Eritrean/Ethiopian War

J. Barkley Rosser, Jr. rosserjb at jmu.edu
Fri May 14 09:10:40 PDT 1999


Well, if we are going to worry about numbers, the deadliest ongoing conflict in the world is that in Sudan, 1.5 million dead and still counting, along with a current famine. But then, that one has been old news for a long time...

(Besides, probably 1.4 million of them are "combatants," so, who cares?) Barkley Rosser -----Original Message----- From: Johannes Schneider <Johannes.Schneider at gmx.net> To: lbo-talk at lists.panix.com <lbo-talk at lists.panix.com> Date: Friday, May 14, 1999 7:37 AM Subject: Re: Eritrean/Ethiopian War


>Michael,
>I am happy you alerted list members on this ongoing carnage in Africa. I
>think the article you posted is quite interesting, but for me it has some
>setbacks. First it concentrates to much on the personalities of the two
>leaders, Meles and Isaiyas. Secondly it is mainly descriptive, failing to
>explain much. To me the crucial time was reached two years ago, when
Eritrea
>started to introduce its own currency. Perhaps some list member can shed
>some light on the economic consequences of this decision:
>
>_Begin Quote:
>Ethiopia was afraid it would become a pool of cheap labour for Eritrean
>industry and that its own industries would be vulnerable to cheap Eritrean
>exports. The government began to impose tariffs. Eritrea increasingly
>found that the two countries' common currency, the Ethiopian birr, was
>overvalued for its exports. Looking back, Mr Issaias and Mr Meles both say
>"We were too kind." Each seems to think his country's generosity was being
>exploited by the other.
>
>In 1997, Eritrea introduced its own currency, the nacfa. It expected, at
>launch, a one-to-one exchange rate with the birr, but Ethiopia refused to
>touch the new currency, insisting that all large transactions should be in
>dollars. That wrecked commerce between the countries and deepened the gulf
>between them. Ethiopia also accused the Eritrean oil refinery at Assab of
>overcharging for its products, and said that Eritrean traders were
>smuggling coffee across the border and re-exporting it.
>_End Quote
>
>How can both leaders say 'we were too kind'?
>
>BTW: For those ones who are interested in the conflict. This site is quite
>interesting:
>http://www.visafric.com/news.htm
>It is operated by Eritreans so it is somewhat biased.
>
>Regards
>Johannes
>
>
>
>



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