Archive for the ‘Ethiopia World Bank’ Category
Alemayehu G. Mariam
Ethio-Corruption, Inc. (Unlimited)
“The people of Ethiopia are being bled dry. No matter how hard they try to fight their way out of absolute destitution and poverty, they will be swimming upstream against the current of illicit capital leakage”, wrote Economist Sarah Freitas who co-authored an upcoming report with Lead Economist Dev Kar of Global Financial Integrity (GFI). The GFI report entitled, “Illicit Financial Flows from Developing Countries over the Decade Ending 2009,” previewed in the Wall Street Journal, found that
Ethiopia, which has a per-capita GDP of just US$365, lost US$11.7 billion to illicit financial outflows between 2000 and 2009. In 2009, illicit money leaving the economy totaled US$3.26 billion, which is double the amount in each of the two previous years… In 2008, Ethiopia received US$829 million in official development assistance, but this was swamped by the massive illicit outflows. The scope of Ethiopia’s capital flight is so severe that our conservative US$3.26 billion estimate greatly exceeds the US$2 billion value of Ethiopia’s total exports in 2009.”
Two weeks ago in my commentary, “Why is Ethiopia Poor?”, I highlighted the fact that the Legatum Institute (LI), an independent non-partisan public policy group based in London, had recently ranked Ethiopia a pretty dismal 108th/110 countries on its 2011 Prosperity Index (LPI). Last year, the Oxford Poverty and Human Development Initiative (OPHDI) Multidimensional Poverty Index 2010 (formerly annual U.N.D.P. Human Poverty Index) ranked Ethiopia as the second poorest (ahead of famine-ravaged Mali) country on the planet. According to OPHDI, the percentage of the Ethiopian population in “severe poverty” (living on less than USD$1 a day) in 2005 was 72.3%. Six million Ethiopians needed emergency food aid in 2010 and many more millions needed food aid in 2011 in what the U.N. described as the “worst drought in over half a century to hit parts of East Africa”.
The cancer of corruption is deeply embedded in the marrow of the Ethiopian body politic. The recently released Transparency International (TI) 2011 Corruption Perception Index report on Ethiopia confirms the findings of GFI and other anti-corruption international organizations. For the past decade, TI has ranked Ethiopia at the bottom of the barrel of countries ruled by the most corrupt governments. In fact, for the past ten years Ethiopia’s score on the TI index has remained virtually unchanged (TI ranks countries on a 0 (“highly corrupt”) to 10 (“very clean”) scale.
TI Corruption Index Score for Ethiopia by Year
In light of the 2011 GFI and TI reports, is there any doubt today why Ethiopia is the second poorest nation in the world? Is it rocket science to figure out why Ethiopians are the second poorest people on the planet? Ethiopians are poor because they have been robbed, ripped off, flimflammed, bamboozled, conned, fleeced, scammed, hosed, swindled, suckered, hoodwinked, victimized, shafted and taken to the cleaners by those clinging to power like bloodsucking ticks on an African milk cow. Is it not mindboggling that the US$3.26 billion stolen out of Ethiopia in 2009 was double the amount stolen in 2008 and 2007!?!
The Art of Bleeding Ethiopia Dry
I have long argued that the business of African dictatorships is corruption. In a November 2009 commentary entitled “Africorruption Inc.”, I wrote the following about corruption in Ethiopia:
The devastating impact of corruption on the continent’s poor becomes self-evident as political leaders and public officials siphon off resources from critical school, hospital, road and other public works and community projects to line their pockets. For instance, reports of widespread corruption in Ethiopia in the form of outright theft and embezzlement of public funds, misuse and misappropriation of state property, nepotism, bribery, abuse of public authority and position to exact corrupt payments and gain are commonplace. The anecdotal stories of corruption in Ethiopia are shocking to the conscience. Doctors are unable to treat patients at the public hospitals because medicine and supplies are diverted for private gain. Tariffs are imposed on medicine and medical supplies brought into the country for public charity. Businessmen complain that they are unable to get permits and licenses without paying huge bribes or taking officials as silent partners.
Publicly-owned assets are acquired by regime-supporters or officials through illegal transactions and fraud. Banks loan millions of dollars to front enterprises owned by regime officials or their supporters without sufficient or proper collateral. Businessmen must pay huge bribes or kickbacks to participate in public contracting and procurement. Those involved in the import/export business complain of shakedowns by corrupt customs officials. The judiciary is thoroughly corrupted through political interference and manipulation as evidenced in the various high profile political prosecutions. Ethiopians on holiday visits driving about town complain of shakedowns by police thugs on the streets. Two months ago, Ethiopia’s former president Dr. Negasso Gidada offered substantial evidence of systemic political corruption by documenting the misuse and abuse of political power for partisan electoral advantage. Last week, U.S. State Department spokesman Ian Kelley stated that the U.S. is investigating allegations that “$850 million in food and anti-poverty aid from the U.S. is being distributed on the basis of political favoritism by the current prime minister’s party.” [As of December 2011, over two years after the investigation was launched, the State Department has not publicly released the results of its investigation.]
Deceit, chicanery, paralogy and sophistry are the hallmarks of Meles Zenawi’s regime in Ethiopia. The cunning dictator has been able to shroud his corrupt empire by pursuing a propaganda policy of mass distraction and by staging one farcical political theatre after another. Zenawi has successfully distracted public attention from rampant corruption by
Making wild allegations of terrorism against his critics, persecuting and prosecuting his opponents and by jailing and exiling independent journalists (a couple of weeks ago, Zenawi shuttered Awramba Times);
Proclaiming a bogus Growth and Transformation Plan that will “double economic growth by an annual average of 14.9 percent” by 2015;
Selling Ethiopia’s most fertile land for pennies above the table and for millions under the table;
Panhandling the international community for famine and humanitarian aid and misusing that aid for political purposes;
Taking massive loans from international banks without any significant accountability on how it is spent;
Trying to shame and intimidate Western bankers and donors by hectoring them of the evils of “neoliberalism”;
Proclaiming the construction of an imaginary hydroelectric dam over the River Nile;
Sending troops to occupy Somalia and threatening war with other neighboring countries;
Vilifying international human rights groups, election observers and officials of multilateral organizations who disagree with him;
Dispatching swarms of officials to panhandle the Ethiopian Diaspora for nickels and dimes to buy dam bonds;
Systematically extracting foreign remittances sent by Diaspora Ethiopians;
Staging political theatre by a toothless anti-corruption agency to hoodwink complicit Western donors and loaners.
The Economics of Corruption
The Economist Magazine in its November 7, 2006 editorial described “the Ethiopian government as one of the most economically illiterate in the modern world.” In 2009 at a high level meeting of Western donor policy makers in Berlin where, a German diplomat suggested that Ethiopia’s economic woes could be traced to “Meles’ poor understanding of economics”. They are all wrong!
No one knows corruption, the economics of kleptocracy, better than Zenawi. The facts of Zenawi’s corruptonomics are plain for all to see: The economy is in the stranglehold of businesses owned or dominated by Zenawi family members, cronies, supporters or hangers-on. According to the World Bank, business enterprises affiliated with Zenawi’s regime control “freight transport, construction, pharmaceutical, and cement firms receive lucrative foreign aid contracts and highly favorable terms on loans from government banks.” Dataprovided by Zenawi’s regime showed that by the end of the 2009 fiscal year, Ethiopia’s outstanding debt stock was pegged at a crushing USD$5.2 billion. The USD$11.7 billion stolen over the past decade could easily retire that debt. Ethiopia is Africa’s largest recipient of foreign aid at nearly $USD4 billion in 2009, and the second largest foreign aid recipient in the world after Afghanistan.
Is There a Way to Stop Ethiopia from Bleeding?
The international community “naively” believes that corruption in Ethiopia and the rest of Africa could be controlled and significantly reduced by anti-corruption programs. The U.N. Convention Against Corruption (2003)requires signatories to “develop and implement or maintain effective, coordinated anti-corruption policies that promote the participation of society and reflect the principles of the rule of law, proper management of public affairs and public property, integrity, transparency and accountability.” Ethiopia signed the U.N. Convention in 2003. The Africa Union Convention on Preventing and Combatting Corruption (2003) established a regime to empower African countries to “prevent, detect, punish and eradicate corruption and related offences in the public and private sectors.” The Convention prescribes that “in order to combat corruption and related offences in the public service, State Parties” shall “require public officials to declare their assets at the time of assumption of office during and after their term of office in the public service.” Ethiopia signed the AU Convention in 2004. Neither of these Conventions has even made a dent in controlling the metastasizing corruption in Ethiopia.
Zenawi knows the power of corruption. He has effectively used corruption allegations to neutralize and eliminate his political opponents. He used his “Federal Ethics and Anticorruption Commission” to railroad his comrade-in-arms and former defense minister, Seeye Abraha, to jail for six years on unsubstantiated allegations of corruption. When then-Judge Birtukan Midekssa, and later Ethiopia’s first female political party leader and long suffering political prisoner, released Seeye for lack of evidence, Zenawi rammed legislation through his rubberstamp parliament to deny Seeye bail and keep him in pretrial detention. He later fired Judge Birtukan. In 2008, Zenawi’s anticorruption commission reported that “USD$16 million dollars” worth of gold bars simply walked out of the bank in broad daylight. A number of culprits were fingered for the inside bank job, but no one was ever prosecuted. In February 2011, Zenawi publicly stated that 10,000 tons of coffee earmarked for exports had simply vanished from the warehouses. He called a meeting of commodities traders and in a videotaped statement told them he will forgive them because “we all have our hands in the disappearance of the coffee”. He warned them that if anyone should steal coffee in the future, he will “cut off their hands”.
For years, I have documented and railed against corruption in Ethiopia. In December 2008, three years to the month, in a weekly commentary entitled, “The Bleeping Business of Corruption in Ethiopia”, I wrote:
The fact of the matter is that the culture of corruption is the modus operandi in the Ethiopian body politics. Former president Dr. Negasso Gidada clearly understood that when he declared in 2001 that ‘corruption has riddled state enterprises to the core,’ adding that the government would show ‘an iron fist against corruption and graft as the illicit practices had now become endemic’. In 2007 when Ethiopia’s auditor general, Lema Aregaw, reported that Birr 600 million of state funds were missing from the regional coffers, Zenawi fired Lema and publicly defended the regional administrations’ ‘right to burn money.’…. Ironically, in 2003, Ethiopia signed the U.N. Convention Against Corruption; and a couple of months ago, a conference on institutions, culture, and corruption was hosted jointly in Addis Ababa by the United Nations Economic Commission for Africa and the Council for the Development of Social Science Research in Africa.
The fact of the matter is that absolute power corrupts absolutely. Zenawi has absolute power in Ethiopia. Pleading for transparency and issuing moral exhortations against corruption will have no effect on the behavior of Zenawi or any of the other African dictators. Indeed, to plead the virtues of accountability, transparency and good governance with Zenawi and Co., is like preaching Scripture to a gathering of heathens. It means nothing to them. They are unfazed by moral hectoring or appeals to conscience. They sneer and jeer at those who rail and vociferate against corruption. Preaching to the corrupt, to put it simply, is an exercise in total futility!
In my November 7 commentary “To Catch Africa’s Biggest Thieves Hiding in America!”, I discussed the importance of initiating and cooperating with the U.S. Justice Department (DOJ) in civil forfeiture actions to seize corruptly obtained cash, personal or real property of any person or entity that can be traced to “specified unlawful activity”. These civil court actions extend to foreign offenses involving extortion, money laundering, or the misappropriation, theft or embezzlement of public funds by or for the benefit of a public official of a foreign government. (18 U.S. C. sections 981 (a) (1) (c); 1956; 1957.) The U.S. has recently filed action to seize personal and real property of Teodoro Nguema Obiang Mangue, the 43-year old son of President Teodoro Obiang Nguema Mbasogo of Equatorial Guinea.
Carefully review and analysis of GFI and TI data sources reveals that public assets and funds stolen from many African countries, including Ethiopia, are often hidden in banks located in the U.S. and Europe, although the clever African dictators are now diversifying by taking advantage of financial havens in countries experiencing rapid growth and industrialization. Much of the corruption activity centers around money laundering (that is, illegal or dirty money is put through a complex cycle of financial transactions or washed and is transformed into legitimate or clean money).
The basic idea in money laundering is to minimize the chances of detection of stolen public assets and funds by breaking the direct link between the kleptocrats or “corruptocrats” and their collaborators by disguising the true ownership. Using financial consultants, shell companies (bogus companies that exist to simply create the appearance of legitimate transactions through fake invoices and balance sheets), fraudulent official documentation, wire transactions, and “smurfing” techniques (breaking up large amounts of money into smaller, less-suspicious amounts in the names of multiple persons) etc., those who have stolen public assets and funds try to sever or camouflage their loot from its illegal source by placing it in international financial institutions. The aim in money laundering is at least twofold: 1) gain anonymity and hide the audit trail in case of a criminal investigation, and 2) plough the “clean money” into the legitimate economy by buying homes, investing in legitimate businesses, starting businesses and so on.
If the problem of corruption is to be addressed effectively in Ethiopia and the rest of Africa, it is not going to be at the fountainhead of the corruption itself but in the ocean where the river of corruption terminally flows. As one cannot expect the fox to safeguard the henhouse, one cannot similarly expect Africa’s dictators and corruptocrats and their collaborators to safeguard public assets and funds. A big part of the answer to the question of corruption lies in the Laundromats of financial institutions where the dirty money is washed. That’s why I believe it is the civic and moral duty of every Ethiopian and African to help the U.S. Justice Department catch Africa’s biggest thieves hiding in America. It is very easy to do, and do it anonymously. Individuals with information about possible proceeds of foreign corruption in the United States, or funds laundered through institutions in the United States, should contact Immigration and Customs Enforcement, Homeland Security Investigations (ICE HIS) toll free at 866-347-2423 or send email to: email@example.com. If calling from outside of the U.S., the number is: 802-872-6199
BLOW THE WHISTLE ON AFRICA’S BIGGEST THIEVES HIDING IN AMERICA!!!
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First, Why is Africa Poor?
George Ayittey, the renowned Ghanaian economist and president of the Free Africa Foundation swears that “Africa is poor because she is not free”. Like Ayittey, Robert Guest, business editor for The Economist, in his book The Shackled Continent (2004), declares that “Africans are poor because they are poorly governed.” He argues that “Africa is the only continent to have grown poorer over the last three decades” while other developing countries and regions have grown richer. Much of Africa, it seems, was better off at the end of colonialism than it is today.
For Ayittey and Guest, the tens of billions of dollars in Western aid to Africa have done very little to improve the lives of Africans; at best, aid has served to “bankroll tyrants” and facilitate experimentation by “idealists with hopeless economic policies.” Statism (the state as the principal change agent) and dictatorship have denied the African masses basic political and economic freedoms while the few privileged kleptocrats (or thieves that have pirated the ship of state, emptied out the national treasury and plundered the economy) live the sweet life of luxury (la dolce vita), not entirely unlike the “good old” colonial times. As Ayittey explains, much of Africa today suffers under the control of “vampire states” with “governments that have been hijacked by a phalanx of bandits and crooks who would use the instruments of the state machinery to enrich themselves and their cronies and their tribesmen and exclude everybody else.” (“Hyena States” would be a fitting metaphor considering the African landscape and the rapacious and predatory nature of the crooks.) Simply stated, much of Africa languishes under the rule of thugtators (thugtatorship is the highest stage of African dictatorship) who cling to power for the single purpose of using the apparatuses of the state to loot and ransack their nations. Such is the unvarnished truth about Africa’s entrapment in perpetual post-independence poverty and destitution.
Could it be said equally that Ethiopia is at the tail end of the poorest countries on the planet because she is not free and gasps in the jaws of a “vampiric” dictatorship? In other words….
Is Ethiopia Poor, Hungry, Ill and Illiterate Because She is Not Free and Poorly Governed?
A couple of weeks ago, the Legatum Institute (LI), an independent non-partisan public policy group based in London, released its 2011 Legatum Prosperity Index (LPI) which ranked Ethiopia a pretty dismal 108th/110 countries. LPI’s findings are sobering as they are heartbreaking. Ethiopia has an “unemployment rate [that] is almost 21%, which is the sixth highest rate, globally.” The “capital per worker in Ethiopia is the fourth lowest worldwide.” The country has “virtually no investment in R&D.” The ability of Ethiopians “to start and run a business is highly limited… [with a] communication infrastructure [that] is weak with only five mobile phones for every 100 citizens”; and the availability of internet bandwidth and secure servers is negligible. Inequality is systemic and widespread and the country is among the bottom ten countries on the Index. The Ethiopian “education system is poor at all levels and its population is deeply dissatisfied.” There is “only one teacher for every 58 pupils at primary level, there is a massive shortage of educators, and Ethiopian workers are typically poorly educated.” Less than a “quarter of the population believe Ethiopian children have the opportunity to learn and grow every day, which is the lowest such rate in the Index.”
On “health outcomes, Ethiopia performs very poorly. Its infant mortality rate, 67 deaths per 1,000 live births, and its health-adjusted life expectancy of 50 years, placing Ethiopia among the bottom 20 nations.” The population has high mortality rates from “Tuberculosis infections and respiratory diseases. Access to hospital beds and sanitation facilities is very limited, placing the country 109th and 110th (very last) on these measures of health infrastructure.” The core problem of poor governance is reflected in the fact that “there appears to be little respect for the rule of law, and the country is notable for its poor regulatory environment for business, placing 101st in the Index on this variable.”
But it is not only the LPI that has ranked Ethiopia at the rump of the most impoverished and poorly governed nations in the world. Last year, the Oxford Poverty and Human Development Initiative (OPHDI) Multidimensional Poverty Index 2010 (formerly annual U.N.D.P. Human Poverty Index) ranked Ethiopia as the second poorest (ahead of famine-ravaged Mali) country on the planet. According to OPHDI, the percentage of the Ethiopian population in “severe poverty” (living on less than USD$1 a day) in 2005 was 72.3%. Six million Ethiopians needed emergency food aid in 2010 and many more millions needed food aid in 2011 in what the U.N. described as the “worst drought in over half a century to hit parts of East Africa”. The World Bank this past June concluded that “Ethiopia’s dependence on foreign capital to finance budget deficits and a five-year investment plan is unsustainable.” The Bank criticized dictator Meles Zenawi’s “dependen[ce] on foreign capital or other means of financing investment in an unhealthy, unsustainable way.” Ethiopia is the world’s second-biggest recipient of foreign aid, after Afghanistan, according to the Organization for Cooperation and Economic Development rankings of developing nations because its “leaders” have perfected the art of international mendicancy (panhandling).
That is not all. Every international index over the past several years has ranked Ethiopia at the very bottom of the scale including Transparency International’s Corruption Index (among most corrupt countries), the Failed States Index (among the most failed), the Index of Economic Freedom (among the most economically repressive), the International Bank for Reconstruction and Development Investment Climate Assessment (among the most unfriendly to business), the Ibrahim Index of African Governance (among the most poorly governed African countries), the Bertelsmann Political and Economic Transformation Index (among countries most in need of reform) and the Environmental Performance Index (among countries with poorest environmental and public health indicators).
Of course, none of that comes as a surprise to those who are familiar with the fakeonomics of Meles Zenawi. Zenawi says all of the Indexes, the World Bank and the International Monetary Fund (IMF) are wrong. He boldly claims the Ethiopian “economy recorded an average economic growth rate of 11 percent over the past seven years.” But that incredibly rosy growth rate figure, often repeated and republished mindlessly and unquestioningly by the international media, is based exclusively on statistics manufactured by Zenawi’s statistics department. This past June, the IMF debunked Zenawi’s imaginary economic growth estimate of 11.4 percent for 2009 “saying 7.5 percent is more realistic.” The IMF “forecast is even lower growth of about 6 percent for the coming year” because of a “more restrictive business climate”.
Economic principles, facts and realities are irrelevant to Zenawi. According to “Zenawinomics” (a/k/a “Growth and Transformation Plan”), there are bottomless pots of gold awaiting Ethiopians at the end of the rainbow in 2015: The Ethiopian economy will grow by 14.9 percent (oddly enough not 15 percent). There will be “food security at household and national level.” There will be “more than 2000 km of railway networks would be constructed” and power generation will be in the range of “ 8,000 to 10,000 MW from water and wind resources during the next five years.” The “whole community has mobilized to buy bonds. This huge savings and mobilization is used for infrastructure development… We are getting loans from China, India, Turkey and South Korea, so all these foreign savings are also mobilized… So I think we can perform on the ambitious plans that are in place.”
Zenawinomics is the economics of a magical wonderland, very much like Alice’s Wonderland: “If I had a world of my own,” said Alice “everything would be nonsense. Nothing would be what it is because everything would be what it isn’t. And contrary-wise; what it is it wouldn’t be, and what it wouldn’t be, it would. You see?”
Maybe you don’t see. That is the whole point. In what Zenawi describes as “one of fastest growing non-oil economies in Africa,” inflation is soaring, and by mid-2011, Zenawi’s Central Statistical Agency reported that the annual inflation rate had increased by 38 percent and food prices had surged by 45.3 percent. There are more than 12 million people who are chronically or periodically food insecure. Yet, Zenawi is handing out “large chunks” of the most fertile land in the country for free, to be sure for pennies, to foreign agribusiness multinational corporations to farm commercially and export the harvest. This past July, the U.S. Census Bureau had a frightening population forecast: By 2050, Ethiopia’s current population of 90 million population will more than triple to 278 million, placing that country in the top 10 most populous countries in the world. It just does not make any sense.
In May 2010, the Economist Magazine rhetorically asked: “Ethiopia’s prime minister, and his ruling Ethiopian People’s Revolutionary Democratic Front (EPRDF) expect a landslide victory in the general election due on May 23rd, and are likely to get one (they actually “won” it by 99.6 percent!). The bigger question is whether another five years of EPRDF rule will help ordinary Ethiopians, who are among the poorest and hungriest people in the world.”
Ethiopia Can Prosper Only If She Has Good Governance
The United Nations Development Programme and other international lending institutions define ‘governance’ as the “exercise of power or authority – political, economic, administrative or otherwise – to manage a country’s resources and affairs.” Good governance has to do with the “competent management of a country’s resources and affairs in a manner that is open, transparent, accountable, equitable and responsive to people’s needs.” There is substantial empirical research showing that political freedom, strong social and political institutions and proper regulatory mechanisms significantly contribute to economic growth. Stated simply, good governance and “good” (sustainable) growth are based on mutually reinforcing principles.
Where there is good governance, there is substantial political and legal accountability and much greater respect for civil, political and property rights. Leaders are held politically accountable to the people through fair, free and regular elections; and an independent electoral commission ensures there is no voter fraud, voting irregularities, vote buying, voter intimidation and voter harassment. Institutional mechanisms are in place to ensure the rule of law is followed and those exercising political power and engaged in official decision-making perform their duties with transparency and legal accountability. Where there is good governance, citizens have freedom of association and the right to freely exchange and debate ideas while independent press, and even state-owned media, operate freely along with robust civil society institutions to inform and mobilize the population.
Good governance is an essential precondition for sustainable development. Stable and democratic governing institutions protect political and economic liberty and create an environment of civic participation, which in turn “determines whether a country has the capacity to use resources effectively to promote economic growth and reduce poverty.” On the other hand, bad or poor governance stifles and impedes development and undermines competition in the marketplace. Where human rights and the rule of law are disrespected, corruption flourishes and development inevitably suffers aspolitical leaders and public officials siphon off resources from critical school, hospital, road and other public works and community projects to line their pockets. But where there is good governance, not only is economic development and growth accelerated, even chronic and structural problems of food insecurity (famine) that have plagued Ethiopia for decades can be controlled and overcome. As Amartya Sen has argued no substantial famine has ever occurred in any independent country with a democratic form of government and a relatively free press.
Because there is little or no political accountability, Ethiopia suffers from poor governance and remains at the bottom of the indexes of the most impoverished nations in the world. Programs intended for “poverty reduction” have been misused for political mobilization and rewards for voting for the ruling party. The country has been unable to promote broad-based economic growth because business attached to the ruling party have a near-total monopoly and chokehold on the economy making fair competition for non-ruling party affiliated entities in the market an exercise in futility. Because there is little respect for property and contract rights, those non-aligned with the ruling party feel insecure and disinclined to invest. The ruling regime has made little investment in human resources through effective policies and institutions that improve access to quality education and health services as the LPI data shows. As a result, the rate of flight of professionals, intellectuals, journalists and political dissidents, is among the 10 highest in the world. The International Organization for Migration has said it all: “There are more Ethiopian doctors practicing in the US city of Chicago than in Ethiopia.”
Ethiopia is universally regarded as one of the least free countries in the world and ranks at the very bottom of the 10 most repressive countries in the world for citizens’ freedoms in expression, belief, association, and personal autonomy. The respected Committee to Protect Journalists says, “Ethiopia is the second-leading jailer of journalists in Africa.” There is little regard for the rule of law as the LPI data confirms. In other words, those who occupy official positions have little respect for the country’s Constitution or laws, or show any concern for the fair administration of justice. The judiciary is merely the legal sledgehammer of the dictator and ruling party. The judges are party hacks enrobed in judicial garb with the principal mission of giving legal imprimatur to manifest official criminality. In sum, the rule of law in Ethiopia has been transmuted into the rule of one man, one party.
Few should be surprised by LPI’s conclusions that the “levels of confidence in the military and judiciary are both very low” and “Ethiopia is the country where expression of political views is perceived by the population to be most restricted.” None of the facts above matter to the dictators in Ethiopia because they are ready, willing and able to do whatever it takes to cling to power.
LPI’s dismal ranking of Ethiopia merely augments what has been solidly established over the years in the other Indexes. The question is why Ethiopia remains at the tail end of the most impoverished countries year after year. Zenawi’s “Federal Ethics and Anti-corruption Commission” (FEAC) conflates corruption and poverty in seeking to pinpoint the answer to this question. FEAC says the major sources of corruption in Ethiopia are “poor governance, lack of accountability and transparency, low level of democratic culture and tradition, lack of citizen participation, lack of clear regulations and authorization, low level of institutional control, extreme poverty and inequity, harmful cultural practices and centralization of authority.” Not quite! Poor governance, lack of accountability and transparency (a/k/a corruption), lack of citizen participation and the absence of the rule of law are the root causes of extreme and widespread poverty, underdevelopment, aid-dependency, conflict, instability, starvation and injustice in Ethiopia. Have free and fair elections, allow the independent press to flourish, institutionalize the rule of law and maintain an independent judiciary, professionalize and depoliticize the civil service, the military and police forces and Ethiopians will be well on their way to permanently defeating poverty and making starvation a footnote in the history of the Ethiopian nation.
Ethiopia is poor, hungry, ill and illiterate because she is poorly governed and not free!
 The Legatum Index is based on 89 different variables covering the economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom, social capital and so on. The Institute uses data collected by the Gallup World Poll, World Trade Organization, World Development Indicators, GDP, World Intellectual Property Organization, UN Human Development Report, World Bank, OECD and World Values Survey.
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