“The macro economy improvement policy that is being implemented by the government has already started to have several negative effects on the country’s economy and society. The high inflation in the market has created a great threat to our society. Expansion financial policies that have been carried out in different countries including Nigeria, Kenya, Sudan and Egypt to stimulate growth have often led to high inflation without achieving the aim of eliminating unemployment. This also disturbs the people’s ability to buy and especially those who struggle to buy basic goods and services with low income. Government expenditures based on the deficit of domestic and foreign loans have led to debts. Since the increasing amount of debt repayment from time to time also plays a significant role in the country’s budget, the allocation for debt repayment is reduced from essential services such as health, education and social welfare. Considering Ethiopia’s foreign debt in Birr. It has grown four times more. It is possible to pay off this debt by making the country open and comfortable for the people and foreign investors and paying taxes by making people work.
On the other hand, the macro-economic reform that the government has approved and implemented a situation where the Amhara and Oromia regions have the highest population and is waging a widespread war cannot manage the development economy and also manage the market economy. We also have a big fear that the economic problems that exist and are being shown in practice will reach a point where they cannot be solved” (ENAT – ‘The macro economy improvement that the government is implementing is not a good medicine, but a pill to prolong the life of the system!’ 26.08.2024).
We could see this one coming. The bail-out terms of the International Monetary Fund (IMF) and the World Bank has severe affects on the daily life of the poorest people. The sort of incentives for loans that keeps a elite and the ones in-office happy. But the general population and the citizens at large feels the pinch.
The IMF and the World Bank saved the Prosperity Party. The gave it fresh liquidity, but that cost the control of the Birr and the devalue of it. That will cause a rise of inflation and cause less value of the imports to the nation. Everything will go up in prices and there will lack a balance between the growing shortfall and the need for rising salaries to keep up with the lowered value of currency. It is just a negative circle and it has been ushered in by the regime.
Prime Minister Abiy and his lackeys supported the initiative. They celebrated the loss and the devalued currency. Because for the ones in power. That meant they got a life-line and friendly loan, which someone else has to pay down the line. This gives the government currency and wiggle-room to move for while, but it won’t save it out of the hurdle.
That’s why the likes of ENAT Party and others called the Prime Minister and his party out. We could see this one coming. This was a dangerous move, especially in the midst of war and the expenses of waging war. The current government is busy on several fronts and are using expensive weaponry against their enemies. Which is costly in imports and in foreign currency. As they need the foreign currency to trade arms and import the ammunition. That’s what keeps the war-effort alive and gives them ability to lethally go after the ones that doesn’t want to bend the knee and be lackeys of the PM…
The ENAT Party is right. This is a move of self-destruction. The sort of macro-economic policies the state has accepted. Will define the economy and the financial landscape for a long time. It has damaged the Birr and will continue to make the poor suffer. The ones who has little, will get even less or have less buying power. That’s the reality here and the PM cheered it like an achievement. He wanted the people to praise them for their folly and be proud of signing their death note. That’s what he did and everyone else can see, but he just wanted to buy drones and weapons to kill the ones who dares to question his legitimacy. Peace.
MinBane 