Monday 31 December 2012

overnment ownership of major resources including land, Internet, denial of access to technology, and being landlocked remain as a major road block to rapid economic growth

Ethiopia needs an industrial policy that will move it from an agrarian society to a technology driven society. The normal course was from Agriculture, to manufacturing, and industrialization, but with the right leadership, technology makes it possible to move to technological society by skipping all the other steps and create a higher standard of living.
 
Technology or reengineering has been the most important productivity tools for economic growth, however, like land it is controlled by the government.  In Ethiopia technology is primarily used for spying on Ethiopians and blocking websites.
 
Access to technology is correlated to a higher standard of living for current and future generation. Government ownership of major resources including land, denial of access to technology, being landlocked remains as a major road block to rapid economic growth.
 
Land ownership of the state is not for any altruistic reason, it is primarily to manipulate the political currents and to keep the majority of Ethiopians who rely on agriculture a hostage.
 
Despite creating these roadblocks, Meles has stated that the Ethiopian economy will grow 11-14.5 % in the next five years. No landlocked country or no country in Africa, especially a country estranged within by lack of free market, lack of access to technology, respect for property rights and human rights or forced into tribal polarization can enjoy such phenomenal economic growth.
 
According to data provided by Meles to the CIA and World Bank, Ethiopia’s GDP per capita was close to $100 in 1991 when Meles starting ruling the country. Now, it is reported to be $324,  better than a threefold increase which is much better than many countries in Asia.  For example, China’s growth is driven by manufacturing, technology and education, but in Ethiopia access o technology or manufacturing has not changed much for the last 20 years. Education has lost ground with the introduction of ethnic education, where the majority of ethnic groups are encouraged or forced to use their own ethnic language without requiring them to learn the official language or English; a recipe for disintegration of the country.
 
How did Meles got away with such statistical absurdity. My guess that he was adept in charming world leaders from Tony Blair to Jimmy Carter, and built a PR machine at home and abroad using the meager funds the country ill afford. Like other dictators he will fall from grace and his true achievement will be dissected and he will be castigated as one of the worst and strange dictators that ever ruled Ethiopia.
 
It will be easy to compare Meles with another evil genius, Leopold II of Belgium who committed murder and looting of the Congo from 1865-1909. Leopold II was the most brutal ruler of Congo; he controlled a country many times the size of Belgium as his personal domain through his private army, like Meles. Unlike Meles, he was eventually forced to end his evil rule after the conscience of the Western world could not bear it any more. Meles passed away still charming and fooling the Western world.
 
Despite Meles or TPLF rhetoric about transforming Ethiopia, the country remains one of the failed states, as demonstrated by its ranking of 174 among 180 countries in terms of human development index.
In the end – Meles may be called just a dictator par excellence with extraordinary charm, and wit, but with a terrible legacy for Ethiopia to deserve an accolade accorded to him by his western allies.
 
Dula Abdu writes on economics, technology and real estate and he can be reached at dula06@gmail.com. He was a former JPMorgan Chase banker and currently an Adjunct Professor of Economics at Texas Southern University. The article was an adaption of from an original piece entitled  ”Evil Genius…”

No comments:

Post a Comment