VIEWPOINT
Subsidizing the Eritrean consumer (economy) - again?
Posted on Haweltina
by Keshi Wolde Yohannes
Aug 19, 2002


(This article was first composed in April 2002. The author refrained from publicizing it after finding out that the behavior as described in the article was not unique to the government's conducts. A REPORTER'S article (13/12/94) motivated me again to air my views, adding some points to the article.)

Draining our markets — A re-play of disloyalty of the Ethiopian government

The news about the fact that some "small cross-border trade was taking place" as testified by a high ranking Ethiopian official could have passed unnoticed. This was told by the "parliamentary" speaker of Tigray State, as was quoted in a news article on the Internet back in April 2002. Between the lines, one can read that the gentleman is happy about this development. "Normalization" as it is defined and understood by the current Ethiopia's strongmen is taking place. The people have no say on matters that affect the basic means of supporting their livelihood.

Are Ethiopia's strongmen trying to do everything to please an enemy? One can't have a conclusion other than that Eritrea got Ethiopian lands, and now they are getting Ethiopian products facilitated by our leaders neglecting the interests of local consumers.

This shouldn't be a big issue on the first glance; trade relations are considered generally as some thing good that help in bringing economic growth to the involved partners. Well, I've tried to substantiate the story by asking people if they have any idea on how things are running between Ethiopia (Tigray) and Eritrea.

There are confirming stories in this regard. I could learn that trade interaction of significant magnitude is being conducted. Dwelling on this issue arises a number of questions that fall generally under aspects of legal basis and the conduct of state affairs by the government involved. Apparently, the small cross-border trade is not considered illegal by the Ethiopian government. On what basis is this happening then? To my knowledge there are no formal resumptions of any relations that could happen between two countries. Therefore, the Ethiopian government is tolerating or may be actively encouraging or even supporting the cross-border interaction knowing that it brings disadvantage to the people. I am afraid that the very mistakes that lead to the conflict between Ethiopia and Eritrea are being repeated. A question that strikes one's mind is, however, how and on what basis is this happening? Who is benefiting by depriving the Tigrayan consumers of affordable products due to imported inflation as a result of Eritrean competition for limited products. This is happening during times, when reports of imminent hunger or even famine are appearing frequently on the news media. Is there any kind of protection of the Tigrayan consumer with his/her limited purchasing power? Definitely no.

The above-mentioned gentleman (Dr. Solomon Inquai) is telling the world that the commodities that are involved in the cross-border trade are sugar and plastic. He has definitely forgotten other things that are of higher significance to the Tigrayan consumer. The Eritrean consumer could unquestionably get sugar from elsewhere — may be from Cuba. Donkey loads of Ethiopian foodstuffs (cereals and grains) are certainly the commodities that are of great interest and demand of the Eritrean consumer. Food products are contested commodities in a region that is rarely endowed with abundant harvests. The Ethiopian government is failing the Tigrayan (Ethiopian) consumers again by allowing illegal trade interaction with an enemy society involving hardly needed, scarce products. The Tigrayan markets have to be depleted for the sake of the Eritrean consumer. Be it "white" or "black" capitalism that is installed in Ethiopia, consumers have to be protected from the whims of the market, especially when they are results of encroachment by an enemy that has caused a lot of harm to the very people, from whom it is profiting now. They may thank to the Ethiopian government for this all. Well, who is the enmey now? I think we cannot blame the Eritrean consumer; Ethiopia's strongmen will be kept accountable for this betrayal.

The irony is: A government is allowing the siphoning off Ethiopian products to a hostile neighbor. People who never hesitated to laugh at a neighbor's economic weakness, are not ashamed of their brazenness to scramble for the scarce resources of the allegedly poor economy.

As everybody is aware of, the Eritrean government and people have displayed a great deal of unthankful behavior to the Ethiopian people in general and to the people of Tigray in particular, which was crowned by their rampage on peaceful village societies and by cluster-bombing innocent school children. The Ethiopian people had to bear the humiliation that was being caused by the unappreciative "Eritrean guests", who were behaving as uncultured guests in a five-star-hotel. This was definitely a result of the negligence of the Ethiopian government that didn't show proper care for the psychological and material well being of its people.

The fact that the Eritrean people have drawn a great deal of material and financial resources from poor Ethiopia has been substantiated by others, who have deeper knowledge on this matters, so that I would refrain from repeating the agonizing details. They benefited exceptionally because no body on the Ethiopian side thought of guarding the national interest of Ethiopia and of establishing a balanced and just trade relations. The Ethiopian government fed and raised a beast that became very, very dangerous and uncontrollable. The final outcome of the negligence of the Ethiopian government is obvious to every one.

It is mind boggling to learn from a high-ranking "representative" of the people again that the people of Eritrea are being treated like good friends again; who can guarantee that his conduct wouldn't lead to a disaster? Why are our "representatives" so indifferent to the national interest of Ethiopia?

It is really disturbing to learn now that illegal trade has reached such a magnitude that it could make a newspaper headline in the REPORTER. The striking point in this regard is we are learning from the REPORTER that the Eritreans are paying a much lower price than the Tigrayan consumer. Is this just because the market is regulating the price that way or IS SOMEONE OFFERING A VERY CHEAP CATALOGUE OF PRODUCTS ignoring one's consumers? This is really a disgusting development.

In 1997, after indtroducing the "new" Ethiopian currency and while regulations and modalities for trade relations between Eritrea and Ethiopia were being put into effect, the Ethiopian gov't announced that cross-border trade, applying both currencies, will be limited up to a value 2000 US$, that other trade interactions will be conducted in dollars applying letter of credit (you may correct me on this). How is it being conducted now? As we all now Mr. Issayas rejected and dismissed the whole Ethiopian design in this regard and few months later he went to war that destroyed uncountable things.

Apparently Mr. Issayas is getting every thing: He can count himself to be a victor, thanks to his accomplices in Addis and Mekele.

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