Ethiopian opposition politicians are raising questions about the new macroeconomic reforms introduced by the government at the start of this week. This week, IMF and World Banks announced financing agreements worth around $20 billion with the Ethiopian government.
With the implementation of these new reforms, the Ethiopian foreign exchange market has been linked to open market. Since Monday, the Ethiopian currency birr has lost almost 37% of its value against US dollar. On Wednesday, the Ethiopian House of People’s Representatives met to approve the agreement with international lending institutions. An MP raised several questions about these reforms.
The MP Abebaw Desalew of the National Movement of Amhara (NaMA) questioned the macroeconomic reforms introduced by the Ethiopian government on Sunday. “Is the role of the parliament to just raise hands? We never discuss detailed laws. We are also expected to consult with our constituencies. Article 89/6 of the constitution itself says the government must involve the public in matters of economic policies, but we are always enacting laws from the top down and repeatedly having the public accept them without consultation or the participation of the parliament. How is this viewed from a legal standpoint?” he asked.
The MP called into questions the effectiveness of these reforms keeping in view the fragile security situation in several parts of the country. He said how can foreign direct investment and exports increase while armed conflicts are ongoing in Amhara and Oromia regions?.
Jawar Mohammed, another opposition politician also raised questions today about these reforms. Jawar is the Deputy Chairman of the Oromo Federalist Congress. He is based abroad. He said,” It is hard to imagine foreigners willing to take the risk of investing when perhaps two-thirds of the country is unsafe due to ongoing civil wars. Similarly, boosting exports is presented as crucial for the success of this reform. Yet, many of our export items, such as agricultural products and minerals, are severely affected by the ongoing conflict. Hence, increasing both FDI flow and export volume will be unattainable without improving security.”