Dear Editor

We fully agree with your assertion in the story The Politics of Aid in Ethiopia that channeling development aid through direct budget support can in certain contexts circumvent the many ills that has rendered aid ineffective. However, as donors themselves are quick to concede, budget support can only serve the poor (and be justified to Western taxpayers) if the receiving government has shown a track record of using the public purse responsibly, and if there is a reasonable degree of good governance.

The Ethiopian government, confronted with a likely defeat at the polls last year, disposed of any remaining semblance of “good governance”, jailed civil society members the opposition, detained tens of thousands of civilians in military camps, and engaged in all manner of repressive actions. Donors saw all this, and looked on as US-provided Humvees–meant for the war on terrorism–were used instead to terrorize the citizens of the capital city. The donors expressed their dismay and acknowledged that there has been a breach of trust, hence they would no longer provide budget support to the regime. Continue reading »