external influence in the making of development ... - FES Ethiopia

expensive, and they assign quotas to goods from abroad, so only a certain number of a
product from one country is allowed in.
The rich countries have also continued to subsidize their own agricultural sectors --
making it impossible for African farmers to compete, both abroad and in their own
countries. Agriculture is so subsidized in Europe and America that there is
overproduction, which means products are sold off cheaply in poor countries, crowding
out local produce which is not subsidized. It is ironic that international financial
institutions still insist that poor countries like Ethiopia should remove subsidies even
though rich countries can do what they like. In fact, European subsidies cost more than a
dollar per day per cow — more than many Africans earn in a day (Oxfam, 2002).
On the other hand, the problem of low and unstable commodity prices, which consigns
millions to poverty, has not been addressed seriously by the international community.
Note, for example, that a decline in coffee price in recent years has devastated many poor
countries including Ethiopia. According to Oxfam(2002 ) "persistent poverty and rising
inequality are standing features of globalization". It seems, therefore, that the
globalization process needs to be advanced slowly and carefully with deliberate measures
to mitigate its negative consequences. However, there are economic forces that drive
globalization which probably are out of anybody's control; and this comprises the most
worrying aspect of this new development.
Ethiopia hopes to become a member of the WTO. As an observer at the WTO since
1997, the government claims that Ethiopia has made efforts to acquaint and familiarize
itself with the WTO agreement and working of the multilateral trading system as well as
enhancing its negotiations skills. But joining the WTO is not an easy matter. It took
China some 15 years to become a full member. Other countries that applied for
membership years ago are still in the cold (Yohannes, 2004).
Because of institutional weaknesses, scarce resources, and a general lack of experience in
trade policy, least developed countries like Ethiopia find it rather difficult to implement
the wide-ranging and sometimes complex legal and policy obligations undertaken by
WTO members. The benefits and opportunities offered by globalization do not come free
of charge and that important costs can be involved. That is why decisions with respect to
integration with the globalization process have to be made carefully in order to minimize
its negative implications.
2.2 Gaps in Development Interventions
A factor that complicates current development cooperation is the fact that there are
divergent views on strategies for development and poverty reduction. In a situation
where developing countries are increasingly loosing capacity to become architects of
their own development visions and directions, lack of clear policy framework and poor
cooperation among development leaders threaten any meaningful prospect of sustainable
development in the foreseeable future.
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