Abiy Ahmed economic and political policies are attributable to the economic crisis in the country.

 The PM Abiy Ahmed economic and political policies are attributable to the economic crisis in the country. For example,

the PM is financing the Chaka project by printing money, which is why Ethiopia’s inflation is nearly 500% higher than that of Kenya and 1500% higher than that in Djibouti.

Here are some examples: አንድ ኩንታል (100 kg) Teff 10,000 Birr to 12,000 Birr (it used to be 30 Birr 30 some years ago); አንድ ኩንታል onion 5000 Birr to 6000 Birr; one egg (12 Birr); one good size chicken (1200 Birr); one good size sheep (12,000 Birr to 15,000 Birr); and አንድ ኩንታል wheat flour 7,300 Birr.

The IMF attributes Ethiopia’s high inflation to “loose fiscal policy,” meaning the government is borrowing and spending beyond its means. The consequence is a very high food inflation rate of 33.6% which is 17% higher than the general inflation rate. The total expenditure poor households spend on food represents a larger overall portion of their budgets compared to high-income households. This means they are the ones who suffer the most from food inflation. There are economic studies showing inflation increases poverty.

There is no reason to think the PM will stop printing money until the Chaka project is done. This means the current inflation rate will continue at an accelerated rate. The consequence will be hyperinflation and bank runs, followed by economic collapse. The only thing that will force him from destroying the nation is international sanctions.

The fact that the PM is giving priority to a vanity white elephant project rather than reconstructing the war-torn economy and resettling 5 million displaced people shows that he has no regard for the poor. He is driven by his ego to build a legacy project. There is nothing wrong to aspire for a legacy project, but Chaka is coming at the expense of the poor. If Ethiopia has $15.26 billion to spare, it should use it on projects that will help the development of the nation. A palace surrounded by three artificial lakes and shopping centers with luxury products will have zero value to the poor.

We must also remember the thousands of poor people whose houses are demolished to build his palace and surrounding luxury condominiums and shopping malls. The proposed sanction is to help protect the poor from a PM who has shown no sympathy and empathy for the poor.

#justice #freedom #democracy