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Ethiopian aid could be cut
16/11/2005 22:27 - (SA)
Addis Ababa - Ethiopia will lose international aid over concerns on how the country is being governed, a World Bank official said on Wednesday.
"Aid will be cut. The question is by how much?" said Ishac Diwan, World Bank country director for Ethiopia. He called on leaders to quickly resolve the crisis triggered by a violent election dispute.
"We have sent very clear signals that international and World Bank assistance will be cut over time if the governance situation does not improve," said Diwan.
The World Bank provides $450m of the $1.2bn Ethiopian development assistance.
Political unrest over a May 15 election has claimed the lives of at least 46 people this month.
Forty-two people died in June in similar protests.
The protests began after the main opposition parties accused authorities of rigging the polls that returned the ruling party to power.
Thousands of people have been detained in the subsequent crackdown. Those seized include leaders of the main opposition group, members of local civil society organisations and newspaper editors.
An unsustainable situation
Ethiopian prime minister, Meles Zenawi, said that some of those arrested were expected to face treason charges for their suspected part in orchestrating the violence.
Authorities said on Wednesday that they had freed more than 8&nbps;954 detainees who were found not to be directly involved in the violence.
"We are in an unsustainable situation. We have to come to a resolution. We are at the heart of the crisis right now," said Diwan.
Donors are worried that Ethiopia's economic problems could feed the political crisis.
Rising global oil prices have tripled Ethiopia's oil bill, from $300m two years ago to the current $900m, said Diwan.
The Ethiopian government has been subsidising local oil prices since December 2004, leaving the nation with less money to spend on health care, education and other programmes to alleviate poverty in the country where average annual incomes are $100.
Half of the children in Ethiopia are physically stunted because of malnutrition.
"The economic fragility could exacerbate the current political crisis," said Diwan. "The risk is that social expenditure will be cut which will hurt the poor."
Ethiopia also receives $700m in emergency aid, used mainly for victims of frequent droughts and for food.
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