The Reporter (Addis Ababa)
Anteneh Mekonnen
17 February 2007
opinion
Ethiopians have been migrating to the whole world - some to escape poverty, others seeking better life and many others chased out by the 17-year military government.
It is estimated that there are 350,000 Ethiopians in Washington, 96,000 in Los Angeles, 90,000 in Saudi Arabia, 30,000 in Italy, 30,000 in Beirut, 20,000 in Ottawa (Canada), 10,000 in New York, and many others in different countries. It is often said that "problems are sources of opportunities". Now, these Ethiopians, who had traveled abroad to escape persecution, are becoming the hope of their country.
Ethiopia is in the midst of hope. Ethiopia's economy is growing by 7%, according to the Economist, and by 10% according to the Ethiopian government. This growth, which has been confirmed by the World Bank, is much higher than the growth rate of the United States and Europe (2-3%), and close to China's and India's economic growth rate, 12% and 9.2% respectively. This growth is reflected in different ways such as construction booming and the export sector attaining its highest record of 1.1 billion dollars in 2006. Unless unforeseen circumstances, such as bad weather and other factors, come in the way, the growth is expected to continue for the coming years. And if this growth continues as expected, Ethiopia will be the third country that will surprise the world after China and India in economic growth. This is a perfect time for each Ethiopian to contribute to the sustained growth of the country's economy. Among Ethiopians much is expected from the diaspora. The Ethiopian diaspora can contribute to their country's development at least in three ways.
1. Foreign Currency Remittance:
Each foreign currency sent by the Ethiopian diaspora, in addition to assisting their loved ones, also helps the economy. The foreign currency helps the country at least in two ways: financing the import sector and increasing domestic production. From the fertilizers used by farmers to the cars that are cramming the streets of Addis, all are bought by using foreign currency. Numerous foreign products that the Ethiopians are enjoying at low prices are the results of the existence of foreign currency. Thus, the amounts of foreign currency sent by the Ethiopian diaspora have a direct impact on affecting the day-to-day life of many Ethiopians.
In addition to assisting the import sector, the foreign currencies remitted by the Ethiopian diaspora also contribute to increasing domestic production. It is evident that to facilitate domestic production, a country like Ethiopia has to import the means of production such as machinery. For instance, to increase the efficiency and amount of coffee production, Ethiopia has to import coffee machines from abroad. To expand textile production also, textiles machineries have to be bought. This could only be done through the power of foreign currency; and each dollar sent by the Ethiopian diasporan has an impact.
2. Investment:
The next aspect that the Ethiopian diaspora could contribute is through investment. Luckily many Ethiopians are living in the developed world where the accumulation of capital is relatively easy. This capital, if it is invested in Ethiopia, could bring about tremendous change to the economy. Some positive trends are being seen in this regard. The Ethiopian diaspora are step-by-step investing their capital in Ethiopia. Some are engaged in horticulture by exporting flowers, others in construction; some are engaged in a unique investment by establishing car assembly plants, which gave an example of the possibility of establishing heavy investment in Ethiopia.
The impact of foreign investment in a country's economy could be clearly learned from China. More than 50% of China's annual total production comes from foreign companies operating in China. In other words, investment coming from outside of China is contributing much to the country's surprising economical development than domestic investments are doing. Many western companies are also landing in different countries in the Asian continent, seeking cheap labor and resource, which, in return, causes the Asian economy to boom. In providing cheap labor and resources, Ethiopia is also similar to Asian countries. With the cheap labor and resources available in Ethiopia, it is also possible to make a fortune, which in effect helps the economy by creating more jobs and increasing in production. The Ethiopian diaspora should utilize such an opportunity. By doing this, they may kill two birds with one stone: making fortune for themselves and, at the same time, helping the economy.
3. Flow of Knowledge:
The last but not least possibility is the flow of knowledge. Ignorance is the deadliest enemy of an individual and a country as a whole. Europe and the United States had achieved tremendous progress not because they have abundant resources but because they had paved the way towards an abundant development of knowledge and wisdom, which is a key tool to change the country's resources for the benefit of its citizens. Many Ethiopian diasporans, while living in the developed world, had access to such knowledge and wisdom which is worth millions of dollars. There are many Ethiopian diasporans who have specialized in medicine, engineering, management etc and this is a potential that has to be tapped to further develop the country's economy. Such diasporans should identify where they fit in and should start moving the country's economy.
To conclude, the above possibilities provide the least opportunities for the Ethiopian diasporans to contribute something to their country. It is like taking a cup of water from the Nile. Many assets are found within the hands of the diasporans and many possibilities could be developed to affect this country positively. I believe that it is time to work hand in hand with the diasporans to bring this country out of poverty. Ethiopia will be rescued from poverty and the time for this to happen will not be too far away.
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