By ARGAW ASHINE, Africa review news
The current station of the Djibouti-Ethiopia railway in Dire Dawa,
Ethiopia. Addis Ababa has announced plans to build a new billion-dollar
modern link between the two countries but critics say such growth is
coming at the expense of the millions poor. PHOTO | CORRESPONDENT |
One of the world's biggest aid recipient countries, Ethiopia has
for the last ten consecutive years claimed more than 10 per cent
economic growth annually, and has predicted 11 per cent for this year.
The
International Monetary Fund estimates growth has on average been seven
per cent, and would slow down to 5.5 per cent next year. But apart from the disparity in figures, it is widely agreed that Ethiopia
has consistently been one of Africa's fastest growing economies, even if
from a weak base.
This growth is coming at the altar of mega infrastructure
projects being built at dizzying speed, as Addis Ababa has ignored
western calls for caution in favour of a wider social welfare net
instead for its tens of millions poor.
To fund the
billion-dollar projects, Ethiopia has now put on the market dozens of
state-owned enterprises, leased out big chunks of its arable land,
assiduously courted foreign direct investment and tightened its tax
collection noose. Even cyber cafes have not been spared, with a sales tax slapped onto customers' internet bills.
Stretched budget
The
aggressive infrastructure drive has led to a stretched national budget,
with the nation's tens of millions poor particularly feeling the pinch
as spending on basic services suffers.Teachers were
recently up in arms over a misery salary increase, while the urban poor
have found themselves on the ropes as they continue to be left out of
already anaemic national poverty alleviation plans. The
spending on big projects is anchored on a five-year Growth and
Transformation Plan, for which the government has struggled to raise
funds.
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