BY SOLOMON DIBABA
Although Ethiopia has huge human and natural resources, progress in socio-economic development and good governance have always been impeded by the prevalence of multiple sets of corruption in the country. One report issued by Transparency International a couple of years back indicated that Ethiopia loses more than 2 billion USD due to illicit financial transactions.
Widespread poverty manifested in unemployment and poor livelihood had continued to aggravate corruption while natural and manmade calamities, ethnic conflicts exacerbated corruption over time. The reformist government that took office five years back started conducting anti-corruption measures along various prongs. Among other things, taking legal measures on the former officials in making them accountable before the courts of law could be mentioned.
On November 2022, a National Anti-corruption Committee was established to give a high level leadership on the battle against corruption. Describing the nature of corruption in the country, the Premier noted “when ill-mannered government officials, greedy brokers and investors come together and when a large number of citizens begin to line up behind these forerunner thieves, corruption attacks the nation like epidemic.”
Ethiopia scored 39 out of 100 in the 2021 edition of Transparency International Corruption Perception Index. It ranked 87th out of 180 countries covered by the review. According to World Bank World Wide Governance Indicators (WGI) including voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, control of corruption, Ethiopia scored between -040 to -2.07 in 2021.
The major forms of corruption in Ethiopia include, state capture and kleptocracy, political corruption and clientelism, rent seeking, juridical corruption, corruption in law enforcement bodies and state audit, bureaucratic and administrative corruption, gender related corruption.
Despite the efforts underway by the Federal Ethics and Anti-corruption Commission along with the efforts underway by the Federal Police, corruption continued to change its forms and tactics. In addition, widespread contraband trade in gold, precious stones, khat, livestock , electronics, apparel and pharmaceuticals as well as narcotics are already beefing up the ranks of corruption at national level. In addition, ethnic based nepotism and parochialism have added to the growing state of corruption in Ethiopia.
In the advent of the war in the northern part of the country, corruption in the finance sector flourished freely with illegal transfer of bank notes to Tigray in particular. The National Bank of Ethiopia has taken various measures in view of curbing corruption particularly in the finance and banking sector that include change of bank notes, issuance of new regulation regarding handling of foreign currencies, introducing fiscal measures to control illicit financial transactions, among others.
Now therefore, what further steps should the country employ to fight of corruption that is seriously preventing the acceleration of the country’s development? It is important to use modern technological innovations in IT and other computer technology related devises to keep track of financial transactions at the banks in the country. On the other hand, as the level of cyber security in the country is still not to standard, it is very important to provide trainings for all professionals concerned with IT services.
In addition, the measures underway in curbing contraband trade across the country and in the border areas should be further strengthened in a participatory manner involving all stakeholders. Among other things, all efforts need to be taken to involve the informal sector into the national financial system to promote reasonable tax system which would help to legalize their activities. Strict measures are needed to ensure legal accountability on those who print fake paper money and other credentials that is now rampant in the country.
Federal and regional governments need to work together in stopping illegal contraband in gold and precious metals and make all the necessary attempts to make traditional gold miners get organized in producer’s cooperatives with a strong link with the National Bank of Ethiopia. Moreover, the government should come up with strict guidelines and legal measures on those engaged in hoarding consumer commodities that are needed by the public. In addition, all concerned should tear down the clandestine networks to disrupt normal trade transaction in the country as a tool for political ends.
Continuous public education on the dangers of corruption, illegal migration and illicit financial transactions need to be provided to all sections of the Ethiopian society including all levels of schools and universities in the country. Some think that the Federal and regional governments are the only competent bodies to wipe out corruption from the country. This undermines the role of citizens in cooperating with the government to fight off corruption and needs to be corrected through public education and awareness creation forums.
Editor’s Note: The views entertained in this article do not necessarily reflect the stance of The Ethiopian Herald
THE ETHIOPIAN HERALD THURSDAY 6 APRIL 20
