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By Aschalew Aberra
July 19,2018
First of all, anyone who has had this splendid idea should be highly recommended, but when it comes to its implementation, we should not say so fast.
Most African nations in general and Ethiopia in particular are very dependent on foreign aid for so long, this situation should be minimized if not totally stopped.
Thirty million Africans live in the diaspora. According to the 2010 census, 250,000 Ethiopians live (legally) in the United States only
It is common practice for those living in the diaspora to send money for their dependents to the United States. country. Until now, this arrangement has not brought any significant change either in the lives of their loved ones or in the national economy.
In fact, the sending of money for direct consumption would exacerbate the inflation of consumer goods injuring people who have
It is high time that diaspora contributions be made in a way that has a significant impact on the economy, not only for the lucky few, but for the entire nation.
To my attention, the current Ethiopian regime has created a diaspora trust fund. They even opened a bank account and they ask people in the diaspora to make deposits.
The majority of Ethiopians in the diaspora are currently euphoric about several events taking place in Ethiopia. Because of this and the long-awaited desperation to help their country of origin, many are expected to make contributions very soon.
But the caveat is that the majority of Ethiopians in the diaspora would be economically and politically uninformed or even illiterate.
Politically and economically better informed people should have the responsibility to share their concerns before the diaspora community begins to pour hard-earned money into government coffers on behalf of the trust fund
. steps should have been taken before asking the diaspora to make deposits to the newly established trust fund account.
1. For several reasons, the trust fund should be managed independently of government interventions. The government should be completely foreign to it, in addition to facilitating the proper functioning of the fund.
2. An independent non-governmental organization (NGO) should be created to manage the trust fund.
3. A regulation should be drafted and should be available online for review and comments by members of the diaspora.
If they wish, community organizations of the diaspora can participate in the facilitation of discussion forums.
4. A board of directors composed of different foreign continents where the majority of the diaspora resides should be established to give direction to the day-to-day operations of the Trust Fund.
A criterion or formula must be established as to how funding should be made available to beneficiaries.
6. A very transparent website should be created so that contributors can obtain real-time information on the amount collected and how their contribution will be spent.
The fund should be audited regularly and the audit report should be available online.
8. Trust fund managers should discuss with foreign affairs offices in the United States, Europe, Australia, the Middle East, etc. regarding the legality of fund raising. I do not think we wanted to have the repetition of the debacle of Abay bonds, where the Ethiopian government was forced to make the bonds money and in addition they were penalized to pay $ 6 million to the US government.
9. If possible, negotiations should be conducted with these foreign countries, if the diaspora can obtain tax relief for their contributions.
10. The World Bank and the IMF legitimately demand that economic and political reforms be undertaken as part of the aid or loan that they give to poor countries.
It will only be reasonable for the Ethiopian diaspora to be allowed to participate in domestic politics and to make few demands such as the establishment of democratic institutions and certain constitutional and political reforms that are supposed to benefit society as a whole.
If we are asked to contribute billions to the Ethiopian economy, we should be considered as partners in governing the nation – we should not be treated like fat cows to milk our hard-earned money freely .
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I believe that the trust fund is intended
In order to make a significant impact in the l & # 39; economy, in addition to participating in the construction of unprofitable social equipment, the diaspora community should also The main deficit of the African economy in general and of the Ethiopian economy in particular is the lack of labor-intensive industries aimed at reducing urban unemployment and transferring subsistence farmers into factories.
People of the diaspora, instead of sending money directly to their dependents for immediate consumption, the national economy and their loved ones will benefit if the money is spent to the construction of industries in the form of joint ventures or share markets. Then their relatives can collect the proceeds of the profits of the industries in the form of dividends. This arrangement could be considered to kill two birds with one stone. Instead of directly consuming the money, the money will be invested in the production sector and these families could benefit from the profits.
Just my $ 0.02. Comments are highly appreciated
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