The Tightrope
The high cost of living is making life very difficult in Ethiopia. One good example to cite is the cost of cattle where a head of cattle could cost between 3000 and 6000 birr. This amount makes sense for anyone who is converting a foreign currency such as the US dollar, simply because buying a head of cattle for $300 dollar is unheard of here too, but it is possible to buy a quarter of a cow for $300 and that could feed a small family for six months. Whereas a bull would cost $2000 or more the reason why outsiders are saying cost of living in Ethiopia is cheap. It is difficult to say how many people will be comfortable to pay 100 birr for a full course meal and say it is cheap. Because the average salary might be 500 birr and with that kind of money not many people can afford to spend 100 birr for a meal. In a place like the USA $10 does not buy a good meal at the right place, but in Ethiopia it could go a long way.
One of the reasons why the price had gone through the roof is the wealthy Middle East countries are buying cattle from Ethiopia by the droves. One of the heavy weight buyers is Saudi Arabia that has contributed for the price hike. There is nothing wrong with it except that some might say what they are doing is creating hardship in the country by making beef out of the reach of many people and it would have been better if they had gone somewhere else. But in reality that particular market or even more will have to be satisfied, simply because that is what business means. Spot a demand and satisfy it, simple economics. In fact, there might even be a much larger demand.
Recently there had been a report that the Saudis in collaboration with the Pakistanis are in the process of getting the UN approval to go and straighten out the existing problem in Somalia. Even if it is going to raise the hair of the non-Muslim neighbors of Somalia, that includes Kenya, this venture that had been tabled by a UN official from Mauritania might have a business implication, as well as, of course, spreading Islam might be a given. The question here is these two groups seem to fit the card albeit their being fundamental Muslims, simply because one has the capital, while the other has the manpower. This means, in the near future these two groups could be engaged in an unprecedented economic activity that would definitely start from the basics, which could be livestock raising and farming, as there is a fertile land to accommodate both in Somalia and they need it badly. What this implies is the demand the Ethiopians are struggling to accommodate and is breaking their back could get a relief. If enough cattle is raised in Somalia, in the long run it will alleviate the shortage that is created in the region, because it is people who are in the abattoir business, especially in Ethiopia who are saying they are feeling the strain, to the point where in the near future they might not be able to continue availing beef in the country.
The other problem is since Ethiopia is a communist country home-grown entrepreneurs cannot take a crack at raising cattle for commercial purposes simply because the system might not allow them or if the system allows some kind of economic activity in that area, the entry level and cost could be so high it is only those who have capital that can try it. Those kinds of groups or individuals are not in big number in the country and it should have been the job of the local entrepreneurs to spot this niche and exploit it. They cannot do it simply because they are hand-tied by the system.
This is one good example that would highlight people in Ethiopia could be barking the wrong tree, because there are some who are seeing the Saudis as enemy, simply because they are Muslim. No one can deny that outright, simply because if there is a string attached to what they would be doing it is the flourishing of Islam, to the point where the non-Muslim countries, especially Ethiopia could be threatened. It looks as though it is possible to tip the balance and transform the particular old and Christian nation into a Muslim country by enabling the Muslims to have the upper hand, by giving them more economic muscle, whereas now they are sharing power equitably. Customarily, from the side of the Christians, there were no pressure or aspiration to bring down the number of Muslims in the country that could approach 50 percent of the population. Whereas, the Muslims had always been dangerous. In fact, starting from the inception of the religion, they were always working aggressively to raise the number of their followers that included use of arms.
This dilemma is a tightrope the nation had been walking for a long time, yet, since Somalia is an already Muslim country, it will be difficult to intervene in the internal affair of any nation in the long run, although this time it was possible to get away as the pretext used is a fervent issue globally. In addition, a government that had garnered the support and trust of the international community needed their help to establish itself in the country where it was on the verge of being run over by fundamentalists that had created a haven for terrorists. But eventually all that will change and what will remain staring at everyone is the undermined economy of the Horn region. When looking at Ethiopia, what is taking place is unheard of, simply because in order to keep the nation communist they are failing miserably to meet a lucrative demand and instead it is running them aground, because the exorbitant price mentioned will eventually make the locals unable to put their hands on the source of their protein. The domino effect of that is not difficult to visualize, as it will hit hard directly at the productivity level of the people young, adult, and old alike.
Therefore, what this brings us back to is the dire need where the system had to change and should make it easy for entrepreneurs to spot these kinds of needs and work to meet them, as they are lucrative. In ten years time if these two countries get the OK of the UN Chief and are allowed into Somalia, the first thing they will tackle could be the economy, because they know everyone will be watching what they are doing and will not put their nose into the affairs of Ethiopia, at least not directly. Secondly, when they make their priority the economy what will happen is they no longer are going to suck out the cattle out of Ethiopia, simply because they are going to have their own source to satisfy their need.
It is difficult to say whether this would be a good or a bad news when it happens, simply because when there is not going to be anyone sucking the cattle out of the country, it means the inhabitants are going to have all the beef they need at the level they can afford it. But they will lose the lucrative foreign currency. This demonstrates the fear-mongering might be a bit out of proportion, because Islam is not going to be a threat to Ethiopia as long as the nation is doing the right things a reality that is becoming shaky, and the grumbling from the USA is not letting up because there was a recent article from CSIS that sounded like a final ultimatum. At the same time the system needs to change, so that it would become economically competitive. One way to bring down this astronomical price is by flooding the market and if the communist system prevents that, it has no place at all in the nation.
One of the reasons why the price had gone through the roof is the wealthy Middle East countries are buying cattle from Ethiopia by the droves. One of the heavy weight buyers is Saudi Arabia that has contributed for the price hike. There is nothing wrong with it except that some might say what they are doing is creating hardship in the country by making beef out of the reach of many people and it would have been better if they had gone somewhere else. But in reality that particular market or even more will have to be satisfied, simply because that is what business means. Spot a demand and satisfy it, simple economics. In fact, there might even be a much larger demand.
Recently there had been a report that the Saudis in collaboration with the Pakistanis are in the process of getting the UN approval to go and straighten out the existing problem in Somalia. Even if it is going to raise the hair of the non-Muslim neighbors of Somalia, that includes Kenya, this venture that had been tabled by a UN official from Mauritania might have a business implication, as well as, of course, spreading Islam might be a given. The question here is these two groups seem to fit the card albeit their being fundamental Muslims, simply because one has the capital, while the other has the manpower. This means, in the near future these two groups could be engaged in an unprecedented economic activity that would definitely start from the basics, which could be livestock raising and farming, as there is a fertile land to accommodate both in Somalia and they need it badly. What this implies is the demand the Ethiopians are struggling to accommodate and is breaking their back could get a relief. If enough cattle is raised in Somalia, in the long run it will alleviate the shortage that is created in the region, because it is people who are in the abattoir business, especially in Ethiopia who are saying they are feeling the strain, to the point where in the near future they might not be able to continue availing beef in the country.
The other problem is since Ethiopia is a communist country home-grown entrepreneurs cannot take a crack at raising cattle for commercial purposes simply because the system might not allow them or if the system allows some kind of economic activity in that area, the entry level and cost could be so high it is only those who have capital that can try it. Those kinds of groups or individuals are not in big number in the country and it should have been the job of the local entrepreneurs to spot this niche and exploit it. They cannot do it simply because they are hand-tied by the system.
This is one good example that would highlight people in Ethiopia could be barking the wrong tree, because there are some who are seeing the Saudis as enemy, simply because they are Muslim. No one can deny that outright, simply because if there is a string attached to what they would be doing it is the flourishing of Islam, to the point where the non-Muslim countries, especially Ethiopia could be threatened. It looks as though it is possible to tip the balance and transform the particular old and Christian nation into a Muslim country by enabling the Muslims to have the upper hand, by giving them more economic muscle, whereas now they are sharing power equitably. Customarily, from the side of the Christians, there were no pressure or aspiration to bring down the number of Muslims in the country that could approach 50 percent of the population. Whereas, the Muslims had always been dangerous. In fact, starting from the inception of the religion, they were always working aggressively to raise the number of their followers that included use of arms.
This dilemma is a tightrope the nation had been walking for a long time, yet, since Somalia is an already Muslim country, it will be difficult to intervene in the internal affair of any nation in the long run, although this time it was possible to get away as the pretext used is a fervent issue globally. In addition, a government that had garnered the support and trust of the international community needed their help to establish itself in the country where it was on the verge of being run over by fundamentalists that had created a haven for terrorists. But eventually all that will change and what will remain staring at everyone is the undermined economy of the Horn region. When looking at Ethiopia, what is taking place is unheard of, simply because in order to keep the nation communist they are failing miserably to meet a lucrative demand and instead it is running them aground, because the exorbitant price mentioned will eventually make the locals unable to put their hands on the source of their protein. The domino effect of that is not difficult to visualize, as it will hit hard directly at the productivity level of the people young, adult, and old alike.
Therefore, what this brings us back to is the dire need where the system had to change and should make it easy for entrepreneurs to spot these kinds of needs and work to meet them, as they are lucrative. In ten years time if these two countries get the OK of the UN Chief and are allowed into Somalia, the first thing they will tackle could be the economy, because they know everyone will be watching what they are doing and will not put their nose into the affairs of Ethiopia, at least not directly. Secondly, when they make their priority the economy what will happen is they no longer are going to suck out the cattle out of Ethiopia, simply because they are going to have their own source to satisfy their need.
It is difficult to say whether this would be a good or a bad news when it happens, simply because when there is not going to be anyone sucking the cattle out of the country, it means the inhabitants are going to have all the beef they need at the level they can afford it. But they will lose the lucrative foreign currency. This demonstrates the fear-mongering might be a bit out of proportion, because Islam is not going to be a threat to Ethiopia as long as the nation is doing the right things a reality that is becoming shaky, and the grumbling from the USA is not letting up because there was a recent article from CSIS that sounded like a final ultimatum. At the same time the system needs to change, so that it would become economically competitive. One way to bring down this astronomical price is by flooding the market and if the communist system prevents that, it has no place at all in the nation.
posted by Ethio-Probe @ 7:24 AM
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