ETHIOPIA: BI-WEEKLY REPORT JULY 17 2006

UNCLAS SECTION 01 OF 02 ADDIS ABABA 002002 SIPDIS SIPDIS E.O.12958: N/A TAGS: PREL PGOV PHUM ETRD ECON ET SUBJECT: ETHIOPIA: BI-WEEKLY REPORT JULY 17 2006 ¶1. The following reports compiled over the last two weeks illustrate the variety of economic, political and social developments occurring in Ethiopia. World Bank Writes off Ethiopia's 3.61bn Debt -------------- ¶2. The International Development Association (IDA) has granted Ethiopia USD 3.61bn in debt relief of Ethiopia's debt under the Multilateral Debt Relief Initiative (MDRI). World Bank President Paul Wolfowitz said the debt relief, effective July 1, would help the poor who need and deserve better education, health services, greater access to pure water, and greater opportunities to escape poverty. According to the World Bank Ethiopia's economic performance over the past three years had been strong and broad based. Ishac Diwan, the Bank's country director for Ethiopia and Sudan, said the main challenges for the Ethiopian economy in the coming years is to continue to grow while governance improves. USAID celebrated 10 years of success of its BESO Project -------------- -------------- ¶3. USAID celebrated 10 years of its Basic Education Project (BESO). The event included displays of education and training materials produced through the past 10 years, a video of the project's history, and panel discussions. Attendees at the celebration included education practitioners from all levels - from the kebele to the Minister. Many excellent suggestions for future of the project resulted from the deliberations, and the USAID team will factor them into future planning and implementation. The anniversary was opened with remarks from Ambassador Huddleston and Minister of Education Dr. Sintayehu Woldemichael. Parliament recesses; No Inquiry Commission Report -------------- -------------- ¶4. The House of Peoples' Representatives (HPR) went into recess on July 7 until October 9, 2006 without hearing the scheduled Inquiry Commission's report. The Inquiry Commission was established by the HPR to investigate the violence that occurred in some parts of the country following the May 2005 elections. The Commission had obtained a time extension from the HPR but once again failed to report its findings on schedule. The Commission was supposed to present its report to the House on July 7, 2006, the final day before the house went into recess for the next three months. No explanation was given as to why the commission was unable to present its findings to the House as scheduled. Leaders of the parliamentary opposition expressed their concern in private regarding the issue. House Passes Budget Bill, Extends Electoral Board Tenure -------------- -------------- ¶5. The House of Peoples' Representatives (HPR) on July 4 passed a bill providing for a 35.551 bn Birr budget for the 2006/07 fiscal year ($1 = 8.7 Birr). The House also endorsed a resolution providing for the extension of the tenure of the National Electoral Board until October 2006. Of the total approved budget, 16.067 bn Birr goes for the capital budget and 9.987 bn for budgetary subsidies to regional states and 9.497 bn for recurrent budget. The extension of the Board's tenure was necessitated to conclude the inter-party consultations during the parliamentary recess and subsequently appoint new board members when the House reopens after the recess. Political Harmony Essential to Reduce Poverty -------------- ¶7. World Bank President, Paul Wolfowitz stressed the importance of political harmony in order to reduce poverty in Ethiopia. Mr. Wolfowitz said resumption of aid to Ethiopia had to be followed by government action to provide political stability. Last year the World Bank cut its direct budget support to Ethiopia after violence following disputed elections left at least 80 dead. Following talks with Prime Minister Meles Zenawi and opposition politicians, Mr. Wolfowitz told reporters that "As a development bank, we are more concerned with development and poverty reduction but we do not ignore political harmony." "The World Bank requires the right atmosphere to work with, such as transparency, independent justice and political harmony in the country." ¶8. World Bank President Paul Wolfowitz said the bank will further strengthen its financial assistance to the ongoing ADDIS ABAB 00002002 002 OF 002 poverty reduction and development efforts in Ethiopia. The Ethiopian government and the World Bank have maintained a long-standing economic cooperation over the years. During talks with Prime Minister Meles and other cabinet members on July 13, Wolfowitz said the World Bank will continue supporting Ethiopia in its efforts to advance its economy. Prime Minister Meles briefed Mr. Wolfowitz about the development policies pursued in Ethiopia and the multi- faceted activities being carried out in the country to accelerate economic development. Wolfowitz's first-ever visit to Ethiopia has enabled him to closely observe the strenuous battle against poverty in this country. During his visit to the Parliament, Wolfowitz said creating peaceful political situation in Ethiopia would be exemplary to other African countries besides contributing toward ensuring sustainable economic development in the country. Sharing of ideas between members of the ruling party and that of the oppositions in the parliament through mutual respect and friendship could be exemplary to other African countries. Former US President visits Ethiopia to launch project -------------- -------------- ¶9. Former US President Bill Clinton arrived in Addis Ababa on July 15 to pay a working visit of the various projects supported by the Clinton Foundation, focusing on rural development, HIV/AIDS and hospital management. He met with Prime Minister Meles Zenawi and other government officials. Former President Bill Clinton visited ALERT Hospital in Addis Ababa to break ground for Ethiopia's family-focused pediatric AIDS treatment program. He also met with a cross section of the society at the Africa Union Hall. ¶10. Former US president Bill Clinton launched a program to help children suffering from AIDS in Ethiopia, where close to 3 million people are estimated to be infected with the deadly virus. Under the program, the Clinton Foundation will fund 250,000 dollars and provide 23 medical experts from Yale University to work in 13 hospitals across the country for one year. The Clinton Foundation will provide the clinic with necessary equipment and medical supplies in addition to train health officials and boost hospital management systems. Former President Clinton laid the foundation stone for a clinic for orphans on July 16. Nearly a million Ethiopian children have been orphaned by the disease and about 5,000 new infections are recorded weekly. HUDDLESTON