Friday, February 3, 2023
HomeEthiopian NewsEthiopian PM removed National Bank governor, appoints a World Bank man

Ethiopian PM removed National Bank governor, appoints a World Bank man

Mamo Mihretu is seen as a champion of IMF and World Bank Policies by some but Ethiopian opposition parties are yet to remark on the appointment 

Ethiopians PM _
Mamo Mihrete, Abiy Ahmed’s choice for Central Bank Governor Position (Photo : from twitter handle of Mamo Mihrete )

borkena

This week, Ethiopian Prime Minister Abiy Ahmed removed Yinager Dessie as governor of the national Bank of Ethiopia. It was on Friday the state media announced that the PM had appointed Mamo Mihretu as the new governor. 

Yinager was confirmed as governor in June 2018 replacing Teklewold Atinafu. It was in Mr. Yinager’s tenure that Ethiopia introduced new bank notes – a process that was highly secretive. The project was given a secret code, as the Prime minister himself said soon after it was made public, to maintain secrecy. 

He has also  overseen the introduction of several regulatory policies in connection with private banks and crackdown on embezzled money  from government coffers. The introduction of the new bank note itself was meant to reverse corruption.

A few months ago, a new policy to open up the banking sector to foreign investor’s was introduced under his watch but he was not seen embracing the change with enthusiasm. Rather he is on record warning that local banks might need to merge with the aim to withstand competition from expatriate giant banks.   

As is the case with other removals from power, PM Abiy Ahmed’s administration did not say why Yinager Dessie had to be removed as governor of Ethiopia’s central bank. 

The PM picked Mamo Mihretu to replace Yinager Dessie.  He used to work for the World Bank and is said to be a champion of the World Bank and IMF’s vision of “market liberalization.”  Some link him to the effort in deepening “privatization” in Ethiopia including to the plan, which seems to be rather simmering underneath now, to sell Ethiopian Airlines and EthioTelecom. 

About a year or so ago, PM Abiy appointed him as CEO of  Ethiopian Investment Holdings. 

For some, he is known as an activist for IMF and World Bank policies. Some even link Abiy Ahmed’s decision for currency evaluation to Mr. Mamo who is said to be currently in the core of the PM’s team. 

There are views that tend to describe the PM’s decision to appoint Mamo to the top position in Ethiopia’s central Bank as “irresponsible.” 

There are also views that point to the fact that the new appointee is a member of the ruling Prosperity Party and very close to PM Abiy Ahmed and that compromises neutrality( “Independence”)  that is needed for the position.  In fact, the outgoing governor was also a member of the ruling party. What makes the new governor a concern is his apparent allegiance with the IMF and World Bank. In fact, Prime Minister Abiy Ahmed is on record for depicting the World Bank as a “mother’s purse.” 

On competence level, those who oppose the new governor point out that he lacks expertise and knowledge of macro-economic and finance – and does not have what it takes to lead the central bank in what is said to be trying times for Ethiopia.  Mamo is a graduate of law and public policy from Harvard. 

Anticipated changes are even worse devaluation schemes as per the prescriptions of the multilateral institutions. 

There does not seem to be an opposition to Prime Minister Abiy Ahmed’s decision as it relates to NBE appointments either from the official opposition parties or from parliamentarians. 

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7 COMMENTS

  1. Be carefully what you wish for! Championing for greedy neoliberalism and capitulation to the financial predatory institution entitled the West like the IMF and the WB is grave mistake. They are there to make tons of money plus spawning curruption, but not the vise verse. Dealing with them needs extreme caution They never helped a poor nation out of poverty in the last 5 decades . It always ends up with same story.: disastrous national bankruptcy,
    exploitation scheme and socio-economic collapse of many countries.

    • Agree,

      The Chinese learnt from the the Japanese Banking system crisis (bubble) since the 1980’s, and have not fully opened their Banking system to foreign(NL) banking giants (thieves) of the West (NY,& London).
      Any developing nation should learn from the Chinese, open all other industries, except Banking; period.
      Japanese banks were “suppressed” by the west, because the US does not allow any one pass it in their developments. Germany was the first, and Japan, China is the target now (Russia kept in the background…).

      Former US FED, current US treasury Sec. Janet Yellen top economist that has been in the field for over 50 years at the top… in recent interview was asked about the “Transitory” debacle she copied from the current FED and went along with full force. When the it over lived beyond the assumed time frame, they both changed the term but still saying the same thing for a while, but finally something has to give, she said she “has never experienced inflation of this kind” therefore, she “does not know” when this will end.

      When a world class “economist” with 50+ years experience say “I do not know”, everyone must pay attention.

      DAVOS 2023:
      The other day there was a discussion about the current state of the world monetary-system, with top bakers & Finance M.s of IMF, EU, US, Japan, & France.
      The talk started by the moderator saying “he interviewed over 90 CEOs, policy makers…, etc. and the phrase that best describes the experience I had this week is, ‘Investors and CEOs are increasingly bullish, but they are not Optimistic’ …such a contradiction…”

      Link = youtube.com/watch?v=AzDvBK-12ow

      Astonishingly all the professionals in this panel are pessimist & somewhat optimist, meaning they DO NOT KNOW. They are not sure.
      Though I like Larry Sommers point of view of Win Win world wide, defeating GREED (US)).

      Both pessimist & optimist are in the same boat, sailing/ walking “blindfolded”.

      So, this move by the PM (to OPEN the banks) could be seen as a naiveite, it could also is a blessing in disguise if the new Central Banker knows what is ahead and walks accordingly to avoid the DANGERs.

      Wish him well, and everyone else.

      • Professor Richard Wolff

        Lecture : Shifting from Economic Neoliberalism to Economic Nationalism –

        How the Chinese Government-owned + Private-owned Economic development strategy performed better than: (Marxist + Adam Smith’s – combined model)

        a) The Western Private -owned ( Adam smith’s model).

        b) USSR 100% Government-owned (Marxist model)

        The Chinses figured out the best of both models can better serve both the nation & its citizens economic interest at the same time and guaranty success. And did in a very short period of time than both the US or USSR weren’t able to accomplish.

        Link = youtube.com/watch?v=bl6iepwdgrA

        2) Economic Update: Economics For A New Year

        Link = youtube.com/watch?v=h7xR2sNB8fo

        Be well.

  2. The most important thing the developing world must “understand clearly” is this:

    1) The developed world (West) has NO raw-material (recourses ) other than processed-goods & FIAT $.

    2) we are exchanging REAL-Goods to their freshly-printed (FIAT) ‘promissory-Note’ (IOUs) in hopes of using the IOUs to get or buy other goods/services we need or are interested in.

    3) if and when their IUO we hold lose its value due to say, ‘de-dollarization’, which most are expecting to happen at any time (near future). Because of the excessive ‘US/EU sanction and Assets-grab exercise’ of late, many nations are using local-currencies to trade between themselves. Meaning, the possibility of other stronger currencies & Gold / sliver gaining value over USD, a significant risk to USD holders over time.

    In this monumental-time to assume “business as usual” is going to be very detrimental.

    Multi-polar economic & political cooperation is emerging, and the Ukraine (NATO-proxy-war) with Russia seems to heading to a further escalation, seriously affecting economic activities world wide…
    * * Food self sufficiency becomes very important.

    This is what the “Mayans” called the “End-time” ( drastic change over short period of time, or completely New-system emerging naturally (Seasonal Change)).

    It is best to “Trade carefully”, with less “business as usual”!!!

    Be well.

  3. evil evil evil comes to this world because of greedy thevs, Illuminati, satan worshippers, double dealers, cheats, thieves……..

  4. How the Corrosive-ways the West (Neocon’s) & their Big- companies pressure & subjugate their targets… and how the “developing” world is starting to PUSH-back.

    Dr. Mobeen Syed

    Medical lecture: Why India did not allow Pfizer’s Covid-19 vaccine? [Jan 2023]

    How the western- corrosive-colonial-business practices & subjugations are alive and well today, but in recent times many of its “targets” are standing-up to protect their people & their nations-interest by questioning its “predatory ways” and outright rejecting its push to comply.

    Big-Pharma, country by country vaccine negotiation started by arm-twisting governments in 2020:

    Case #1:

    India:
    Pfizer approached India to get legal-immunity for its Covid-19 vaccines in 2020, India requested Pfizer to do “Clinical-trials” first, but Pfizer refused & was not interested to do so, and India refused to amend its laws.

    Pfizer’s negative- PR machine went at work :
    “Pfizer can save Indian life’s, but the bureaucracy is dragging its feet while people are dying…”
    – Public opinion was not favorable to the Indian Government stance… (But India stood its ground.)

    Case #2:

    In Latin America the Big-Pharma bulling went even stronger…,

    Argentina:
    Pfizer’s demand:
    1) Legal-protection for its negligence and wrongdoing ( for injuries /death caused by their vaccine).., and Argentina amended its laws 3 times.
    2) Pfizer demanded Argentina to transfer its “Bank-reserve” and “Military-bases” as ‘guaranties” (collateral)…

    Link =youtube.com/watch?v=vGhjYC539J8

    – BRICS nations are pushing back the “Neocons” , and its time Africa /Ethiopia (the Global South in general) must also start to bush-back. (join the group in “Solidarity”.)

    As the “old-economy” keeps disintegrating, the pressure on the “Global-South” might increase… even more.
    (as US is sacrificing Europe with “Inflation Reduction Act”, to push it to be the 3rd position, to guaranty 2nd place for itself, if & when Chinese economy topples them all, soon…)

    Be well..

  5. Pfizer CEO in Davos 2023

    “Creating an annual vaccines… ”

    Jordan Walker as Pfizer Director, Research & Development Strategic Operations

    On internal project (In House mutated Virus, to sell more vaccine… ) Exploring “Mutating” COVID-19 Virus For New Vaccines

    “Don’t tell anyone this…There is a risk…have to be very controlled to make sure this virus you mutate doesn’t create something…the way that the virus started in Wuhan, to be honest.”

    Link=witter.com/Project_Veritas/status/1618405890612420609

    They create a virus, to infect the population, and make the vaccine for it, and sell vaccines to continue make $$$$ endlessly,

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