Notes from Africa 1: Ethiopia

March 18, 2021

This starts a series of notes from Africa, the world’s developmental frontier, about which I am writing a book. If you read Russian, these notes will be published in the Ukraine-based, Russian-language literary magazine Huxley.

Ethiopia is experiencing what may be the most significant political crisis on the African continent for a generation. Certainly, it is the most serious crisis to face Ethiopia, Africa’s most promising developmental state and its second most populous country, since the ruling coalition, the Ethiopian People’s Revolutionary Democratic Front (EPRDF), defeated the Stalinist Derg junta of Mengistu Haile Mariam in 1991.

The crisis stems from Prime Minister Abiy Ahmed’s decision in early November to take military action against the Tigrayan People’s Liberation Front (TPLF). From 1991 until Abiy (Ethiopians are traditionally referred to by their given names) became Prime Minister in April 2018, the TPLF dominated the ruling EPRDF coalition. Although the northern federal state of Tigray accounts for only six percent of the Ethiopian population, Tigrayans dominated cabinet, filled the majority of senior civil service positions, ran the federal army and held key offices in the intelligence services.

‘Power’, observed the British historian Lord Acton, ‘tends to corrupt, and absolute power corrupts absolutely.’ Although led until his passing in 2012 by perhaps the most erudite developmental leader the world has seen, Meles Zenawi, the TPLF enjoyed something close to absolute power. Tigrayans came to control much of the economy of the capital, Addis Ababa, and much of their money was not made honestly. The army engaged in widespread smuggling operations, using federal military transportation equipment. It bilked large sums through its control of Africa’s biggest energy project, the five-gigawatt Grand Ethiopian Renaissance Dam (GERD), on the Sudan border. The corruption was never Kenyan-, or Democratic Republic of Congo-style kleptocracy, but it delayed the critical dam project (see below) and dragged increasingly on an economy that has grown out of hunger and dire poverty at 10 percent a year.

So Abiy, from the largest, lowland ethnic group, the Oromo, which accounts for 35 percent of the Ethiopian population, decided to take the TPLF down. Whether it was necessary to do this militarily – as Abiy is trying – and whether a political solution was instead possible, is a subject of intense debate, both in Ethiopia and in international diplomatic circles. As with any counter-factual, we will never know the absolute truth. Equally, the question of which side kicked off the fighting between federal forces and the TPLF is a complex one. Abiy Ahmed’s government says that the TPLF attacked bases and the headquarters of federal Northern Command forces on 3-4 November, taking command of ethnic Tigrayan forces and looting vast amounts of military equipment. The TPLF says that troop movements on the Tigrayan and Eritrean borders prior to this attack made clear Abiy’s determination to pursue a military confrontation and that it was acting in self-defence. As with the origins of the First World War, analysts can argue in more than one direction.

Not your average empire

It is not possible to understand what is going on in Ethiopia without understanding the historical and ethnic inheritance of this country of 110 million persons. Like Germany, Russia or China, Ethiopia developed as a contiguous empire that expanded at its periphery. The dominant people in this empire building were highlanders, driven to expansion by population pressure and the desire for more-fertile land. The Tigrayans use the term abay, employed in a manner that is roughly equivalent to the German colonial-era word lebensraum (literally, ‘living space’), to express their expansionist instincts. But before the Tigrayans, it was their Amhara neighbours who led the quest for living space. In the last decade of the nineteenth century and first decade of the twentieth, Emperor Menelik grabbed large swathes of lowland territory south-west to what is now the Kenyan border, south-east into today’s Somalia, and west to the current borders of Sudan and South Sudan. He was also the only African leader to defeat an entire European army, an Italian one, at Adwa in Tigray in 1896.

Menelik’s successor was Emperor Haile Selassie, crowned in 1930 in the new imperial capital of Addis Ababa (the event is brilliantly recounted in Evelyn Waugh’s Remote People). Before his coronation, Haile Selassie was Ras Tafari, or Prince Tafari. Descendants of Jamaican slaves determined that this small man, an African who held the white man at bay, was in fact a living god, and built the principles of Rastafarianism around him. It was not all plain sailing, however. In 1935, Mussolini’s army returned to Ethiopia with chemical weapons, killing hundreds of thousands, and occupied the country for five years. The Italians had already occupied Eritrea since 1889. In 1941, however, the Italians lost their Horn of Africa possessions to the Allied East Africa campaign. Ras Tafari and Ethiopia were free again; the emperor annexed Eritrea in 1952.

Haile Selassie continued to rule for another 30 years. He stripped out manufacturing plants the Italians had installed in Eritrea and moved them to Addis Ababa, building up his capital at the country’s ethnic crossroads, following a logic similar to that of the Spanish when they created a capital bang in the middle of their fractious state. Thousands of Eritrean business people, artisans and technical workers migrated to Addis.

Haile Selassie was, in some respects, a reformer. But he was also an aristocrat, an emperor with an Addis casino and a lot of expensive French wine. He never confronted the most explosive issue in any developing state – land inequality. This cost him his life. In 1974, an army mutiny ushered in the Derg, a Maoist dictatorship that undertook land reform but then killed hundreds of thousands through forced collectivisation of agriculture, forced population relocations, and consequent famine.

The Derg junta boasted the biggest army in Africa, and Russian backing that included MiG fighter jets. And yet the Derg was taken down, after a long struggle, by an ethnic coalition of guerrilla warriors led by the Tigrayan Meles Zenawi. The Tigrayans have long spun this victory as theirs. In reality, Eritrean fighters were more numerous and often more important, particularly in the fall of the capital in 1991. Meles Zenawi’s military genius was to hold together a coalition that included a kaleidoscope of ethnic groups.

The key point to digest from this history is that Ethiopia is not, in one important respect, an empire like Germany, Russia or China. Unlike those empires, Ethiopia has been politically dominated by different ethnic groups. First, the Amhara of Menelik and Haile Selassie. From 1991, the Tigrayans of Meles Zenawi. And since 2018 there is Abiy, an Oromo, the most populous group. In the background are the coastal Eritreans, who overwhelmingly chose independence in a referendum in 1993, whose Ethiopia-based compatriots were expelled by Meles Zenawi, and who fought a devastating border war in 1998-2000 which left 100,000 dead. Nonetheless, the Eritreans have not forgotten that they were the leading force in Ethiopia’s economy under Haile Selassie or that they contributed as much as any group to the defeat of the Derg. Today, each of these four ethnic groups wants its day in the political sun. And many underemployed young men, and wily older men who manipulate them, are ready to shed blood to get it.

Abiy Ahmed’s secret and dangerous plan

The great mistake of Meles Zenawi, who passed away in 2012, was – in the context of a savage civil war – to promise a federal constitution under which every ethnic group bar the Tigrayans  simmered with resentment that its narrow racial interests were not being given their due. The Ethiopian nation building of Menelik, Haile Selassie and even the Derg went on the back burner. Meles’ economic policies set the standard in Africa for development of smallholder agriculture, and now manufacturing, but after his death ethnic tensions in the 2010s became increasingly violent. It was in this context that Meles’ chosen successor, Hailemariam Desalegn, from a small lowland ethnic group called Wolayta, who was manipulated in office by the Tigrayans, decided to step down in February 2018 and make way for the Oromo former intelligence officer and cybersecurity chief Abiy. 

No one but Abiy knows the mental process he went through in deciding how to confront the TPLF. Early in his administration, he conjured with Oromo nationalism. But the characters this brought to the fore were as ugly as anything seen in Amhara or Tigrayan nationalism. Abiy switched tracks. In June 2020, he locked up Oromo peddlers of ethnic hatred like the Oromo Federalist Congress’s (OFC) Jawar Mohammed. Recently, the detainees went on hunger strike but, perhaps unsurprisingly, they ended the strike before anyone died. As is so often the case, there is a bourgeois and profoundly self-seeking quality about the manipulators of racial populism in Ethiopia, including the Stanford-educated Jawar.

Abiy’s most practical problem in taking on the TPLF was that Tigrayans were in possession of most of the army’s weaponry; many estimates suggest they control four-fifths of federal small arms and artillery. Hence, Abiy’s ‘federal’ army faced a domestic enemy with more firepower. It appears he therefore determined to construct the largest possible coalition against the almost universally resented Tigrayans. In doing so, Abiy took risks that look to many observers to be reckless.

In July 2018, the new prime minister, only four months into his term, stunned the world by cutting a peace deal with Eritrea, two decades after the brutal Ethiopian-Eritrean border war. There is no full, public record of the deal made with the three-decade totalitarian leader of Eritrea, Isaias Afwerki, but it appears to include access for landlocked Ethiopia to Eritrean ports and the expulsion from Asmara of Oromo irredentists of the Oromo Liberation Front (OLF), who were long cosseted by Afwerki. In October 2019, Abiy was awarded the Nobel Peace Prize for the reconciliation with Isaias Afwerki – once a comrade of Meles Zenawi in the fight against the Derg.

It seems now, however, that peace was not the only thing on Abiy’s mind when engaging the deeply embittered Afwerki, a man who instituted open-ended military conscription in Eritrea since 2001, built a standing army of 200,000 in a nation of 3.5 million, and is rumoured to suffer from a hereditary and degenerative mental illness. In taking on the TPLF, Abiy wanted the use of Afwerki’s army, one raised on a diet of extremist, anti-Tigrayan indoctrination. In 1991, the TPLF had used Afwerki and a much larger Eritrean military force than their own to take Addis from the Derg. Abiy’s extraordinary gamble in November 2020 was to use Afwerki’s army to take down the TPLF. In Ethiopia, what goes around comes around.

The team that Abiy ended up with included perhaps half of Afwerki’s army – 100,000 Eritrean troops deployed inside Tigray. Then there are Amhara federal forces, special forces and a smorgasbord of violent young Amhara militia groups. The Amhara want what they regard as their lebensraum in mixed Amhara and Tigrayan western Tigray, some of which was demarcated as Tigrayan territory by the TPLF-dominated federal government after 1991 (see maps, above). Then there are federal troops from Ethiopia’s 90 other ethnic groups. And, finally, the Sudanese military government, which potentially offers the TPLF the only border across which it can resupply fuel, food and ammunition, and which both Abiy and Afwerki have pressured and cajoled to cut the Tigrayans off.

The upshot has been an utterly brutal conflict in which atrocities have been committed on all sides. The TPLF destroyed roads, bridges and other infrastructure to impede its enemies’ advance (and, coincidentally, humanitarian relief supplies), retreated to the caves and forests the TPLF knows intimately from the struggle against the Derg, and handed out large amounts of surplus firearms to civilians. The Eritreans poured across the border into eastern and central Tigray. Asked by UN Secretary General Antonio Guterres, Abiy ‘guaranteed’ there were no Eritrean troops in Tigray. In reality, they led the fighting, and the atrocities. In Aksum, Eritrean forces murdered hundreds of civilians. In Adrigrat, there were multiple credible reports of more civilian murder, widespread rape and looting of everything from private homes to hospitals. Mark Lowcock, the UN’s emergency relief coordinator, told the UN Security Council on March 4 that ‘multiple credible and widely corroborated reports from Tigray… speak of widespread atrocities, involving mass killings, rapes, and abductions of civilians’. He cited reports of ‘large-scale, organised, and systematic sexual violence’.

The butchery has continued for four months already, with satellite images showing that Eritrean troops have systematically burned fields and orchards, increasing the likelihood of famine. South-west of the Tigrayan capital Mekelle, around Gijet, analysis of satellite images taken on February 20 and February 22 revealed 508 burned-out buildings in that recent period alone. Abiy claimed that fighting stopped in late November; this is as much of a lie as his assertion that there are no Eritreans involved.

In western Tigray, regular Amhara forces and, particularly, militia behaved with similar brutality against ethnic Tigrayans. The same pattern of murder of civilians, endemic rape and burning of crops occurred. Amhara militia also entered the fertile, disputed al-Fashqa Triangle on the Sudanese side of the border where Tigray, Eritrea and Sudan meet and fought with Sudanese troops. Eritrean forces are likely also involved, raising the possibility of regional conflagration.

Superficially, what is happening in Tigray is ethnic conflict. In reality, it is a struggle for land and power among men who are defined by selfishness rather than ethnicity. Indeed, it is striking how the past and present actors in this ‘ethnic’ war are almost all mixed race, or at least of confused ethnic loyalties. Meles Zenawi, TPLF leader and architect of Tigrayan hegemony, had an Eritrean mother. Bereket Simon, Meles’ university friend turned right hand man, is a pure Eritrean raised in Gondar who supported the TPLF war against Eritrea; Abiy has put him in gaol. Tewodros Hagos, the super-nationalist head of the TPLF office in Tigray (now also in gaol) is half-Eritrean. Afwerki, the totalitarian leader of Eritrea, had a Tigrayan mother. His right-hand man, Yemane Gebreab, Head of Political Affairs and Presidential Adviser, is said to be part, or all, Amhara. Abiy Ahmed’s father, Ahmed Ali, is an Oromo Muslim, and his mother, Tezeta Wolde, is an Amhara Coptic Christian. Abiy himself is a Pentecostal evangelical. The notion that this conflict is about racial, or religious, purity is palpable farce.

Similarly, the notion that the TPLF is the defender of the interests of ordinary Tigrayans does not bear scrutiny.  Under the premierships of Meles and Hailemariam Desalegn, almost the entire Tigrayan elite migrated to Addis Ababa, leaving Tigray and its capital Mekelle as a backwater. Even before November’s assault, Mekelle was a run-down town, without a functioning water system and with a large contingent of malnourished Tigrayan migrants from the countryside being fed by international aid groups. TPLF leaders didn’t much care. They preferred the five-star hotels of Addis.

Despite all this, Abiy Ahmed has created a situation where Tigrayan support for the TPLF is almost universal. As a former federal cabinet member who believes a negotiated settlement with the TPLF was possible (he is not himself Tigrayan) puts it: ‘The Tigrayan people support the TPLF 100 percent and that means they will get [food] supplies, one way or the other. And you know why the Tigrayan people support them 100 percent? Because of Eritrean involvement.’

On March 2, US Secretary of State Antony Blinken called Abiy to demand that Eritrean forces leave Tigray and that he pursue a negotiated settlement. This is what ought to happen, however it is unclear if the Biden administration and the rest of the international community will bring sufficient pressure to bear. Ethiopia remains the key US ally in the Horn of Africa, giving Abiy room to resist pressure for peace and continue military operations. Yet it is far from clear the TPLF can be defeated militarily. The Tigrayans are likely too well armed, too savvy in guerrilla tactics and too well supported by their civilian population. This is a war that needs to end soon, or it may be one that goes on for a very long time. The keys to ending the conflict are to get the Eritreans out, the Amhara militias out, to disarm all militia groups and civilians, and to seek political compromise with the more centrist, anti-independence elements of the TPLF. In addition, there needs to be a full and thorough investigation of war crimes that holds those responsible to account, and punishes them. The kind of ignore-and-forget approach to genocide that the international community sanctioned in, for instance, South Sudan, will only lead to festering vendettas and more violence in the future, as is happening in South Sudan. US leadership, and US money for reconstruction, will be critical if Ethiopia is to escape the Tigrayan hex on its enormous developmental potential, which could and should be a beacon for the rest of the African continent.

Links:

Aksum massacre report by Amnesty International:

Videos obtained by Amnesty International:

Aksum video with audio of gunfire. English commentary towards the end.

https://www.facebook.com/haile.berhane.1/videos/4261751427187432

Aksum. Dead young man transported by local people.

https://www.facebook.com/100000578491827/videos/4259743337388241/

Deutsche Welle report on mass rapes and looting by Eritrean forces.

Satellite images of burning of 508 buildings around Gijet February 20-22:

Images of burning of villages and fields in western Tigray:

https://twitter.com/i/status/1370761297000812549

Twitter thread with before and after satellite images of burning and destruction of buildings in western Tigray.

https://twitter.com/mapethiopia?lang=en

Better news

If the visitor wants to see what the Ethiopian developmental state is capable of, then a trip to the Grand Ethiopian Renaissance Dam (GERD), 15 kilometres from the Sudanese border on the Blue Nile in the Benishangul-Gumuz region, is a good place to start. At 5.125 gigawatts, the GERD will be the most potent hydropower project in Africa when fully operational, producing more electricity than the entire current installed generating capacity of Ethiopia (4.5 gigawatts). Like Nasser’s Aswan High Dam in Egypt, completed in 1970 with an output of 2.1 gigawatts, the GERD will have a revolutionary impact on Ethiopian economic potential. And where Nasser’s military successors, Anwar Sadat and Hosni Mubarak, undermined and undid most of Egypt’s developmental state capability, the same mistakes may not be made in Ethiopia.

If the visitor wants to see what the Ethiopian developmental state is capable of, then a trip to the Grand Ethiopian Renaissance Dam (GERD), 15 kilometres from the Sudanese border on the Blue Nile in the Benishangul-Gumuz region, is a good place to start. At 5.125 gigawatts, the GERD will be the most potent hydropower project in Africa when fully operational, producing more electricity than the entire current installed generating capacity of Ethiopia (4.5 gigawatts). Like Nasser’s Aswan High Dam in Egypt, completed in 1970 with an output of 2.1 gigawatts, the GERD will have a revolutionary impact on Ethiopian economic potential. And where Nasser’s military successors, Anwar Sadat and Hosni Mubarak, undermined or undid most of Egypt’s developmental state capability, the same mistakes may not be made in Ethiopia.If the visitor wants to see what the Ethiopian developmental state is capable of, then a trip to the Grand Ethiopian Renaissance Dam (GERD), 15 kilometres from the Sudanese border on the Blue Nile in the Benishangul-Gumuz region, is a good place to start. At 5.125 gigawatts, the GERD will be the most potent hydropower project in Africa when fully operational, producing more electricity than the entire current installed generating capacity of Ethiopia (4.5 gigawatts). Like Nasser’s Aswan High Dam in Egypt, completed in 1970 with an output of 2.1 gigawatts, the GERD will have a revolutionary impact on Ethiopian economic potential. And where Nasser’s military successors, Anwar Sadat and Hosni Mubarak, undermined or undid most of Egypt’s developmental state capability, the same mistakes may not be made in Ethiopia.

If the visitor wants to see what the Ethiopian developmental state is capable of, then a trip to the Grand Ethiopian Renaissance Dam (GERD), 15 kilometres from the Sudanese border on the Blue Nile in the Benishangul-Gumuz region, is a good place to start. At 5.125 gigawatts, the GERD will be the most potent hydropower projects in Africa when fully operational, producing more electricity than the entire current installed generating capacity of Ethiopia (4.5 gigawatts). Like Nasser’s Aswan High Dam in Egypt, completed in 1970 with an output of 2.1 gigawatts, the GERD will have a revolutionary impact on Ethiopian economic potential. And where Nasser’s military successors, Anwar Sadat and Hosni Mubarak, undermined and undid most of Egypt’s developmental state capability, the same mistakes may not be made in Ethiopia.

Identified as a potential dam site by American surveyors in 1966, the GERD is located in a natural gorge. This means that a dam cannot be built in the normal fashion — by creating a diversion, building the dam and then closing the diversion. In the rainy season, which normally begins in July, there is too much water in too narrow a gorge for diversion to be possible. So, the dam is being constructed in the long dry season, from October to June, and then flood water is allowed to flow over its lower, central section when the rains come. When the floods of 2019 occurred, the foundation and the sides of the GERD, and its first 25 vertical metres of central section, were in place. Through late 2019 until the rains of 2020, construction teams raced to add another 35 metres to the central section. This allow a first filling, or ‘impounding’, of 4.9bn cubic metres of water, creating a lake that at its peak stretched 100km, but is now in mid-dry season at more like 50km, before more water again came over the top of the lower central section. Since October 2020, more than 6,000 workers have again operated in two 12-hours shifts each day, attempting to raise the central section of the GERD to 107m of its ultimate 145m before this year’s rains. If the work is kept on schedule, the two largest turbines, which are undergoing final assembly, should start to produce power in September or October. At 775mw each, just two of the 13 (the others are 400mw) turbines will increase Ethiopia’s 2021 power output capacity by one-third.

The GERD should have been finished in 2017. But its construction was greatly delayed by Meles Zenawi having granted the key steel structures and electro-mechanical contracts to the TPLF-controlled military business Metals and Engineering Corporation (METEC). METEC was also given untendered contracts for a number of large, irrigated sugar plantations and mills, which also went disastrously wrong. It is impossible to define the precise mix of incompetence and corruption that caused these problems. At the GERD, METEC procured sub-standard steel and delivered brittle welding on turbine inlets and two ‘bottom outlets’ — tubes on the left side (looking down river) of the dam, which will release surplus floodwater when water ceases to flow over the top. In a structure subject to enormous pressures, it is critical to use the right steel and complete welds with a single action, since multiple welds make joints more brittle. After Abiy dismissed METEC from the project in 2018, it was discovered that many of the METEC welds had been repeated two or three times, creating fracture risk. Some of METEC’s work was stripped out and replaced, some was remediated.

Whether to be able to filch money, or because of raw arrogance (almost certainly a mix of the two), METEC’s military management refused to either work as a sub-contractor of a foreign technical director on the GERD or to enter a joint venture with a foreign firm. Ethiopian engineers with experience of hydropower projects (of which METEC had almost none) first recommended that the state military firm operate as a sub-contractor of the Italian civil works contractor Salini, reecently renamed WeBuild. METEC’s leadership refused, insisting that it handle the more complex, electro-mechanical aspects of the project. When engineers asserted this would require one or more joint ventures with foreign turbine manufacturers and structural consultants, METEC again declined. It was in this context that Kifle Horo, reappointed as Chief Engineer of the GERD project by Abiy in 2018, walked away from the dam in 2012. He reflects on his experience: ‘Most of the METEC people had never seen an HEP project. So what do you expect from these people?’

Since Kifle returned to the GERD, be brought in three Chinese contractors and the French unit of GE Hydro to oversee the electro-mechanical side of the project. And now the race to raise the dam is on. Each of the day’s two shifts is laying 3,000 cubic metres of Roller Compacted Concrete (RCC), delivered by conveyor belt from two plants on either side of the GERD. The first two turbines, on the right side of the dam when looking down stream, are undergoing final assembly, to be followed by testing. The site is a hive of activity — Ethiopians working together in the interests of national development, without conversations about ethnicity.

Kinfe Dagnew, the former CEO of METEC is in gaol. Simegnew Bekele, the Chief Engineer who remained on the project after Kifle Horo left, is dead, the victim of an apparent suicide in Addis Ababa in July 2018, although conspiracy theories abound. Kinfe and Simegnew’s overseer, Debretsion Gebremichael, remains one of the senior TPLF figures at large in Tigray. The cost of the GERD may hit Euro4bn versus a budget of Euro3.3bn — former METEC suppliers are suing for fulfilment of their contracts. However, Euro4bn for more than five gigawatts of generating capacity will still be a good deal for Ethiopia. The dam is a milestone in what may be the world’s first green accelerated economic development story. Ethiopia has no coal- or gas-fired power plants. The country’s power output is already dominated by hydro, with wind, geo-thermal and solar projects the only other ones either completed or in the national plan.

The economy, stupid

From the perspective of Ethiopia’s development prospects, the most concerning aspect of the Tigray war is that Abiy’s mind is not sufficiently focused on economic policy issues. The country is at the most challenging point in its developmental-state trajectory, mired in debt, bereft of foreign exchange and under great pressure from institutions like the World Bank and the International Monetary Fund (IMF) to do what foreigners have decided is right for Ethiopia. It is a time when Abiy needs to focus all his energy and intelligence on the economy, but when he seems unable to do so.

More than anything, Ethiopia needs jobs for its restless youth and expanded exports that generate foreign exchange and pay for the capital equipment imports that development requires. The framework for this is in place after the creation of a dozen investment zones around the country, much like the Chinese model. Hawassa, the first and biggest of the zones, is full already. But with civil war raging, the rest of the parks will not fill up quickly. Ethiopia has the same factory labour rate – around US$60 per month – that China had in 1992, the year of Deng Xiaoping’s Southern Tour, which kicked off the Chinese foreign direct investment (FDI) boom. Moreover, Ethiopia’s geographical location is better for European and east coast American logistics chains. But without what the Chinese euphemistically refer to as ‘stability’, the Ethiopian FDI story will not take off.

Equally concerning is the possibility that, under pressure from the multilateral institutions and bilateral aid partners, Abiy’s government may liberalise prematurely, handing to multinational corporations (MNCs) profit streams that should have remained in Ethiopian hands. This would be the opposite mistake to any that the state-ownership obsessed Tigrayan-dominated federal government would have made. A case in point is reform of the telecommunications sector. State monopoly Ethio Telecom carries a very large, unclarified debt. Early in Abiy’s administration, talk was of selling up to 40 percent of the firm to a foreign investor. Today, the plan under discussion is to sell more than 40 percent of Ethio Telecom and, additionally, to sell two new, wholly foreign-owned mobile licences to the likes of Vodafone and Orange.

Such a strategy makes no developmental sense. At a GDP per capita around US$900, Ethiopia is at the beginning of a cycle where mobile telephony will become a gold mine, much as it has in China and other fast-growing countries. What the current Ethiopian government is contemplating looks like childish desperation, wholly inconsistent with Meles Zenawi’s post-1991 development agenda. China did not sell out its utilities to foreigners at this stage of development. It introduced domestic competition, grew the businesses, and then sold Vodafone just five percent of the equity in China Mobile. That is more like what Ethiopia should be doing.

Unfortunately, Abiy’s administration appears to have lost the connection with reading and research that made the TPLF-dominated government an effective developmental state. Abiy flies around in a helicopter and does lots of meetings, but what does he actually know and believe? He appears to be micro-managing almost every aspect of national development policy, when what he should be doing is delegating to Ethiopia’s cadre of highly competent ministers and technocrats. What Abiy needs to recapture is a degree of Tigrayan cerebral seriousness. Meles Zenawi made Ethiopia the developmental-state leader in Africa by reading an awful lot of books and knowing, across agriculture, manufacturing, finance and international relations, what he was talking about. If Abiy and his advisers want to take Ethiopia forward at the pace the country is capable of achieving, they must to do the same. If not, the loss will not only be Ethiopia’s, but that of the entire African continent.

Official: I will no longer travel to China

February 7, 2021

Well, here’s the straw that broke the camel’s back.

Tibet, Xinjiang, South China Sea, Taiwan, Hong Kong. And a ridiculous number of individual cases of persons taken hostage by a state.

In the words of the late, great Gill Scott Heron: ‘It follows a pattern, if you know what I mean…’

The straw is the case of an Irish businessman, recounted below in the Irish Independent.

I am less diplomatic than the thoroughly decent Winston Lord, who is quoted. What I say is: ‘Fuck Xi Jinping and his miserable, proto-fascist government.’

I should also say that I hope you will believe me that it is pure coincidence that it is the case of a white male that has brought me this point. He just happened to be that straw.


…..

In February 2019, Richard O’Halloran flew to Shanghai for a series of meetings and has been ‘held hostage’ by the authorities ever since. The Irish Government is facing growing calls to step up its response 

Close knit: The O’Halloran family in happier times with Isabella, Tara, Ben, Scarlett, Richard and Amber all together

Close knit: The O’Halloran family in happier times with Isabella, Tara, Ben, Scarlett, Richard and Amber all together
Peter Goff
February 06 2021 02:30 AM


As Dublin prepares to light up buildings red to celebrate Chinese New Year, an Irish businessman detained in Shanghai for “corporate ransom” has now missed two Christmases with his wife and four young children.
Richard O’Halloran, a 45-year-old Dublin businessman, has been told he must pay $36m to the Chinese authorities before he can leave the country. His plight has put the potential hazards of doing business with China under the spotlight.


Critics say this is the latest example of Beijing’s lack of respect for the rule of law, international norms and human rights, while there have also been calls for the Irish Government to be more assertive.
Winston Lord, a former US ambassador to China, says O’Halloran’s situation was “a very sad and frustrating and indeed cruel case”. “This is a slippery slope and unless countries push back firmly on this kind of unfair detention, it can lead to greater and greater outrages,” he says.
The businessman’s wife, Tara O’Halloran, said last week on RTÉ radio that “we are crying out to the Government to step in and take control and demand he is released because he is innocent and he is not getting enough help”.


She said he had a serious lung condition, has suffered seizures in China, has had to be resuscitated twice, has regular panic attacks and that his mental health was at a low ebb.
“We are pleading for him to come home on humanitarian grounds, his health is deteriorating, he is very ill,” she said. “It can’t go on much longer; he won’t survive much longer over there on his own.”
President Michael D Higgins wrote to Chinese President Xi Jinping on December 23 and received a reply on January 29 suggesting the authorities on both sides “maintain communication and co-ordination to create conditions for an early and proper solution to the case”.
Lord says he was encouraged by the correspondence, “but it never should have got to this point”.
“I’m reluctant to criticise a friendly government, but I have to say in all candour that until this recent move by the Irish President, which I warmly welcome, the Irish Government’s performance in this has been disappointing, to put it is as diplomatically as I can,” he says.

“It has an interest, both in terms of protecting its own citizens but also just in pure humanitarian terms, and also for its reputation, to move aggressively to try to resolve this situation. And I think they’ve been very slow and tepid in their efforts until recently.”The Department of Foreign Affairs said that while it could not comment on the details of an individual case, it “continues to provide all possible consular support and assistance to Mr O’Halloran and attaches the utmost importance to his welfare”. It said the case has been raised regularly at “senior political and diplomatic level” with the Chinese authorities.

The statement added that Foreign Affairs Minister Simon Coveney “remains actively and personally engaged, and senior officials in Dublin, Beijing and Shanghai continue to do everything possible to ensure that Mr O’Halloran can return home”.
‘We can’t see any progress’
In response, Tara O’Halloran told RTÉ: “That is not enough. A couple of phone calls and a couple of emails to the authorities is not enough. They need to take a stance and stand up and say that he is being illegally detained; they have no basis for holding him. We can’t see any progress and I am literally begging for help. I’m begging them and begging them and begging them. For two years I’ve been begging them.”

Close knit: The O’Halloran family in happier times with Isabella, Tara, Ben, Scarlett, Richard and Amber all together

Close knit: The O’Halloran family in happier times with Isabella, Tara, Ben, Scarlett, Richard and Amber all together
Richard O’Halloran, a relative of the late Fine Gael taoiseach Garret FitzGerald, is a director of China International Aviation Leasing Service Co Limited (CALS Ireland). The complex case that he has found himself embroiled in centres on an Airbus A330 airplane that CALS has leased to Finnair, according to David Maughan, partner with law firm William Fry, which acts for CALS.
The chairman of CALS, Min Jiedong, was arrested in China on charges of running an illegal crowdfunding scheme and was sentenced to 10 years in prison. There is no evidence that he used the money to buy the Airbus but the authorities are targeting it because it is a major asset connected to him. In February 2019, O’Halloran flew to China to hold meetings with colleagues after Min was arrested. When he attempted to board his return flight after a week of meetings, he was detained and told he would not be able to leave China. The charges against Min predate O’Halloran’s time with the company, and Min had agreed to buy the plane 10 months before he had joined CALS, Maughan says.

During the trial, both the prosecutor and Min told the court that O’Halloran had no involvement in Min’s crowdfunding in China and should be allowed to return to Ireland.“He is not guilty of any crime, nor has he been charged with any crime. He is being illegally detained… I would call this corporate ransom,” Maughan says.

O’Halloran testified as a witness four times in Min’s prosecution, and following Min’s sentencing he was subpoenaed to an enforcement court to give a financial account of CALS Ireland. On each of these five occasions, the Chinese authorities denied requests from the Irish Embassy to have representatives attend as observers. The court appointed an interpreter but O’Halloran was not allowed any legal representation in court, nor was he given any documentation relating to the appearances, Maughan says.

As part of a proposal to secure O’Halloran’s release, CALS sent the Chinese court $200,000 some weeks ago as a “good-faith payment”, Maughan says, but when the money arrived in China, police interrogated O’Halloran for six hours about the source of the funds. “During that interrogation the police said that the sum of $6m should be paid to resolve the case, and they also told him that his exit ban had been lifted,” he says.
O’Halloran booked the next flight home, “but when he got to the airport, he was denied access to board the aircraft,” Maughan says, “and he was escorted out of the airport by seven police officers wearing bodycams”.
At the latest hearing on February 2, in front of three judges, “they said that he was very healthy, despite all his many health issues, and is personally responsible to pay back the figure of $36m,” Maughan says.
“We were flabbergasted. The Chinese side picked this number of $36m, which no one knows where it came from. We haven’t been party to any of the proceedings.”

Response: Simon Coveney “remains actively and personally engaged" in the Richard O'Halloran case, according to the Department of Foreign Affairs

Response: Simon Coveney “remains actively and personally engaged” in the Richard O’Halloran case, according to the Department of Foreign Affairs
He says they had made several proposals to the Chinese ambassador in Dublin and to Coveney to try to resolve the issue, including resigning his position, handing over control of the bank accounts to the courts, or allowing the Chinese court to take over Min’s shares in related companies — including one in the Cayman Islands that owns the plane — so they could then control the assets.
In 2019, CALS agreed with a third party after a public tender process to sell the aircraft. “But the Chinese courts turned down Richard’s request that the aircraft be sold. Unfortunately, due to the global pandemic, the aircraft is worth half of what CALS had agreed to sell the aircraft for,” Maughan says.

Another proposal involved O’Halloran returning to Dublin and continuing to work for CALS to manage the five remaining years of the lease on the plane to Finnair, at which point the plane could be sold or flown to China. None of the proposals were accepted, Maughan says.
“If the Chinese side took the shares off Min, Richard O’Halloran would be home next week — if someone would take a big picture approach,” he adds. “There are plenty of solutions here if the Chinese wished to engage. I welcome Xi’s comments but it will take engagement. And I would not be optimistic, based on what the three judges said; that Richard and the board come up with $36m.”
Barring visitors from leaving is a tactic used widely in China, and the Irish Department of Foreign Affairs now advises travellers to China that “Chinese authorities may place an exit ban on an individual to prevent them from leaving the country”. It adds that an exit ban “may be placed on an individual, their family or an employer; or in a criminal or civil matter, including a business dispute”.

The travel advisory says “such bans, which are distinct from detention or imprisonment, are part of the Chinese legal process and may endure for months, or longer”.
The US State Department uses stronger language, saying China “arbitrarily enforces local laws, including by carrying out arbitrary and wrongful detentions and through the use of exit bans on US citizens and citizens of other countries without due process of law”.
Charles Parton, a fellow of the Royal United Services Institute and a former British diplomat who spent more than two decades working in or on China, says that the taking of “hostages” was not unusual in commercial disputes in China.

“It’s quite a common tactic at a local level, provincial or below, where they’ve got contacts in the local government and in order to get their way in an argument with a foreign company, they deliberately take a hostage in this way,” he says.
Tara O’Halloran said in the recent interview that for a long time she had not spoken out about her husband’s plight because she had been advised that quiet diplomacy would be the best approach.
“We had faith in the Irish Government that they were going to help us, that they were going to intervene, help us, and we were advised not to go public because it might upset the Chinese, that they might retaliate, they might decide to keep him longer. But I can’t sit back and let him be there for another two years,” she said.
Observers say that, in most cases, exit bans never come to light because the parties involved do not publicise them in the hopes of finding a quiet resolution.

Parton says while each situation was different, he felt that, in general, people should speak out about these bans. “I think this business of keeping a low profile is not always wise,” he says. “That plays along with their game. I think you should make as much noise about it as one can. This is an example of local rather than central abuse and it should be called out in my view.”
Alexander Dukalskis, an associate professor at University College Dublin’s School of Politics and International Relations, says that, in general terms, the human rights situation has regressed “from an already low level” since Xi Jinping took the reins of the Communist Party of China (CCP) in 2012.
“Human rights lawyers have been systematically repressed under Xi, which further compounds the problem because it eliminates a source of protection. The previous leadership of Hu Jintao was more liberal — by CCP standards — than the current party leadership. More criticism was tolerated in the political sphere and activists were able to operate within certain boundaries,” says Dukalskis, who is author of the forthcoming book Making the World Safe for Dictatorship.
“Things have tightened under Xi, in some areas drastically so,” he adds. “China’s policies of repression in Xinjiang, for example, were already harsh before 2014, but since then they have become draconian, possibly even genocidal.”
On the international stage, China has been accused recently of adopting an aggressive form of “Wolf Warrior diplomacy”, and generally taking a more combative approach to its multilateral relations.
Lord, the former ambassador, says that things were getting worse “both domestically in terms of oppression and internationally in terms of adventurism, and in terms of interfering in other countries and pressuring other citizens”.
As China plays an increasingly important role on the world stage, Parton says countries have to stand up against human rights abuses or the situation will only get worse.
“Bullies are bullies whether they are at the international level or the playground level. And if you give way to bullies, what do you get? You just get more bullying,” says Parton, who worked with the EU delegation in Beijing for his final China posting.

More, later:

This guy is still going to Hong Kong. I guess the Hongkies need him, given what is going on there:

AN Oxford City councillor has announced he will be stepping down from his role with immediate effect as his work requires him to spend an increasing amount of time overseas.

Councillor Paul Harris will no longer represent the ward of St Margaret’s on Oxford City Council.

He was elected in 2018 and is a member of the Liberal Democrat Group on the council and has served as the opposition spokesperson for cleaner, greener Oxford, cycling, tourism and the city centre.

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He has combined his work in Oxford with a career as a human rights barrister, often working in Hong Kong. Recent developments there, and restrictions on travel, have meant he has spent increasing amounts of time in Hong Kong and can no longer represent his ward as he would wish.

His seat will remain vacant until a by-election is held and St Margaret’s ward continues to be represented by Councillor Tom Landell Mills.

Councillor Landell Mills will cover the portfolio areas Mr Harris has held for the opposition in the run up to the elections.

Mr Harris said: “I have immensely enjoyed my almost three years as a councillor and will very much miss both colleagues and staff, as well as local residents in St Margaret’s Ward. I am pleased in particular I managed to get the towpath through St Margaret’s re-surfaced at last which was my main promise when I stood for election in 2018.

“The reason for my resignation is that I am relocating to Hong Kong with which I have work and family connections. I am a barrister specialising in human rights and I have been asked to be chairman of the Hong Kong Bar for the year 2021.”

Inside The Economist

February 6, 2021

It’s a funny paper. The wags at the firm called it, when ensconced in a tower in lower Mayfair, the Tower of Truth. That is the gaffe that I remember. Now it has moved.

What made me laugh the most was when they decided to try Economist tv. Ho Ho Ho. Suddenly, it was just a bunch of public school boys pontificating to a tv camera. The hijab was off. They canned that idea pretty fast.
Day is not dumb.

But, I would say, The Economist has a soul.

And, if that soul were encapsulated by a single person. It would be a woman. Called Ann Wroe.

She is an earth mother. An extraordinary editor. And who knows what else. She just, somehow, understood, something.

This week, she did a digital interview. If you watch nothing else in your miserable life, watch Ann.

It’s failed-states’ Wednesday

February 3, 2021

The article below by Max Fisher in the New York Times is very interesting on the disaster that is Myanmar. Far better than anything in the British press.

What Fisher writes chimes with what I saw in Myanmar and why I declined offers to go back there in the time of Ms Aung (she’s really called Ms Suu).

Meanwhile, breaking news in a failed state closer to home is that Mario Draghi is trying to form an Italian government. Ho, ho, ho.

Having gone to Frankfurt to run the European Central Bank and stave off the bankruptcy of his miserable but attractive country, Mario is now going to try to actually change Italy.

Good luck with that!

I guess we’ll soon find out if he really is Super Mario.

More, later:

Could I just mention, while we are on the subject of Italy, that the bung-taking architect of Putin’s insane Black Sea palace, described in Navalny’s wonderful documentary, is none other than Lanfranco Cirillo, who is, of course, Italian. They certainly invented fascism. Did they also invent corruption?

Cirillo is from Brescia, about 50 kilometres east of Milan (remember Berlusconi, or Bettino Craxi, or Poalo Pilliteri, who I interviewed when young?) All from the same neck of the woods. Northern Italians like to blame the south for the country’s problems. But my observation has long been that this is a crock of shit. It is the north of Italy that is the spawn-pool of selfishness and corruption. The south, after all, gave us Gramsci, possibly the last principled Italian. He died in 1937.

And here come the Myanmar generals…

February 1, 2021

You could not make it up.

Xi Jinping. Vladimir Putin. Myanmar generals.

Covid is now providing cover for every villain on the planet to do his worst (they do all seem to be men).

The generals in Myanmar, having been crushed in a free election, and then saying they wouldn’t do a coup, have done one.

What a mess. The key observations in the linked article come from the venerable Thant Myint-U:

<The author and historian Thant Myint-U wrote on on Twitter: “The doors just opened to a very different future. I have a sinking feeling that no one will really be able to control what comes next. And remember Myanmar’s a country awash in weapons, with deep divisions across ethnic & religious lines, where millions can barely feed themselves.”>

I should say that I am not a big fan of Aung San Suu Kyi. She seems to me to be a hippy and hippies don’t make good leaders if you want economic development and an end to poverty (remember Ghandi?).

About three years ago I was asked by a foundation that works on land reform to go to Myanmar and I met some of Ms Aung’s advisers and ministers. I was appalled by the non-quality and intellectual laziness of much of what I saw. (It was like I imagine having dinner with George Osborne or Boris Johnson would be.)

Still, none of this justifies putting the lunatics back in charge of the asylum.

I should also say that, although I have twice been in the same room as her, I have never actually spoken to the little lady, so there is some room for doubt about my opinion of her.

I also wonder if the Communist Party of China is meddling in this coup. It wouldn’t be a big surprise.

My Lai: Russian version

January 31, 2021

Five thousand arrested in Moscow. Is there no end to ugly news? As if Covid were not enough, every feckin’ dictator in the world is doing their worst.

We will see you in hell, Xi Jinping. And we will see you in hell, Vladimir Putin.

The pair of you will burn in my lifetime. Because the world is not what you think it is.

Some brave photographer in Moscow got another image for the ages:

The sun also sets: Hong Kong version

January 31, 2021

I’m not going to start writing about the illegal misery that the Communist Party of China is raining down on Hong Kong. My only thought is that Xi Jinping may one day have to go into exile and I wonder where would take him? DPRK, I guess, if he brings enough cash. Or Saudi Arabia. Or DRC. It’s not a good choice-set.

If you are interested in Hong Kong and don’t know it, I would highly recommend in this period a lunatic friend’s Big Lychee blog. I suppose I’ll go and visit him when they lock him up. Take him a baguette.



Understanding capitalism, with Sir Philip Green

January 30, 2021

Tony Blair gave Philip Green a knighthood, in 2006.

Green had already been exposed as a tax-evading, foul-mouthed crook.

But Tony Blair thought him rich and charming. Just like he thought Saddam Hussein had Weapons of Mass Destruction. And that god talks to Tony in his sleep.

Well, here is today’s Guardian story about Green’s unravelled empire:

…………………..

About 1,100 unsecured creditors owed total of at least £51m expected to get minimal payout

Sir Philip Green’s family is likely to receive £50m from the sale of Topshop while more than 1,000 suppliers to the high street fashion chain are set to get less than 1% of the money owed to them.

A report by administrators into the collapse of Topshop and Topman seen by the Guardian reveals that the chains owed at least £51m to 1,155 unsecured creditors, who include clothing suppliers and landlords.

This figure does not include monies owed to HMRC. Administrators at Deloitte said the final debts for Topshop were likely to be “materially higher” once tax and money potentially owed to the group’s pension fund are included.

Unsecured creditors owed more than £1m include Daventry district council, for Topshop’s new distribution centre in the area, shopping centres including Liverpool One and Stratford City, and a number of clothing suppliers, including several in the UK and Turkey.Advertisement

At least 706 unsecured creditors to the six other chains in Green’s Arcadia Group fashion empire, which include Dorothy Perkins, Burton, Wallis, Outfit and Evans, are also owed at least £33m. These creditors are expected to receive at least some payout except those to Outfit, who are owed £252,000. All the chains’ debts are also likely to be far higher than the initial estimate which does not include money owed to HMRC.

Administrators say unsecured creditors of Topshop’s main operating company as well as its property and distribution centre arms are “likely, on present information, to [receive] a distribution of less than 1p in the £1”. Creditors to the German arm are unlikely to receive any of the £1.8m that they are owed.

As secured creditors, the Green family’s Aldsworth Equity, which is owed £50m relating to an interest-free loan it made to the group in 2019 at the time of an emergency restructure, will be paid before any funds are distributed to suppliers, landlords and HMRC. Administrators said the timing and amount paid to secured creditors would depend on the amount Topshop is sold for.

Online specialist Asos is in talks about buying Topshop, Topman and Miss Selfridge with the deal expected to total more than £300m.

Topshop’s parent company, another secured creditor, is set to receive £327.6m of the proceeds with up to £210m of that cash potentially set aside to pay down Arcadia’s pension deficit, which is estimated to be as much as £300m. Proceeds from the sale of Topshop’s London flagship store are also earmarked for the pension scheme, but it is not clear whether the property will fetch more than its £312m mortgage.https://www.theguardian.com/email/form/plaintone/business-todaySign up to the daily Business Today email

Administrators were called in last November after Arcadia suffered from poor trading and high costs. Topshop, the jewel in Arcadia’s crown which accounts for almost half the group’s sales, recorded a sales slide of 11% in 2019. Only Burton increased sales in the year to August 2019 while sales at Miss Selfridge dived by nearly a quarter.

Administrators say turnover for Topshop “reduced dramatically” after the high street lockdown to control the Covid-19 pandemic came into force in March 2020.

Arcadia agreed to defer contributions to its pension fund for six months from March to August last year. But it could not agree on a further deferral of the contributions, which amount to £25m a month. Attempts to raise £30m in cash to support the running of the business were also unsuccessful.

The young are hard at work

January 27, 2021

A friend of mine moved back to the UK many years ago and started a branding business. I asked him how it was going, and dealing with employing younger people, and he said: ‘The thing is, Joe, young people are better than us. We need to accept that. All we have is experience.’

I do hope so. That would be progress.

In this context, I offer up a couple of South London bands just now breaking:

Fat White Family:

To be honest, Fat White Family have been around for a while, and played a memorable Glastonbury set.

Newer is a band of Polish Roman Catholics called Children of the Pope:

Nobel for Navalny?

January 23, 2021

As I recall, you cannot get a Nobel prize when you are dead. And Putin may well kill Aleksei Navalny.

Whatever, what Navalny has done, and the courage he has shown the world, is more important than any prize.

The documentary he uploaded as he flew back to Putin’s Russia:

And the phone call where he gets an FSB agent to essentially admit his (and Putin’s) role in the whole thing: