Some Western donors plan to channel the withheld $375 million direct budget support to Ethiopia’s Woreda administrations, according to sources at the Ministry of Finance. The plan, which is supported by UK’s Department for International Development and the World Bank, is opposed by the European Commission (EC).

Yesterday, representatives of EC, the Canadian International Development Agency (CIDA), the UK Department for International Development (DFID), the World Bank and other donors met with Finance Minster Sofian Ahmed and talked about this so-called “New Instrument.”

Observers noted that the British Government, which announced the cut off of direct budget support to the Meles regime last week, helped the regime to come up with this new plan to get the money indirectly, since all woreda administrations in Ethiopia are controlled by the regime.

During the discussion, the Meles regime insisted that it should select the woredas which would be provided with the money. Representatives of the donors wanted the money to be shared by all woredas equally.

An economists at the Ministry of Finance said that the plan was an indirect budget support designed by the Blair government to save the Meles regime from economic collapse under the guise of helping the people of Ethiopia. The donors are expected to make a final decision in February.

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