Dula's Blog

There should be a silver lining to the AGOA situation. Ethiopia can move from manufacturing to a high-tech country for more sustainable development. When France refused to sell planes and parts to Israel during the Six-Day War, Israel immediately opted to build its airplanes and technology not to be hostage again. Consequently, with a population of 9 million, Israel is a powerhouse of technology and one of the strongest economies in the Middle East.

Industrial Parks are not sustainable solutions
Industrial parks, as they are set up now, are transients. They are temporary solutions to unemployment. Ethiopia uses cheap labor to attract companies to establish cloth and textile-driven manufacturing plants. Manufacturing plants based on labor alone are transient and do not provide good or living wages or sustainable solutions; like rivers; they flow in one direction with cheap labor. Most of the manufacturing plants moved from China, Bangladesh, and other regions to take advantage of cheap labor in Ethiopia. I am sure they will move whenever such an opportunity arises anywhere else. The life expectancy of industrial parks can be cut short and leave people without Jobs and the area with environmental damages. Of course, the suggestion is not to dismantle such plants immediately but to transition to a long and lasting solution to Ethiopia’s economic woes.

 Ethiopia can be like Israel, China, and other Asian tigers in 10-15 years by planting the seeds for sustainable development bolstered by technology. Turning Industrial Parks into technology parks or hubs by fostering and promoting innovation for technology, where a high density of startup companies, engineers, and other innovators cluster together to produce goods and services driven by markets can be the solution. Besides technology parks, universities and cities can provide co-working spaces for technology hubs and incubators with funds supplied by diaspora, private companies, and the government for equity interest or loans. Alternatively, the Ethiopian government can issue bonds to sell to the diaspora or the diaspora can set up their own venture capital to fund these projects.

Moving to the Fourth Industrial Revolution is the Solution

 To catch up with the rest of the world, Ethiopia needs to leap to the fourth Industrial Revolution that focuses on robotics, AI, nanotechnology, blockchain, biotechnology, the Internet of Things, autonomous vehicles, 3D printing, and others without totally discounting manufacturing. The government should prioritize the introduction of the Fourth Industrial Revolution by opening up Internet access, broadband, and Research and Development in these areas.

To grow the economy, the current government is promoting manufacturing by inviting companies from China, Turkey, India, and others by enticing them with low wages and tax breaks. Dr. Abiy should prioritize direct foreign investment in high technology transfer jobs rather than low-wage manufacturing to provide a platform for sustainable economic development.

The typical trajectory of moving from agriculture to manufacturing is no more an option for Ethiopia. Because of TPLF’s fear of social media and denial of access to technology, Ethiopia failed to enjoy the full benefit of the digital revolution. Given this failure, Ethiopia has no time to go through these stages and catch up with the rest of the world technologically and economically. Jumping to the Fourth Industrial Revolution will accelerate its economic and technological development, save it from future famine, ecological damage emanating from manufacturing, and massive economic disruption that arises in manufacturing phase-out.

Manufacturing undertaken by Chinese and other companies will not save Ethiopia from its permanent third-rated status or fill empty stomachs. Huajian is one of the most celebrated Chinese Companies with over 5000 employees. According to AP “Amazing China” (May 2, 2018), Ebissa Gari, a 22-year-old employee of Huajian, earns 966 Birr ($35) a month. The average worker at Huajian factory earns $50 a month. According to Kuwait Institute for Scientific Research, a basic living wage was about 3000 Birr or ($109) a month in Ethiopia. On the other hand, Artificial Intelligence (AI) specialists with little or no industry experience can make between $300,000 and $500,000 a year in salary and stock. “Top names can receive compensation packages that extend into the millions” (NYT, April 19, 2018).

The increased productivity, efficiency, lower operating costs, and high wages are a product of access to technology. The Heritage Foundation recently reported that not all Ethiopians had enjoyed economic growth evenly. It argued that more economic freedom is needed to grow the economy and reduce civil strife.

Ethiopia will need 177 years to catch up with the U.S

Given the economy and the state of technology, Ethiopia is pre-industrial, where Britain was in the 1840s. Unless Ethiopia skips some steps, it will need hundreds (100) of years to catch up. Of course, this assumes the rest of the world will stand still and wait for Ethiopia. For example, at a reasonable growth rate of 5%, Ethiopia will need 177 years to catch up with the U.S. growing at an average of 2.5% holding everything constant. At a 10% rate, it will take 60.5 years. The calculation is derived using a per capita of $50,000 for the U.S and $700 for Ethiopia.

Technology has the potential to be a tremendous tool in advancing the well-being of humankind by improving the quality of life and lifting the standard of living. Leveraging technology allows us to work from anywhere and enhances productivity. The progress of the industrial revolution from the steam engine, electric power, and digital and information technology is the foundation for the fourth industrial revolution.

 Over 80% of the jobs will be AI and IT-driven in the next two decades.

Artificial intelligence will be pervasive based on autonomous products, from cars to robots. Over 80% of the jobs will be AI and IT-driven in the next two decades. AI will increasingly take over mundane tasks to the most sophisticated, including fabrication, surgery, and ground and space warfare.

 Ethiopia is 120th out of 139 countries in the Network Readiness Index (NRI)

According to Global Information Technology 2016, Ethiopia is 120th out of 139 countries in the Network Readiness Index (NRI), which measures access to the latest technologies to individuals, businesses, and government, ease of starting a business, the efficiency of the legal system, infrastructure, capacity for innovation and more. Ethiopia’s ranking could have been much better had it not been for TPLF’s fear of technology and lack of interest in advancing Ethiopia’s technological and digital capability.

Leveraging technology underpinning the Fourth Industrial Revolution will create a solid and sustainable economic foundation. The people who generate the wealth (the next Apple, Google, etc.), the carpenters, the risk-takers, and inventors should be appreciated much more than talking heads or politicians. After all, the hard-working and creative Ethiopians with strong work ethics will be the catalyst to propel Ethiopia to be an economic and technical juggernaut.

The technology revolution is taking place at a breakneck speed led by Artificial intelligence, the Internet of things, the cloud, and 3D printing. Ethiopians need to demand unfettered access to technology and the internet as a right for their survival and to avoid future famines.

Dr. Abiy needs to leapfrog Ethiopia to the fourth Industrial Revolution and unleash innovation to create a better future for Ethiopia. If he does not leverage the technology revolution, grow the economy with open competition, transparency, property rights, and unfettered access to technology and the internet, he will leave Ethiopia with a distressed economy and more hungry and angry people.

Dula Abdu, a retired banker, economist and is the founder of a non-profit that promotes access to technology to underserved communities. Currently supports underserved schools in the US and in Ethiopia by providing a STEM-based educational database that works without the internet. The article was adapted from a previous article entitled “Ethiopia needs to leapfrog to the Fourth Industrial Revolution.”

When my wife decided to go to Ethiopia with our three kids to see their grandparents despite my reservation, I decided to go on a vacation somewhere else too. I flew to Cuba with my oldest daughter. While I was in Cuba I felt at peace with no fear or concern for our safety, on the other hand, I was worried about the safety of my family in Ethiopia and the safety of the Ethiopian people as a whole.

I had a mixed feeling about Cuba which could be described as a fascination for its revolutionary spirit but disdain for its failure to adopt like the Chinese or Vietnamese to usher a vibrant mixed economy.

Unlike many places that I visited I found the Cuban people especially in Havana color-blind and respectful of foreigners and each other regardless of color or sex. You see women walking by themselves the dead of night without fear despite the absence of police like other major cities.  Street after street I saw Cuban kids; black, mulattos and white playing like any kids with no inkling about their color or gender.

Whether you go to the beaches, parks, clubs or other places the idea that someone is paying attention to you about your pigmentation or gender seems to disappear because you just become a human being. Of course, as a tourist you have to be careful not to be taken advantage of by taxis or anyone else.  Nonetheless, you have no fear of being robbed or attacked.

One of my biggest disappointments when visiting Ethiopia last August was traffic pollution and potholes. In Cuba the roads are wide, clean and I did not see one pothole during my range of travel, which included both cities and the country side like valley of  Viñales. One of the reasons for the smooth traffic could be linked to government control of imports and exorbitant tariffs. This is despite the fact that one of  the dreams of many Cubans is to own a car.

Cuba like Ethiopia is a resource poor country, despite that you don’t see homeless Cuban, beggars, and I am told by many Cubans that no one in Cuba goes to bed hungry.

Despite many interesting aspects about Cuba, its telecom system is terrible and the economy is stagnant instead of growing given Cuba’s highly educated workforce. You see elaborate and eye-catching mansions, buildings and homes unkempt but still being occupied. Just a nice paint or selling some of them to private owners will bring them alive. Since they are government owned it takes a long, long time to address such neglect.

Cuba’s free healthcare and free education system have created an equal and intelligent society. What Cuba needs to do is unleash its massive human capital without destroying its almost color-blind society and highly egalitarian system.

For countries in Africa, they should look to Cuba to embody the mantra of live and let live and coexistence while creating a level playing field for their citizens under a benign free market system.

Despite the history of master and slave legacy, the white, blacks and the mulatto communities in Cuba have integrated to form a cohesive society. They regard the Cuban nationality as their citizenry and don’t identify as ethnic groups.

In Ethiopia, the road that Dr. Abiy chose is the correct way. Partial privatization and lessening ethnic animosity or differences, that was magnified and exploited by TPLF will bring peace economic growth, and prosperity at last. Leveling the playing field for all Ethiopians regardless of their religion or ethnicity and respecting individual rights is the only path to peace.  It also shows that with the right leadership it is possible to overcome ethnic, economic and other challenges and create a peaceful and sustainable economy for all citizens.

Despite Cuba’s some shortcomings, it is wonderful that there is a place that you don’t have to look over your shoulder because of your ethnicity or gender. I hope Ethiopia will move towards an ethnic-blind society while firing its economic engines to address years of economic malaise and neglect to transform itself as leading technological and economic power in Africa. Ethiopians should strive to lift the stigma of being known a country of famine, displacement and ethnic conflicts. Without a doubt, Ethiopia’s failure to build a democratic institution will be catastrophic to all ethnic groups, both small and large. The world is eager to see the cradle of mankind ascend to the mecca of democracy. To get there, Ethiopians should listen to peace makers instead of prophets of hate and ethnic agitators if they want survive and thrive.

Source:Wikipedia

Various indicators suggest that TPLf was in cahoots with anti-Ethiopian forces to restore its hegemony for another 27+ years. Thanks to Eritrea and Ethiopian armed forces, it did not happen. The devastating and horrendous attack on Ethiopian armed forces on November 3, 2020 was planned and executed in consultation with Egypt and Sudan. There is no specific public document yet, but the surprise visit by Sudan’s Prime Minister Abdalla Hamdok to Ethiopia on December 13 was to salvage a failing enterprise without realizing that Ethiopia had already destroyed most of TPLF forces.

The agreement TPLF engineered was meant to satisfy Sudan’s claim on land and to address Egyptian concern on the Abay Dam in return for their support of TPLF to reclaim power. Helping TPLF win the war was designed to accommodate both Egyptian and Sudanese demands.

Eritrean involvement in helping Ethiopia became clearer because Eritrea did not want TPLF in Addis again. According to Egyptian and Sudanese calculations, if TPLF can destroy 60-80% of Ethiopian armed forces and equipment that was located in Tigray, Ethiopia’s ability to fight back would be impossible or insignificant. In case, if Ethiopia tries to fight back and the war becomes extended, Egypt and Sudan will come to the aid of TPLF.

Tedros visit to Egypt is a good indication of coordination

Egyptian public and media statements and visit by Tedros Adhanom to Cairo all indicate coordination. Tedros’s visit was to urge Egypt to intervene when TPLF’s so called blitzkrieg (lightning war), as described by Sekuture Getachew did not work and TPLF started to retreat (TPLF Admits Starting the Conflict). Instead of directly intervening, Egypt may have given a nod for Sudan to make a move on Ethiopia’s territory. Egypt is very careful in rushing into a war since June 1967, after Israel stunned Egypt by destroying the entire Egyptian air force on the ground in in a single day. However, if the war has dragged, it was possible for both Egypt and Sudan to enter in some capacity. For the sake of Ethiopia, the swift end of the war has frustrated this plan.

Eritrea saved itself and Ethiopia by helping Ethiopia in some capacity, such as allowing retreating Ethiopian troops to enter and regroup. Whether Eritrea intervened materially or not, Eritrea’s support was pivotal.  We may never know the truth, but without Eritrea’s support Ethiopia’s situation would have been quite different and dreary.

Failure of Intelligence by both Eritrea and Ethiopia 

Failure of Ethiopia and Eritrea to anticipate and abort TPLF’s plot is disturbing and one hopes they learned their lesson now and work to end Sudanese and Egyptian machination. Sudanese move to claim land from Gonder or the Amhara region, while leaving out area controlled by TPLF, shows a clear indication of a coordinated plot. Dr. Abiy took a chance given improved relations under his administration with Sudan and out of urgency to move troops to counter TPLF attacks, leaving the Sudanese border unprotected.

Ethiopians are accustomed to disappointment and frustration. However, the Sudanese invasion and TPLF attacks and betrayal were quite shocking and unexpected.

Diplomacy is critical for both Eritrea and Ethiopia

Hopefully, Ethiopia and Eritrea mend their past differences, build their intelligence network, and work towards building their economy while avoiding an unnecessary war with Sudan. Though the combined forces of Sudan and Egypt pose an existential threat, Ethiopia or Eritrea should not rush into war despite provocations from Sudan and Egypt. Frankly, none of them can afford to go to war at this time. The most potent instrument is enhancing more than ever their diplomatic campaign to expose Sudanese invasion as a violation of international law and garner IGAD, African Union and UN support with utmost urgency.

Given some doubts about the situation in Tigray in terms of possible multiple human rights violations, I am withdrawing all my pieces about the situation until further notice.

Despite my opposition to TPLF, I have great respect and admiration for the people of Tigray for their hard work and spirit of Ethiopiawinet.

So I hope any human rights violation against the people of Tigray stops immediately and without any delay.