Good Governance Vs Terror and Famine in the Horn? What a choice?

http://en.afrik.com/article13906.html PANA, Senegal

Saturday 21 June 2008
Ethiopia worried about spread of Eritrea and Djibouti dispute
Drought striken Ethiopia deals with consequences of conflicts

Though countries of the Horn of Africa maintain a common desire to keep conflicts away from their neighbourhood, the latest clashes between Djiboutian and Eritrean forces over their shared border could spawn more bloodshed in the region, according to ’Sub-Saharan Informer’ weekly.

Noting the ten-year border crisis between Eritrea and Ethiopia remained unsolved , the paper, this week, urged countries of the region to set up a mechanism that would enable them to settle any disagreement through dialogue.

"Unless we all stand together and opt for genuine political solutions, the region will continue to go through a vicious circle of conflict," the weekly warned in its editorial, pointing out that conflicts have severe economic repercussions in the region.

Concerned about the timing of the dispute between Djibouti and Eritrea, the paper said it "could not be any worse, with reports of a severe famine occuring in the region, coupled with massive population shifts."

"Conflict is not unique in this part of the world - the problem is that conflict seems to be the first choice of settling disputes," added Sub-Saharan Informer.

In another issue this weekend, the paper focused on refugees and internally displaced persons in Africa. "Political turmoil is often the root cause of massive displacement.

"When parties opt for guns rather than dialogue, when fear is used to pressure others to see one’s point of view, we not only destroy villages but put in motion a chain of events that could have regional consequences," the weekly observed.

The Ethiopian Herald had one of its daily leaders focused on the current food shortages in the country, echoing an appeal by the government to international humanitarian organisations to respond to the emergency.

Officially, the affected population has been put at 4.6 million by the Herald, which criticised reports that suggested a higher figure, saying "the attempt by some interests to exaggerate the number of people facing food shortage is an irresponsible conduct with selfish ends."

The government estimated that 75,000 children under the age of five in drought-affected areas face severe acute malnutrition and require immediate therapeutic care to survive.

In another editorial, the paper wrote that despite the success registered in the economic sector, a great number of Ethiopian children are still in abysmal poverty.

Without mentioning food as among children’s rights, the paper asserted that full respect of child rights could be realised with an active involvement of the society at large, schools, the family and other stakeholders.

"It is only when we work in unison that our children, the hope of this country, could enjoy a better future," the daily added.

Humanitarian reports by other papers have warned about the high vulnerability of children to nutritional shocks as they could easily succumb if they do not get enough food. Panapress .
________________________ http://en.ethiopianreporter.com/content/view/811/36/ Reporter, Ethiopia High inflation rate, current account deficit raise more concern
Saturday, 21 June 2008


Hayal Alemayehu

The high inflation rate and the widening current account deficit the country has been going through lately has become much of a concern for both local, expatriates and world economist.

The latest addition to the list who voiced concern over the same issue is Dr. Justin Yufi Lin, the first chief economist and senior vice president for the World Bank (WB) from a developing nation, China.

Dr. Justin, who assumed the vice presidency as a chief economist at the WB this month, has expressed his concern at a press conference held here on Tuesday over the high inflation rate and the widening current account deficit the country has been experiencing over the last few years.

"Currently, the high inflation rate is certainly an issue of much concern," Dr. Justin told the press conference. "How to bring down the inflation to an acceptable level is the key issue because, with high inflation, you are going to leave people vulnerable even if they sweat hard."

He said that he was informed of the government's temporary intervention and efforts being made to help the people affected with the high inflation to cope with the problem. However, the chief economist said that the government needed to bring down the inflation rate to an acceptable level eventually. This has, however, unfortunately failed to materialize with especially food prices rising by the day, as the local market witnesses.

The current account deficit, which is incorporated in the declining balance of payment, is the other issue of concern Dr. Justin shares with other economists.

"The sharp increase in petroleum, chemical fertilizers and grain (commodity) prices had partly contributed to bringing about high pressure on your balance of payment," Dr. Justin says. But at the same time, import bills had been four times as high as export earnings during the last few years.

"This is a large current account deficit, and how to finance that deficit becomes a key issue," he added.

"Certainly there are external shocks as I have already mentioned. And the international donor communities try to come up with ways and means to address these external shocks and support Ethiopia to deal adequately with the sharp prices increases," Dr. Justin says. "However, the government fundamentally has to find means to reduce import and increase export.

The government can, hopefully, introduce policy measures that can deal with this issue effectively, without affecting the growth momentum the country has passed through over the last few years."

Aside from his concerns over the inflation and the current account deficit, among others, Dr. Justin expressed hope concerning the growth trend of Ethiopia's economy.

"Although on a very small scale, some sectors, including horticulture, leather and shoe production, are going in the right direction in utilizing the competitive advantage the country enjoys, which includes minimal labour wages, ideal weather and land, among other resources," he said. "Utilizing these resources, these products are able to penetrate the European market."

"Although there are troubles and obstacles that need to be overcome and tackled, which I think is possible to be done with the right policy measures, Ethiopia is a land of hope," Dr. Justine said.

"Over the last four years, Ethiopia had achieved a remarkable growth rate of some 11 percent continuously," the chief economist said. "But there are still some people suffering from poverty which, I think, has got to do with the industrialization level in Ethiopia, which has failed to create enough employment in the countryside and the urban areas as well."
__________________ http://www.fews.net/docs/publications/whia_20080619.pdf Weather Hazards