The EU – Ethiopia’s main development partner
The EU is the principal development partner of Ethiopia, which receives the most European aid of all ACP countries. Brussels is is involved in political dialogue with the government of this strategically important country on all issues, including the most sensitive.
Priests of the Ethiopian Orthodox Church carrying the Arks of the Covenant.
© Tsigue Shiferaw
According to the Minister of Finance and Economic Development, Ato Mekonnen Manyazewal, “the EU is Ethiopia’s main development partner” thanks to its support of the 5th five-year plan launched in 2005. Ethiopia is also the largest ACP beneficiary of European aid with a €540 million allocation under the 9th European Development Fund (2002–2007) and a sum of around €650 million for the 10th EDF (2008–2013). European aid is concentrated on improving infrastructure (€211 million from the 9th EDF) and this trend is set to continue with the emphasis on projects aimed at facilitating regional integration. “The objective is to create the foundations for facilitating direct investments to make us more competitive”, said Ato Makonnen Manyazewal with regard to the conclusion of the latest Economic Partnership Agreement between the EU and Eastern and Southern Africa (ESA).
Besides the repair of the Addis Ababa-Djibouti railway, the main projects concern highway infrastructure. Ato Makonnen Manyazewal said that following the completion of the Addis Ababa-Awasa highway and the construction of another to Jima in the north, which is currently underway, the aim is now to build main arterial links to the north (Addis Ababa-Debre Sina and Kombolcha-Gondar). The European Investment Bank (EIB), which is funding the construction of the Gilgel Gibe II hydroelectric power station (428 megawatts), is also looking at the possibility of funding the building of one of the continent’s biggest dams (Gilgel Gibe III, 1870 megawatts). Work on this was expected to get underway in September 2007.
The second most important form of assistance (€96 million under the 9th EDF) provides for macro-economic support. Ato Makonnen Manyazewal explained that it aims to fund the promotion of basic services (agriculture, education, health, water) in the woredas (districts) in order to support the ongoing process of devolution of power from the federal state to the regions. Finally, rural development and food supply, (see box), which received €54 million under the 9th EDF, remain priorities. In addition to those mentioned, other programmes have been introduced for non-governmental players: good governance, conflict prevention, mine-clearance operations, assistance for the coffee sector and the conservation of cultural heritage.
Adopting a sectorial approach
Cooperation is increasingly shifting from a project-based approach to a sectorial one, which is more institutional and involves greater sums of money. It is a development appreciated by Ato Makonnen Manyazewal, the Ethiopian partner. He said, “It’s good for us as it reduces transaction costs and allows for more flexible use of resources”.
However, the suppression of demonstrations by the authorities in June and November 2005 following the May elections – which were tarnished by irregularities according to European observers – has led the European Commission to review the way it provides financial assistance. 193 people died in the disturbances, according to a commission of inquiry set up by the Ethiopian Parliament. EU delegate, Tim Clarke, explained: “In terms of money going through government machinery, we became much stricter in the way in which we released resources”.
In the framework of the 10th EDF, the Commission intends to carry out meaningful political dialogue with the government concerning support for its Plan for Accelerated and Sustained Development to End Poverty (PASDEP). Tim Clarke pointed out that a key challenge in meeting the Millennium Development Goals between now and 2015 is to double foreign aid to reduce the proportion of the population suffering from malnutrition (15%).
Funding providers are willing to increase their assistance, but progress is necessary in the field of good governance, said the EU delegate. Tim Clarke said: “The legal system here has still many weaknesses. In certain prisons, 80% of the detainees have not been charged. Security of contracts is a huge problem for European investors. But it’s a real credit to the government that they agreed to get involved in a reform process like that, producing a guide with specific indicators. It is really impressive!” Ato Mekonnen Manyazewal, noting that Ethiopia has adhered to the African Peer Review Mechanism since its creation under the management of the government, said: “Nobody understands better than us the need for good governance”. Tim Clarke said: “If there was seen to be stability and security and if there was an enabling environment that covered not only economic but also political issues, the flood gates would open much more than is currently the case”.
Political dialogue that is sometimes fierce
According to Addis Ababa, one of the main stumbling blocks in relations with the EU is the attitude of the European Parliament, which passed a resolution on 21 June deploring the guilty verdict pronounced against Hailu Shawel, President of the Coalition for Unity and Democracy, and his 37 co-defendants. The European Parliament called on the European Council to impose sanctions against the Ethiopian government officials responsible. However, the release of the detainees on 20 July may help to thaw relations.
Tim Clarke believes “bridges need to be built”. The European Parliament must not be perceived as “anti-development” in Ethiopia. While conceding that there are problems regarding respect for human rights in Ethiopia, the he also believes that the minister of justice is a man who really wants to change things. Ato Makonnen Manyazewal considers the vote of the European parliamentarians to be unfair. He says it was based on misinformation and did not constitute a “concrete and balanced analysis”, and he hopes that there will be “a better understanding of the situation” in due course. The Minister said: “One has to take into account that we are trying to build institutions. They are imperfect but our long-term objective is to build a democratic and inclusive political system”.
“A proud country” and “a key player”
Tim Clarke said: “Ethiopia is a proud country, with 3,000 years of history and I think it is right not to accept being given lessons by people from the outside. The elections which took place in 2005 were by far the most democratic that ever took place in the country”.
He continued, “At the same time there are universal principles that must be respected. Human rights are part of them. And I know from having spoken many times with the Prime Minister that he also wants to have in place international standards relating to human rights and good governance”.
Clarke also underlined the need to take into account the strategic role of Ethiopia. Addis Ababa is the diplomatic capital of Africa and Ethiopia plays a key role in pan-African institutions. He added: “Ethiopia is a key player at a regional level. It plays a very important religious and cultural role”. Diplomats in Addis Ababa point out that Ethiopia possesses the region’s most powerful army and, in the view of NATO, it is doing well in the fight against terrorism, in particular with regard to Jihadist activity. The Ethiopian army has been deployed in Somalia since the end of 2006 to support the transition government against the Union of Islamic Courts. Clarke added that wherever you go, Ethiopia is seen as a key player.
