gearhead wrote: ↑01 Apr 2023, 10:54
Inflation amidst a commodity surplus is predominantly driven by high debt financing which distorts prices and drives the goods black market, which in a vicious circle trap deletes the commodity surplus gains. Aptly put by the minister, alas the meager actions through dsp wont cut the debt burden enough for us to see the light of day.
ትርክት ሸጠው እዳ ማሰረዝ የሚችሉት አቶ ሱፊያን ብቻ ናቸው?
https://www.youtube.com/live/ll2N-eJDlDo?feature=share
gearhead,
where do you get your data from?
I took my time and listened to the State Minister, Dr. Iyob Tekalegn, who seems to me someone who understands what he is talking about.
The problem with many Ethiopians is the fact that most of us don’t take our time to listen to the views of such individuals, but to that of the likes of Messay Mekonnon (?) instead (just compare the clicks of the Youtube video you posted with the one Messay and his likes may post to the internet.
The state minister clearly said in this interview and the PM also said on multiple times that the debt burden is not from the time of the current government’s tenure. It is inherited, it has to be paid back anyway.
Can you think why the IMF and other similar institutions decided to come back and start a new round of discussion after abandoning it before two or so years?
Points no one can erase is that the Ethiopian Economy has grown despite the many challenges it faced during the last few years. Economic growth is an objective assessment, unlike the subjective political assessment, which even the likes of Messay Mokonnon can engage in.
It is possible that the gain from the growth may not have been redistributed fairly and I am not sure there is anybody in the world that can ensure such a distribution be given.
Another point that we all can’t deny is also the fact that the forex-deficit has imposed its own burden on the economy, which may have to be dealt with, the state minister has also indicated this.
If the economy is growing it consumes more input and the domestic supply can’t satisfy this need. This is not a peculiar issue with the Ethiopian economy alone, that is where the world trade has to involve itself. In that case an adjustment of the foreign trade and optimizing the transactions could be necessary.
All in all, if we work, then we are not condemned to poverty and the vicious cycle you are talking about here. The future is more promising than the past from the perspective of this writer.