Opposition MPs demand explanation on Ethiopia’s inflation crisis EUDP suggested for salary rise

By Simegnish Yekoye

ADDIS ABABA, Ethiopia – Ethiopian opposition members of parliament have requested the government to provide swift explanations on the rising inflation in the country and requested salary increases to stabilize the economy until the government comes up with a sustainable solution.

After a year since the parliament ratified the decision to have an opposition day every month in the parliament where members will discuss any agenda presented by opposition parties, it was for the first time that Ethiopian Democratic Unity Party (EDUP)-Medhin came up with the issue of inflation on Thursday, May 31, 2007.

According to the leader of EUDP- Medhin party, Ledetu Ayalew, people particularly living in urban centers are suffering from the rise of consumer products and could no longer afford to pay house rent, utility bills, school fees and other necessities.

“This inflation has been observed for the last four years but we haven’t seen the government coming up with sufficient solution”, Ledetu said.
Ledetu also emphasized that the government has a responsibility to come forward to the parliament and the public with a precise explanation on the cause of the inflation in order to understand the case and come up with a better solution.

Agreeing with EUDP’s request, Bulcha Demekesa, leader of Oromo Federalist Democratic Movement (OFDM) party said the parliament is provided with no information on why Ethiopia is experiencing this inflation but they need to have details so that members can discuss and come up with a solution.
Presenting his six months report, Prime Minister Meles Zenawi had told the parliament that the inflation was caused by the economic growth and the government is trying to stabilize the market by providing 25 kilos of wheat for low-income families.

“But this is a very selective solution,” says Gebru G/Mariam, member of United Ethiopia Democratic Force (UEDF) and added the stabilization process should be implemented in a way all people can benefit.

Replying on behalf of the government Sofian Ahmed, Minster of Finance, said inflation has become a problem in Ethiopia since last year and the government is following a strategy of keeping the economic growth, increasing productivity and alleviating the unemployment problem.
“Though it is early to say for sure, we are getting a positive indication from the government intervention in providing wheat for families with low income households in Addis Ababa and we will soon start moving on to regional cities,” he said.

The other major thing pointed out by EUDP is the fear that a lot of money incompatible with the level of production growth is flowing from the government to the people in different formats and Ledetu said this is leading to more inflation.
Gebru also said the current intervention of Ethiopia in the neighboring country, Somalia has its impact on the inflation growth and it should no more be allowed to continue. However Sofian responded, “what is happening in Somalia has nothing to do with inflation this is totally an unrelated issue and the defense force in Somalia is only using the budget allocated for the defense force”.

Though the discussion was concluded without reaching any common understanding on the request from Ledetu, the speaker of the house Teshome Toga allowed party members to come up with a motion or resolution regarding the issue. But no specific date has been given as to when the motion would be presented or who would be presenting the motion.