Ethiopian News and Opinion Forum
I watched the first video and was very impressed by his presentation about the things we already know about. However what's conveniently missing from his presentation is the innovation gridlock due to IMF's "Structural Adjustment Programs" that is preventing Africans from manufacturing products using their own raw materials and labor for domestic consumption. The astronomical amount of external debt incurred by the TPLF regime without the consent of the Ethiopian people, for example, was never used for investment, but for consumption. And as a result, Ethiopia has to export raw materials in order to pay off IMF debt.
His innovative ideas of instant meals in Ethiopia comprising of the staple diet of Injera or Maize may sound good in theory, but it doesn't pay off the external debt of the country. The IMF's "structural adjustment programs" imposed on Ethiopia have created foreign domination of national economy. Local businesses that are expected to bring innovation are crippled. The program has forced the TPLF regime divert Teff growing land to produce Maize for biofuels, and the result is: rising food prices and poverty in Ethiopia.
According to the World Bank, the external debt of poor countries is considered sustainable at no more than 150% of that country's annual export revenues. Ethiopia's debt-to-export revenues ratio has risen to over 220%, and that is after the country has received $4 billion dollars in debt-relief!!! His innovative ideas, however noble, are not sustainable under the current condition in the country.
And in regards to the new banks, there's nothing to celebrate about the number of banks mushrooming in Ethiopia. In fact, the new banks are the main reason the country is experiencing out-of-control inflation and currency devaluation. Read what Nigerians have to say about a similar issue in their country that was a direct result of none other than IMF imposed "Structural Adjustment Programs" .....
All the African nations implementing "Structural Adjustment Programs" (SAP) have seen a rapid increase in the number of new banks.
At the end of 1983, Nigeria had 32 approved commercial banks of which 25 were functioning with a national network of 11,001 branches, there were 10 merchant banks and 22 development banks, including savings banks.5 By 1992, about six years after Nigeria has started implementing SAP, commercial and merchant banks had increased to 120, there were 500 finance houses, over 200 stock-brokers and brokerage houses, about 156 community banks, a people's bank with over 210 branches, and 85 savings banks. Similar increases in the number of financial institutions were experienced in Ghana, Zambia and Tanzania.Monetizing African economies by the mere establishment of banks only increases speculation and discourages production and development. The effect of increased speculation is to increase the value of the inflation index and reduce the purchasing power of the local currency. It comes as no surprise that African nations implementing SAP have been experiencing hyper-inflation, high interest rates due to speculators' high demand for money, low productivity and increasing general economic distress. http://web.mit.edu/africantech/www/arti ... Adjust.htm
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