Ethiopia has a grim reading in all indicators of good governance
Tunisia and Egypt were both flashing consistent GDP growth as Zenawi does at the end of every year but all indicators show that the wealth didn’t trickle down to the common man – even the Dergi regime registered their highest, 13.9%, in 1987 just after the famine and at the height of the internal wars. Despite the overall economic growth, obviously none people centred, in the country, Ethiopia still has one of the lowest GDP per capita in the world and also a quarter of its people are food aid dependent.
Premier Zenawi is so fraudulent that in reaction to IMF and World Bank recommendations to privatise public owned assets; he instead legalised the theft of the whole lot in a way even the blind can see. The Ethiopian Privatization Agency (EPA) was established as an autonomous agency in February 1994 to oversee the privatisation of the state owned enterprises. In place of “hands off” free market approach, the Orwellian regime transferred the ownership of state assets to TPLF and thus transformed the state assets in to parastatals run by exclusive Tigrean people who are affiliated with party. This stifled competition and created an economy based on state sector and phony conglomerates, parastatals, whose income goes to private pockets. See the extent of corruption List of TPLF owned business
In response to his irresponsible fiscal policy that resulted Ethiopia’s inflation to jump from 10.2 to 14.5 percent last month after a steep rise in food and non – food prices caused in part by two successive currency devaluation in less than 12 months – Premier Zenawi resorted to putting price caps on many commodities. The business community withdraw their stocks from the shelves because the market is governed by demand and supply not by circulars from the Premiers’ office.
At the time of this writing, Thursday 03rd Feb, the Premier ruled out the possibility of another major devaluation of the Birr in the coming five years. The premier told his so called legislators, in question and answers suggestion, that the inflation is caused by the traders whom he accused are artificially inflating food prices on the back of global price increases and a September devaluation of the birr.
The premier seems to have taken leave out of sanity because there is no expert in this world who can say there will be no inflation that can warrant to depreciating the birr for the coming five years especially when it was a general knowledge that another devaluation was to come in the following two months – this is a panic reaction induced by the Jasmine revolution.