to Paul Wolfowitz, highly critical of the PBS in light of political corruption and violation of Ethiopians’ property rights by the regime.
In fact, the PBS is quite controversial even within the organizations that are contributing money to this multi-donor loan. Many within the World Bank are quite opposed to it and believe that it is not much different from standard budget support. (Even some government supporters in Ethiopia, who are happy to see the PBS approved, point out that it is budget support by another name). However, those like Mr. Ishac Diwan who have a significant professional stake in this loan being extended to the government, have managed to push the project past dissenting voices and ensure approval of the loan by the World Bank’s board. Unfortunately, incentive structures for promotion and recognition in the Bank, as in many other donor organizations, do not reinforce, but rather work against, motivations of staff to focus on reducing poverty. We are thus concerned that decisions to continue giving loans to governments, whether or not they repress the poor in their country, are in part driven by the need to keep lending money at any cost. This is an outcome of the sad fact that career advancement in donor organizations does not solely depend on whether tangible results on poverty and growth have been achieved, but on how much money gets disbursed. To the detriment of the poor, ‘aid dependency’ goes both ways, and that has contributed to the abysmal failure of 60 years of foreign aid.
Now, in 2006/07, donors may be considering extending the largest loan Ethiopia has ever seen – this time straight to the federal government, no strings attached!
Now, it looks like even the rather thin veil of the PBS may come off. The government recently disclosed the broad parameters of its 2006/07 fiscal year budget. In this, it budgeted for about $420 million in direct federal budget support, in addition to over $1 billion in aid that does not flow directly into government coffers but is earmarked for specific development projects. Just taking the federal budget support amount of $420 alone, if even most of the money for this would come from the World Bank as opposed to other donors – not an unlikely scenario given the typical institutional composition of budget support aid – then this would be the largest loan ever given to any Ethiopian government by the World Bank! While this is only the government’s budget and thus indicates what revenue sources the government plans to access (and thus is not in itself a document that binds international donors to any particular amount and modality of aid provision) it is to be highly expected that the government consults carefully with the DAG before publicizing any aid volumes and modalities in its budget. Thus, the donor organizations represented by the DAG are not only well aware that the government made provision of federal budget support of unprecedented volume in its most recent budget, but must have also sent strong enough signals to the government that an undisguised, unchecked blank cheque may be forthcoming in the near future.
To put the magnitude of this financial infusion by the donors, which the government could then spend as it wished, into perspective: Tremendous attention on the part of pro-democracy activists in the Ethiopian communities abroad has gone toward ensuring passage of the historic bill sponsored by Chris Smith, the HR 5680 (formerly HR 4423). Indeed, this bill, if it becomes law, has the potential to herald a new chapter in US policy toward Ethiopia. However, the size of the appropriation by HR 5680 for promoting freedom and human rights, $20 million, is less than one-twentieth, or 5%, of the budgeted federal blank check (budget support) given by the donors to the government of Meles Zenawi!8 The HR 5680 resource allocations would also constitute a mere 10% of the current quasi-blank cheque, the “Protection of Basic Services” loan recently approved.9
Why it is up to us to speak up, hold donors accountable to their own mandate, and make sure they don’t go back to signing blank cheques to an unaccountable government.
EACA believes that if aid agencies actually had had to answer to the poor who are supposedly donors’ ultimate clients, the never-ending influx of billions and billions of dollars into impoverished countries like Ethiopia may have actually contributed to improving the welfare of those who live on this side of survival. Donor accountability to the poor is rather tenuous and indirect even in the best case scenario of democratic and free developing countries. In countries like Ethiopia, on the other extreme, in which political rulers rule through force rather than through legitimacy, and in which fragility of power base averts government’s attention away from the business of development and focuses it on the business of keeping the grip on political control, the poor lack even the most indirect of means to make donor countries accountable for delivering on their mandate of eliminating the scourge of poverty. In countries like Ethiopia, the poor dare not themselves speak up to express criticism about how aid money is spent in their communities. They cannot dream of voting their political representatives out of power if the latter abuse or pocket donor resources. They cannot harbor any hope for NGOs and poverty advocacy groups in Ethiopia to look out for them when aid is handed out. Daniel Bekele and Netsanet Demissie of ActionAid, on trial in government courts for treason and attempted genocide, are only two of many examples of what may await development workers who advocate on behalf of the poor. Most NGOs in Ethiopia are therefore intimidated into submission to the government’s will, or else are too much a part of the machinery of the aid industry themselves, relying on the steady inflow of donor money for their livelihoods, to be willing to speak up when aid is channeled in an unproductive and anti-poor way.
Aid agencies are thus operating in a country in which no one can seriously challenge their untenable support to a repressive government and be free of reprisal. It is therefore up to us to speak up – us Ethiopians and Ethiopian-Americans living in freedom and dedicated to one day seeing Ethiopia prosper and mass human suffering, be it due to economic deprivation or political repression, stop.
Please contact the responsible aid agencies now!
Until such day comes when those living in destitution in our country, the vast majority of Ethiopia, have the political voice and freedom to call on the government and donors to serve their needs without fear of being ill-treated, please speak up on behalf of the voiceless.
Please contact the responsible officials in the donor organizations now (see contact information below), and let them know:
- It would be unacceptable, irresponsible, and a violation of their own publicly stated commitments to provide federal budget support – a blank cheque to the government with no strings attached – in this time of disastrous governance. The ruling regime now appears to be counting on such support. Ask the donors whether they have made such promises to the regime.
- The so-called “Protection of Basic Services”, the 4th-largest loan the World Bank has ever extended to Ethiopia, is a thinly disguised form of budget support – channeling money to the regional governments’ coffers instead of the federal government. Ask that this huge loan to the government be discontinued. Donor agencies, if they are serious about bringing about development, should insist first on improvements in governance before doling out aid, not give money first and hope that the government will then stop being repressive.
- We reject donors’ premise that governance is improving. Just because people are too terrified to go out into the streets to demonstrate, and just because therefore gunfire against innocent people is no longer being heard from the windows of the donors’ offices in Addis, that does not mean that governance has improved. Good governance is not reflected in the quiet streets of repression. Ask donors to call for the release of the political prisoners of the CUD leadership, the press and anti-poverty workers. Ask them to urge for the institution of a free press, freedom of assembly, and independent judicial system.
- As Ethiopians, many of us have seen how cold-war politics has ravaged our country, led to the starvation of over one million of our fellow countrymen, by propping up one of Africa’s cruelest tyrants because he was seen as an important ally by the Soviet Union. We are distressed that the new Cold War, this time against Islamic terrorism, will be fought on the backs of Ethiopia’s people – once again. Tell donors not to prop up another dictator pretending that it is for the sake of the poor.
EACA would be interested to learn what feedback you receive when you contact the donors with your concerns. Please also feel free to contact us if you are involved in activities related to foreign aid in Ethiopia and would like to co-ordinate with EACA. Email us at eacadvocacy@gmail.com . Below find donors’ contact information.
References
1 Tim Clark, Head of the European Commission in Ethiopia, in The Observer (4 December 2005) “Democratic Dawn in Ethiopia Fades as Abuses Come to Light”.
2 Ishac Diwan, Country Director of the World Bank for Sudan, Ethiopia and Djibouti, in UN IRIN News (18 November 2005) “Interview with World Bank Representative”.
3 Letter from the Donor Assistance Group (DAG) to Finance Minister Sufian Ahmed. 15 November 2005
4 Speech by Hilary Benn, British Secretary of State for International Development, to the Royal African Society, “Political Governance, Corruption, and the Role of Aid”, 3 February 2006.
5 UN IRIN News (see footnote above).
6 Department for International Development
7 The Reporter: “Government anticipates 3.7 billion birr direct budget support”, 1 July 2006.
8thomas.loc.gov/cgi-bin/query/z?c109:H.R.5680.IH:
9 A pro-democracy activist recently rechristened the P.B.S. loan to give the acronym a more fitting longform: “Practically, Budget Support”.
PEOPLE TO CONTACT AT THE WORLD BANK
1. Country Director
Ishac Diwan
Tel: +251-11-517 6000 or +251-11-662 77 00
Fax: +251-11-662 7717
idiwan@worldbank.org
(oversees World Bank activities in Ethiopia, Sudan and Djibouti; responsible for large loans such as the PBS and any future budget support)
2. Vice President, Africa Region
Gobind Nankanai
Tel: (202) 458 2858
Fax: (202) 477 0380
gnankani@worldbank.org
annla@worldbank.org (VP’s executive secretary)
(oversees World Bank activities in Africa, also involved in Bank strategy for Ethiopia including questions of budget support)
3. Lead Economist
Trina Haque
Tel: (202) 458-5775
Fax: (202) 473-8107
thaque@worldbank.org
(responsible for the PBS loan)
4. Country Program Coordinator
Jill Armstrong
Tel: (202) 473-8471
Fax: (202) 473-5453
jarmstrong@worldbank.org
(oversees Bank programs in Ethiopia)
Responsible persons in other donor agencies
United Kingdom - Department for International Development (DfID)
1. Head of Country Office
Paul Ackroyd
Tel: +251-11-661 2354 Ext. 2377
Fax: +251-11-662 2432
p-ackroyd@dfid.gov.uk
2. Deputy Director, Africa Division
Dave Fish
Tel: +44-1355-84 3391 or +44-1355-84 3442
Fax: +44-1355 84 3442
dave-fish@dfid.gov.uk
Main Switchboard phone number: +44-207-023 0000
3. Secretary of State for International Development
Mr. Hilary Benn
Tel: +44-20-7023 0419
Fax: +44-20-7023 0634
privatesecretary@dfid.gov.uk
Main Switchboard phone number: +44-207-023 0000
Canadian International Development Agency (CIDA)
1. Head of Program Support Unit
Pierre Fortin
Tel: +251-11-371 5600
Fax: +251-11-371 5744
pierre.fortin@cida-ecco.org
2. Head of Aid
Marc-Andre Fredette
Tel: +251-11-371 3022
marc-andre.fredette@international.gc.ca
3. Manager of the Ethiopia program for the Africa Middle East Branch
Janet Durno
Tel: +1-819-997 7824
Fax: +1-819-953 9453
janet_durno@acdi-cida.gc.ca
Main switchboard phone number: 1-(800)-230 6349
European Commission
1. Head of Delegation to Ethiopia
Tim Clarke
Tel: +251-11-661 2511
Fax: +251-11-661 2877
timothy.clarke@ec.europa.eu
Main switchboard phone number: +32-2-299 1111
2. Member of the Cabinet (oversees EC programs in Ethiopia)
Hervé Delphin
Tel: +32-2-295 1820
Fax: +32-2-292 1485
herve.delphin@ec.europa.eu
Main switchboard phone number: +32-2-299 1111
3. Commissioner for Development and Humanitarian Aid
Louis Michel
Tel: +32-2-295 9600 or +32-2-295 2718
Fax: +32-2-292 1485
louis.michel@ec.europa.eu
Main switchboard phone number: +32-2-299 1111
ETHIOMEDIA.COM - ETHIOPIA'S PREMIER NEWS AND VIEWS WEBSITE
© COPYRIGHT 20001-2006ETHIOMEDIA.COM. EMAIL: webmaster@ethiomedia.com