In spite of rapid growth, corruption keeps Ethiopia mired in poverty
* By Catholic Online (NEWS CONSORTIUM)
* 6/25/2013
* Catholic Online ( <
http://www.catholic.org> www.catholic.org)
Government officials, businessmen, ministers lining pockets with sudden
influx
While Ethiopia is currently enjoying economic growth, the Horn of Africa
nation remains mired in poverty and neglect due to corruption. Many
government officials continue to skim the "cream off the top," which hinders
foreign investors seeking stable, long-term partnerships in developing
countries.
LOS ANGELES, CA (Catholic Online) - "Bankers, miners and developers
presenting projects to investment committees in countries that fare badly in
corruption rankings frequently struggle to get investment. Corruption raises
red flags because it makes local markets uncompetitive, unpredictable and
therefore largely hostile to these long-term players," Ed Hobey, the East
Africa analyst at the political risk firm Africa Risk Consulting says.
In the biggest crackdown on corruption in Ethiopia in the last 10 years,
authorities arrested more than 50 high profile people including government
officials, businessmen and a minister last month.
Among those arrested were Melaku Fanta, the director general of the Revenue
and Customs Authority, which is the equivalent rank of a minister, his
deputy, Gebrewahid Woldegiorgis, and other officials were apprehended on
suspicion of tax evasion. Arrests have raised questions about the endemic
corruption at the heart of the country's political elite.
"Corruption is a serious problem we are facing. We now see that corruption
is occurring in higher places than we had previously expected," Berhanu
Assefa of the Federal Ethics and Anti-corruption Commission of Ethiopia
says. "Areas vulnerable to corruption are land administration, tax and
revenue, the justice system, telecommunications, land procurement, licensing
areas and the finance sector," he said.
Ethiopia ranks 113 out of 176 countries on the Corruption Perceptions Index
of Transparency International. Ethiopia has also lost close to $12 billion
since 2000 to illicit financial outflows, according to Global Financial
Integrity.
Professor of Economics at Harper College in the United States, Dr. Getachew
Begashaw, says that there was a fear that the recent high profile arrests
are just political theatre designed to placate major donors such as the
World Bank and the IMF, and to give credibility to the new regime's fight
against corruption.
Prime Minister Hailemariam Desalegn has led Ethiopia after Prime Minister
Meles Zenawi died in August 2012.
"They are using this as a PR stunt to appease not only the donors, but to
also dupe the Ethiopian people. Because many non-party affiliated Ethiopians
in the business community are complaining, and this complaint is trickling
down to the average people on the streets," he said.
Illicit financial flows as a result of corruption are a major hindrance to a
country's development, undermining institutions, economies and societies.
According to the Africa Progress Panel's Africa Progress Report 2013, the
continent is losing more through illicit financial outflows than it receives
in aid and foreign direct investment.
C 2013, Distributed by NEWS CONSORTIUM.
Received on Tue Jun 25 2013 - 21:54:50 EDT