fact of the matter is that the statistics buttressing Zenawi’s exaggerated claims and projections of stratospheric economic growth, vanishing inflation and red-hot performance of key economic sectors originate from seriously flawed, massaged and deficient economic data cooked up in the kitchens of the two institutions for whom the IMF recently prescribed “transformations”.

Zenawi’s stated claims of multi-year runaway GDP growth taken at face value defy not only economic realities but also common sense. On March 4, 2009, the IMF reported that Ethiopia’s economic growth could slow to 6 percent in 2009 based on objective factors rooted in the global economic slowdown and specific trends in the critical foreign exchange earning sectors in Ethiopia such as coffee exports (with decreased demand and a 19 per cent decline in price), tourism and transportation, and depreciation of effective foreign exchange rates by 30 percent. The IMF also indicated that Ethiopia has the highest inflation rate (26%) in Africa outside Zimbabwe. In its April 2010 “Background Note: Ethiopia”, the U.S. State Department reported an average inflation rate (FY 2008-2009) of 36%. There is no IMF (or any other credible multilateral institution) year-end or any other report which indicates that Ethiopia could expect a 12.8 or 10.1 percent economic growth or a decline in inflation to 3.9 percent in 2009/10 or any other subsequent year. Indeed, IMF’s Mathieu stated on March 24, 2010 that “non-food inflation remains close to 20 percent, and has been rising in recent months.” The claim that “we usually agree on the economic growth statistics at the end of each year” is simply not true.

However, for a number of years Zenawi’s regime has been pulling a public relations sleight-of-hand by using the IMF as a front to channel its own preferred economic statistics to prove its economic prowess and unrivalled success to the world. For instance, IMF Country Report (Ethiopia) No. 08/264 (July 2008)[1], states: “Growth has averaged 11 percent since 2003/04, far exceeding the minimum target of 7 percent in the Program for Accelerated and Sustainable Development (PASDEP), that is estimated to be consistent with keeping the Millennium Development Goals (MDGs) within reach.” On pp. 20-24 of this Report, the origin of the data indicating an 11 percent growth is not some independent data collection and analysis source but the very same Central Statistics Office which last month the IMF said needs massive “transformation”. The footnotes in the above-referenced pages state: “Sources: Ethiopian authorities; and IMF staff estimates and projections.” Similarly, the data source for “Financial Soundness Indicators for Banking” is identified as the “National Bank of Ethiopia; and IMF calculations.” In its official reports, the IMF simply accepts and incorporates at face value the data for GDP growth given to it by the Central Statistics Office (with its own staff estimates) and incorporates those figures in its own report without so much as qualifying it for completeness, accuracy or reliability.

In the above-referenced report, the IMF further presents GDP growth data given to it by Zenawi’s regime for 2005/06 at 11.6 percent and 11.4 percent for 2006/07. The IMF uses its own “estimates” (without fully disclosing its methodology given the fact that IMF staffers are allowed considerable latitude in incorporating country-specific circumstances in making estimates) to make additional GDP growth projections for 2007/08 at 8.4 percent, followed by 6.0 percent for 2008/09; 6.5 percent for 2009/10; 7.5 percent for 2010/11; 7.5 percent for 2011/12 and 7.5 for 2012/13. The discrepancy between the IMF’s and the regime’s estimates appears to reflect the IMF’s clear lack of confidence in the regime’s economic data and analysis.

The bottom line on the regime’s statistical claims of economic growth, financial soundness and the rest of it is that the figures are cooked up in the Central Statistics Office and fed to the IMF, which slavishly (with a wink, nod and a smile) parrots back to the world the same figures with some of its own “staff estimates and projections”. This is the extent of the economic statistical game that continues to be played before our eyes.[2]

On the other hand, with respect to inflation, the World Bank (Policy Research Working Paper 4969, June 2009), citing IMF data concluded, “One of the most affected countries is Ethiopia, which, with the exception of Zimbabwe and small island economies, has had the strongest acceleration in food price inflation during recent years. Average food prices rose by more than 34 percent in 2007/08, but annual inflation reached historical record growth of 91.7 percent in July 2008.” On March 17, 2010, the regime’s Central Statistics Office reported, “Except for cereals, all food components have shown a rise. The prices of fuel, construction materials, clothing and footwear, furniture and personal care (products) are on the rise.” What empirical evidence exists in the first half of 2010 to justify a prediction of a steep decline in inflation to 3.9 percent in 2010/11 or beyond?

All of the statistical fairy tales about the economy told in Parliament were a source of puzzlement and amusement for Mr. Bulcha Demekssa, the leader of the Oromo Federalist Democratic Party (OFDM) and former vice-minister of finance and senior official at various international institutions. Mr. Bulcha asked Zenawi in Parliament how such fantastic GDP figures could be achieved: “The prime minister and the government have repeatedly said Ethiopia has grown by 10 and 11 percent. The prime minister and Ethiopian economists know that it is a miracle for Ethiopia to grow by 11 percent. How is it that Ethiopia grew by 11 percent? We know that China, South-Korea are registering such economic growth. But we are confused how Ethiopia ’s economic is growing like these countries. Our unemployment and poverty is on the rise.” Zenawi’s response was characteristically evasive, and he denied any real discrepancies: “We have differences with the international financial institutions when we predict our economic growth, but we usually agree on the economic growth statistics at the end of each year.

The answer to Mr. Bulcha’s question, of course, is obvious. Magic! All one needs to achieve an 11 percent growth is to invoke the GDP Spirits and recite to them the right incantations about “sustainable development”, “export-led growth” and “improved export revenue sector”. Then sprinkle a palmful of that fine IMF gold dust and command: “Shazam! Let there be economic growth of 10.1 percent! (or 12.8, does not matter any number will do). Abracadabra! Inflation, I command you to go down to 3.9 percent (or 1.1).” But the real “miracle” occurs when the magic wand is waived to deliver economic growth to a precise tenth of a percentage point such as 10.1 percent instead of merely 10.

All of the economic swagger and wind-bagging about unrivalled economic boom, prosperity and progress comes from a regime not known for its economic “literacy”. In an editorial published in the Economist magazine on November 7, 2006 in the context of the Starbucks coffee row, the magazine was graphic in its description of the regime: “The Ethiopian government, one of the most economically illiterate in the modern world, would do well to take Starbucks’s advice.

But there is a more fundamental question to be answered: Could a nation’s economic health be reduced to a single statistical summation? Does GDP growth necessarily mean improved in standard of living? Zenawi says GDP is the only measure of economic performance that has universal acceptance, and he will continue to use it until a better measure comes up. As anyone with an elementary understanding of economics knows, GDP has little value in meaningfully understanding a country’s economic growth, development and prosperity. Its analytical and descriptive value has been thoroughly critiqued in the economic literature. Suffice it to say that to claim that an economy grew by an 10.1 percent is like saying “activity” on city streets increased by 10.1 per cent. The street “activity” without specificity as to crime, car accidents, pedestrian traffic or other events by itself is meaningless. Yet for the past few years, the regime has been trumpeting GDP numbers as some sort of fetish that definitively explains Ethiopia’s economic growth. The GDP numbers, for instance, tell us nothing about the enormous disparity in incomes between the rich and poor in Ethiopia. By overstating economic welfare, GDP calculations do not tell us the magnitude of environmental damage that is taking place. GDP is certainly not a measure of the sustainability of growth, a point repeatedly made in numerous IMF reports on Ethiopia.

Even if actual GDP growth in Ethiopia is 11 percent or more, it is a meaningless statistic when considered in light of the basic needs and well-being of the people. In the vital area of health, for instance, Ethiopia is in a state of absolute wretchedness. According to World Health Organization (WHO) (2006) data[3], to serve a population of 77 million people, there were 1,936 physicians (1doctor for 39,772 persons); 93 dentists (1: 828,000); 15,544 nurses and midwives (1: 4,985), 1,343 pharmacists (1: 57,334) and 18,652 community health workers (1: 4,128). Total expenditure on health as a percentage of gross domestic product was 5.9 per cent. General government expenditure on health as a percentage of total expenditure on health was 58.4 per cent, and private expenditures covered the balance of 41.6 percent. Hospital beds per 10,000 population was less than 25. Per capita expenditure on health was USD$3 at an average exchange rate. WHO’s minimum standard is 20 physicians per 100,000 population, and 100 nurses per 100,000 population. Such is the real matrix of Ethiopia’s 12.8 or 10.1 or whatever fictional GDP number that is pulled from thin air.

On November 3, 2007, the Economist magazine reported:

The fact is that for all the aid money and Chinese loans coming in, Ethiopia’s economy is neither growing fast enough nor producing enough jobs. The number of jobs created by flowers is insignificant beside an increase in population of about 2m a year, one of the fastest rates in Africa…. The government claims that the economy has been growing at an impressive 10% a year since 2003-04, but the real figure is probably more like 5-6%, which is little more than the average for sub-Saharan Africa. And even that modestly improved rate, with a small building boom in Addis Ababa, for instance, has led to the overheating of the economy, with inflation moving up to 19% earlier this year before the government took remedial action. The reasons for this economic crawl are not hard to find. Beyond the government-directed state, funded substantially by foreign aid, there is—almost uniquely in Africa—virtually no private-sector business at all.

The IMF estimates that in 2005-06 the share of private investment in the country was just 11%, nearly unchanged since Mr Zenawi took over in the early 1990s. That is partly a reflection of the fact that, despite some privatisation since the centralised Marxist days of the Derg, large areas of the economy remain government monopolies, closed off to private business. This is where Ethiopia misses out badly. Take telecoms. While the rest of Africa has been virtually transformed in just a few years by a revolution in mobile telephony, Ethiopia stumbles along with its inept and useless government-run services…. There is no official unemployment rate, but youth unemployment, some experts reckon, may be as high as 70%. All those graduates coming out of state-run universities will find it very hard to get jobs. The mood of the young is often restless and despairing; many dream of moving abroad…. Just as the government is slowing the pace of economic expansion for fear that individuals may accumulate wealth and independence, so it is failing to move fast enough from a one-party state to a modern, pluralist democracy. Again, the reason may be that it is afraid to.

The Heritage Foundation, the pre-eminent conservative American think tank echoes the Economist in its 2010 Index of Economic Freedom[4] concluded:

Ethiopia underperforms in many of the 10 economic freedoms. The business and investment regime is burdensome and opaque. The overall quality and efficiency of government services have been poor and are further undermined by weak rule of law and pervasive corruption. Monetary stability is hampered by state distortions in prices and interest rates, and trade freedom is hurt by high tariff and non-tariff barriers…. All imports must be channeled through Ethiopian nationals registered as official import or distribution agents with the Ministry of Trade and Industry. Foreign participation is prohibited in domestic banking, insurance and microcredit services, and several other activities…. Ethiopia ranks 126th out of 179 countries in Transparency International’s Corruption Perceptions Index for 2008. Despite legal restrictions, officials have been accused of manipulating the privatization process, and state-owned and party-owned businesses receive preferential access to land leases and credit.

Zenawi is desperate to show economic development of epic proportions in Ethiopia after nearly 2 decades of clinging to power. The fact remains that despite the incredible claims of economic growth, tens of millions of people are starving and go without any health care. Millions of young people remain unemployed and trapped in hopelessness. There is no rule of law and human rights violations are widespread. Whether or not Zenawi’s regime has accomplished an economic feat with few rivals in modern history is not a matter of wishful thinking or public relations. It is a matter of evidence: accurate, complete, reliable and comprehensive statistical evidence that is systematically and carefully collected, analyzed and verified. Such evidence can not be invented, fabricated, manufactured, contrived, concocted or cut from whole cloth. Benjamin Disraeli, the 19th Century British prime minister said, “There are three kinds of lies: lies, damned lies, and statistics.” In Ethiopia today, we are witnessing all three!

[1] http://www.imf.org/external/pubs/ft/scr/2008/cr08264.pdf
[2] To see a consistent pattern of “economic gamesmanship”, see also IMF Country Report (Ethiopia) No. 07/247 (July, 2007); IMF Country Report (Ethiopia) No. 06/159 (May, 2006); IMF Country Report(Ethiopia) No. 05/25 (January, 2005) and other reports prior to these dates.
[3] http://www.afro.who.int/home/countries/fact_sheets/ethiopia.pdf
[4] http://www.heritage.org/Index/Country/ethiopia

Alemayehu G. Mariam, is a professor of political science at California State University, San Bernardino, and an attorney based in Los Angeles. He writes a regular blog on The Huffington Post, and his commentaries appear regularly on pambazuka.org, allafrica.com, newamericamedia.org and other sites.