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Month: June 2019

Remittance, A Gold Mine Ethiopia Ignores

Posted on by Web Master

One of the very worrisome challenges Ethiopia is currently facing is the acute shortage of foreign currency. Total annual export revenue, which used to exceed the three billion dollar mark, has now dwindled to less than 2.5 billion.

If we take gold as an example, the annual gold export receipts have gone down from more than 700 million dollars a few years ago, to less than 40 million dollars.

According to my informed guess, current fiscal year total exports revenue shall not exceed 2.3 or 2.4 billion dollars. The total imports bill of the country is surpassing 18 billion dollars, while it appears that our export receipts may not even suffice to cover external public debt servicing and port fees, where does that leave the fate of all merchandise imports?

Among the short list of the sources of foreign currency in the country, only remittance and tourism are upwardly scalable in the short run.

It shall be recalled that a proclamation to provide for safe employment abroad for Ethiopians came into force three years ago. Parliament recently asked the Minister of Labour & Social Affairs (MoLSA) why a single worker has not gone abroad. The Minister reported that her Ministry had completed all the related tasks on its part, but nothing happened so far, because the other stakeholders in the process have not done their part.

Although migration has been going on in the world for centuries, the last few decades saw rapidly increasing migration in all parts of the world. The major push factor in migration is poverty and political crisis. People migrate to search for better economic opportunities. They may also be fleeing wars, natural disasters and oppressive governments. Sometimes it is both.

Even if finding reliable data on migration is quite tricky, ILO’s estimate in 2017 has it that out of about 258 million migrants in the world, about 150 million were labour migrants.

Let us focus on Ethiopian labour migrants who travel to mainly the Middle East.

The ILO estimate reveals that from 11.5 million migrant domestic workers, 8.5 million or about three-fourths of them, are women. While there is no reliable data on the number of Ethiopian female domestic works abroad, one can estimate that if not millions, several hundred thousand of them are dispersed globally. Now that the Ministry has embarked on facilitating legal opportunities for the migrants, it is hoped that useful statistics will be compiled hereafter.

Notably, high migration trends in Ethiopia started during the second half of the 1970s, after the Ethiopian revolution of 1974, and particularly during what was known as the Red Terror.  The past 45 years saw intensified migration through both legal and illegal channels.

Although I stated at the outset that it is not possible to establish the number of Ethiopians residing and working overseas, there are some statistics. It is again not possible to even estimate the number of Ethiopians that left illegally. A statistic released by the Ministry of Foreign Affairs in 2016 reveals that more than 2 million Ethiopians live overseas. If this estimate is in any way based on those who obtained passports and traveled legally, the aggregate number of Ethiopians living abroad could be more than double the estimate.

According to MoLSA report, 480,480 Ethiopians traveled to the Middle East countries of Saudi Arabia, Kuwait and Dubai between September 2008 and August 2014 through legal channels. Out of which 380,000 or about 80pc went to Saudi Arabia. About 95pc of the migrants were women, 70pc of which had not even completed primary school. Those who completed secondary schools accounted for about 12pc.

Many countries in the world are beneficiaries of financial resources, which their migrated nationals send home to support family and friends, save for themselves and engage in investment. Although it is the receivers that enjoy the direct benefits in the local currency, the foreign exchange accordingly received is utilised by the receiving country to finance imports. Most remittance receiving countries would be in big trouble had such resources not been there.

There are several countries that earn close to 100pc of their GDP from remittances. Some argue that because most remittance beneficiaries utilise the resources almost exclusively for consumption purposes, the impact of remittance on economic development is negligible. However, there is no disagreement on the poverty reduction and foreign exchange earning benefits of remittance. According to a World Bank document from 2017, the world’s top three remittance beneficiary countries are China (70 billion dollars), India (65 billion dollars) and the Philippines (35 billion dollars). The top African country is Nigeria (25 billion dollars), followed by Egypt (22 billion dollars).

One comes across various estimates on the total amount of annual remittance receipts of Ethiopia. The National Bank of Ethiopia’s data on total annual remittance inflows through banks shows that Ethiopia received 2.7 billion dollars from remittances during 2018. Some World Bank estimates reveal the amount to be about five billion dollars. If the incoming resources through informal channels are added, the amount could even be higher than that.

Informal remittance inflows here come in two significant ways. The foreign currency brought in by individuals mostly goes to the parallel market. The other more dominant system is whereby senders give the money to people in the source countries, and they call here and instruct their agents to pay the beneficiary at a much higher exchange rate than the official one but slightly lower than the parallel market exchange rate. The difference between the two rates is the operator’s profit margin.

The resources coming in this way have no benefits to the economy. In fact, such transactions are harmful in that they increase capital flight and are also inflationary. Imported items utilising such foreign exchange bought expensively from the parallel market will be sold at much higher prices.

However, all this goes to show the potential for growth in remittances if properly managed and directed. The acute foreign exchange crunch the country is experiencing can, in the short run, be partly alleviated by working hard on remittance and tourism.

Other exportables are not responsive to short-term remedies. Remittance inflows can be increased by emulating the experiences of countries like India and the Philippines.

A notable increase can occur by working on rerouting the informal inflows to the legal channels. Although this task could be very challenging when the difference between the official exchange rate and the parallel market rate is more than 10 Br as is the case currently in Ethiopia.

Another critical issue is that of working on diversification of the types of skills of potential migrants. The Ministry should work more on direction setting rather than attempting to engage itself in all aspects of the migration processes.

Where there are vast numbers of undocumented Ethiopian migrants like in South Africa, the Ministry should emulate the experiences of countries like Mali, Nigeria and Senegal in Africa, Mexico, Brazil and Colombia in Latin America, and Pakistan in Asia. These countries have proven experiences in working with governments of the host countries to allow the workers to have some sort of identification to help them send money through legal channels.

With the support of institutions like the ILO, IOM, UNCDF and others, the Ministry can establish a national skills development institution, which would not be engaged in direct training activities, but would train the trainers and formulate curricula and manuals for other skill development centres. The institution shall organise and support regional training centres.

While the Ministry is effectively discharging its responsibilities regarding the facilitation of labour migrants traveling abroad, remittance issues appear not to have a focal institution. The National Bank was supposed to be leading this activity, but we don’t see any attempts to do so. The Bank issued a directive 13 years ago, but we have not witnessed any movement after that.

ILO organised an experience sharing trip to the Philippines in February 2019 in which the central bank was invited to participate but didn’t bother to send a representative.

Eyob Tekalegn(PhD), during his brief tenure at the National Economic Planning Commission, launched a study on remittance that seems to be going at a snail’s pace.

Eyob Tesfaye (PhD) of UNCDF and Aida Awol of the ILO, who have joined me in my crusade to do something on remittance, deserve recognition, although our efforts are not getting anywhere due to lack of attention.

The Commercial Bank of Ethiopia and all other commercial banks scramble for the remittance, which comes by itself, by deafening us with boring and repetitive advertisements and offers of prizes. They are all working hard to grab the forex and meanwhile encouraging conspicuous consumption of remittance proceeds. I am yet to see one single commercial bank engaged in creative ways of working on the remittance’s sources.

I call upon all concerned to work on creating an institution that owns the work – something like what they call “process owners” in government ministries. The government should also stop playing hide and seek games with parallel market operators and consider liberalisation measures like allowing private forex shops. So far, remittance is the gold mine that Ethiopia has ignored.

Institute Invests 756m Br for New Labs

Posted on by Web Master

The country’s National Metrology Institute of Ethiopia is building laboratory centres and an administrative complex for 756 million Br at its premises located in Megenagna, near AMECHE.

The new construction consists of five different structures – four four-storey buildings and another six-storey building designated as an administrative building. The four buildings will separately house an electro-magnetic lab, a thermal lab, a mechanical and chemical laboratory, and a science equipment lab.

Funded by the government, the new facilities will replace the existing three-decade-old laboratory. China Communication Construction Company (CCCC), a 12-year-old firm that constructed Kombolcha Industrial Park, Addis-Adama Expressway and Measo-to-Djibouti railway, won the design and build contract, which is expected to take three years to complete.

CCCC secured the project last April after winning a public tender issued in October 2018 by the Ministry of Innovation & Technology.

The Institute has been sending instruments and equipment that require calibration, like thermometers and pressure testing devices, to South Africa, according to Abedu Abagibe (PhD), director general of the National Metrology Institute, which currently gives 16 different calibration services and provides 25,000 certificates a year for different industries.

“The construction of the laboratory will help us do our own calibrations locally, saving foreign exchange,” said Abedu.

The construction of the building is also expected to alleviate a lack of working spaces at the Institute, according to the management.

Upon completion, the laboratory will offer its chemical testing services to chemical industries, a service not previously offered by the Institute.

The World Bank Group has pledged eight million dollars for the procurement of laboratory equipment for the project.

“We’re in the process of procuring laboratory equipment for the Institute. Some have already been procured, while others are in the tender process,” said Wedwossen Fisseha, national quantity infrastructure development coordinator, at the World Bank.

The Institute provides calibration services at its laboratories and branch offices. The services include calibrating micrometres, an item used for the measurement of components in mechanical engineering and machining; steel graduated rules; penetrometres, a device used to test the strength of a material; displacement transducers, an instrument for measuring linear positions; vernier callipers and steel tapes.

The Institute, established in February 2011, is responsible for the maintenance of instruments and devices used for Ethiopian National Measurement Standards and Certified Reference Materials, in addition to providing training on metrology and scientific equipment maintenance.

Tilahun Tesfa, a lecturer at Haramaya University’s Department of Chemical Engineering, applauds the construction of the new laboratories.

“It will increase and diversify the services provided by the Institute and will save foreign currency,” Tilahun said. “It will help the nation to transfer to industrialisation and help industries gain quick access to our laboratories.”

Women, Not Baby Factories

Posted on by Web Master

A woman has a choice to not give birth. A woman’s purpose isn’t tied to procreation. Women, just like men, have the right to pursue their dreams, travel, be adventurous and explore. Women are not baby factories, and our sole purpose in life is not reproduction.

I am not saying women who give birth are women who have no dreams and aspirations; being a mother is a wonderful thing. And I don’t hate children. But I hear “Your time is running out, have kids” or “You still have not gotten married, and you do not have children; what are you waiting for?”

Well, a husband would be a good place to start. I don’t know why people assume you can find a spouse at the tip of ones fingers. It doesn’t work like that. Even after finding the right person, circumstances may keep a couple from tying the knot.

And then having a baby has its own procedures. Sometimes it takes couples years before having a baby. Here is the comment that pisses me off the most: “What is going to happen to her, she is neither married nor has children? It means nobody wanted to be with her or she must have had some kind of repulsive behaviour, Then the lip service continues feeling sorry for the woman who ended up single. So what if she is single? It certainly is not the end of the world, and it doesn’t mean she is miserable.

Women are more vulnerable to these comments than men. If a man is not married by the time he is 40, then it simply means he is weighing his options and is probably successful enough that he didn’t get the time to pick a wife. And if he does not have children by the age of 60, well either he is sterile or he just does not want kids. And he still has time, 10 years and more. But if a woman is 40, and she isn’t married then she has failed as a woman and failed her purpose.

And people often say, “She didn’t get married, because she is not attractive to the eyes, difficult to live with, picky, lacking in manners,” or these days, “she wasn’t educated or born into a wealthy family.” How about: because she was dedicated and worked hard to see her goals through, she put off starting a family.

How about: she did not find the man she wanted to spend her life with and did not want to settle for anything less than she deserved. Keep in mind, if she had a baby out of marriage, she would have been considered a hooligan or ‘Dureye’ and her child would have grown up without a father.

But if men have children out of marriage, then they are just being men. What does that even mean? Trying to justify a double standard by giving a circulatory explanation.

A woman should not be condemned for either not having a husband or having children. Just like that, a woman should not be pressured into giving birth. In a similar vein, a husband and wife can have a loving and caring relationship without children. Children do not come before a husband and wife, they come after. If a couple’s relationship has a strong foundation built on love, then either or both of them not being able to have children shouldn’t come between them.

Life goes on and not being able to have a baby is not the end of the world. As science and technology progress, there will be many options. Of course, there is also the option of adoption. Similarly, women can choose to lead their lives the way they want, be it single or married. They can also have kids when and if they want, not because it is what society demands from them.

 

Political Violence Is Back, and It’s Depressing

Posted on by Web Master

There are few moments in the long history of a particular society when incidents serve as a prelude to what is yet to come. The regrettable assassinations of high profile political leaders and top brass military officers late last week could serve as one of these. It is not that this country is new to such episodes of political violence. There were several such moments of despair and anguish in the past.

The attempted coup on Emperor Hailesellasie by the Germame brothers, in 1960, was a pivotal moment in Ethiopia`s recent political history. It might not have succeeded in overthrowing the Emperor, but the brothers did succeed in changing the course of Ethiopian politics. Another pivotal moment was the assassination of Fikre Merid (PhD), a prominent activist during the student movement and one of the leaders of the All Ethiopian Socialist Party, in 1976. Though it did not bring about an immediate change in the power alignment, that event precipitated a change in the rules of the game. It ushered in the era of political violence in the country.

What transpired last week in Bahir Dar and Addis Abeba could very well be such a pivotal moment. Using violence as a form of advancement of political ends is a different order of magnitude than the average breakdown of law and order the country has been experiencing recently. All political actors in Ethiopia, particularly those who hold the lever of the state’s coercive power, are standing at a pivotal crossroads of history. The choices they make now will determine the course of this country for decades to come.

History might help in showing how other countries facing such moments have managed to overcome trying times. When Nelson Mandela walked out of prison in 1990 after 27 years of imprisonment, there was almost universal euphoria. Most people thought there would be a quick transition from Apartheid to democracy. But the reality was never that straight forward.

Four years of unremitting destabilisation led to the loss of 14,000 lives before the first all-inclusive election was held in 1994. In the run-up to the election, there was an average of 452 deaths monthly as a result of political violence. Consequently, the world was holding its breath, fearing the country might descend into civil war following the election if the losing parties did not accept their defeat gracefully.

When societies held together by an overwhelming force of the state are released from the grip of authoritarianism, it may not be surprising that conflicting interests contest for political power. In the absence of the only glue they knew – state coercion – they often resort to replacing it by fragmented political violence.

Collective actions that involve brutal physical force in causing damage to an adversary to impose political aims describes a culture of political violence in society. It often occurs when part of the polity demands radical change to transform some aspect of the state after it develops a perception that the status quo is unattainable. Yet, its advocates also would conclude that meaningful change through the traditional process of legislation and institutions are either unavailable or seen as too slow and incremental to make a difference.

The sad incidents of last week reveal that part of the Ethiopian political society has reached such a conclusion. The stage for the emergence of a political subculture sympathetic to violence appears to be set due to a long history of a one-party system, which denied an opportunity for alternation in political power. As a result, the hegemonic party became synonymous with the state, and the political elite in power displayed utter disregard for accountability and the responsible use of power. The compounded outcome of this was the loss of legitimacy of the party system by the general public, leading to social conflicts and various mobilisations of discontent.

This is not unique to Ethiopia though.

Waves of state formations in history have usually followed chaotic and catastrophic events like the two world wars. It seems like the natural path toward a state that is formed by a bargained consent of the governed has necessarily to go through a period of polarisation.

It is at the stage of polarisation that different interests make claims – often conflicting – on the behest of their constituencies. However, unmediated polarisation in a political culture eventually leads to escalation due to gross misunderstandings by elites representing opposing camps or factions. Nonetheless, if the Madisonian view is any guide, if factions in society are inevitable, “It is best to have lots of them.” It is not possible to eliminate factions without deploying an unacceptable degree of coercion or ensuring conformism that would be subversive of a democratic order.

The trouble comes when these factions progress their escalations to radicalisation where members of the various factions immerse in their self-constructed versions of reality and lose a sense of external reality, if not the ability to foresee the consequences of their actions.

The politically motivated killings of the three leaders of the Amhara Regional State in Bahir Dar, and a few hours later the murder of the Army Chief of Staff and a retired army general in Addis Abeba are evidence that there is a deeper crack in Ethiopia`s political culture.

They show the emergence of highly radicalised groups in a political subculture where their followers are immersed in violence that distorted their perception of external reality they disagree with. It also demonstrates the increasing sense of justification for violence as “right”, and collective radicalisation considered not as deviance but a norm. It is more than evident now that radical subgroups in broader social movements are in motion in Ethiopia. They are competing for resources and recruits in pursuit and services of radical collective identities, while in the absence of autonomous, robust and competent state institutions.

Describing this development as disturbing is an understatement.

James Madison has advice to offer to societies which find themselves in such a delicate and fragile situation. “You must first enable the government to control the governed; and, in the next place, oblige it to control itself.”

The Ethiopian state of old that was based on a unitary form of government or the existing multiculturalist federalism held together by a paternalistic and authoritarian state is wobbling under the weight of contestations for power from nationalist breeds of pan-Ethiopianism and ethnonationalism. The centrists in this dichotomy appear to have little space as their voice is too frail to be heard.

It matters how those holding the state power choose to respond to the challenges they face. Putting the full force of the law to hold those behind the crimes perpetrated against the political and military leaders should be the first order of business.

Nonetheless, the political challenges they should overcome is far broader and more substantial than law enforcement. They may come to see that the culture of repression may feed into isolation and further radicalisation. They would instead opt for the constraints imposed on political violence in the form of institutionalisation of confrontations by the various subgroups and the depolarisation of social and political movements. Such a process, however, could only succeed if run by a legitimate government whose popular mandate to govern is earned through fair and credible elections.

That brilliant mind of political science, Samuel Huntington, has this to say on the subject: “For democracy to work, the government of the day must be vulnerable to replacement while the regime survives.” Indeed, there is a trove of scholarly work that demonstrates that “the more deep-rooted democracy is, the less widespread is political violence.”

For Love of Conspiracy Theories

Posted on by Web Master

John F. Kennedy, the then president of the US, was assassinated on November 22, 1963. The how and why of it has sparked one of the most enduring conspiracy theories of all time. A 2013 poll found that 62pc of Americans believe there was a broader conspiracy than the official version. According to The Washington Post, conspiracy theorists have accused “42 groups, 82 assassins and 214 people by name, of being involved in the assassination.”

In 2017, President Trump released to the public 2,800 secret files regarding the assassination from the National Archives. Even after all that, and 56 years after the event, the conspiracy theory lives on.

Wikipedia has a page where it has listed what it termed ‘List of Notable Conspiracy Theories’. There are close to 60 of them! From Illuminati to vaccines to flat earth, humans love conspiracy theories, and no amount of research or logic will persuade them once they have made up their mind.

This human propensity for conspiracy theories is so prevalent and so intense that it has spawned its own field of research as a social and psychological phenomenon. Yes. You read that right. Social scientists are dedicating their career to study just that.

Two such scientists, Prooijen and Douglas, published a paper “Belief in Conspiracy Theories: Basic principles of an emerging research domain” in which they summarised the findings of this emerging domain of research.

According to their findings, conspiracy theories are universal. They transcend times, cultures and social settings. They are also consequential. There is a real impact on the health, relationships and safety of people.

Negative emotions, not rational deliberations, cause belief in conspiracy theories; therefore, they are emotional affairs. They are also social phenomena. They reflect the fundamental structures of intergroup conflict.

Closer to home, following the killings of five high-ranking officials last week, it is open season for the conspiracy theorists of Ethiopia. Speculation that defies all logic and has no basis in reality is peddled about by people that should know better.

That is what got me curious about human being’s love of conspiracy theories. Sometimes, the straightforward, reality-based explanation may be too dull for some people. They like to create a more exciting world of their own making. And if you don’t step into their spacecraft and fly along for the ride, you are in trouble. God forbid you ask questions or point out contradictions in their theories.

That may be a light matter under normal circumstances. But in times of trouble like last week, a little more sober reflection is called for. Because, as the research findings concluded above, conspiracy theories are consequential. They impact the lives of people. We should think twice before we spread unfounded rumours about people.

Even more importantly, we should make sure that the social and political groups we belong to do not spread unfounded conspiracies that may instigate inter-communal conflict. In such a time as this, it does not take much to kindle a fire that will be so hard to stop.

The most potent antidote to conspiracy theories is the truth. Telling the truth quickly, clearly and repeatedly is the proven treatment. The government should be commended for communicating about what was going on very quickly and calmly. There is room for improvement when it comes to clarity. Since the information given out was neither clear nor complete, it gave a lot of room for speculation and guesswork.

Prooijen and Douglas’s findings suggest that initiatives by policymakers trying to curb conspiracy theories by refuting implausible conspiracy theories, and informing the public what actual experts and witnesses have to say does make a difference. The other recommendation “is to instil feelings of security among the public, and provide them with a sense of hope and empowerment.”

Such interventions will undoubtedly help a large number of the population. Others may simply say something like “I have made up my mind. Don’t confuse me with the facts.” I guess their love affair with conspiracy is beyond reason.

 

Pause, But a Little!

Posted on by Web Master

On November 3, 1935, Benito Mussolini has already launched his fascist invasion of Ethiopia, and his troops have occupied the ancient city of Axum. In Addis Abeba, Emperor Haile Selassie is hosting a lavish dinner at the imperial palace with a special “culinary offering of Filets de Poisson d’Akaki à là Duglêré made from fish caught from the Great Akaki River in central Ethiopia,” proclaims the website of the private collector, Jake Smith, who has secured an original copy of the banquet menu that night.

Jake Smith writes that “the menu entry is by itself an insight into environmental degradation [of the river]. Today there are no fish whatsoever in the Great Akaki River, which serves as a toxic drain for sewage, industrial waste and stormwater from the capital, Addis Ab[e]ba.”

This is the often repeated saga of today’s rivers and lakes of Ethiopia. Our natural water bodies have become toxic drains and reservoirs of neglect and degradation. Not far from the Turkish Embassy in the capital, the ancient river confluence of Bantiyketu and Kebena River widens as the two tributaries meet and dash, shifting their own characters and uniting to form the Bulbula River that flows south.

A little way downstream, passing through the convoluted and unplanned congregation of developments, Bulbula River joins Teleku Akaki River in another confluence, where the rush continues south to the Great Akaki River, passing through the floodplains and wetlands of Akaki to form yet another confluence with the Awash River.

What flows in the Akaki River now “is a characteristically greenish-dark colour [liquid], pitch dark sediment and a peculiar pungent odour which is associated to the industrial and domestic waste discharged to the river system,” describe Hamere Yohannes and Eyasu Elias in a 2017 article.

The water quality of the Akaki River is so bad it effectively excludes the existence of any aquatic life in it, rendering the filets de poisson served at the royal banquet in 1935 a thing of the past. There was a time, however, even in the 1960s, when fish were caught in the Bantiyketu and Kebena Rivers, and the Bulbula River was clean enough to swim in its ripple and pool areas where the sand and gravel of the gentle riverbeds attracted local boys and girls.

Now, the city is grappling with what to do with a river system that has deteriorated to the point of total environmental collapse. There seems to be a rush to do something about it. Opting for a quick solution, a Chinese contractor is recruited to build the river project for the city. A significant amount of money for the project has been pledged by the Chinese government. That may explain the choice of the contractor, but the environmental record of China and its companies do not inspire confidence.

Water pollution in the water bodies of China is such a problem that there could be “catastrophic consequences for future generations,” states a World Bank report of 2018.

“Toxic runoff from China’s booming textile industry is one reason why many of the nation’s largest rivers resemble open sewers and 300 million people lack access to clean drinking water,” writes Cropwatch in a 2007 article.

More than 50pc of China’s fresh water has been polluted by industrial, agricultural or domestic waste. Not surprisingly, China is facing freshwater shortages,” proclaims Conservation International on its webpage.

In contrast, the Great London Stink of 1858, the name coined for the aftermath of the heavily polluted Thames River, did not merely lead to solving a major pollution problem but led to world-changing development in science and engineering.

The source of what is now known as the Great Stink was the River Thames, into which the city’s sewers emptied. In 1858, a summer heat wave caused the waste within the river to ferment and smell to an unbearable level. The British Parliament then enacted a bill to create a new sewer system, which Joseph Bazalgette, an engineer, designed and constructed an 82 miles sewer network which solved London’s pollution problem. Over the many years since, the River Thames has gone through several restoration and revitalization projects which have rendered it one of the world’s cleanest rivers.

The potential benefits to restore the rivers of Addis Abeba are enormous with improvements in ecosystems, flood control, clean water, biodiversity and human enjoyment. Effective river restoration requires “recognition of physical and ecological processes, diverse forms of connectivity within river networks, physical-biotic interactions, place-specific history and complexity, and collaboration between river scientists and restoration practitioners,” as pointed out by Ellen Who, et al in a 2015 article in Water Resources Research.

What is currently proposed is the reconfiguration and alteration of the banks, riverbeds, riffles, pools and bends of the rivers which must be avoided at any cost in any sensible river restoration work. This nation should not take an unnecessary risk by rushing into this project and gamble with our most essential natural resource, our water bodies.

Why are we not implementing the most basic necessary steps and assembling an international group of experts to review the concept? Why is the awarding of the contract done without transparency Why not involve more international companies who have track records of success in river restoration work?

As citizens, we should appeal to those officials that are making this rushed decision to revitalize our rivers to pause but a little. What is the rush? Let us endeavour to build something that future generations would look at and say, “Look, what a wonderful resource they left behind for us to enjoy.”

Let us not squander an opportunity to improve the quality of life of citizens and improve the environment for the sake of building monstrosities. A look at the Addis Abeba Light Railway System that stands today deteriorating and ill-maintained, a concrete albatross in the heart of our city, should be a warning sign to us all.

Ethio telecom: Limited Liability or No Liability?

Posted on by Web Master

This is an article that questions the validity of certain agreements, even when one is said to provide his or her free and full consent to the contract. The issue discussed pertains and can be replicated with similar entities, but I will limit the scope of this article to one institution, Ethio telecom.

Ethio telecom is the sole service provider in Ethiopia for telecommunication and internet-related services with a total customer base of more than 41 million. Any person or firm that plans to carry out business and needs the various services it provides is required to sign a contract (customer acquisition form) prepared by Ethio telecom.

This form serves as a contract between Ethio telecom and the customer. Under the standard rules of contract, the relation between the parties is governed by the terms and conditions set in the form.

Ethiopia’s internet blockage was one of the major news stories of the past two weeks. The failure of the service provider to give prior warnings or explanations after the incident has left all to contemplate the reasons. However, no advice or apology was forthcoming from the company. A simple message or a clear explanation would have been acceptable for most of the population.

However, even that would not be enough for some businesses who have incurred significant losses as a result of the interruptions. I was faced with such a case when I was called to the office of a particular business person who wants to sue Ethio telecom for damages sustained by his business. As a result, I had to go through the contracts he has with the company.

Contracts are the centrepiece of every conceivable business transaction. They determine the respective obligation of parties engaged in a particular business to establish the expectations of involved parties. In case a dispute arises while operating, these terms and conditions will enable the courts to settle the difference with certainty.

The universally accepted principle of freedom of contract dictates parties must determine the subject matter of the deal of their own free will. Yet once they have spelled out their desires into a contract, they are expected to respect and abide themselves by each term, hence terms of contracts are called laws for the parties because of their binding nature.

This being the trend, exceptionally, there are contracts that embed terms and conditions so sophisticated or industry-specific that a party who wants the service has no option other than endorsing the terms whether it befits his or her personal interest or not. Even under such contracts, due care is taken not to overburden the party with no option but endorsing the terms to be eligible for securing product or service.

One of the terms and conditions Ethio telecom lists are instances where the company shall not be liable under any circumstances. One of these is the interruption of business as a result of the loss of service for whatever reason. This same article states Ethio telecom shall not be liable for any indirect, special, incidental/consequential damages of any kind including loss of profit, even if Ethio telecom has been advised of the possibility of the damages. A look at these provisions reveal the level of liability Ethio telecom wants to admit under service failure for all sorts of reasons – you guessed it, no liability.

In a situation where the customer does not have a say in the negotiation process of term development, it is in the interest of justice and fairness as well as principles of a contract, to ensure the terms of the agreement do not harm the customer’s interest. Just because one party has the monopoly of a particular, service its entitlement to be free from any liability under all circumstances does not sound right.

Legally speaking, a redress for lost service and consequent business loss is also a possibility. This argument must first base itself on the distinction of exclusion of liability from the limitation of liability. A limitation of liability clause is a contract provision limiting the amount of exposure a firm faces in the event of a legal dispute.

Exclusion of liability must be differentiated from limitation of liability. The terms and conditions mentioned above, which are used as a legal basis to silence any contractual claim against Ethio telecom by clients, fall in the exclusion of liability category.

Limitation of liability is the wrong nomenclature. The concept of limitation is vastly used in sectors of business provisions whose total cost for redressing fault, if any, may end up in crippling the business itself and affect its very existence. We find similar concepts of limitation of liability in the maritime industry and the aviation sector. Yet even in these cases, the circumstances which entitle a party to payment of damages is in place when the fault of the service provider is the reason for sustained damages.

A statement to the same effect goes like this, “We will not be liable to pay more than x birr for such and such case.” Translating the same to Ethio telecom is not only fair but within the accepted standards of law that govern limitation of liability.

Certain legal systems make it a duty of the service provider to warrant the quality and other conditions of service even when the provider has not explicitly warranted the same. This is what we call a legal warranty.

The application of contractual warranty is also excluded by the terms and conditions of Ethio telecom, because it is stated that Ethio telecom makes no warranties of any kind whatsoever expressed or implied for the use of the service. It seems the company has equated itself with the former imperial sovereigns who claim they are above the law and cannot be sued by anyone.

The Ethiopian civil code recognizes and has provisions that deal with unconscionable contracts. The discussion of the civil code is relevant here as the construction, validity and interpretation of the terms and conditions of the Ethio telecom service contract are expected to be governed by the laws of Ethiopia.

It is not a rule to invalidate a contract or certain of its terms on the sole ground of complaining its terms are more favourable to one party. It is an exception to do so when justice requires it. An extended interpretation of this provision could be used in a court of law to challenge some of the liability exclusion provisions as unconscionable by arguing the consent of the client was secured by taking advantage of his need.

The absence of competing service providers has forced everyone to consent to the one-sided terms and conditions. Had the case been different and several other companies were providing the service, there would be a high likelihood that the terms and conditions would vary. Moreover, to a great extent, the profit motive would motivate companies to incorporate the client’s interest. This of course would have given freedom from want advantage to customers, enabling all to say no to such draconian terms.

Until such a time comes, the legal profession must contemplate the mechanism to make sure Ethio telecom or any other service provider is bound by the words of its contract as understood to serve the interest of justice. Speaking on the issue and challenging the validity of the unfair terms and conditions will foster businesses by enabling the service provider to be more conscious of the interests of its clients.

Only in scenarios of full transparency should public policy be a justification for acts that relieve the actor from liability. We must make sure that policies that are meant to serve the public do not end up harming the public.

Life is Short, Be Good

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At times life is terrifying and volatile. The fact that we cannot be prepared for the things life tosses at us suddenly is frightening. Losing week has been one of the most horrific and heart-breaking periods of my life. I lost a great friend at a very young age while at the same time hearing about the reported deaths of the officials and military officers made me stagger beyond description.

It is hard to imagine what the families of those who left us must be going through now. No matter how strong we are, it is hard to be ready for tragedy. We all know it is never easy to deal with the loss of a loved one, especially when it happens unexpectedly. Death is cruel. My friend’s wife and family and the families of those who have been serving the country in different posts have to live with the agony of incredulity by trying to adapt to life without their loved ones.

Even when we do not realise it, our lives are in constant change. I wonder if we would live any better if we knew when our time of departure from this world is. I wonder if we would be compassionate to everyone and live purposefully. Death is something so many people overlook until it comes. Most people are convinced that they have longer others, believing that they are entitled to it.

Most people think they are more human as if they can live forever with the things they do. I believe all the bad stuff going on in this world mostly has to do with people ignoring the fact that they will die.

We should all understand that we are all mortals. That should lead us to try to make the most out of life doing good things. Perhaps thinking about death often might increase our determination to be good people and kind to others. Accepting our mortal identity might help us to understand the true meaning of life by without trying to be anything else other than what we were created to be. One does not need to be a genius to understand the importance of taking responsibility in everything we do.

We need to activate our natural ability to be ultimately, bluntly honest with ourselves and lead a meaningful life. To have a great life, so that when we look back, we will be happy and have little regret. Living in such a way that others look back at our life and find something they will appreciate about us. This is the real meaning of life.

Our comfort in life should be the good things we do for ourselves, others and our country. The bad things we do will never make us happy. Our culture has obsessively focused on utter selfishness and taking advantage of others. Our major problem is the attitude of being self-centered: the belief that says one should be perfect, more admired, an all-time leader, smarter, faster, more prosperous, healthier, the best, better than the rest.

However, when we become rational and think about life, all the selfishness and hostile stuff we hear about all the time fixates on what is unjust. Most spend their valuable time perfecting ways to hurt others, the vehement way to accumulate wealth, because they think it will make them better than others. Such distorted and ludicrous life visualization is the evil we need to fight within ourselves.

Fascination of what is evil is not just dangerous to others but to those who practice it as well. We, humans, are capable of almost anything. The killers, the rapists, the corrupt are just reflections of human evil and what we are capable of if we lead our lives in the wrong direction. Thus, we should always be cautious about our thinking and actions to remind ourselves over and over again which path is right.

Every evil starts in the mind. It begins with the thoughts only we can see and evaluate before others do. There is a danger that if we let evil thoughts sink in, they can drive us to actions we wouldn’t normally do. We must all be compelled to recite what is relevant and beneficial to our thinking, because from our mind flows our good or evil deeds.

Everything we hear in this world is telling us the path to a fulfilling life is to have more, to take advantage of others and do whatever needs to be done to have more of everything. While there is nothing wrong about having more things, how we get it is very important.

It seems like more and more people have become numb about humanity, justice, responsibility and compassion to others.

The solution to our problems is right there in front of us. We should think outside of the box and not become victims of our mindset. As Ethiopians, our problems are not just material but spiritual. We have the potential and the opportunity to be great individuals and societies if we let our good character kick in.

There is a saying in Ethiopia that being kind never harmed anyone. It is best to keep to the principle “do not do what we do not want to be done to us.” Life is as great as we make it. Good character and a meaningful life often occur together. At least my friend had been a real-life portrait of this. His life might have been very short, but it was purpose-driven and spiritual as well as kind. To those of us who had the privilege of knowing him, losing him breaks our hearts but also teaches us that it is not how long we live, but how we live purposefully that matters the most.

 

TOURISM WINNER

Posted on by Web Master

Eyob Tekalgne (PhD) (left), state minister for Finance, and Hirut Kassaw (PhD) (center), minister of Culture & Tourism, awarded Samrawit Moges of Travel Ethiopia for her tireless efforts to promote Ethiopian tourist destinations to the world and Kumneger Teketel (right), managing director of Ozi Consultants, at the seventh Hotel Show at Millenium Hall on June 27, 2019.

CLOSED DOWN

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Inspection officers from the Wereda Health Bureau make surprise inspections around Saris. This shop is being forced to close, because the owner placed soft drinks and water in front of his shop, exposing them to sunlight.