Double digit economic growth and empty platesfavoring certain companies or  countries does not not  create a healthy business atmosphere for all.   By Tamiru Geda I December  2009   The economic trend in Ethiopia has got different views from the economic analysis and claims by the government.  At a time where economic growth claims are diminished by looming famine,  Ethiopian government officials  are trying to hide the facts on the ground as millions of starving Ethiopians could not afford staving off hunger on a daily basis.   Wondimu Mekonen, a UK-_base_d academician and activist says: “The  current economic  situation in  Ethiopia is in  shambles. It is totally negative. Without any mathematical analyses, one could  see  the number of  the unemployed , homeless, street children and number of destitute  beggars  crowded in major cities. Inflation is very high.   “To give a simple example, at the time of Emperor  Haile Selassie one  could  buy Injera with spicy Key  and Alitcha Wat for less than two Birr. Unfortunately now a similar  meal  is priced  more than  fifty Birr. That shows the fact that our Birr purchasing value has been significantly degraded,” said  Wondimu.   He also  disagrees with  Ato Melse Zenawi’s  recent  report about economic  development   that   the latter  forecasts more than  two digits  growth. “That is completely a lie.”  Wondimu  challenged the assertion by referring to some  statements from international organizations about Ethiopia’s economic achievements related to anti-poverty goal in the year 2015. “Lack of good governance, wrong  land  policy  that favors only pro-TPLF investors or  foreigners who don’t play direct role in alleviating malnutrition etc…are responsible  for the current  economic crises in Ethiopia,” according to Mr Wondimu .   Wondimu further noted: “Ethiopia is the  main source of the Blue Nile  that feeds  countries like Egypt throughout the year, whereas  we are still  suffering  because of hunger. Without a  political leadership  and vision  by the ruling party and getting rid off a culture of foreign aid  dependency , Ethiopia will never overcome this  problem in the near future .  “The liberalization of   financial institutions such as banks, insurance companies  from party monopoly  and the existence of  proper free market policy in the country are  some of the main  questions  that should be answered.”   Matyas  (not his  real name),    editor- in-chief   a  highly  reputable   private press in Ethiopia ,  says  that it is a bit  complicated  to reach a conclusion  about Ethiopia’s  current economic  trend, be it positive or negative, for various  reasons. Factors  like Foreign Direct Investments (FDI) inflow , export earnings, imports, access to  finance , inflation, availability of foreign currency , less bureaucracy and equal treatment  of businesses  will show  some  insight in the overall economic trend. In his  view understanding the actual  living  conditions, life  expectancy and prosperity of individual citizens are the practical parameters.” In this   economical crisis year, FDI to Ethiopia comes from China and Middle Eastern countries. Those companies and  countries were not  significantly affected by the global economic crunch. In addition to that  most of the investment launched  this year were  those  who did  their feasibility study  and the decision  prior to the  recession year. Besides  this,  most investments  from  China were  highly  encouraged by the  communist Chinese government  through the Sino-Africa or Sino-Ethiopia bilateral economic arrangements with government banks being their  finance sources. The Middle  East  case is also  similar. Matyas  said most of the investments  are  focused on export-oriented agriculture which they  planned  to export  it to their  respective countries. As all economists would agree,    In terms of  Ethiopia’s Export  the  fiscal year  was not  pleasing  both in terms of quantity and earnings. Consumers dissatisfaction for imported  goods and declined price rates , in the West  is  believed  to have added to the problem.  Take  flower as a good example  that is affected   by the credit  crunch. Though both flower and coffee price increased on the world market, what had happened last year has put the  country at a crossroads.” Matyas further commented that due to shortage of Foreign Currency in Ethiopia the import  business became a direct victim of  recession. “Companies that even won big tenders to supply goods have failed  due to inavailability of adequate foreign currency  and unable to open Letters of  Credit (LC) .”This led to high inflation of price of imported supplies in the local market. The increase of fuel price in global market and tplf’s inability to narrow the huge gap on trade balance  are also mentioned as   problem.   Some observers also point out the fact that landlocked Ethiopia is spending $1 billion a year only for using Djibouti port. The huge port services cost is believed to the major cause of dwindling hard currency reserve. According to Matyas, access to bank loan is also made too hard due to complex requirements that might be impossible for the average or low income  citizen to  engage in business.” Though  the government  declares  about the  sufficient  amount  money  through  microfinance in states for micro business it  becomes a political  tool to favor  pro-TPLF/ Weyane business. It may even have a small room  for independent citizens but  not  adequate. ”State owned  banks are also  said  to be responsible for the unhealthy  distribution of wealth and disparity between the rich and the poor. Access to loan in the commercial banks  for a simple  individual is  thoroughly  lawless. It is very easy  for the rich  to    get  richer  and also  for the poor  to get much poorer.   Despite the propaganda disseminated  by  the government as if it makes efforts to improve  the economic  conditions of the  majority, practically its policies have been hindering real progress.In other words,  the ruling party is  creating economically strong and  favored  members or supporters that bark whenever their interests are at stake.  Christine Ogada, a Kenyan  Journalist  in Nairobi,  says that the economic trend in  many African countries  such as  Kenya  and Ethiopia is not promising . According to reports by international media outlets,  millions are going  hungry  due to poor rain and  bad governments  in many poor countries .” Christine Said, “The funny thing is that no one in the government is looking at these problems.”“Corruption is killing us slowly, look at Kenya for example before the recent violence our economy was on the positive side even though corruption was still thriving. We could support   90% of our budget and the 10%  depend on the donor money. We didn’t need much aid,” she stated.   Journalist Abebe Gellaw, a Stanford University fellow and critic of the Meles regime, said that claims of double-digit economic growth is preposterous as millions of hunger-stricken Ethiopians are left to scratch their empty plates. The only amazing growth which has been witnessed in the last eighteen years has beenregistered by the tplf and its partners. The ethnic front is probably the biggest political business empire anywhere illegally siphoning off financial and natural resources to benefit a selected few.  He asserted that while tens of millions of Ethiopians are condemned to live with hunger and sustaining their lives with alms from the West, making exaggerated claims of economic growth makes little sense. It is outrageously nonsense. These people are even selling lands that can ensure food security for the nation of hunger. So what sense does it make to the poor if Middle Eastern oil barons invest billions to grow food for their own market?  and  he said.    One can only support such trend if the countrymen and women would benefit out of it. The tplf junta does not have any intention of eradicating poverty or hunger from the country as they engage in the looting of Ethiopia's resources as soon as possible.         __________________________________________________________________ Ask a question on any topic and get answers from real people. Go to Yahoo! Answers and share what you know at http://ca.answers.yahoo.com