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Ethiopia – Main opposition party says the ruling party failed to control runaway inflation

May 25, 2011

According to Central Statistical Agency (CSA), April’s 2011 general year-on-year inflation has increased by 29.5% on top of March’s 2011 inflation of 25%.  

In six pages press release issued on May 19, 2011, EDP reminded the ruling party EDP’s concerns about the rising cost of living as back as 4 years ago and its call for action before it become out of control. Nevertheless, EDP states, EPRDF chose to ignore this concerns rather than taking appropriate measures to prevent rising cost of living.

The press release identifies four EPRDF policies that have contributed to the steep rise in inflation in Ethiopia.

First, uncontrolled government monetary policy which flooded the market with money through infrastructure development

Second, EPRDF’s revolutionary democracy policies that are bent on interfering with the economy through heavy handed threats and price control rather than addressing the supply side of the economy.

Third, for failing to create a policy that promote competitive economic environment by letting few businesses to have undue control over the imports.

Fourth, for failing to invest in the agricultural sector to increase the supply side of the agricultural sector that could match the rising demand.

Having highlighted the problem, EDP called on the ruling party to take the issue seriously and take measure that are based on sound economic studies than through threats and interference in the market which lead to shortage of supplies and sudden jump in the cost of living.

EDP’s press release (Amharic)

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5 comments on “Ethiopia – Main opposition party says the ruling party failed to control runaway inflation

  1. I heard recently one official saying that the failed price-cap that resulted dramatic increase in price of goods will continue to apply. Honestly, this leads me to belive that the suffering of the people is not the govenment’s concern. The officals know what is the right way. But the right way doesn’t matter as long as it is not that helpful to ‘win’ the next and future elections.

  2. Readers:
    -What did we expect. When we have a political party that its field of vision was narrow at its inception,did one really expect far sighted solutions for our multilayered problems of our country? With time,it is of no surprise that now,not only are they narrow in economics(not to mention the politics here!), they`ve become blinkered too.
    Firstly,the regime itself is overinflated with incomptent yes-men who look like the economic scenario itself. Its still a miracle how it remains standing but note that sooner or later it will collapse on its overweight backside. Secondly,we have the one and only `awra-doro`,economist,sage,patron,philosopher and judge,..an allround superman directing economic and political traffic comfortably dispatching and experimenting on outdated economic modules at whim. So there is no point asking questions or be surprised. For any positive solution to begin,the entire edifice has to be restructured or more preferably replaced.

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