Read what happened to Argentina when they followed Hailu Shawel idea.

LNA. The Privatization Agency did not succeed in selling factories or societies ?

Hailu Shawel. They did not succeed because they were asking too much.... Hailu Shawel want to privatized every thing bank, land factroies NOW READ WHAT HAPPENED TO ARGENTINA

Argentina was the most prosperous and industrially developed nation in Latin America. Today, it is a catastrophe. It's economy completely collapsed in December 2001; national income declined by 67% and 50% of Argentines dropped below the poverty line. Argentina was the most faithful follower of neoliberal policies and at the direction of the World Bank and IMF, privatized almost all state assets.


Privatization is Robin Hood in reverse, instead of robbing the rich to give to the poor, it robs the poor to give to the rich. The water system, the oil system, forestry, trains, subways, banks were all privatized.

One of the first things that happened when companies started being managed by international corporations is that a new work system was put in place and immediately a large number of people got laid off. Between 20% to 40% of the work force in the different companies was laid off. That's one way in which privatization hurt the economy and led to its collapse.

Second, the deindustrialization we were talking about because they start buying most of their technology, most their equipment from their headquarters or sister companies instead of buying in the country. Third way, money. They did not reinvest their profits in the country. That amount of money that should be reinvested in the country, that should help to develop the internal economy, that should help to create jobs - instead of that, it goes to headquarters in Spain, France and the U.S., anyplace in which headquarters is. We are talking about deinvestment because the money leaves. But the company headquarters send money back into the country. It is not true that that money was in any way invested in any productive manner. Most of that money was invested in the financial market that was very high in interest. That?s the fourth way. Fifthly, people start not having services. When you go just 45 minutes outside of the big cities, most people have no phone. Most people have no electricity. Water cannot be afforded. That is another, and probably one of the most dramatic ways, in which privatization contributed to the collapse

The most disastrous privatization was that of Argentine banks. These were bought by foreign banks, which then looted Argentina and transferred the astronomical sum of $197 billion abroad which crippled industrial production and destroyed the national banking system. Privatization meant the sucking-out of Argentina's wealth into the coffers of the U.S. and other Northern economies, leaving the country in total disintegration.

As Jorge explains, one of the foreign banks that plundered Argentina by transferring billions of dollars abroad was the Bank of Nova Scotia. BNS owned a bank called Quilmes Nova Scotia in Argentina, the 12th largest bank in the country. When the economy collapsed, BNS sold this bank and left the country without returning the money of depositors. The Argentines who put money in Quilmes Nova Scotia did not get it back.

The Bank of Nova Scotia needed to reinvest $700 million in Argentina to pay all the money that they have to pay to their creditors. They decided not to invest that money. You say $700 million is a lot of money and the Bank of Nova Scotia will tell you "We cannot invest that money in Argentina because there is no possibility that we will recover that money and our shareholders in Canada deserve better." The part that they are not telling you is that in a period of ten years that they operated in Argentina, every three months they made between $300 million and $500 million and they took it out of the country. By giving back the money that they made in six months, they could have kept that bank open and functioning but their decision was no, there is not a short term perspective of making money here, then we prefer just to walk away, take our money out, close the doors and screw the people who gave us the money.

But, Tulu,
You were for megacoporate/imperialist economy so long as it is for the kedamit emebet's and "endowments". Where do you stand? You are confusing us.

Email: jaduethio@yahoo.com

City: DC area

tulu,
Why don’t you go away on vacation again? It would be great for you and me. You are working very hard unsuccessfully and I am tired of it.

You know what Hailu said about corruption

I am sure I have links everywhere. If the atmosphere changed there will be a flood of investors coming here

our orange revolution Argentina style leader say about banking system

The banks in (Ethiopia) are very conservative. They are not developing country banks. In a depression like this they make it look as if there is a problem of inflation so they completely suppress the financial investment in this town and in the country as a whole. We believe we have to free up the system. We have to come up with taxation systems that will allow investors to be more aggressively participating in the development of the country. And the banks should be a part of this – a very important part. And the financial system should enable the banks to be more flexible. The private banks are so highly controlled that there is so much money sitting around. And the government bank, which is the Commercial Bank of Ethiopia, doesn't give loans because of administrative problems...So we need to free that system immediately

Yes! he is right as long as the loan goes to loacl business people if

What Hailu want is to bring in bank of America and our mini bank will join and beat bank of America and other big bank just like what we did in Adwa.

Here is what Hailu said

Banking is a system which moves an investment or a retrenchment. The banking has to be freed up, first of all. Second, we also have to allow foreign banks to come here. And then, I am sure, on the back of these banks will come investors. Because they will trust. They will work with their own bank and things will be easier. If you do that, you also make the local banks more competitive and more cohesive. Most probably the local private banks, which are mini-banks in a way, they will come together and form bigger banks. Which means there will also be competition for the foreign banks and the commercial banks. It will all become more active. So that is number one, I believe. Without that, you can talk about development, you can talk about anything, but you won’t go anywhere

Now after not even five year what will happened to Ethiopia banking system is what happened to Argentina bank.

Here is what happened to Argentia bank

The Bank of Nova Scotia needed to reinvest $700 million in Argentina to pay all the money that they have to pay to their creditors. They decided not to invest that money. You say $700 million is a lot of money and the Bank of Nova Scotia will tell you "We cannot invest that money in Argentina because there is no possibility that we will recover that money and our shareholders in Canada deserve better." The part that they are not telling you is that in a period of ten years that they operated in Argentina, every three months they made between $300 million and $500 million and they took it out of the country. By giving back the money that they made in six months, they could have kept that bank open and functioning but their decision was no, there is not a short term perspective of making money here, then we prefer just to walk away, take our money out, close the doors and screw the people who gave us the money.

Again and again in Ameirca million of mexican illegal workers work and live those corrupt business people love those illegal mexican because they are cost effective. in away they are good for America economy since this is the case Mr. Bush is trying to give them work permit...

Come back to Ethiopia instead of The Bank of Nova Scotia looting us I perfer our local business get the loan even if it mean bribing the bank CEO...

if there is no bottle neck them no body pay 100,000 birr in bribe so we should not worry about bribe becuase if we take care of the system the system take care of the bribe no bottle neck no corruption.

The sad thing is corruption is here to stay we can reduce it but we can't elemented that is why Haile want to bring his close connection to invest.

Amhras --Vs--None Amhra Ethiopians


Tribally based, Amhra dominated political party(CUD) lost the election, because...

97% of CUD`s Leadership is dominated by Single Tribe (Amhra Tribe).




The Amhras leader (Hilu Shawol) should first return atleast part of the 71 millions of dollars that his wife`s families stolen from poor Ethiopians.

Email: Demeke@Hotmail.com

City: CO