Food as a Commodity, Not a Right: The Ethiopian Commodities Exchange
Zekarias Ezra
July 24, 2009
Dr. Eleni Gabre-Madhin must be commended for doing what she is doing in spite of the fact that millions of Ethiopians still live under abject poverty so much so that most have started to eat in ´shifts´ if at all.
I have my own objection to seeing food as a commodity, and not as a right especially in poor countries such as Ethiopia. The Ethiopia Commodity Exchange as an exchange sees food as a commodity so much so that only those who can afford to buy can eat. Moreover, the heavy reliance on commodities as the main export items will not help the country at all.
Empirical investigation has shown that the persistent downward trend in real commodity prices has resulted in significant foreign exchange losses for many commodity-dependent poor countries. Ethiopia is no exception as evidenced by the sharp decline in coffee earnings.
The long-term solution to declining commodity prices lies in export diversification and changes in the production structure. Yet, efforts towards export diversification will have to be complemented by domestic policies aimed at the development of human resources, creation of a hospitable investment climate, institutional capacity building and poverty alleviation to achieve a sustainable solution. This in turn needs a positive political climate to thrive. I just don´t see this will easily happen in Ethiopia given the current political climate.
I have my own objection to seeing food as a commodity, and not as a right especially in poor countries such as Ethiopia. The Ethiopia Commodity Exchange as an exchange sees food as a commodity so much so that only those who can afford to buy can eat. Moreover, the heavy reliance on commodities as the main export items will not help the country at all.
Empirical investigation has shown that the persistent downward trend in real commodity prices has resulted in significant foreign exchange losses for many commodity-dependent poor countries. Ethiopia is no exception as evidenced by the sharp decline in coffee earnings.
The long-term solution to declining commodity prices lies in export diversification and changes in the production structure. Yet, efforts towards export diversification will have to be complemented by domestic policies aimed at the development of human resources, creation of a hospitable investment climate, institutional capacity building and poverty alleviation to achieve a sustainable solution. This in turn needs a positive political climate to thrive. I just don´t see this will easily happen in Ethiopia given the current political climate.
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