Numbers are important and Ethiopian-Americans for Change, formerly Ethiopians for Obama, is taking the initial steps of making the Ethiopian community within the United States ‘count’.
During the 2008 U.S. presidential campaign, the diligent work of Ethiopian-Americans for Change (then Ethiopians for Obama) earned a great deal of attention. Newspapers and online publications such as The Washington Post and The Huffington Post wrote about the group’s effort in working to elect Barack Obama. Obama’s campaign also acknowledged the work of the group in the form of a first letter ever written by a presidential candidate directly to the Ethiopian community… Read More
Many Ethiopians have been intrigued by the advent of the Ethiopia Commodity Exchange and many voices have been heard from around the world in our virtual cyber-community and in private communication, some encouraging, some thrilled, some questioning, some skeptical, some downright opposed. I would like to thank all of those who have taken the time to express their interest, whatever their viewpoint. Open dialogue on important ideas, in a mutually respectful manner, is vital to our ability to grow and evolve as a society and as an economy. As we proceed in our dialogue, I trust that those who organize these forums will enforce the necessary standards of courtesy worthy of our age-old civilization.
To quote Victor Hugo, “there is nothing so powerful as an idea whose time has come.” In response to the many thoughtful and sometimes provocative questions that have been raised, I would like to take this opportunity to share with you why we believe that the Ethiopia Commodity Exchange is an idea whose time has come. Here in Ethiopia, over the past two years, we have continuously held open discussions with our stakeholders, in numerous events, engaging with thousands of private market participants from farmers to traders to processors to exporters, from all sides of the market, as well as others. Given the recent interest by those in the Ethiopian Diaspora, we are happy to take the time to respond to concerns raised and to clear up the misinformation and misunderstanding that seem to currently prevail among some. We do so out of respect for our fellow Ethiopians and because we believe that all deserve to get the facts about this important initiative in our country. This is probably a good time to make the appropriate disclaimer that the views presented here are my views and, where relevant, those of the Exchange, and do not represent the government of Ethiopia, any other institution, or any political party. In this essay, I will focus on the core questions related to the need for the Exchange, its ownership and possible control by government, and whether it is a free market or a monopoly. For those who might not appreciate the technical detail provided, please skip to the end where I summarize the key points. For the rest, buckle up and enjoy the ride.
I start with addressing why ECX is needed to begin with, and why we believe it can fulfill its vision of “transforming the Ethiopian economy by becoming a global commodity market of choice.” Like most countries in early stages of development, Ethiopia depends on agriculture as the backbone of its economy. To get out of agriculture and transform into a modern industrial state, Ethiopian agriculture must become increasingly productive so that labor can shift into other sectors. Greater productivity comes through investing more capital into production, through investing in productivity-enhancing technology, such as fertilizer, seeds, better farming tools, mechanization, etc. This investment can only happen if it is profitable. Profitability depends on whether there is a market where the product can be sold reliably and efficiently. Understandably, farmers hate risk. In addition to weather and production risks due to pests, crop disease, and other vagaries of nature, farmers also face the risk that there is no buyer, that they can’t access the market or it is too costly to do so, that prices are unknown or will drop, or that they won’t get paid. These very real market risks and costs prevent them from making the investments they need to make to be more productive. So they are stuck in a vicious cycle, producing at low yields, mostly for themselves, which is why only 25% of total agricultural production reaches the market. Farmers are not the only people whose livelihood is constrained by the market. If they are unable to get the supply of raw commodity delivered to them when they need it or prices fluctuate or the quality is unreliable, industrial processors, such as flour factories or biscuit or oil manufacturers, routinely incur higher costs because they are unable to utilize their machinery at full capacity and are thus discouraged from expanding their production. Similarly, commodity exporters who have contracted with international buyers face the terrible risk of not being able to make their shipment on time if they are unable to get the supply in time or in the right quality. To avoid this risk, they often are forced to tie up their capital holding large inventories, which means they can’t readily expand their business. So there is a real market problem, and it is faced by many actors on all sides of the market. And this problem constrains our economic growth. How does ECX provide a solution? ECX is a neutral third party, providing service to the market in four major ways. First, ECX certifies the quality of the commodity to be sold and holds it in warehouse on behalf of the seller, thus guaranteeing the quality, quantity, and delivery of the commodity to the buyer of that commodity. This solves the problem faced by buyers such as exporters and processors. Second, ECX operates a payment clearing and settlement system which takes payment from the buyer and transfers it to the seller, guaranteeing that the payment will be made in the correct amount and on time. This solves the problem faced by sellers, such as farmers and traders. Third, ECX provides a trading system which enables buyers and sellers to find each other when they need to trade. This trading system is for now a physical Trading Floor where bids and offers are made in person by buyers and sellers (or their agents) but will also have an electronic trading platform which can be accessed remotely. Finally, ECX disseminates information on prices as soon as trades are made to everyone in the market so that no one is at a disadvantage because they are missing market information. This price transparency helps everyone to plan their commercial actions better and thus make better deals. Having a reliable market system helps farmers produce more, expands our industrial base, increases our exports, and enhances our food security because commodities reach the areas where they are most needed faster and at lower cost. That is why commodity exchanges are part and parcel of most advanced and more recently emerging economies around the globe, starting with the best known US commodity exchange, the Chicago Board of Trade, started in 1848 for precisely the same reasons why our farmers and others in Ethiopia and our economy as a whole would benefit from an organized market.
I would now like to address a set of related questions: Who should own the exchange? If the government of Ethiopia owns it, how can it be considered a free market? Is it a monopoly and/or an instrument of control? These are all valid questions and have been asked many times by our stakeholders here in Ethiopia. Let us start with ownership. The historical experience is that exchanges in Western countries were set up by private actors as “mutual organizations” on a non-profit basis, meaning that a group of merchants got together and set up this third party marketing system which sustained itself from fees charged to its mutual owners, or members, at zero profit. Even though the exchange itself was non-profit, the members who owned the exchange on the other hand privately benefited from the system by restricting entry into the mutual organization and charging for-profit brokerage fees to non-members to use the exchange trading system, thus becoming very profitable, large brokerage firms such as Charles Schwab, Merrill Lynch or others. Over time, this system of mutual ownership become problematic because of the inherent conflict of interest in that the owners who were also members tended to put their private interest ahead of the market’s interests. So, traditional exchanges in most of the Western countries and newly established exchanges in the emerging markets have in the last decade evolved to “demutualized” entities, meaning that the owners are separate from the trading members. In the US, this has meant that most of the exchanges have gone public, meaning that they have sold shares to many individuals, who are not members of the trade. In places like India, exchanges have been recently set up owned by a few investors, such as banks or insurance companies (half state owned and half private), again who are not trading members. However, if there are investors or shareholders, it implies that the exchanges no longer have a non-profit orientation, meaning that they charge fees intending to maximize profit, rather than at cost. In the case of Ethiopia, having reviewed these various global experiences, we chose a unique “hybrid” model. Our model adopts the demutualized entity status in keeping with global trends, but retains the traditional system of membership and the non-profit status of the exchange, in order for it to attract maximum participation and not to impose a financial burden on the market users. In effect, this is a Private-Public partnership model in that, as a non-profit, it would only make sense for the state to sponsor the investment since no private actor would be willing to invest large sums on a non-profit basis. At the same time, there is private ownership of a restricted number of permanent and freely tradable membership seats (like shares) which gives incentive to private members to profit from using the exchange system and from charging brokerage fees to non-members. This model essentially marries the social objectives of creating an organized market with private profit incentives. By law, and unlike any other publicly owned enterprise in Ethiopia, our Exchange operates on an at-cost basis and does not pay dividends to the government Treasury and may only re-invest any net earnings into its own scaling up. Initially, in fact, the Exchange is operating at a loss since it charges fees somewhat below cost, in order to encourage participation. Thus, there is no motive to retain ownership by the state and over time, as the Exchange system takes hold, the government has publicly expressed its commitment to passing ownership to private entities. This model is not entirely without precedent. In the US, Government Sponsored Enterprises (GSEs) in the financial sector, the most well known of which are Fannie Mae and Freddie Mac corporations which operate multi-trillion dollar markets for home mortgages, were set up under state ownership in 1938 and later went into private shareholding in 1968. Their recent bailout, along with other financial institutions, by the US government following the 2008 financial crisis has restored ownership back to the US government. Many stock exchanges in emerging markets, such as Dubai, Tel-Aviv, Eastern Europe, and others, are established with government ownership, usually for the same reasons as Ethiopia, that the investment costs are too high to encourage private investment and because the exchange is desired for social objectives, as a benefit to the economy. I should mention that the start-up cost of our Exchange is in the order of US$ 24 million which, because of its public ownership and non-profit nature, was able to be financed by donor partners such as the USAID, World Bank, UNDP, WFP, Canada, and others.
And now, for what really matters, what about control? To begin, it is important to understand that, although government-owned, the Exchange is not a part of government. It is not an agency or department of any particular state organ. It is established, by law, as an autonomous commercial enterprise having its own legal status. A parallel example might be Ethiopian Airlines, although the corporate governance of the Exchange is unique. Our establishing law extends the concept of demutualization further to separating ownership, membership, and management. Thus, by law, the Exchange is managed by professionals that cannot be appointed from within government or come from the trading community. The Exchange has its own salary structure and its employees are not part of the civil service. In fact, at present, the Exchange has an internationally recruited management team of 10 professionals, financed by external donors, as a management on loan program, to ensure that the Exchange is run professionally and to transfer needed skills. Again, unlike any other publicly-owned enterprise in Ethiopia, the Board of Directors is composed in almost equal part of representatives of the owner (state) and the private members of the Exchange as well as the CEO as a non-voting director. The Exchange’s CEO is appointed by and reports to this Board of Directors. Thus, without any doubt in the law or in practice, the Exchange is managed independently of any government organ and is a serviceproviding entity to the private market actors. There is no interference or intervention in any aspect of day to day ECX operations, whether it is the warehousing and quality inspection, the dissemination of price information nationally and internationally (which relies mainly on the systems that ECX itself has developed), the financial systems, or the trading sessions. One could say, and many of our private sector members have quickly realized once it was explained, that the ownership-membershipgovernance model described above essentially gives a free pass to our private members, who can gain private profit from the exchange at minimal cost, without investing in the expensive assets, and still have a big say in the management of the entity.
At the same time, like in any country, no market can exist in a vacuum outside the reach of policy or the laws of the land. Thus, our Exchange regularly consults with appropriate line Ministries on the direction of policies, regarding changes to domestic or external trade policies, tax, or macro policies. This is no different than in South Africa, the US, India or elsewhere. For example, in 2008, when domestic inflation got out of hand, the Indian government banned rice and wheat trading on the Exchange and imposed an export ban. This has nothing to do with who owns their exchanges (in fact it is a combination of public and private investors). Similarly, the US has recently initiated a crackdown on excessive speculation in the commodity markets (oil) and imprisoned or fined several market actors such as Bernie Madoff who violated laws in the financial market. In addition to the laws and policies that govern a market in any country, all exchanges also have their own internal Rules that govern how the market is organized and how the market actors must behave. The Rule books of the Chicago and New York commodity exchanges are thick volumes with thousands of pages developed over 160 years with detailed instructions on how to govern their market. We also have our Rules of the Exchange that, like in the US, Argentina, Brazil, India or elsewhere, have to be approved by our regulatory body, the newly established Commodity Exchange Authority. This Authority is a government body which has the mandate of overseeing that our Exchange itself and our Members are in compliance with our law and with the other laws of the country and with our Rules. Having been set up alongside our Exchange, the Authority has been in active partnership to build its capacity through training with the US Commodity Futures Trading Commission, on which it is modeled. In any country with a serious market, government regulators like SEC and CFTC in the US, or FMC and SEBI in India, have a significant and constant presence. So a market is not a free market because it is operates outside of laws or rules. It is in fact the presence of these laws and rules that ensures that the integrity of the free market, or the principle of market competition, is maintained. For example, one of our rules regarding our Trading Floor is that all prices must be shouted out audibly so that all market actors can hear the bid or offer. This is a rule designed to ensure that everyone has a fair chance to compete for that trade.
So what makes a free market? It is, within the confines of the existing rules and laws in place, the absence of interference by any third party in the actual buying and selling of any good. In a free market, as long as the rules are followed, any seller can sell whatever they want to any buyer at any price, any time, and in any amount, and vice versa. Let us think of a free market like driving on a highway. As long as you have a driver’s license, a registered and insured vehicle, and follow the traffic rules, you can drive in any car you want, anywhere you want, with whomever you like, for as long as you like (gas permitting, of course). The rules are there to ensure that everyone is safe on the highway. In our Exchange market, this is precisely the case today. Our 450 mostly private trading members freely trade at prices and quantities and with whom they like without any interference whatsoever.
Finally, what about a monopoly? Why force all coffee or all sesame trading into the Exchange? Why not let people choose to use the Exchange of their own free will? To extend our above analogy, we might say that this is like forcing all drivers onto a single highway. At first glance, this seems quite unpalatable and rather contrary to the notion of a free market. Here is the catch. Among the four functions of the Exchange that were listed above, its very core role is to provide a central trading system for buyers and sellers to match their trades. This trading system results in what is known as “price discovery” which is the emergence of the competitively bid market price that reflects true supply and demand of a good at a particular moment. However, to be a truly representative market price, the trading system needs a critical mass of sellers and buyers, otherwise the Exchange’s price is meaningless as an indicator of market supply and demand. In other words, if the ECX price represents only a small share of the actual market trading, then this price is not the true market price. For this reason, all of the world’s exchanges essentially force this critical mass of trading in a commodity or stock into a single trading system. That is why there are only two major stock exchanges (NASDAQ and the New York Stock Exchange) for the entire U.S. economy and most companies are only listed on one of these exchanges. Similarly, for commodities, although there are about 4 active commodity exchanges in the US, each commodity is traded exclusively on only one exchange. For example, Hard Red Spring Wheat is only traded on the Minneapolis Grain Exchange and Soft Winter Wheat is only traded on the Chicago Board of Trade, and so on. By the way, the term “monopoly” is not the correct use of the term in this case since monopoly implies a single buyer or a single seller that sets prices non-competitively and, here, we have hundreds of buyers and sellers freely trading competitively at their own prices. We would hardly say the Chicago Mercantile Exchange has a monopoly on corn trading, no more than we would consider that the CEO of Fannie Mae is part of the US government. So, more appropriately, it can be said that our exchange, like other exchanges elsewhere, is an exclusive platform for trading in particular commodity contracts. Over time, as the market volume and liquidity grow, it might be appropriate to have more than one commodity exchange and our law provides for the Ethiopian regulatory body to recognize other exchanges.
IN SUM, here are the key points. A better functioning market is good for everyone and for the economy, from farmers to domestic traders to processors to exporters and an exchange is a tried and true model to deliver a better market. Though state owned, ECX is an autonomous (non-government) commercial entity set up on a non-profit basis, with private ownership of membership seats, which thus represents a Private-Public partnership model in which private seat owners are able to gain profit from using the exchange system at minimal cost. Our corporate governance structure ensures that ECX is managed independently and professionally with a Board of Directors representing nearly equally both the owner and the private trading members and a separation by law of management from ownership and membership. At the same time, the Exchange operates within the policies and laws of the country, like any exchange in the world. Within these rules and policies, there is no interference by the state in the operational management of the exchange or in the day to day trading by market actors. Finally, ECX cannot be considered a monopoly in the correct sense of the word but rather an exclusive trading place for specific commodities, in order to have a critical mass of buyers and sellers, in keeping with the way exchanges are set up around the globe.
In subsequent essays over the coming days, I will address the human side of ECX, the lives that have been touched and who is really benefitting, particularly among small farmers, and the very important issue of coffee trading and the concern on specialty coffee, as well as our first year performance and the exciting plans ahead as we embark on our second year. Some of these themes are also addressed on our website, www.ecx.com.et, where you can also find our establishing law. Some have questioned why invest the time to engage in this dialogue. It is because we believe that a national institution such as ours must be accountable and transparent to all Ethiopians, wherever they are. Public education is part of our job. We also believe that, through bringing knowledge or investment, anyone can meaningfully engage with ECX. After all, it is your Exchange too.
(Dr Eleni Zaude Gabre-Madhin is Chief Executive Officer of the Ethiopia Commodity Exchange)
Colonel Kassaye Kifle has passed away on July 14, 2009, after receiving medical treatment at St. Thomas Hospital in Nashville, Tennessee.
Friends and family held a memorial service for him at the Debre Keranio Medhanialem Church in Nashville on July 17.
His funeral services will be held at the Debre Libanos Monastery in Ethiopia on July 25, 2009.
Many who had served as officers in the Ethiopian armed forces remember Col. Kassaye as a leader who served his country honorably.
Over during his career he was trained as an aviator in the United States, and aviation commander in the Soviet Union and the Ethiopian Air Force Command Staff College.
As a member of the Ethiopian Army Aviation Unit, he led Assault Helicopter Teams and received medals for bravery.
His contribution to Ethiopia continued as a pilot trainer at Ethiopian Airlines.
Col. Kassaye Kifle is survived by his wife, two children, and two grand children.
(Messages of condolence to the family can be sent to [email protected])
“There are no good dictators. But some are better than others. The best dictators permit freedom of expression, rule of law and economic growth, creating a democratic minded middle class that eventually pushes them aside. The worst dictators, by contrast, grind down civil society, breeding poverty and sectarian hatred and pulverizing all the institutions from which liberalism might grow. The worst dictators eventually leave too, but when they do, all hell breaks loose.”
So said one called Peter Beinart on 6 August 2007 in a piece he wrote to Time Magazine under the title “How to deal with dictators.” At the time, he was outlining his ideas for the US administration on what is the best course to deal with one of Washington’s friendliest dictator, Pervez Musharraf, by drawing historical parallels between South Korea which evolved from a benevolent dictatorship into a democracy and Iraq which degenerated from a fully blown dictatorship into a killing field for sectarian violence to the point of abdicating its sovereignty to a superpower. After having read the writings on the wall, Musharraf, as we know it today, has left from the political landscape of Pakistan gracefully thereby prompting the ever prolific pen of Prof. Alemayehu G.Mariam to wonder as to whether dictators somehow become statesmen; also whether Musharraf had been a closet statesman all these years? (Read “Gotta know when to fold’em” 25 August 2008)
In Africa too, we have seen these kinds of dictators who got transformed from a military dictatorship into a statesmanship ranging from Lt. Jerry Rawlings of Ghana to General Olusegun Obasanjo of Nigeria. Others currently in power in most African nations too, manifest this positive signs of transforming themselves into statesmanship whenever their respective country requires it. They show the wisdom on how to blow with the wind of governance by consent. That’s why right after the Kenyan election debacle, the incumbent led by Mwai Kibaki got back to its senses and sat down with the opposition to form the coalition government for the good of Kenya. Even that octogenarian dictator of Zimbabwe who has been the object of unabashed vilification by the western media didn’t mess that much with the independence of the judiciary, nor the press.
On the contrary, where so-called judges and prosecutors in Ethiopia take blind orders from Meles Zenawi, Judges in Harare grant bail and also turn in a not guilty verdict for the adversaries of the Mugabe government. While you see gruesome pictures of Zimbabwean victims of “cholera” on CNN, you’ll be told in a hushed tone by a BBC Correspondent in Addis that the Ethiopian government/regime in my lexicon/prevented them from taking pictures and the matter rests at that.
In Uganda, where this writer has taken refuge since 2007, people complain vociferously that their president is a dictator.Indeed, according to my observation; he has the inclinations of a dictator. Unlike Ethiopia, though, let alone Ugandans, I the refugee suffer no consequence for saying so. People in Kampala get away everyday with obnoxious expressions on the numerous FM Stations and TV channels on any topic. Of course, abuses take place but not with impunity.And, when they do, those behind them will be made answerable for it.Recently, for instance, Human Rights Watch grilled the Ugandan government for the disappearance and torture of a couple guys in a secret detention centre run by the army. The American lady who did the research presented her findings right here in Kampala. Later, she was put on a talk show on FM and TV with the army spokesperson. The spokesperson, Major Felix Kulaigye was humble when defending the position of his government. I can go citing incidents like this from the Ugandan political landscape. The bottom line is; can any Ethiopian imagine such a scenario under the regime of Meles Zenawi?
The bare fact is, the Ethiopian regime even by African standards, is a relic of history belonging to barbarism. Being barbaric with zero tolerance for dialogue, rule of law or any civility, it views the whole world through its archaic lens.Thus,because of some exchange of diplomatic niceties between Meles Zenawi and Yoweri Museveni,TPLF’s lieutenants such as Girma T/sion here in Kampala expect their counterparts to hand them over some Ethiopian exiles. Little did their dense ‘intelligence’ allow them to understand how strong the political will in Uganda is when it comes to respecting human rights, including the sacred rights of refugees. Just because their bribery worked in the highly corrupted Kenyan society, they think they can do the same with Ugandan officials.However, it’s not the first time, nor would it be the last for Meles Zenawi’s regime to behave in this sort of asinine manner. During the height of its incursion in Somalia where it received a humiliating defeat, Aljazeera exposed the brutality committed by Zenawi’s henchmen on Somali civilians. Unable to stifle Aljazeera by invoking its partnership in the fight against terrorism to the White House so that it bears upon the Kuwaiti sheikdom, it broke diplomatic relationship with the Kuwaiti government with a manifestation of egregious infantile politics.
And, now accompanied by his new found lackey, Bereket Simon reportedly went to the United States to request for the umpteenth time so that VOA Amharic service is taken off the air. Probably too, to ask for the extradition of that “terrorist”Dr.Berhanu Nega.”All these farcical and frantic effort to stifle dissent not only reminds you of that age old saying “Power corrupts and absolute power corrupts absolutely.” It also shows you how a fully blown dictatorship inching by the day towards its demise becomes so out of touch with reality. Due to the highest level of intoxication that the Meles-Bereket clique suffers from controlling and undermining everything in Ethiopia ranging from SMS to the airwaves, they think it easy to do the same with Aljazeera and VOA. Because,they managed to bribe some Kenyan officials for the abduction of Ethiopian exiles or because of their previous success with Sudan and Djibouti in having Ethiopian asylum seekers extradited in a scratch-my-back-I-will-scratch-yours understanding of barbaric regimes, they assume that this is how things are done in international relations.Well,I’ve news for them. Uganda is different with many strong institutions notable among them is the judiciary. The police and the army too is not a force that panders to the whim of officials like its counterpart in Ethiopia.
Therefore, TPLF’s current effort to paint Ginbot 7 as a terrorist group thereby attempting to link Ethiopian exiles in Uganda with terrorism is in vain. Ugandans are too informed to be tricked by this sort of deviousness. They know very well to what extent the Meles-Bereket clique have narrowed the political space in Ethiopia and that no recourse is left to a people under such a tyranny except rebellion as laid down in the preamble of the Universal Declaration of Human Rights/UDHR/.Encouraged by their understanding, we on our part tell to our Ugandan friends in the intelligence service to take any bribe offered to them by Zenawi’s agents here in Kampala.Though, it’s sad that the Meles-Bereket clique squanders the country’s meager resource in this way too, we should be consoled that our African brothers and sisters would benefit something, even if it’s not anything like the hefty payment made to the already rich American lobbyist DLA Piper. As the Meles-Bereket clique is a company of fools that says history repeats itself instead of learning from history not to repeat the same folly, it’s proper to throw some platitudes before parting as platitudes are befitting to people who try to turn the clock back.
Our new name is the Ethiopians in the Diaspora. ‘The term Diaspora (in Greek διασπορά – “a scattering [of seeds]”) refers to the movement of any population sharing common ethnic identity who were either forced to leave or voluntarily left their settled territory, and became residents in areas often far remote from the former.’ I really don’t like it. We used to be immigrants. I have no idea when we became the Diaspora.
I don’t like both terms. They have finality about them. It means that wherever we are, we intend to settle permanently. I would rather think of myself as a refugee. A refugee is some one in transit. I like that. Isn’t that what we are? We have scattered to all four corners of the world because we are seeking shelter from danger. We escape from our country because it is not safe. Some are political refuges. They left to avoid persecution. A lot are economic refuges. They are running away from slow death. Our country offers its population such choice as physical death due to starvation, mental and spiritual death due to forced ignorance.
Sometimes good can come out of a bad situation. This refuge business is one such instance. Our ancient country is always looking after us. It gave us a solid foundation to withstand the shock of settling in strange far away places. We were mentally fortified. Every nationality thinks they are unique. We don’t only think we are unique, we believe it. It is like Ethiopia said to each one of us ‘if you have to go, go but don’t forget who you are and please return.’
Where ever we have settled we have thrived. We seek each other. We congregate. All you got to do is find one of us. It is like opening a floodgate. You find one you find them all.
This has been a week of graduation in our area. A proud moment for a lot of families. A celebration of achievement. Sons and daughters of refugees feeling good about them selves and making their family proud. There is nothing like being free to excel.
So how did these offspring’s of destitute refugees get to attend some of the best institutions in this great land? It is simple. It is so because those refugee parents had to learn fast and adapt to the new situation. Most arrive with just their shirts on their back. They work hard. They work long. They study with passion. They aim high. They succeed like no other.
When one is far away from home and there is no one to lean on one learns fast. We learn to think beyond today. We plan and project far into the future. We become masters of our own success or failure. We stop being crybabies and assume responsibility for our actions.
We learn that there is no free lunch, no reward without effort, and no easy short cuts in life and if we are lucky we learn to be empathic to our fellow humans.
I, as a bona fide refugee and graduate of the ‘hard knock’ school of life I was highly disconcerted when I heard what the Ethiopian Prime Minster said to a Mr. Jason McClure of Bloomberg News. I don’t know how Mr. McClure took the news but I was forced to say ‘come again?’ Believe me I have made up a lot of excuses for my actions and I have heard some bizarre ones too but this one takes the gold. No question about it. Talk about chutzpah!
Ato Meles blames ‘the World Bank and international donors’ for the scarcity of Electricity in Ethiopia. Mr. Mc Lure wrote:
The World Bank underestimated electricity demand in previous years and failed to provide funding for new power-generation projects the government had wanted, leading to under-investment in the industry, he said.
“We could have avoided that mistake if we had the money or had we had the support of our donors,” Meles said.
I believe most of us were under the impression that Ato Meles and his TPLF politburo are in charge of Ethiopia. At what point did World Bank enter the picture? What else are they running besides Electric power? I want to know if the Somali invasion was their idea? Did they force Ato Meles to declare ‘state of emergency’ after the 2005 elections and gave the order to shoot to kill? Was that the World Bank that forced Ato Meles to arrest Judge Bertukan too? Frankly I never trusted the World Bank and Ato Meles is confirming my worst fears.
That ‘gotcha’ moment was short lived. It looks like the reporter talked to a Mr. Kenichi Ohashi, the World Bank’s director for Ethiopia. Well apparently Ato Meles did not clear his story with Mr. Ohashi, and Mr. Ohashi is not amused. This is what he has to say about it:
“The notion that because we didn’t finance power they have a problem, that’s bogus,” Kenichi Ohashi, the World Bank’s director for Ethiopia, said by phone today. “If we financed power that would come at the expense of something else”
Interesting. I don’t know what the choices were but it must have been difficult for outsiders to make decisions for a nation they have neither kinship nor strong bond. You can say the same about Ato Meles but today we are not going there. So where is the sovereignty Berket is always babbling about? Now since we all know who is running Electric power you know where to forward your complaints.
There is more. TPLF is the gift that keeps giving.
Power cuts might also have been alleviated if the Washington-based multilateral lender had provided funding for a 60-megawatt diesel generator the government requested this year, Meles said.
A lousy 60-megawatt diesel generator just to hold us over until the July rains and they said no! Those heartless bastards what do they care. Bankers are cold. They are willing to destroy the economic well being of a nation. Hold on that is not the story Mr. Ohashi is telling.
The World Bank didn’t finance the generator because the government’s contracting process didn’t meet World Bank standards and wasn’t “open and transparent and competitive,” Ohashi said.
Now I see it. The Bank wants ‘open and transparent’ process and EFFORT had already won the contract. Ato Meles was just asking for the cash and the Bank has the audacity to say no. May be the Bank thought diesel is not such a good idea considering the shortage of dollars to buy fuel. I get the feeling that Ato Meles leaves a lot out when telling a story. I have no idea if he forgets or it is pathological. What is certain is that he is not telling the truth. In other words he is lying. Simple.
So when Mr. Ohashi’s outfit said ‘No” to the loan what did Ato Meles’s government do to mitigate the effects of the certainty of power shortage? You just don’t fold your hands and sit. I guess you can. They did not even ask their Abuna to urge the people to pray for rain.
This is the difference between the Diaspora (refugees) and TPLF. We have learned to take responsibility for our actions. We don’t shift blame nor do we cry in public. We avoid welfare and work double shift to meet our obligations. Just try telling your mortgage holder that you can’t pay your note since the bank did not give you the loan subsidy. Your sad ass will be out on the street in a New York minute.
There seems to be a lot of speculation with what the Prime Minster might do or not do regarding his future plans. He speaks in hyperboles and wants to sound mysterious. Listen to this:
“My guess is this is going to boil-down to plus or minus a year or two,” he said. “I’m simply thinking aloud. Now if it were to boil-down to plus or minus a year or two, I would probably say this is not a matter on which I ought to leave the party.” It’s also possible, “some would say very likely” that he will be succeeded as prime minister by a person from outside the Tigrayan ethnic group, Meles said.
I dare you to make sense of that. What does plus or minus a year mean? Boil down? Why he speaks in clichés is foreign to me. Here in the US politicians start running the day they are elected. It is a 24/7 job. You don’t hide in gated community surrounded by armed solders. If they want to be elected they mingle with their constituents. Not the supreme leader. He still thinks in ethnic terms. The notion some one capable without the ethnic baggage is foreign to him. It is possible the TPLF folks can sign petitions to force him to be Prime Minister again. May be he is being coy with us so we can start a nation wide campaign to crown him as Yohanes V. Anything is possible in Ethiopia. As I said we are very resourceful people.
What he said regarding Judge Bertukan is very mean. A head of state does not make a statement like that regarding the leader of the biggest opposition Party in the country. This is what he said:
Meles said there is “zero” chance that opposition leader Birtukan Mideksa will be released from prison in time to compete in the elections scheduled for next May. He also said Birtukan’s jailing is not a pretext to eliminate political opposition.
Judge Bertukan has been in jail one hundred seventy six days. That is five months and twenty-six days. She has been in solitary confinement. She is not allowed visitors except her daughter Hale who is four years old and her mother Weizero Almaz who is seventy-two years old. She is not allowed to see her lawyer, listen to the radio or visit by the Red Cross. Complete isolation in a dark cold room is torture. Ato Meles said the chances are zero that she will be released. On the other hand the chances are 100% that Ato Meles will be tried for torture, genocide and crime against humanity both by the Ethiopian people and the International Criminal Court. We will be the first ones to defend Ato Meles’s and his fellow criminals right for a fair and speedy trial. We will not tolerate torture and the prisoners will be allowed to hire even foreign lawyers but not with our money. The sight of Ato Meles and friends in a pink prison garb will be priceless. Just picture it my friends.
It looks like the situation in Iran further complicates Ato Meles’s grip on power. It is obvious that there will be no repeat of 2005. The world is watching. Europeans will follow the US lead. President Obama’s administration is allergic to state sponsored killing. The Diaspora Ethiopians are loud and everywhere. The ‘Eight’ points by Kinijit are still the minimum demands. No party in Ethiopia will be accepted as legitimate contender with out the eight points being fulfilled. There is no such thing as a free election without a free press and the opposition’s right to free assembly and organization is respected.
Remittances from the Diaspora has dried up, commodity prices are plunging, inflation is spiraling, devaluation is over due, Ana Gomez, Donald Payne, Russ Feingold, Berhanu Nega are circling over head, what are you going to do? You definitely are not going to Disney land. I urge my hero Shambel to sing ‘Express train to Kaliti’
I am sure you have all heard that Ato Sebhat Nega aka Aboy Sebhat, the Prime Minster’s mentor and a very high official of the ruling TPLF party was a guest on Voice of America. I was very glad. We are always happy when TPLF officials submit to unrehearsed interviews. It seems that it is the only way we get to know them close and personal. I fondly remember Ato Meles’s appearance on Hard Talk with Stephen Sakur in 2005 and Zenib Badawi in 2009. Ato Sebat’s interview is another gem to be savored.
Ato Sebhat was interviewed by Ato Addisu Abebe of VOA Amharic program. Ato Addisu is a consummate professional. He did his job very well. He was not there to prove Ato Sebhat right or wrong. He knows it is up to the listener to make that determination. Like a language surgeon he is, with his soothing voice he lulled his subject into an incredible comfort zone. Then it was a matter of pealing the public fake persona TPLF have constructed for him. Ato Addisu was able to draw Aboy Sebhat out of his skin and reveal the inner self. It was not a pleasant sight. The Sebhat Nega we saw is a very embarrassing figure. Full of hatred, suffering from an inferiority complex, very angry and a pathological liar are the descriptions that come to mind.
I do hope that Aboy Sebhat took some lessons from his experience with VOA. Although his party controls all media outlets and does not allow the airing of ideas different than the ruling party’s here in America it is the responsibility of the press to present different views and let the public be the judge. It has served them very well for over two hundred years. We hope Aboy Sebhat’s outfit Ethiopian Radio and TV will invite leaders of the real opposition and have them explain their vision for their country. The opposition is more than happy to comply.
This was a two-part interview. In this short piece I will concentrate on a few of the ill conceived ideas he was trying to disseminate. I knew it was going to be interesting when I heard his title in the introduction. He is a member of the Ethiopian Parliament, I guess from Tigrai (one never knows since Ato Berket represents Wollo) and President of International Center for Peace and Development. There is no one opposed to peace and development, but this one in Addis it is nothing but. The truth is it is Orwellian double speak at its best. The Center is one of those TPLF created outfits to swindle cash from European Union and Western aid agencies. Ato Sebhat and his organization have never known peace nor developed any enterprise using legal means. As for being elected, I am sure he garnered 99.9 percent of the vote and he did not even have to campaign for it.
He started the interview with a bold lie. There was no need to lie. He can’t help it. His quick motor response is to lie at a drop of a hat. There was no stopping him after that. Blinded by his hatred, emboldened by his false sense of self worth Sebhat Nega was swimming in a cesspool of lies, falsehood and ignorance. We wouldn’t give a damn what he have to say if it wasn’t for his influence and advice to that other powerful person sitting in Arat Kilo with a loaded gun in his hands aimed at our country.
To start him off Ato Addisu thanked his guest for accepting the invitation and out of curiosity asked him regarding TPLF’s policy of not granting interview to VOA’s Amharic programming. That they do not is an established fact. The question was simply what the reason is for such a policy. His response was outright denial of the existence of such a decision.
Could this be true? There is one Nation wide radio station in Ethiopia, Radio TPLF. By all accounts VOA and Deutche Welle are the two most listened to independent news services favored by the population. The minority based government views unfiltered news as a threat. Thus on numerous occasions it has officially complained to both the US and German government regarding the radio stations. The TPLF regime has invested millions of dollars in purchasing radio signal jamming devices from Chinese and East Europeans to silence independent voices.
Is Ato Sebhat’s claim of the Politburo not discussing VOA and formulating different policies credible? To top if off he said he personally does not listen to VOA! When you consider that the Prime Minter himself anonymously participates in Radio call in shows isn’t this assertion a little difficult to swallow? So he claims that he personally does not listen to VOA and since he came to the US he has been told that ‘VOA lacks objectivity, that it is not balanced and it is in the camp of the opposition’. The word he choose to translate the word ‘camp’ into Amharic is very revealing. He said ‘yetequamiwoch Beret’. As far as I know ‘Beret’ is where we keep animals. Enclosed so they do not escape, watched by guards and dogs so wild animals do not harm them. Is that how he views his fellow Ethiopians. Which of these two are we? The domesticated animals fattened for labor or dinner? Or the stupid and gullible sheep and cows and have to be watched by TPLF cadres from undue influence? A curious choice of words but it speaks a lot about the mindset of the individual and his friends.
The crazy part of this farce is that he is telling all this to Ato Addisu Abebe, a VOA correspondent and victim of TPLF injustice. You see Ato Sebhat’s government charged Ato Addisu and twenty-one Ethiopian journalists with ‘involvement in an attempt to overthrow the government’ in the aftermath of the famous 2005 elections. Ato Addisu is lucky. He has the US government behind him. The Ethiopian journalists suffered a lot. They all lost their livelihood. Some are still in prison. Some were jailed for over two years and their license revoked. A few were hounded out of the country. Many were scared for life. Our country lost its brave and brightest sons and daughters. Ato Sebhat as member of the Politburo is personally responsible and will be asked to account for his actions. Whether this will happen or not is not relevant. He is responsible in the eyes of the Ethiopian people.
The next discussion was about EFFORT (endowments fund for the rehabilitation of Tigrai). The eight hundred-pound gorilla. Ato Sebhat’s claim is that it is the premier corporation in Ethiopia both in asset and reach. After confirming that it is audited both internally and by external government agencies he feigned memory loss when asked to disclose the capital of the multi national in numbers. What he said was ‘it is not important’. It was very curious answer for a person who has been the CEO and President of the company. A company without a balance sheet and net worth unknown to the CEO can only happen in TPLF fairyland.
What was absolutely laughable is the claim that TPLF brought the capital from outside to establish the company in Ethiopia. That is insulting the intelligence of eighty million people. For the life of me I do not remember our Tigrai cousins being known for their special skills in being traders and merchants in our Ethiopia. Here we are in 2009 and the most visible conglomerate is EFFORT and the richest and smartest merchants are our Tigrai cousins. Wonder never ceases. Keep talking Aboy Sebhat.
The next line of questioning has two threads and it is full of the most bewildering mish mash of ideas put together in a very haphazard manner. The first one consists of TPLF’s philosophy of what he refers to as ‘bourgeois revolution’, followed by the party’s view of our country Ethiopia.
Ato Sebhat’s attempt to describe the theory of ‘bourgeois democracy’, ‘revolutionary democracy’, ‘emerging democracy’ or ‘developmental state’ (depending on the mood) the society his party is trying to build in Ethiopia completely went over my head. His claim is that TPLF masquerading as EPDRF is accelerating the growth of capitalism in Ethiopia and will wither away on its own is a very lame interpretation of the Marxist idea of the ‘withering away of the state’ as the final stage of capitalist development. Suffice to say that it is proven to be a fairy tale. So, at a certain point in time EPDRF will hand power to the new classes and disappear. That is what he said and he is sticking by it. He did not elaborate when this is projected to happen or who these new classes are. Why there still are classes upon the withering away of the state is left open. May be the theory is in a developmental state. Let us just say it is not well thought of.
The second thread is where Abboy Sebhat’s version of Ethiopia is defined. When he started the journey to liberate Ethiopia this is where he began. His assertions are very troubling. In computer speak there is something they call GIGO. It stands for garbage in garbage out. A ‘computer will unquestioningly process the most nonsensical of input data and produce nonsensical output.’ The same with leaders saddled with faulty, incomplete, or imprecise and utterly wrong data they come up with wrong and imperfect solutions that cause harm and agony to their people.
His claim that we stayed enclosed in our own regions isolated from each other is utterly false. His assertion that we have been fighting each other for hundred years and lived with our hands in each other’s throat is both ugly and abhorrent. His very violent statement that we do not know each other uttered in such forceful manner is very alarming. He repeated ‘Anetwawekem! Antewawekem!’ twice. It made me very sad. It is far from the truth. It is not the Ethiopia I know and I am a typical Ethiopian.
How he is able to hold two contradictory thoughts at the same time is bewildering. He said that he embarked on the struggle to get rid of national oppression. Well and good. But the solution he came up with is very strange to describe it mildly. In order to foster equality they decided to divide the country into Kilils. Everybody was ordered to get an identity card with his/her ethnicity registered by the authorities and was encouraged and forced to go settle in his own enclave. Those with mixed ethnic identity were forced to pick one. I am sure this did not pose a problem in Adwa, but in the rest of Ethiopia many people were put in absolute quandary. How being strangers to each other was going to foster one people one country is not clear. This was a sad moment in our history
So the theory goes the TPLF as an advanced and vanguard party under the tutelage of Meles Zenawi, Sebhat Nega, Azeb Mesfin, Seyoum Mesfin, Arkebe Uqbai and their immediate families will preside on this lofty Nation building endeavor. The Military and security forces with Woyane Generals and high-ranking officers will work in bringing the Oromos, Amharas, Sidamos, Wolamos, Anuaks and other assorted Nationalities to a newer level of preparedness to build the new emerging Ethiopia.
One can see the common thread in this new philosophy of Nation building process. Our Tigrai masters seem to be the center of the Ethiopian universe with wealth and power emanating out until it engulfs the whole society. Le Ras Sekorsu Ayasnasu comes to mind. What do I think? I think Komatan Komata kalalut Gebeche Lefetfit Yelal is most approperate. I believe for so long no one have bothered to tell Aboy Sebat ‘with all due respect sir, you are full of crap!’ I know it is not grown up, but it serves the purpose. I could put it delicately in a more civilized way. But what is the point?
To come up with such preposterous idea it is possible Ato Sebhat’s Adwa was different. That must be the glass he is using to see Ethiopia. But he lived in Addis while going to Haile Sellasie I University. Did he not see how the others lived together? Wasn’t the cry ‘land to the tiller’ by the privileged University students of the time? Surely the students were not fighting for a plot of land. How about during the fight against the Derg? We are told that the TPLF army was composed of all Ethiopians. Weren’t Addisu, Kuma, Tefera, Aba Dula in the TPLF military or did they have their own regiment? Did they fight for the freedom of all Ethiopians or freedom for their ethnic group?
During the process of Nation building animosity does arise between people. Solving such problems and emerging stronger is a difficult task. Some countries are blessed by visionary leaders that harness the positive power of their people and lay a strong and unshakeable foundation. Some are cursed by the likes of the Rwandan Hutu leaders, Milosevic of Yugoslavia and Stalin in Armenia. They bring war and destruction on their people. They go away but they leave animosity and mistrust behind. It takes a long time to undo the damage they cause. In the mean time the rest of humanity marches forward. Evil has to be stopped at its inception before it takes roots. Silent people allow evil to flourish.
Lots of things were said by Aboy Sebhat. The assertion that there were no national Organizations that fought the Derg is not correct. Without going far both EDU and EPRP were National based and stood for the unity of our country. Both were violently attacked by TPLF. Both were expelled out of Tigrai by TPLF. The EDU leader His Excellency Prince Ras Mengesha Seyoum was warned regarding an official trip to his beloved Tigrai. His presence in Tigrai was a threat to the mighty TPLF. The existence of EPRP was denied. When he said that TPLF was ‘overjoyed’ when they found the existence of Ato Kifle Wodgajo’s party in the USA it was nothing short of wonder about the capacity of Aboy Sebhat’s brain to have woven such a tapestry with imaginary yarn of silk. Listen to it and you be the judge my friends in the Diaspora. You can go to VOA website and listen to it from the archives. Unfortunately our people in Ethiopia cannot do that. There is no electricity; when Internet service is available it is a slow crawling modem with all the independent Ethiopian websites blocked. That in a nutshell is the Ethiopia TPLF is building deaf, blind and ignorant.
Colonel Kassaye Kifle has passed away on July 14, 2009, after receiving medical treatment at St. Thomas Hospital in Nashville, Tennessee.