SOME OPPOSITONS’ ENDLESS HOODWINKING,
DENIALS AND LYING
Part I
By Mathza
04/17/08
On March 18, 2008, Prime Minister Meles Zenawi presented to Parliament his report for the first six months of 2000 (EC). His presentation, which rightly focused on the economy, inflation in particular, was followed by questions and answers. The objective of this writing is to review some of the main comments and criticisms by some of the opposition Members of Parliament (hereafter referred to as MPs). In general, most of the comments and criticisms were not supported by evidence, just out of the blue. Others were not relevant. In other words, many of them did not make sense, especially considering the fact that they were made by economists and social scientists, including a professor. The ‘በጀምላ መወረፍ እኮ ያስገምታል።’ statement from one recent article says it all. In the absence of logical explanations for their unbecoming behaviors and nonsensical comments, criticisms and questions can one conclude in earnest that the Parliament is being used by some MPs to advance a hidden agenda? This writing is Part I of two parts. Part II will expand on the development and inflation issues.
Part I: Specific Comments on Individual MPs’ Reactions
Dr. Merara Gudena of United Ethiopian Democratic Forces (UEDF), as usual, was bombastic and boisterous. He categorically asserted that there was no economic growth at all; poverty was increasing, and not decreasing; economic data were cooked; etc. And yet the latest survey released by the Economic Commission for Africa headquartered in Addis Ababa revealed that Ethiopia with 9.5% real GDP growth rate in 2007 leads East African countries—thus confirming the government’s claim. One glaring indicator or example of development is surge of demand for electric power. According to Ethiopian Electric Power Corporation (EEPCo) General Manager, Mihret Debebe, “The amount of electric power supplied during the past nine months is almost equal with the amount supplied during the past whole year.” Average growth of consumption in the last four to five years was 17%, a figure that contrasts with the 5% that lenders thought was the maximum achievable.* The random survey conducted by Ethiopian Fortune serves as another indicator. Of the total persons in the survey “51pc are convinced that the economy is fundamentally on the right track.” These examples simply prove that Dr. Merara (bitter) is truly bitter and a pathological liar.
By declaring there was no economic growth he is contradicting the development partners’ assertions.** The partners monitor and see to it that their assistance is properly utilized. Isn’t data the main means of monitoring? On what data was his ‘no development’ conclusion based? Why would the partners increase their donations from year to year if the government was providing them with cooked data? Unlike Dr, Merara, the partners have the means and capability to know details of what goes on. What is his challenge to their assertions based on? What he did and does is simply make generalization out of nothing, something not to be expected from a professor. It is, evidently, because of this that the PM ignored to respond to his irrational diatribe. He, apparently, does not realize that he is making a fool of himself. How is it that the University of Addis Ababa allows such a person to continue misinforming instead of enlightening students? By the way, unlike the House of Federation, the work of MPs in the House of Representatives is a full time job. Is there a law that allows Dr. Merara to have multiple full time jobs and therefore multiple salaries?
Mr. Temesgen Zewdie of the yet to be registered Unity for Democracy and Justice (UDJ) does not accept the fact that the country has registered economic growth. To support his argument he claims “no change is taking place in our standard of living. We cannot drink water. We do not have light. There are no food grains” (writer’s translation from Amharic). The bizarre thing is he does not consider GDP acceptable as a measure of economic growth. Yes, GDP and even PPP (purchasing power parity) may not be adequate measures, but these are the only adopted and accepted measures by economists and governments worldwide. The world would be indebted to him if he could develop a better measurement tool. I have no doubt that he will be rewarded with the coveted Nobel Prize for economics.
Like Dr. Merara, he believes that the government manipulates data but he accepts the 22.9% inflation rate in February this year issued by the Ethiopian Statistics Agency, the source of all quantitative government data and information. This, for obvious reason, is probably the only statistical information Mr. Temesgen and his likes accept as fact because it supports their other ludicrous claims. What a contradiction!
Mr. Bulcha Demeksa of Oromo Federalist Democratic Movement (OFDM) claims that it is not right and not possible to control inflation through government intervention—government intervention does not work. Yet, he insists that the government should procure foodstuffs from internal and external sources and make them available to businesspersons. In effect what this means is let the government intervene as long as it provides businesspersons with goods to exploit the consumers. In other words, he is not even willing to wait and find out the result of a review—which is surely to be conducted in due course—on the strategy the government is currently carrying out.
The government approach of making foodstuffs available to citizens with low income through the Merchandise Wholesale and Import Trade Enterprise (MEWIT) and the Kebeles seems to be working and has brought down prices. Witness the dramatic 170 Br per quintal reduction of teff price made possible through distribution by the Enderta All-round Union in Tigray State. The effort by the government to regulate inflation is going to be buttressed by the farmers unions, the consumer cooperative associations being established and the Ethiopian Commodity Exchange which, among other things, will ensure quality of products, a very important factor for consumers and export.
The vested interest of consumers as share holders in the associations coupled with the determination of the Addis Ababa Women’s Forum to assist the government effort of stabilizing the market augers well to efficient price monitoring. It will check elements in the bureaucracy from abusing the intervention. The cooperation of the organizations will end the role of the chain of middlemen who have been the major culprits in inflating prices of foodstuffs by manipulating prices and gobbling huge margins between the farmers and the retailers. A number of middlemen, each charging a margin, are involved before grains reach the retailers.
On the contrary, Mr. Bulcha’s strategy will enable unscrupulous speculators to continue to hoard foodstuffs and manipulate prices, thus defeating the purpose of subsidizing the targeted low income folks. In addition, it would mean subsidizing those who can afford to pay the market prices. He should know very well that the poor country cannot afford to divert its meager resources to subsidize every body at the expense of development which is the ultimate solution to most of the problems the country is inundated with. WFP Executive Director Josette Shearan’s assessment is different from that of Mr. Bulcha’s. On the contrary she said the “government move in addressing the current food shortage and price hikes was worth encouraging, and serves as a model other countries in the same situation can learn from… will encourage agricultural production.”
What would be the fate of Ethiopia in the unlikely event that the above group and their likes come to power? I shudder to even think of such a possibility.
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* http://www.ethiopianreporter.com/content/view/1188/54/
** Some of the very recent acknowledgements and support by the international community:
· Director of the United Nations Millennium Campaign, Salia Sheti: “Ethiopia is in a very good position to achieve the Millennium Development Goals (MDGs). …a lot of progress has been made…the remarkable progresses Ethiopia has made on poverty reduction…not many countries have done what Ethiopia has done to actually mainstreaming the MDGs in to their national planning processes.”
· The Ambassador of South Korea commended the measures taken by the Ethiopian government to ensure sustainable economic growth and attract foreign direct investment to the country.