Book Review: Ethiopia – Endemic Poverty vs Globalization

Author: Aklog Birara, Ph.D.

Review: Seleshi Telahun | August 9, 2010



“There is a discernable class

A new book by Dr Aklog Birrara, Waves, Endemic Poverty that Globalization can’t tackle but Ethiopians Can, has recently been released to the public. The author was a career World Bank officer with distinguished service at various levels and direct work experience in Africa, East and South Asia, Latin America and the Caribbean. Before joining the Bank, he served as General Manager of the Commercial Bank of Ethiopia, Director of Economic Research and advisor to the Governor, National Bank of Ethiopia and Senior Economic Advisor to USAID in Chad and Cameroon. Dr Aklog is a highly respected and experienced analyst of political economy with over 40 years of service both to his country and almost 30 years with the World Bank Group. Dr Aklog has also published several other articles and books, including Roots for Democratization in Ethiopia, on similar themes and subjects. He has taught at Addis Ababa University and is currently an adjunct professor with Trinity University of Washington DC.

Much has been written about the Tigray People’s Liberation Front’s (TPLF) socio- economic and political policies and programs for Ethiopia. But nothing compares to this book’s depth of analysis and revelations which solely and extensively deal with assessments of each and every sector of Ethiopia’s economy vis-à-vis TPLF’s declared policies and hidden interests and agenda. The book, 497 pages, highlights the essence of economic capture through the merger of ethnicity, party and state.

The author discusses the role of globalization and its impact on developing countries and identifies many major policy mistakes the ruling regime has committed on the Ethiopian people in general and their economy in particular. Among them is their policy of language based ethnic federalism where in fact the real power is centralized by the top party apparatus denying basic human rights and freedoms to its citizens. The other is the ceding of Ethiopia’s right to maintain a sea outlet. The author states, “Ethiopia’s land locked status costs Ethiopian exporters and importers four to five times compared to competitors’ with access to their own ports.”

The role of the government, the author notes, in the economy is given heavy weight by regulating the economy and endowing and running party owners and run enterprises in the sphere of finance, energy, mines, land and industry. Private investors, especially nationals , were not given significant role in the economy. The book exposes in details the mafia designs of the TPLF in legitimizing party owned , supported and endowed enterprises. One of the main public policy mistakes the author discusses is the complete absence of independent media, judiciary, election board, civil service, police, oversight, commission and whistleblower to report on endemic corruption. Every institution, government entity, civil and otherwise is created and nurtured to advance and safeguard the interests of the party leaders and their associates.

The author also discusses and appropriately shows how the new “land grab and neo-colonial” policy venture of TPLF plays against the vested interest of the Ethiopian people. He writes” when lands in Afar or Beni Shangul or Gambella or Oromia are leased and sold, they will have immediate and medium-term effects on the citizen’s of these localities.” We all know that these deals were all carried out in highly shrouded secrecy. There are no clear and transparent regulations governing these leases with a view of serving communities and the Ethiopian people and advancing national economic development. Nobody knows what is gained from the 99 years leases. The author goes on describing the impact, “Ethiopians who stand in line to receive food aid will be stunned that foreign investors will be harvesting and exporting large quantities of food to supply rich markets.”

The book identifies about 80 so-called endowment enterprises owned and managed by the TPLF party elites for their own bank accounts and supposedly for the “Tigray region”. The author discusses how these greed filled ownership hampers effective business competition in the country and advancement of the national economy. He shows how the privileged status for firms like EFFORT, Rest and Guna have crowded-out competitors’ through out the country. This limits, he noted, the country’s ability and capacity to broaden economic and social opportunities.

Finally, the author has suggested thirteen specific policy guides or solutions that will foster equitable and shared development, reducing poverty and creating a modern multi-ethnic, inclusive and pluralist society that will benefit everyone. The author makes a persuasive case that all social and political actors and intellectuals must find common ground in order to promote and build an inclusive society beyond ethnicity. The current division among social, intellectual and political groups within and outside the country serves the TPLF/EPRDF and not the Ethiopian people, he argues.

This well written book is a must read not only for Ethiopians but also for foreigners interested in Ethiopia and its future. The book is based on credible facts and statistics; is very current and well researched.

I commend the author on his resilience, time and effort to produce such a very fact-filled informative book and urge everyone to read it.


The reviewer can be reached at [email protected]


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