Political Economy

Political economy or know national economy in Eritrea is a term used for studying production and trade, and their relations with law, custom, and government, as well as the distribution of national income and wealth. Political economy originated in moral philosophy. It was developed in the 18th century as the study of the economies of states or polities, hence the term political economy.

There are 26 countries in world that have federalist government system. There are 11 regionalized unitary states which central government delegated some of its power to regional authority. The federal government share power with the semi-independent regional governments.

Successful federations with different socio-economic background and interests, different religion and language like USA and Switzerland where the federal government exist side by side the US 52 states or the 26 cantons respectively. All USA state or Swiss cantons have limited sovereignty, different economies, laws, tax systems, curriculums, value systems, political philosophies etc. Above all they have capacity to provide services and create opportunities efficiently and have capacity to defend and advance their residences interests in federal and global arenas because of the limited sovereignty and other freedom they have.

In the case of Ethiopia, it is the other way that the federal government is that trying to create the states/ክልላት in its own image through its revolution democracy, developmental state and its project of creating one political economy by ignoring the written federal constitution. This is not federation. This is extreme centralization. In short this is continuation of one language and one religion Amhara project. Or it is similar to PFDJ one heart one people philosophy.

PFDJ wanted to create Eritrean national economy or Eritrean political economy because it is impossible to create cultural national identity before creating political economy. I didn’t find clearly stated statement or rational reason why TPLF wanted to create Ethiopian political economy.

PFDJ strategy in creating political economy in Eritrea is transferring wealth of the Tigrigna to the Muslim tribes and clans until they became economically and social equal with the Tigrigna.

I don’t know how TPLF/EPRDF government will create political economy in Ethiopia. How they will balance socio-economic of Tigray- Afar, Amhara-Benshangul or Oromo-Somali etc regions.

There is no a single country in world that looks like Ethiopia that has created inclusive and representative political economy. Ethiopia is a nation of many nations that over 75% its populations are tribal’s and clans. It is impossible in Ethiopia to create political economy that is inclusive either by centralized wealth distribution, centralized taxation system or centralized economic developmental planning system because Ethiopia is extreme diverse by culture, civilization and geography.

Ethiopia can create very successful democratic majority based federation and common market like Switzerland or European union that has common currency, army, foreign policy, common market standard. This will allowed for the majority nations like Oromo and Amhara to dominate the confederation politics and for the minority like Tigray to build their state economy in their own speed and dominate the federation economy, for the clans like Somalia, Gambela etc will allowed them protect their identity, way of life and resources.

There is a discriminatory law and policy against Chinese Malaysia called Ketuanan Malayu.  Ketuanan Malayu for “Malay dominance” in Malaysia is a political concept emphasising Malay pre-eminence in present-day Malaysia. The Malays claimed a special positions and special right owing to their long domicile and the fact that the present Malaysia state itself evolved from a Malay polity. There many official laws in Indonesia that discriminate against Chinese minority. There is no a single Chinese minister in Malaysia or Indonesia.

In Malaysia, Chinese minority comprise a third of the population but accounts for 70% of the country’s market capitalization. In Indonesia, which has witnessed bloody anti-Chinese riots, the 3% Chinese minority controls 70% of the private economy? There many similar situation in USA, UK, Russia etc economies are dominated by Jewish minority, in Kenya economy is dominated by the Hindus and English minority, South Africa and  Jamaica by economies are dominated the English minority etc.

The Jewish minority couldn’t dominate USA, UK, Russian economy without Israel and other Jewish institutions. The Chinese, Hindus, English couldn’t dominated without China, India and UK. Holocaust happens in Germany because the Jewish- state Israel wasn’t created.

In the last 15 years Ethiopian economy started to be dominated by Tegaru. Most people think that Tegaru are dominating the Ethiopia economy because of special political privilege and connection they have with TPLF. But Amhara, Oromo, Sidama, Welayta investor or cronies too have special political privilege and connection with OPDO, ANDM and SEPDM.

Until deported by TPLF/EPRDF government in 1998-2000 Eritrean Tigrigna use to have inflated role in Ethiopian economy comparing with their number while Haile Selasie, Derg and TPLF/EPRDF governments were hostile to them. Like Chinese business people in Malaysia and Indonesia that Eritrean Tigrigna entrepreneurs have no protector or advocate national government but they are flourishing throughout Africa more than the local business people who have special political privilege, connection, aces to bank loans etc. The Tegaru who are dominating Ethiopian economy and the Eritrean Tigrigna who are flourish throughout Africa have the same identity, history, culture and value system.

In real true democratic confederation or federation Tigray can get one that is not important cabinet, one Ambassador position and 6% in federal army and civil service federal because of demography.

Tegaru have 0% to dominate Ethiopian politics but they 90% possibility to dominate Ethiopian economy in legally and morally right way in democratic federalist or confederate state.

Tigray advantage over others nations in Ethiopia is its identity, history, culture, value system and location. There is no a single nation or state like Tigray can be organized or mobilized in national, regional and local level. History proved only Tigray including Eritrean Tigrigna can create effective and efficient institutions at nationally, regionally and locally levels in Africa. TPLF can be created only in Tigray. It is impossible for the Amhara, Oromo etc people to create highly disciplined and effective political organization that has cultural, military, economical and social dimensions like TPLF. TPLF is a product of Tigray people identity, history, culture, value system and location.

According CIA tax revenues was in South Africa is 25.9% of its GDP, Nigeria 4.1% of its GDP, Egypt 22.9% of its GDP, Sudan 8.8% of its GDP Ethiopia 15.5% of its GDP, Eritrea 29.7 % of its GDP, Sweden 51.5% of its GDP, Germany 44.4% of its GDP in 2014.

Political economy is more than anything, it is about distribution of national wealth. Distribution of wealth is about culture of paying tax and having capacity of collecting tax. CIA data’s proved Eritrea has number one culture of paying tax and have number one capacity of collecting tax in Africa.

90-95% tax payers in Eritrea or Diaspora are Tigrigna. Tigrigna are the only ethnic who have ancient paying tax civilization or who have culture of distribution of wealth in Eritrea. Eritrean government don’t enforce tax laws on the Eritrean Muslim in lowlands. Eritrea Tigrigna seeks a lot of services from the government monopoly because of their value systems and traditions. They couldn’t get any service if they didn’t pay tax. Eritrean Muslim in Eritrea or Diaspora don’t seek Eritrean government services like land plot for housing in villages because they don’t have villages (they are nomads), sending their dead body for burial to Eritrea and they go holiday to Arab countries and buy houses in Egypt, Morocco, Sudan etc. Eritrean Tigrigna and American Diaspora are the only expatriate in world who pay tax to their homeland government. Nationalistic, competent, rationalist and clean from corruption new government can bring tax revenue to Germany or Sweden level easily in one year in Eritrea.

If Eritrea has number one culture of paying tax and have number one capacity of collecting tax in Africa that I have no doubt Tigray is the only nation in Ethiopia that has national economy or political economy. What Tigray need is to make its political economy fairer and efficient (by building capacity), and transform its backward manual agriculture industry to manufacturing, mechanized agriculture and service industries. While other Ethiopian nation need to create political economy and industries at the same time, if they have the political will and managed to create capacity.

Like their forefathers Tegaru can build globally, nationally and federally very competitive, robust, effective and dynamic institutions in Tigray like government in all levels, companies, universities, research centres, sport teams easily if they have freedom and opportunity. Tegaru car create their own industrial complexes system, banking system, legal system, health and education system in Tigray under the federal constitution. These institutions they build and the systems the create will make them dominate Ethiopia economy. Other nations or regions of Ethiopia have no cultural capacity to build competitive and efficient institution or system.

TPLF founding fathers build capacity to develop vision and policy, and to implement their ideas by try and error process because history gave them heavy responsibility in their shoulders and freedom to exercise their responsibility. Sadly TPLF founding fathers are denying sharing responsibility and refuse to give freedom to exercise their responsibility to the new Tigray generation to build capacity in all level of administrations and all sector systems.

Without globally, nationally and federally very competitive, robust, effective and dynamic institutions and systems in Tigray rich Tegaru will be endangered animals and uncompetitive because of discriminations, lack of protections, disadvantages etc. Eritrean Tigrigna business men have to share their profit with African generals, ministers etc because they don’t belong to any tribal or clan that give protection. And without the competitive institutions and efficient system in Tigray that 99% Tegaru will be poor for ever like the rest of Africa.

To maximize the advantage they have that Tegaru need to implement the constitution, embrace true rule of law and democracy, handover federal power to the majority while building capacity nationally, regionally and locally by industrializing Tigray to protect the federal constitution and ensure rule of law. The constitution and strong Tigray economy are the only Tigray people insurance policy for its freedom and dignity.

Politics is reflection of economy. The wisdom is the real power is high standard morals and money.

But first PFDJ has to be removed and Eritrea has to be nation-state of Ge’ez people and TPLF must start to give now gradually real autonomy to the Oromo and Somali and Sidama people to help them build capacity to govern them self because they can defence the constitution only when they have capacity.