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Bwendimu
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Posts: 9964
Joined: 07 Apr 2007, 08:24

The balance sheet of my town. How and why remain poor regardless of being cash crop town.

Post by Bwendimu » 27 Dec 2017, 06:53

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Why my Home town economy never improve?

As a cash crop district my people must be the richest but what we see and observe is the opposit. The problem is no money stay in our town. We buy every thing. This is our balance sheet

Our annual production is 100%

Because we don't produce enough grain for consumption 20% of our income goes to other regions to buy teff and other food staff
5% goes to buy sugar, salt and paper
15% goes to China to buy cloth and shoes
15% goes to Arab countries to buy fuel
5% goes to buy medicine
15% goes to buy building material from China and others
20% goes for tax to federal government.
5% is going to buy alcoholic beverage and soft drink.
Because there are other monies that leaves our town through corruption we end up borrowing. That kept our city in cycle of poverty.
My town got too many diaspora both in near and far yet the amount they send back is too small. My town could have been the richest town of Oromiya only if it can produce the food it consume. If it adds few industries and produce consumer goods by itself lots of money could have stayed at home and improve lives.