Contrary to Mr. Diwan’s claims, this new aid is very
much business as usual, with the small twist that
Ethiopia’s state and local governments, rather than
the federal government, get the blank check. Given
that practically all of Ethiopia’s local governments
are controlled by the same ruling party and its
affiliates, Mr. Diwan’s argument that the aid money
will be funneled to local governments regardless of
their political affiliations is not meaningful.

It appears that with every new round of government
crackdown on the citizens of this impoverished
country, Mr. Diwan speaks ever more loudly about the
World Bank promoting “good governance” in Ethiopia.
Despite such rhetorical commitment, the Bank insists
on providing a quasi-blank check to the autocratic
regime of Ethiopia. In so doing, the Bank’s aid may
well have become a hindrance to, rather than a tool
for, lifting Ethiopia out of endemic poverty.