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

Diverting energies and minds of skilled persons
Our policy makers are extremely busy trying to fulfill and meet donor requirements,
responding to donor queries including submission of timely reports, receiving donors,
reading donors' proposals, holding joint discussions, responding to donor
recommendations, and finally implementing donor initiated programs the activities of
which could include execution of studies, designing of projects/ programs, establishing of
institutional structures, organizing workshops, procurement, and implementation and
facilitation of projects/ programs, which of course would further be monitored and
evaluated. Key officials such as the Governor of the National Bank of Ethiopia and the
Minister of Finance are required, for example, to directly report to the IMF and WB
regularly on measures undertaken, progress made, and schedule of planned activities.
Key Ministers of the different sectors are also highly involved with the IFIs as well as in
dealings with the UN country team, European Union, UN-ECA, the AU, ADB and
bilateral donor agencies such as the USAID, DFID, NORAD, GTZ, etc. Aid also makes
the government more open to donors than listening to its own citizens and civil society
groups. Most importantly, the minds of the leaders of the country become preoccupied
and controlled by aid business.
Hence, Aid is a huge business that engages fully some key officials and experts and takes
significant time of other officials and experts. This, indeed, entails a huge direct cost, in
terms of human resource and time. The opportunity costs of the resources used (possibly
wasted) in aid business are also likely to be significant. Its particular negative aspect
refers to the fact that the country's possibly best minds are diverted from making
concentrated and independent analyses of our own local specific objective conditions and
priorities. Poor countries such as ours should probably restrict access by donors to
some key government officials and/ or assign in every sector officials that should
exclusively focus on local initiatives and in analyzing objective realities facing the
country independently. Such officials should formally be restricted from engagement
in donor initiated or led activities.
Sudden withdrawal of assistance
Major disagreements with donors on terms and conditions of aid and local actions
deemed inappropriate by donors could result into sudden withdrawal of assistance. The
immediate negative consequences on smooth functioning of the government apparatus
and implementation of programs are usually grave.
More aid has so far resulted into increased dependence. The developing countries
including Ethiopia are increasingly drawn into seeking more financial support sometimes
even just to run normal government business. Governments that initially carelessly
engage in grant and loan agreements sooner or later will find themselves trapped in
vicious circle of seeking more aid and higher dependence. They became easily
vulnerable, therefore, to sudden withdrawal of external assistance. In the case of
Ethiopia, this has happened during the termination of collaboration with the IMF in the
recent past due to disagreement with the government and the Ethio-Eritrea boarder
conflict during 1998-2000.
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