Dear Compatriots It may be the interest of your readers to post these very timely series of discussions which was published in Hidri Magazine (April 2005, Nº 14) and posted in Shaebia. org. I did compile these four parts in one item. In addition, it could be presented for further cyber-worriors interest or lack of it. Best Regard Berhane Our political Situation:Û Challenges and OptionsÞ Public Dialogue - Economic Development Programs and the Challenges of Current Living Conditions Translation:- Dr. Gebrehiwet Tesfagiargis, Jul 11, 2005

Panel Discussion (PartI):

The first topic under the new column ‘Panel Discussion’ will be ‘Our Political Situation: Challenges.” The panelists were Mr. Yemane Gebreab (Head of Political Affairs at the PFDJ), Ms. Lu’ul Gebreab (Chairperson of the National Union of Eritrean Women), Mr. Musa Naib (Director General of General Education at the Ministry of Education) and Mr. Sultan Said (Head of the Board of the National Union of Eritrean Youth and Students), and forty-five participants.

The panel presentation was followed by discussion and question and answer session. A summary of the proceedings was printed in Tigrigna in the Hidri Magazine (April 2005, Nº 14). A brief translation follows:

Question: I think it would be a good start to open the discussion with a question regarding the present political situation. What are the points that distinguish the prevailing political situation? What are the current challenges and prospects?

Mr. Yemane: In order to explain the condition at the present stage, it would be necessary to ask as what are the main expectations of our people at the moment. Viewed from this angle, I believe that the first concern of our people is peace and national sovereignty; the second is the improvement of living condition and the economic development of the country. A little deeper analysis would lead to the third concern: the majority of the population wishes to have efficient administrative services based on justice and due respect of the rights of the people. Therefore, the main challenges could be explained in terms of the three concerns.

The resulting consideration is the assurance of the existence of a political and organizational environment capable of realizing the three major priorities of our people. Therefore, generally speaking, the main political question and challenges at this stage are the development of a strong political organization and efficient administrative services with a view to assuring peace and national sovereignty, improving the living standards of the people and undertaking economic development and providing a just and efficient administration.

Mr. Musa Naib: In addition to the three points indicated, I would also like to mention the negative influence exerted on our internal situation by the defeatism manifested in the past and the importance of the political struggle to combat this defeatism. Since this defeatism was tied to foreign influence and the interest of foreign powers and calculated to serve as an instrument of these foreign powers, it is evidently linked with the question of peace and sovereignty. Therefore, the struggle against defeatism as a tendency and a concept which has to be combated is one of the distinguishing marks of the present political situation.

Ms. Lu’ul Gebreab: How is our organizational work? Is it effective? Is it being sustained? In my view it is important to go deeper into these questions. I believe we have succeeded in instilling a sense of nationalism both within the PFDJ and the population as a whole.

However, how are we combating the external and internal enemies who have understood that patriotism is the main force of PFDJ and the Eritrean people and therefore try to weaken this sense of patriotism? Are we critically examining the political activities in our country? These are important questions which must be answered.

I am of the opinion that the role of women is decisive in meeting all of these challenges. Although at the present, the equal participation of women is one of the strengths of the people of Eritrea, it is questionable if we have tried hard enough to strengthen it. This is because once a concept is accepted as a given it does not follow that it should be accepted as something which can not be altered in any way. The basic beliefs and way of thinking and the organizational structure are in place. However, attitudes which are contrary to this concept are being infiltrated and how to combat them is a major challenge at the present.

Mr. Sultan Seid: It is obvious that guaranteeing our sovereignty and the realization of our development goals are our priorities. The prevailing no-war-no-peace situation in our country is causing a sense of uncertainty. As a result, lack of dedication and weakness in active participation, and negligence at the work place are appearing.

In order to prevent these tendencies from negatively affecting present and future political and economic development, such attitudes should be considered as one of the challenges facing us and therefore the necessary steps to meet these challenges should be defined.

Question: So far the panelists have been asserting that our political force is strong enough to enable us to go forward. But during the past four five years opinions which question, and even deny, the capacity of the people of Eritrea, the PF and the government have manifested themselves. They claim that we are not capable of confronting the different problems that we have and that we can not pass this difficult stage without the protection and the assistance of external forces. Such opinions are being aired either openly or covertly. How do you respond to this?

Mr. Yemane: Within a short period of time there were diametrically opposed assessments of the strength of PFDJ and the government of Eritrea. During a certain period it was said that the government of Eritrea was capable of doing anything and that it has practically no weakness whatever. After a short time, it was a turn around and the government of Eritrea was depicted not only is weak but also as incapable of doing anything good. These changing views on Eritrea do not reflect reality but only the wish and the interest of those who express them.

There is also another presentation which depicts the Eritrean people as strong but the government as weak. This is an erroneous view which divides a single unit into two. It is therefore an irrational dichotomy. There are no people who are created strong outside their own social, economic, and political context. And the people of Eritrea are different from other people not biologically but because of their historical experience and their distinct culture.

Without going any further than 30-40 years in our history we find divisions and other weaknesses among our people. The EPLF and its successor the government of Eritrea played a major role in strengthening the power of the people, promoting unity, raising national consciousness and encouraging self-reliance. The people and the government complement and influence each other and thus one can not be strong if the other is weak.

The question that arises at the moment is whether the government and the Front are capable of resolving the problems created by the current challenges. I believe that the required capacity is in place. This belief is not the result of one’s political conviction or one’s wish to confirm its existence but because there is tangible truth which confirms it.

During the last seven years we passed through a time of war, foreign involvement against us, internal defeatism, a four year draught which is still continuing… all these could not have been successfully confronted by a small and weak country. There is no better proof than this to attest to our strength: we mobilized 10% of our entire population, i.e. 300,000 people to defend the nation and that is not an easy task.

For Ethiopia to mobilize 10% of its population would have required 6.5 million of them. Ethiopia doesn’t have the capacity to do this. There are few countries who are able to do this type of large scale mobilization.

Even at the end of the war, members of our defense forces, organized under the Warsay-Yikealo Campaign, working under extremely difficult conditions, receiving low salaries were able to successfully implement large scale economic projects. This is an additional demonstration of our people’s capability.

One of the reasons that enable us to undertake large projects is the opinion shared by most of the people that the government does not work to further the interest of a few individuals of authority but the interest of the whole nation. People can talk about mistakes, they can argue that the government has committed certain errors. But hardly anybody claims that certain actions were taken in order to accumulate wealth for or to promote the interest of high officials. Therefore, even if the government makes mistakes it is while in the process of conducting activities that advance the national interest and not that of groups or individuals. This, by itself is a manifestation of competence.

Broadly speaking in Eritrea we have a government who has the trust of the people, is capable of planning and implementing development projects and has the necessary creativity and organizational skills. Our achievement in the areas of health, education and infrastructure is proof of our capacity. However, this does not mean that everything is in a state of perfection. There have been and there still are certain weaknesses. Since there is no perfection in life it is necessary that we proceed with our national development and rectify our errors as we go along.

 

Musa Naib: I would like to clarify the concept of a strong government and a strong party. My understanding is that a competent government is the one that stands for the interest of the people, has the support of the people and is capable of designing and implementing various programs. It also assures internal peace and security, strives to satisfy the basic needs of the people and to the extent of its capacity provides equitable social services. On the other hand it doesn’t mean an oppressive government who believes in the use of brute force and who promotes the interest of the few over that of the many. Our achievement during the past is an instance of our effort to build a strong government. To be incapable of seeing these truths and to go further and deny their existence could be attributed to reasons arising out of narrow interests.

Question: Before opening a discussion period let me raise a question before concerning the topic at hand. One of our strong points is the practice of criticism and self-criticism and the frequent evaluations and reviews. Therefore, if we critically examine our conditions: are our present strength and capacity at the level they should be? Are they up to our expectations and able to meet the challenges that face us? In other words are the strength and political capacity of EPLF equal to the one that prevailed during the struggle?

Sultan Said: The source of strength of the Front is its membership. Those who joined the armed struggle were ready for every possibility including sacrifice. Having overcome insurmountable obstacles it finally gained liberation.

There were no working hours during the struggle. But after independence the momentum attained during the years of struggle could not be sustained. This is because those who have put aside their private needs in order to fully concentrate on the advancement of the needs of the nation and people, are now, understandably, forced to pay attention to their private affairs. Even now it is necessary to have a sense of sacrifice and also to maintain a balance between private and collective concerns.

There is also a high level of expectation on the part of our people arising out of our competence and achievements. There was the expectation that Eritrea would be a wealthy country in a short period of time. It is important that this expectation be moderated by the objective situation.

 

Therefore I do not think that it is reasonable to compare the situation that prevailed during the struggle and the post-liberation period in terms of weakness and strength because both stages have different characteristics and it would not be right to mix the two. A better approach would be to compare our post-independence experience with those of other societies who passed through a revolutionary period like ours.

 

In many instances, we see parties losing their influence as a result of being too deeply involved in solving urban problems and neglecting the rural areas where the majority live. In our case the EPLF was not seduced by the cities as is confirmed by the project works we see outside of Asmara.

Lu’ul Gebreab: One of the distinguishing features of the EPLF is the practice of self-examination. Consequently, the source of strength of the EPLF was its meetings, its assessments and educational activities. There was a significant capacity, for planning and organizing.

 

To come to our post independence experience, considering our many victories I think we should be able to identify all our obstacles. In view of the challenges that confronted us, did we conduct sustained political activities and mobilization? In government agencies, is the requirement for eight-hour work respected? How many of us recognize our status as civil servants and perform our duties satisfactorily? Aren’t there among us, those who are mired in reactionary ways of thinking, even if they are few?

 

We are not able to relax because the challenges are not simple. And if we are to come out as a self-sufficient African country the challenges are many and they require hard work, great effort and sacrifice. Therefore, while our strong points are in place we should recognize our weakness and shortcomings and tirelessly strive to rectify them both within our institutions as well as among the population at large.

Opinions from the floor

Mohammed Adem Mohammed (National Union of Eritrean Youth and Students (NUEYS)

As far as nation building is concerned we are on solid ground; however nation-building is a long historical process which is not completed in an instant. Since there are internal and external forces who oppose the process we should not forget that it requires a continuous struggle. We have also to wage a sustained combat against elements who try to divide us on the basis of religion or other issues.

During the years of armed struggle the EPLF used to conduct vigorous political discussions but this was not pursued after independence and especially before the Weyane invasion the role of political education and mobilization was neglected.

In my opinion man does not live on economic considerations only; however we can not lead our lives without involving finances. Similarly, we can not conduct our affairs competently and guarantee our existence without the necessary therotical basis, hence the need for continuous struggle.

Manna Tesfazghi (Businessman – Amtes Co)

The three issues that Yemane raised are very important. But before I express my views on these issues I would like to mention another thing. I think we should understand that the criticism that is leveled against the Front or the government by the people is well-intentioned. There is no other Front or the government that the people are expecting to appear. Therefore, the criticism is meant to protect us from encountering problems.

On my part I would like to express my concern about one of the three issues, namely the need for an efficient and impartial administration which respects the people and their rights, because I find it difficult to say that we have a competent and fair administration. Are the policies and directives issued by the Front or the government being put into practice properly? Are our institutions and those who are responsible for them properly performing their duties? With regard to these questions, the criticism is primarily directed at the Front because the people place their hope on the Front. The Front should be on the side of the people whenever they feel discontent because that is the Front’s basic principle.

Dawd Adem Abushish (Ministry of Education)

Manna has already stated some of the things I was going to say. I want to talk about unity and equality. The main strength of the EPLF is its acceptance as a principle the concept of equality of all ethnic groups and its struggle to realize it. This struggle has created a strong national unity. The training that is given in the mother tongue, the programs in the different languages that is prepared by the mass media can be cited as an example of the equality of all the languages.

Letekidan Kahsay (National Union of Eritrean Women – NUEW)

Speaking about the relation between people and government, it is difficult to see government and people separately because a government originated from the people. The question of unity and organization are important. We were victorious during the struggle for independence due to our unity and organization. The struggle we are waging to guarantee our sovereignty and build our economy is a continuation of that struggle.

The changes that took place in all areas of activity after independence may not be very visible to those of us who are living in the country. But it is considerable. Whenever activities are undertaken, it is natural that hard work is involved and also weaknesses are shown. The fundamental question is how weaknesses and shortcomings are corrected. Formerly, we learnt that the struggle for economic development that is going to come after independence would be a difficult one. The problems in everyday life that are the consequence of the war can be overcome only through hard work.

The main task of the PF is to conduct mobilization. Since nothing could be done without the participation of the youth, we have to carry out effective organization and mobilization campaigns. In general, we need a vigorous political work if we are to assess our weaknesses and to enhance our strong points.

Question: Now, we will pass to another topic. What is the status of our political activities with reference to nation-building? There are those who assert that the PF and the government of Eritrea, using the issue of national security as a pretext are blocking political dialogue and do not want it to proceed. What are your views on this? Why is the election at the national level delayed? Why is the constitution not being implemented?

Yemane Gebreab: I think the first question that we should raise is: What is the political dialogue that we are talking about? We should answer this in the context of people’s priorities. Basically, a war influences all aspects of life in a country including change in the people’s priorities. In our country the question of peace is still not answered; the Weyane has rejected the decision on the border and therefore we are living in a situation where the possibility of war is always present.

Taking this situation into account we have to determine how to conduct our political activities, which issues to treat as priority and which ones to accord less priority.

When it is claimed that the political process is frustrated, it mostly means that national elections are not held. This view should be examined critically. In the first place is election a priority of our people given the condition that we are in now? Although a minority of our people may regard the election as a priority, we can say that the majority doesn’t consider it as such. Nevertheless it does not mean that an election will not be held at the appropriate time. Already elections have been conducted at the zoba and village levels. Therefore, it is not right to consider the political process solely in terms of holding elections.

When we talk of a political process, we should know who guides the process, whose demands and wishes and priorities does it reflect? The process should not be conducted on the basis of priorities dictated to us by others. For instance, after 1990, a number of elections were held in Africa under the so called ‘third wave’ of democratization. But several studies reveal that, these elections did not result in any tangible change that benefits the people. These experiences confirm that elections by themselves can not have much meaning.

Our political questions are ultimately defined by the assurance of the existence of a just administration which respects the rights of the people and ascertains the participation of the people in the nation’s affairs. Therefore, we have to develop and strengthen a political process which enables us to set-up a stream-lined administration, strengthen our judicial system and enhance the people’s participation with a view to its bringing changes and improvement. Since we do not expect any solution from the outside we depend only on our people’s contribution and participation.

Given the existing weaknesses and short-comings there are, from time to time indications of dissatisfaction; however, I am of the opinion that the interaction between the people of Eritrea and its government is an exemplary one.

Musa Naib: the political development of nations is not completed within a few years is confirmed by the history of nation-building and all countries have unique development based on their objective conditions. This should be taken as a starting point in our discussion.

It is my understanding that political development has many components: development of nationalism and common understanding, establishment of private and government institutions, the securing of social justice, and fostering the participation of the people in national affairs are the main components. The institution of a constitutional government is also one of these components. Therefore, to connect political development only with elections and the constitution amounts to ignoring the extent and the depth of the problem. It is important for us to understand that political development is intertwined and has many dimensions.

From the beginning the EPLF and the Eritrean government had a firm commitment to a clearly defined political line. This stand is based on the wish and interest of the Eritrean people. I therefore do not think that it is appropriate to hold an election not because it is timely but because of external pressure and as a show.

Lu’ul Gebreab: I believe that political development is in progress. Elections which guarantee public participation at the zoba and village levels, the establishments of community courts, etc… are underway. The People of Eritrea are openly expressing their views. Since the people know everything, we know it is not possible to do anything without their knowledge. Therefore, the people’s capacity to be alert should be organized and reinforced. I would like to underline the necessity for the continuous nurturing of this capacity.

Sultan Said: we should understand that election is not a solution to all problems. Social justice as assured by development activities is a component of political development. The struggle we are waging to guarantee our national sovereignty is part of the political development involved in nation building. Thus, when we have a clear view of the political line we have a solid basis for making the needed assessment.

Question: There is also another complaint that is voiced regarding democracy. It is claimed that EPLF and the government of Eritrea have no desire to establish a democratic system. Therefore, is there a political wish and a promising environment for democracy? How is democracy viewed? Connected with this question, some say that the EPLF has monopolized power and has even substituted the government with a dictatorial system. Therefore, what is our view on political diversity? Are we establishing a system which is founded on the wish and participation of the people?

Yemane Gebreab: We should, at the outset, ask what is the ultimate aim of political development and the establishment of democracy. I think the aim is to ascertain the participation and the authority of the people. This is one of the basic principles which we have held since the beginning. To guarantee this, it is important to provide opportunity for different ideas to be heard. To originate new ideas and to develop such ideas and assess their practicality is part of the political process. Then there is the need for organization and the strengthening of political participation. It is through these two activities that political development process advances.

When it comes to the debate on democracy there is one surprising claim. For instance when we talk about economic development, the question arises as to when Eritrea would attain the rank of the industrially developed western countries, no body says that will happen this year or the next. Those who are optimistic may say twenty years; beyond that we can say it may take 40 or 50 years. But when talking about political development, one speaks as if there is no need for laying a foundation as if attaining equality with countries who have existed for centuries is easy. Economic development, is going to take you a long time, we are bold to do it gradually – whether they want us to attain it is in itself a question – but when it comes to political development, the establishment of a democratic system and the setting up of democratic institutions, they present them as if they could be done right now. With regards to this way of presenting the case, it is not difficult to see why the experience of history is deliberately forgotten.

Our option should therefore be to continue with the political struggle we have started which is in harmony with our condition and responds to the needs of our people. The institution of democracy is tied up with development; it is not something which is attained separately. This is because democracy is based on one assumption – political equality of al citizens. But can political equality be attained apart from economic, social and cultural equality? The guaranteeing of equal opportunities is therefore a basic requirement for democracy. The effort that is underway in our country to bring about equitable socio-economic development is an important component of the struggle for democracy.

We have to work for a democratic system which is capable of improvement through time. The political system that we intend to establish should enable us to take the unity of our people as our back bone, to believe in and respect the quality of our ethnic and religious diversity, to assure the equality of women, promote the trust and cooperation between the people and the government.

The desired political order should also enhance the participation of the people in national affairs, be free from partiality and corruption, guarantee the free expression of opinion, tolerate political diversity based on the interest and unity of the nation, be free from any external pressure and protect our right to independent decision-making.

In brief, we want to establish political system where the rights of the people and their participation in national affairs are enhanced, a system which safeguards and reinforces the gains of the revolution and assures the development of the country.

Therefore, the democracy that we want to establish, should be based on our objective condition, and be able to satisfy the needs of our people. This requires an ever growing sacrifice on our part. But this doesn’t mean that there are no tendencies who oppose this. It doesn’t also mean that there are not those who, because of their weakness, greed and lack of self-confidence wish to go on oppressing others.

In order to attain our fundamental objectives, we must consider this tendency as part of the struggle and continue to combat it.

Musa Naib: The development of democracy in the west, arises from political interest and is only symbolized by elections, the establishment of political parties, free press … Then countries are divided into groups A, B, C, those who do not follow the west’s political line are identified and pressure applied to weaken them economically and politically. This is basically a manifestation of arrogance and domination.

But I am of the opinion that, democracy should take into consideration the cultural, economic, and social conditions of the people. Measures which enhance the people’s participation in governance, institution building, economic development and poverty reduction, the promotion of social justice and the elimination of illiteracy and the raising of public consciousness… the recognition that all these are interrelated and are part of the evolution of democracy should be emphasized.

Part II  Þ Hidri, on March 20, 2005, for the second time, conducted a public dialogue (panel) on the topic, “Economic Development Programs and the Challenges of Current Living Conditions.” Panelists in this dialogue included: Ato Hagos Gebrehiwet, Head of Economic Department, PFDJ; Dr. Woldai Futur, Minister of National Development; Ato Muhammad Saleh Hagos, General Manager of Red Sea Soap Factory and Vice Chairman of Employers Federation; and Dr. Melake Tewelde, Head of Economics Department, University of Asmara. In addition to these four panelists, 83 invited people participated, and contributed towards a heated and open discussion by asking questions and making comments. Following is a summary of the content.

Question: Are the economic policies and the measures we taken from time to time properly communicated? Are we making sure the affected people are aware of them?

Dr. Woldi Futur – Generally, as a country and government, we are weak when it comes to communication. We expect our work to speak for itself rather than make an effort to make people understand. We have not worked, as is necessary, to enhance the image of the government and the Front. The measures we take are described through proclamations and notices. However, as we don’t follow up with adequate and continuous explanation, some misunderstandings and confusion may occur. Thus, in general, we have weakness in communication. Nevertheless, every once in a while, the president and ministers make use of interviews and notices to explain certain policies and conditions. But, we need to continuously and widely distribute information and explanations. And we are starting to take steps to that effect at this time.

Comments from the House (Audience)

Dr. Bimnet Abraha (physician, Norway) – I would like to make a comment on communication. As communication can be linked to self-reliance, it is very important. In my opinion, there is much weakness in communication. During the period of revolution, one of the forces that enabled us to be victorious was the power of communication. Both inside and outside, we were working in unison. Any measure we take, in order to be beneficial, must be based on study.

Kulubrhan Gebremedhin (National Union of Eritrean Youth and Students, Holland) – It is important to explain the condition of our economy to people both inside and outside. As I came from outside, let me speak about the outside. The measures taken, for example, those related to exchange are extensively discussed. Therefore, pertinent information and explanations should be distributed as soon as possible. Further, those who desire to invest in Eritrea, be they Eritrean or foreigners, should receive adequate information from the embassies. The information currently available, inside as well as outside, is insufficient. As the problem of information can become an excuse or a hindrance, it must be solved.

Question: What is our critical assessment of our experience with the development projects we have been conducting? What has the warsai-yikaalo project (compulsory national service) produced so far? Is this project successful when see through the lens of economic indicators?

Dr. Woldai Futur – When you examine anything you do, in hind sight, you are likely to discover some shortcomings. With all the positive results experienced, that does not mean our experience was without shortcomings. From 1991, when we started at the very low stage, to 1998, we had a vigorously advancing, productive economy. And our assessment is that we can recapture the pre-1998 successes when conditions permit. As the changes now implemented are transitional in nature, we will return to our regular forward-looking policies when normal conditions return.

When we critically assess our development experience, the primary issue that is raised is related to study. Although our policy is right, the activities we conduct based on that policy may not be based on careful studies due to lack of time. Thus, one of the shortcomings of the last 14-year experience is that the implementation of our policy was not based on high-level studies and concrete plans. Second, the inadequacy of institutional capacity to manage the on-going big projects can also be mentioned. Third, and what we have not been able correct so far, is lack of monitoring and evaluation procedures. When I say this, it does not mean everything we have done was based common sense alone. Knowing that we can always learn from and borrow the best practices of other countries, there was a general study to start with consistent with our general policy. That there should be a comprehensive policy and plan that integrates economic growth, social justice and national defense should be obvious.

To come to the second part of the question, the warsai-yikaalo project is a national campaign initiated primarily for the purpose of national defense and reconstruction. As a national campaign, it is a means by which we are striving to build and defend our country, relying on ourselves and using national resources as well as resources obtained from our partners. With this initiative, we are utilizing the productive capacity of our military in national reconstruction, on top of the military’s primary responsibility for defense. As a result, infrastructure projects, which will solve long-term national problems, are being accomplished by our military. As what is being accomplished is obvious to every one, that the project is successful is evident. However, the question of how cost effective the project is, when seen from the economic perspective, remains an open one that should be continuously assessed.

Hagos Gebrehiwet - warsai-yikaalo is a project pertaining to the whole country and in which everyone participates. The goal of our enemies is to see the productive segment of our manpower preoccupied with defense so that our economy can gradually deteriorate. Thus, it is a big victory that we can direct the productive capacity existing within our military towards development. When we assess this project, it important to keep in mind the existing condition. In general, the skilled manpower we are building through this project, the national capacity we are advancing, and the work and experience we are gaining should not be underestimated. Thus, when we critically assess the project, even if there are shortcomings, we should realize that they serve as useful lessons.

In general, starting from 1991, the changes we have effected in this country are extensive. We have implemented social programs that required tremendous resources. They include: resettlement of fighters (twice), assistance to families of martyrs, resettlement of refugees and those internally displaced, etc. To be able to carry out such expensive social programs in the face of limited resources is a big success and source of pride. The projects accomplished in the areas of education, health and infrastructure are extensive. However, there are some activities from our projects where we speculate, in hind site, that some other approaches might have produced better results. Our assessment must take into account the experience we gained and the lessons we learned. Making an objective assessment is basic to minimize errors and to gain better results in the future. In general, it is essential to conduct studies and draw plans, based on critical assessments of our experiences, in order to move our country’s economic development forward. However, one should also remember that we are in a situation that does not permit easy conduct of such activities.

Muhammad Saleh Hagos – All things being where they are, let me raise one point that should be viewed critically. Up until 1998, many Eritreans from outside were flowing to Eritrea to invest and do business. After the war, the flow has been either trickling or has stopped. I say this issue deserves a proper attention. I think it is important to conduct a study on what needs to be done to attract investors, be they Eritreans or foreigners, and take the necessary measures. The obstacle in not just the war; image can also be a problem. Especially since Eritreans love their country, we should do what we can to attract them. In general, we should take practical measures, small or big, that send positive signals of open opportunities to potential investors.

Dr. Melaake Tewelde - In order to critically assess our development experience, information should be available. That there have been tremendous changes in Eritrea in the last 14 years, we all agree. Much has been achieved especially in infrastructure, but socio-economic data that indicate how much, at what cost, what problems encountered, etc., are not reaching potential investors or people in general. As information is power, I am of the opinion that providing such information would be helpful to Eritrea’s image. Nowadays, information, real as well as speculative, travels fast. In Eritrea, however, information about what has been achieved in such a short period of time, and that can be attractive for investment, has not been disseminated. Appropriate attention should be given to dissemination of information.

Question: There is hardship; prices are rising and there is shortage of goods. Why? Possible explanations of the situation we heard are: Merchants have been denied opportunities; The Red Sea Corporation exerts control; government has severely restricted foreign exchange, etc. What are your views on these explanations? Our trade policy was never a topic of discussion two years ago, but is now a common topic of discussion and speculation. Why?

Hagos Gebrehiwet – When we discuss a topic, we cannot find a full answer unless we examine all factors that are relevant. It should be known that the basic factor that is affecting our economy and our activities is the current condition of war. One should realize the limiting impact war has on our economy in general and productivity in particular. On the other hand, as was previously mentioned, as we import to meet 80% of our demand; price escalation is also a big factor in the global market. Trade is normally a two-way street, import and export. There situation in our case is, much import but near absent export. Thus, it can be said that we are conducting importation and not trade. What we import is much, but what we export is a negligent amount. For example, the price of gas has doubled and tripled, while our resources have remained limited. We have no alternative but to carefully economize [on oil consumption].

That the living condition is linked to the buying power of Nakfa is obvious. And the buying power of Nakfa, though basically tied to productivity, there are other economic factors affecting it. Thus, we cannot allow any unlawful activities that weaken our currency. It follows that the measures we are taking are basic and essential. We need to manage our resources, especially foreign exchange. Foreign exchange should be properly collected, managed and allocated in accordance with national priorities. In this country, the prevailing resistance to revealing one’s income or negative reaction to governmental inquiry about income should not be allowed under any circumstance. Let alone here, even in the rich countries, individuals are obligated by law to reveal their income to the cent. For example, in America, the much feared and dreaded agency is IRS (Internal Revenue Service), the country’s tax agency. In our case, there are people who think it heroic to violate law and cheat in their taxes. And a country and government cannot condone such practices. Thus, those who obey the law should be praised and encouraged, and those who violate the law should be detained and punished. If foreign exchange is collected properly, Bank Eritrea will establish priorities and reach a point where it will provide the needed foreign exchange to the private sector. And it is obvious that within the private sector, it is the productive ones that deserve priority.

Setting priorities is a must given the limited capacity and resources. We cannot expand our economy if, as a country, we do not live within our means and save as much as we can. Most of the conditions we are discussing now occurred due to the government’s good-faith lenient handling of things. Some of the problems we are now striving to correct are things we should have paid attention to before. Although it is not fair to generalize on all merchants, those who operate within the law should be encouraged, while those who violate the law should be subjected to legal action without exception. As economy is closely linked to the lives and conditions of people, it should not be handled negligently.

There is no basis to the allegation that merchants are denied opportunities because the Red Sea has monopolized trade. This is because the majority of Red Sea’s purchases are from private merchants through bids. Let me share with you some statistics that confirm this. In 2003, the Red Sea bought goods worth 302 million Nakfa from 106 private businesses through bids; in 2004, goods worth 304 million Nakfa from 144 businesses; and in the months of January and February of 2005, goods worth 14 million Nakfa.

The basic consumption items we have started to distribute at reasonable prices are intended to solve the supply problem of critical consumption items such as cereals, sugar, tea, oil, etc., and not to replace private outlets. The few distribution centers being established should not be viewed as a replacement of the existing thousands of private outlets. If we had the resources and the capacity, we would not have resorted to these measures. For the time being, however, there is no alternative.

The measures we take are intended to solve the problems we face, and not to weaken the private sector. Because we understand the importance of the private sector for the growth of our economy, the Front and government have responsibility to expand and strengthen the law-abiding private sector. We shall work with all our efforts to encourage Eritrean investment. Even in the present situation, thousands of Eritreans residing abroad are making significant investments in the form of construction of houses. The weakness observed in making joint investments should be solved in due course.

In general, our basic economic policies are correct and beneficial. However, the existing abnormal situation obligates us to take transitional measures. There are shortcomings in implementation that occur due to inadequate institutional capacity and sequence of problems; they need to be corrected. By assessing our operations, correcting our shortcomings and weaknesses, and adjusting our procedures, we will bring better results. And there is no doubt that the measures we have initiated to reduce prices will in due time bear desirable results.

Muhammad Saleh Hagos – In my opinion, the Red Sea (Corporation) is an institution with tremendous contribution. I have seen its role in my line of work. Our focus should be: How can we increase foreign exchange? If there is shortage, there necessarily has to be rationing. Thus, we need to figure out how to overcome the current shortage and increase foreign exchange. I don’t think we have made given attention to this problem. There are things that can produce results, albeit small. At the risk of placing myself in, ab quinat zeiweAle beliH (literal meaning, “He who hasn’t been on the battle field is sharp,” equivalent to: “Monday morning quarterback.”), I say, we have to work harder on this issue.

 Related to trade, although market means competition, in our case, we cannot say there is competition. I am an advocate of free market. I say there must be competition, but it is obvious that there is no competition in our country. For example, at this time, we have seen prices of goods climbing up on the pretext of lack of permits for foreign exchange. As the market is so small, it is not difficult to figure out who has what. Thus, if someone knows he is the only one who has a particular good, he raises its price to unreasonable levels. Thus, we should address such questions as: How should we manage our resources, and what do we need to do so that the consumer is not harmed? It is possible to say that, at times, nationalism and trade are not compatible. In my view, the way out is to strive to increase economic activities by taking quick initiatives. If we do so, we can overcome the temporary problems and reach a solution.

 Dr. Melaake Tewelde – Inflation, in economic terms, means imbalance between supply and demand. Thus, in our present situation, inflation has occurred because, in general, supply is low and demand is high. And since there is scarcity of foreign exchange, there is no alternative to the rationing of the limited foreign exchange as a transitional policy measure. This has been done in many countries. However, permanent solution can come not only through trade policy but also through increased production and expansion of exports. Rationing of foreign exchange, as circulating capital, cannot go very far. From the point of view of economics, therefore, trade policy should be supported by investment policy, and potential areas of investment should be studied.

The private sector has been touched. The Macro-Policy (Eritrea’s) is supportive of the private sector. It is the private sector, in cooperation with the government, which can bring development. At the present stage, it is important to insure that the private sector operates under the law and respects the law, so that it is not preoccupied with the profit motive alone and tread on a negative path. And the government, realizing that the private sector must be nurtured in order to grow and become stable, has to meet its responsibility of nurturing a private sector that does not neglect its national interest.

  

Part IIIÞHidri, on March 20, 2005, for the second time, conducted a public dialogue (panel) on the topic, “Economic Development Programs and the Challenges of Current Living Conditions.” Panelists in this dialogue included: Ato Hagos Gebrehiwet, Head of Economic Department, PFDJ; Dr. Woldai Futur, Minister of National Development; Ato Muhammad Saleh Hagos, General Manager of Red Sea Soap Factory and Vice Chairman of Employers Federation; and Dr. Melake Tewelde, Head of Economics Department, University of Asmara. In addition to these four panelists, 83 invited people participated, and contributed towards a heated and open discussion by asking questions and making comments. Following is a summary of the content.

 

Question: Staying within the same topic, what needs to be done to improve living condition? Wage earners, being one of the groups hurting, can wage increase be a solution? From economics point of view, what are the consequences of wage increase? On the other hand, in our present situation, is the balance between investment and consumption reasonable, especially when seen in connection with the vast investment in infrastructure?

 

Dr. Woldai Futur. Some statistical information may be helpful to understand our economy. In the last five-six years, in Eritrea, we have bought from outside goods worth $560 million to $600 million per year. As Hagos stated earlier, this is importation, not trade. About 75-80% of our demand is met from outside. Thus, the living condition of the people is low due to the combined effects of importation from outside and the lack of adequate production inside. However, rationing is a must.

Why are we investing in infrastructure while the living condition of our people is hard? The answer is short. Unless we invest in infrastructure now, our living condition cannot improve. Infrastructure is basic for increasing production. Our investment in infrastructure now, from our meager resources, is the groundwork for improving our lives and the lives of our children. This strategy, which cannot be postponed, is correct. If we don’t do this today, our economy cannot succeed tomorrow and the day after tomorrow. While doing this, however, we have to insure basic needs such as food, medicine, etc. This also means, to the extent that we are buyers, we must know what we need to buy. The measures we are taking now will cease once the situation changes, and a conducive climate is created. Basically, our economic policy is in place. Thus, the investments we are making to increase our self-reliant economy is proper and has no substitute.

Related to wages, unless productivity increases, wages cannot be raised. That will not be meaningful. Bank Eritrea can print money and raise wages. However, since it will not reflect economic productivity, it will not be a solution; it can only result in big inflation. Raising wages may have a psychological influence But at this time, the main causes of high prices are shortage of supplies and the amount of currency in circulation. Thus, without succeeding in production, without raising productivity, there are no problems that we can solve by raising wages. However, it is important to fix existing unbalanced wage structure.

 Hagos Gebrehiwet - Unless we somehow invest in infrastructure and other important sectors, we will move in circles. For example, as buying cereals is expensive, we must, to the extent possible, strive to produce the cereals we need ourselves. We must establish import substitution projects. That we have been importing even bottled water is a disgrace. The main issue, as Muhammad repeatedly pointed out, is not only rationing, but the need to expand exports. We must strive to both reduce imports and increase exports. The continuously increasing exportation of sesame (oil seed)), for example, reached seven million dollars last year, and there is a plan to expand its production this year. And infrastructure is closely linked to this. We have signed agreements to export bananas. But, in order for the bananas to reach Massawa from Gash-Barka, a decent road is needed. Thus, as exporting is impossible without proper roads, the two are inter-linked. Those who say, “why not use the millions we are now spending on infrastructure to solve the problems we are facing,” should understand this linkage.

Raising wages cannot solve existing harsh living conditions. Basically, prices must come down and be stabilized, and Nakfa must be strengthened. For those to happen, increased productivity is critical. Limiting expenses, and living within one’s means are needed. The final result is economic rehabilitation, and in the main, economic development and better living conditions.

Comments from the House (Audience)

Hanin Hassen (National Union of Eritrea Youth and Students) - I understand that infrastructure is forward looking. However, infrastructure can be divided into two. The first is hardware and the second is software. The first one is the tangible one, such as schools and highways. The second is the intangible, such as development of manpower and the quality of services rendered. Are the schools and clinics we are building providing quality services? Such is how we should evaluate them.

Almaz Iyob (National Union of Eritrean Women) - The warsai-yikealo project, regardless of its shortcomings, the opportunity it has provided the youth to develop their skills is in itself a big victory. The young participants develop skills that will benefit them in their future lives. They develop self-confidence, a big benefit that is priceless.

 

Abraham Semere (Regional Assembly of Maekel Zoba) – To the astute observer of our situation, how things are going is amazing. To advance forward in the face of war and drought is very amazing. However, the question is often raised: Productions that could generate foreign exchange (such as the cement factory) which have been in place for many years, have not been expanded, Why? I ask for an explanation.

Belai Habtegaber (Ministry of Education) – I do not see any problem with our policies, except in the way they are implemented. Related to merchants, to generalize and view all of them as exploiters and cheaters is wrong. What Hagos described, Red Sea’s purchases through bid from merchants, for example, is not well known. If that is so, then the merchants are benefiting. People should know this. In this case, what is the role of the Chamber of Commerce? The Chamber of Commerce, in this instance, has not demonstrated its role of establishing relationship between government and the private sector.

The outsourced business establishments must produce. There are factories, like the soap factory, that function well and have developed. Some, however, like the oil factory, are not functioning. Means for awakening them should be explored.

Dawd Abushish (Ministry of Education) – Serious measures should be taken to stabilize prices. The daily escalating prices are not reasonable. I agree that the long-term results of the Warsai-ykealo project are substantial. However, complete and timely information should be disseminated on current developments. I think we have weaknesses in this aspect. We commonly express, “The dog barks, the camel continues its journey,” which can be traced to the field (armed struggle period). The statement is, but we should not forget that the camel can run too.

Tsehaitu Daniel (Chamber of Commerce) – I would like to stress information. In this country, as the successes are not made known, information is neglected. And this can create problems. People become supporters if they have information. Due to lack of information, those who should be supporters are seen becoming resisters. For example, those 50 retail outlets under consideration in Asmara, the merchants view them as if they are against their interests. Had they received the information revealed here, they would not have felt that way. There are times when even those affected are not provided with the needed information. Withholding information results in questioning. It was said earlier that the Chamber of Commerce did not fulfill its role. If Chamber of Commerce is not informed what can it do? Thus, we should think seriously about information.

 

Mesfin Tesfai (Resettlement and Rehabilitation Commission) – We have a problem in information, in communication. Those who have information are not ready to share it. There is a successful procedure we have been following since the days of the revolution (armed struggle). Public meetings organized by the People’s Front should have continuity. The information given should be detailed rather than simply general. Our people are receptive and tolerant. If we make our people understand, to the lowest level, and mobilize them, there cannot be problems.

Manna Tesfazgi (Amtes Company) – Our development projects are satisfying to the spirit. There is no doubt that the living condition of our people will improve tomorrow. However, we need to ask not just about the correctness of our policies, but also about their implementation. Are we monitoring the implementation of our policies? Because, if planned policies are implemented improperly, problems result. To properly collect tariff and taxes, strict application of rules and regulations is essential. The necessary measures should be taken against anyone who harms the public.

Sultan Said (National Union of Eritrean Youth and Students) – Our economic policy so far has been export oriented and not import substitution. If we are importing 75-80% of our needs, why don’t we think to substitute this? A policy of import substitution, it seems to me, is feasible.

On the issue of increasing foreign exchange, which Muhammad has been emphasizing, on my part, I think that our construction companies, which are expanding their capacities, can play a big role.

Some of our policies have been detrimental. For example, the tariff on imported automobiles has been reduced. As a result, many automobiles have been imported. As this consumes foreign exchange, and additional foreign exchange is needed for spare parts and fuel, it was not necessary. What will it hurt if the high tariff restored?

Alamin Muhammadbrhan (News, PFDJ) – The core of economic development are people. And it seems to me that our people want fast changes. However, fast change is difficult in our present situation. How to develop in the face of war is a tough question. We also desire social justice. As fast development and social justice cannot be accomplished at the same time, I say, we have to device a means for their separate implementation. They are complicated and interlinked, but we should somehow explore possibilities.

Comments from the Panelists

Hagos Gebrehiwet – The problem of information is due to our lack of proper handling, and should be corrected. Above all else, before an event happens, we should provide information. It will be futile to try to explain a measure after it is taken; the damage might already have been done and will be difficult to repair. We need to expand and strengthen our existing mass media, so that we can effectively disseminate information and deny enemies grounds they try to exploit. Among officials, a weakness exists of not providing information. I myself have never taken the initiative to give information. This will improve, as there is this year a broad initiative undertaken by the Front.

A comment was made related to software. For example, in education, if we do not prepare qualified teachers to improve the educational standards of students, the investments we are making will not achieve the intended results. This is something we need to work hard to improve. In general, there is a big gap between the hardware and the software.

It is important that our economy be export oriented. However, this does not mean that we should not produce the imports that we can produce ourselves. For example, there is no reason why we cannot produce ourselves the cereals we need. If we can produce the basic necessities that we now import from outside, we can save foreign exchange. And this means we can direct investments towards export oriented undertakings. Thus, the two are linked and supportive of each other.

Dr. Woldai Futur – It is obvious that we are weak in information. As a government, as a front, and also as individuals, we have weakness in providing information. This type of inhibition, though on the one hand reflects modesty, does not bode well in our present world. Thus, we must device a system that enables continuous flow of information from top to bottom and vice versa.

Regarding the comment on the policy of export orientation, there is one point of clarification. If we are able to produce for export, the product will also be competitively sold within the country. Thus, the export-oriented policy applies internally too. That this requires tremendous investment is known. For example, the fact that we have not succeeded in cement production is because the investment required is around 120-130 million dollars. It is similar with glass, steel, etc. At a time we are engaged in a national defense, such huge investment needs have been problematic. Nevertheless, we have been trying to find partners. And we hope to see concrete results in the next few years.

 

Part IVÞHidri, on March 20, 2005, for the second time, conducted a public dialogue (panel) on the topic, “Economic Development Programs and the Challenges of Current Living Conditions.” Panelists in this dialogue included: Ato Hagos Gebrehiwet, Head of Economic Department, PFDJ; Dr. Woldai Futur, Minister of National Development; Ato Muhammad Saleh Hagos, General Manager of Red Sea Soap Factory and Vice Chairman of Employers Federation; and Dr. Melake Tewelde, Head of Economics Department, University of Asmara. In addition to these four panelists, 83 invited people participated, and contributed towards a heated and open discussion by asking questions and making comments. Following is a summary of the content.

Question. The economic activities and abilities of the People’s Front is another debatable topic. What are the purposes, roles, abilities and economic establishments of the People’s Front? There are internal and external critics who say that it has the agenda of controlling Eritrea’s economy, weakening the private sector, and in general, establishing a command economy. How do you view this? And, is it appropriate for the People’s Front, as a political organization, to be engaged in economic activities?

Hagos Gebrehiwet – We cannot see things isolated from our experiences and situations. There is a historical basis to the economic establishments of the People’s Front. During the liberation struggle, because EPLF was administering 90% of the Eritrean land, it had extensive economic activities. And at independence, the government of Eritrea was formed using the Front’s property and establishments. It was a must for the People’s Front to use the economic capabilities it accumulated during the struggle for rehabilitating the destroyed economy it inherited, and in the main, to build a national economy.

Economic activities of the People’s Front mainly focus on construction, land and marine transportation, trade and financial services. The Front’s establishments are bodies that have the status of a legal person, and work within the laws of the country. Thus, they pay taxes and tariffs (Up to 2003, for example, they paid 360 million Nakfa to the government) and earn normal profit. The main mission of our establishments is to increase national capacity and re-enforce the national will to do. For example, if we had not the current capacity in construction, achieved by the Front’s establishments, our construction projects would have fallen into the hands of foreigners. As we are relying on our own capacity in working many projects, for example roads, in addition to the other obvious benefits, we have been able to save up to 40% of the costs. Basically, the national capacity and experience we are accumulating is beneficial for now and for the future. Thus, business establishments of the People’s Front are national institutions that are benefiting the country through the accumulation of national capacity, the saving of foreign exchange, the provision of employment opportunities, and the stabilization of the market.

The Front’s establishments have neither the desire nor the ability to dominate Eritrea’s economy. Let alone local companies, unless we also engage foreign companies, the Front’s few companies alone cannot handle all development projects. In practice, that is how we are working. As to what was said about the “command economy,” let alone we, even those big countries with tremendous resources tried it and proved that it does not work in practice. It is unthinkable that we would attempt something that does not work. In short, economic activities of the People’s Front developed in the context of our history and experience, aim at building an economic system based on social justice, give priority to national interest, and develop national capacity. They do not have other hidden aims. We will continue to cooperate with the private sector with all our capacity especially to encourage investment by Eritreans.

At this time, plots of land will be made available, in a second phase, to thousands of Eritreans to build houses. Many of them are requesting that the Front’s establishments build their houses. But, our establishments do not have the capacity to meet this demand. Thus, other contractors will participate. As the main problem is lack of capacity, it is difficult to carry out all of the development projects even after mobilizing all available national capacity. Thus, those parties who say that People’s Front does not want a private sector are the ones who want to satisfy narrow self-interest outside of the legal frame. The People’s Front works within the law, contributes to national interest, and will support and encourage the development of the private sector. What interest us are: How can we increase Eritrean capacity, from the individual to highest level; how do we build strong national companies; and how do we enhance people’s contributions? All of the incomes of the Front’s establishments are invested in the development of capacity.

We have been hearing the view that a political organization should not participate in economic activities. Those foreigners who express such a view better remember the economic role of the political organizations of their own countries. Especially in Europe, like Sweden, Italy, France, and England, particularly after World War Two, the role of political parties in the economy, and the properties they own are known in detail. Thus, this view, has no other purpose than to see us not to develop our own capacity. Above all else, however, our policies, plans and activities are based on our existing situation.

Dr. Woldai Futur - Our thoughts on the roles of government, the Front and the private sector are reflected in the documents I mentioned earlier. The government works in the areas for which it has assumed responsibility and where it can effectively engage, while the private sector directs its efforts to areas where it can effectively work and where it can earn profit. The private sector engages in activities where profit is earned, while government engages in activities that are long-term oriented and are related to administration, infrastructure and social services. The business establishments of the People’s Front are collectively administered in a trust. That they have a strategic role has been practically proven in the past years. If these establishments did not exist, could we have withstood Woyane’s invasion with the resources of the government and the private sector alone? Would we have been able to ensure supplies, control prices, or build defense bases and roads? Asking such questions can undoubtedly lead to realizing the importance of the role of the Front’s business establishments. Thus, it is obvious that their role is very important.

For the future, the Front’s establishments can be made to work not only for strategic purposes, but also to work for profit, just like the organizationally owned companies in Europe, and there may come the time when they will be indistinguishable from the private sector. Now, however, they must work by giving priority to strategic benefits; there is no other alternative.

In general, to bring about economic development, cooperation among the government, the Front and the private sector is needed. Perhaps, as the government and the Front work with long-term goals in mind, while the private sector works for short-term profits, conflicts could arise. However, this can be solved through good communication and dialogue, and we can create a situation where the interests of all can be safeguarded.

Muhammad Saleh Hagos – I agree with what has been said. However, I have concern regarding the small establishments under the Front. For example, an outlet that sells foreign exchange, where personal attention is essential, I think such outlets would be effective if run privately. The Front should reconsider the status of such small operations. Only with special attention and demonstrable interest can they operate properly.

Hagos Gebrehiwet – The point raised by Muhammad is important. We have already outsourced some small establishments that have been in our hands for a variety of reasons. By clarifying the areas where our focus should be, we will gradually convert the establishments we own into share companies. That way we will make the companies beneficial to the people.

Question. It has been stated that social justice is a basic goal of the People’s Front and the government of Eritrea. Economy is one of the main foundations of social justice. As there is a contradiction between social justice and market economy, is it possible to achieve social justice through market economy?

Dr. Melake Tewelde – Economy is the main foundation of social justice. And social justice means, in a given country, primarily the fair distribution of education, health services and communications. At the family level, in order to eliminate poverty, the family has to have educational and health service opportunities. Thus, in my opinion, in Eritrea’s situation, if education and health services are left to the market, social justice will not be achieved. In the current situation, the government has a decisive role in effecting social justice by spreading free and balanced education and health services.

Hagos Gebrehiwet – Under market economy, there are a number of different ways by which people obtain services. In capitalist countries, for example, there is a big difference between social democratic systems and the American system. Social justice means fair allocation of national wealth, and fair distribution of services and opportunities. And this, in the main, is an issue of views, policies and leadership. Should the national wealth, accumulated from various sources and through various means, benefit few people and limited urban areas, or benefit the majority and all parts of the country? Economic development opportunities for whom, the few or the majority?

Social justice is something that develops over time, and not a one-time action. And it is possible to work so that the market and social justice to go hand in hand. In doing so, as there will be distortions and other negative consequences of the market, I think corrective actions need to be introduced.

The question is very complicated and controversial. What does free market mean? Is there a market that is free of any form of control? At any rate, if there is a political force dedicated to social justice, there is no reason why fair distribution and use of national wealth should not develop parallel to economic growth.

Dr. Woldai Futur - It is important to distinguish between the conditions under which the market works, and where it does not work. When we say justice, it is a wide issue covering from national security, laws and regulations, the justice system, administration, education and health services to the supply of consumer goods. The issues of national security, laws and regulations and the justice system cannot operate through the market. Because that would mean he who has money can buy justice. Also if we say education and health services should operate through the market, it will be impossible, as many will be denied the services. Most of the time, infrastructures like highways, air ports and ports, can be constructed by the government, not through the market. In short, we must distinguish between the profit-based and public service-based activities. Thus, by approaching sector by sector, we have to assess which ones can be appropriately assigned to the private sector and contribute to economic growth. If economic growth is the basis for social justice, I do not believe that economic growth can be achieved outside of the market. However, it must be clear that the market should be subjected to some legal control. We must have a deep understanding of the market. Even in the pure capitalist countries, market alone does not work. And in the socialist countries, the system does not work without market. Thus, it seems to me that it is important to pose: What sector and services, and types of productions? What works, when and how?

Comments from the House (Audience)

Almaz Iyob (National Union of Eritrean Women) – Regarding the Front’s involvement in economic activities, as seeing is believing, we can see the accomplishments of the Front’s business establishments. For example, take the hospital built in Barentu. Could that have been accomplished by a private company? I am not very articulate, but a lot could be said about this. It is good to have competition. To have competition based on ability, knowledge and capital can be critical. And for the Front’s establishment to compete is in the national interest.

Belai Habtegaber (Ministry of Education) – The issue of whether the People’s Front should or should not be engaged in economic activities, is not a difficult question. We have to start from the pre-independence times. If Zero Nine (EPLF’s company at the time) did not exist, the people living in the liberated and semi-liberated areas could not receive consumer goods? Even after independence, the many establishments built in distant rural areas would not have been built. Thus, those who are against the business establishments of the Front are, in the main, those who dislike the Front and are against the interests of the country and the people. In general, I view the economic activities of the People’s Front in connection with the well-being of the country and its development.

 With regard to the merchants, I say it is essential to carefully watch those who violate the law, and encourage those who observe the law.

Ruth Negash (National Union of Eritrean Youth and Students) – Statements such as: “The government has dominated this; the government has done this, etc.,” are heard not only inside Eritrea but also outside. As we learn from history though, the now developed countries, like America and others, the main factors for their development were works started by their governments for the benefit of the people.

With regard to those who committed mistakes and violated policies, to me, the issue is black and white. First of all, when a policy is announced, the relevant laws and regulations and their consequences should be clearly explained to the people. After that, whoever violates the law should be properly punished, and those who uphold the law should be encouraged. As violation of law hurts people, it should be strictly punishable. In short, I think it is good to have clearly understood policies and clearly described laws and regulations, and the consequences of their violations.

Berhane Gebremariam (Bank Eritrea) – In Eritrea, big projects are being accomplished. That we are accomplishing big projects in the face of limited resources is a big success. Wasrai-yekealo is accomplishing big projects with the sweat of the youth. However, those of us in government office, are we discharging our responsibilities properly? In this respect, the people are not getting proper services. I think there is a need for monitoring. There is a saying, “Idleness is the devils workshop.” The people ho chatter much are those who are idle. There is a need for attitudinal change.

Question. A final question to which panelists can respond briefly: Do we have economic hope? Can Eritrea overcome poverty and develop economically?

Muhammad Saleh Hagos – If we do not have hope, it means we are dead. We do have full hope. The dialogue we have conducted today gives hope.

One thing we should not forget is the issue of education. The countries we now see as developed are so due to their advancement in education. Thus, in order to advance, we should be able to raise the standard and level of our education. In Eritrea, we observe many children going to school. However, are the standard of our education and the ability of our students comparable to other countries? The future of Eritrea will be determined by the appropriateness of our education. Thus, if we invest in education, and produce competent students, we have full hope.

Dr. Woldai Futur – Because we struggled with confidence since the 1960s, we achieved sovereignty. We have established a government, and are struggling to bring about economic development. Even now the confidence is in place. The claim that Eritrea cannot economically support itself started before we were born, and is still heard now. However, we have answered it in practice. And now, through the strategy we have been following, we are striving to eventually become economically self-sufficient and place ourselves in the company of developed countries. And we have advantages that will enable us to reach there. First, the self-confidence we developed from our experience is basic to our development. The decisive factor is the development of our manpower. From 1991 onward, the number of students has increased many folds. Regardless of the quality, educational opportunity has tremendously expanded. After assessing our experience of the last ten years, we are ready to embark a five-year plan involving 200 million dollars. And related to higher education, we are working to open up several colleges. The process will take time, but will improve quality and enable us to reach the desired level and contribute to Eritrea’s development. We also have natural resources we have not yet exploited. Our marine resources, minerals, tourism and agriculture are resources we have yet to exploit. To do so, we are building infrastructure. In short, the chance Eritrea has to develop is big. If we assess our activities of today and tomorrow, clarify our policies and focus on our mission, we have the capacity and the policies that enable us to eliminate poverty, succeed in economics and place ourselves in the company of the developed countries.

Dr. Melake Tewelde – What determines a country’s development? This is a basic question. The determinants are three: natural resource, human resource and institutional resource. Out of the three, the basic and decisive one is human resource, because people create development. Institutional resource brings together the natural and human resources. Institutional resource, in turn, is a very important factor. In Eritrea, work in education is going on to develop human resource. Much effort, supported by studies, is needed to exploit our natural resources. And institutional capacity and procedure requires cultivation in order to advance beyond current levels. If we work by integrating the three, as countries that were in our type of situation 50 years ago, like Korea, have succeeded, there is no reason why we too should not succeed.

Hagos Gebrehiwet – We can classify economic development of countries in the world into three types: first, those countries of Europe and America that developed their economies slowly over a long period of time; second, those countries, mainly few countries of Asia, that built their economic development fast within the past 60 years; and third, those majority of third-world countries that have not advanced their economies. We must focus on the second category. We need to work with all our efforts to bring about economic development within a short period of time. In economic development, what is critical is productivity. And productivity can develop through discipline, hard work, saving and ambition. These traits are present in our society. They are the traits that enabled us to win our independence, in spite of the odds, and also later, to withstand Woyane’s invasion and advance forward. Thus, we must reinforce these traits, organize and develop our capacity, strengthen our unity and vigilance, and work with full force towards development. And we should work confidently believing that we can succeed in economic development. What we proved in practice in our history, and what we are currently doing and their results are concrete evidences that we can succeed.

The End.

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