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THE TWO FUNDAMENTAL VOTING RIGHTS ETHIOPIA NEEDS TO CONSIDER AND CONSTITUTIONALIZE AHEAD OF ITS FORTHCOMING (POST COVID-19) GENERAL ELECTIONS

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By Mohammed Usman Darasa

Building a better system of voting which grants more Democratic tools to the people are considered to be a vital precursor the Culture Constitutionalism and establishment of Constitutional Democracy. Genuine aspirations towards this direction would not be an achievable end unless and otherwise supported by constitutionally guaranteed and practically realistic sets of fundamental voting rights, which might include amongst many other rights the rights to Recall and Reject. In particular, these two public empowerment rights need to be considered and adopted by the Constitutions of infant Democracies like Ethiopia.
True enough that political that Ethiopia will have to consider to more direct and effective rights vested in the vote than merely a choice to “select one of the following”. Innovation and political ingenuity would have to be carefully deployed to evolve a mechanism where people can reward and reprimand their representatives in a better way and exert choices, not throughout earlier. The quest is also to make the vote more powerful and an effective means of conveying the foremost message of Democracy. The underlying expectation here is that when people get a real sense of choice with checks and balances, their participation and enthusiasm will be substantially increased.
In such a way, this work has focused on these two revolutionary voting rights which hold the key for transforming our Constitutional Democracy to the standard and more even could be taken as a milestone for Africa and beyond. The following discussions have devoted to these two-fold – rights.
THE RIGHT TO REJECT
Many Democratic tools like systems of voting and voting rights have been discussed and debated among the experts, in various parts of the world. These include ranking based voting, negative voting, multiple preferences and the option to choose ‘none of the above (or NOTA). This part will briefly discuss the last of these (The NOTA)
Indeed, voting has to have an additional power to go more selection; it also needs to empower voters with the choice to reject the candidates. The NOTA option could also be justified just an aspect of citizens’ empowerment right to reject all candidates
In a true Democracy, citizens can be given a choice as an opportunity to express themselves unrestrictedly and in an unrestricted way as possible.
Many Nations and States around the world follow the policy of granting voters the option of rejecting all candidates in different versions.
In most of these cases, it exists as a clear and distinct option on the ballot paper itself. For instance, Switzerland, Spain, France and Belgium offers a Blanc vote option. These votes, though not stamped in favour of any candidate, are counted and to be reported.
Moreover, in the state of Nevada in the USA (None of these candidates), Ukraine (has ‘against all option), France has the vote ‘the Blanc, option, ‘Spain veto in’ veto en Blanco’, and Russia also has ‘against all’ option in its system of voting for long.
Perhaps, the best example among all is the state of Massachusetts in the USA and the South American nation of Colombia, where the negative vote is of significant consequence. In Colombia, if the blank votes (none of the above) get a majority, then the elections are to hold again.
Similarly, in 2006, Massachusetts included ‘ none of the above for a new election ‘ as an option. The majority of votes cast in this option meant re-poll with the entire set of all contesting candidates out of the re-poll.
In this regard, article 258 of the Constitution of Colombia which deals with the issue as follows:
“…when the blank votes constitute a majority of the total valid votes in the ballot to elect the members of the public corporation, governor, mayor or in the first-round presidential elections, the election should be repeated one”.
In the same way, an inclusion of NOTA into the FDRE Constitution is suggested as one of the better voting reforms which need serious consideration in Ethiopia, we need to establish a voting a system which gives greater say to the citizens’.
Indeed, the addition of such more dynamic tools into the voting system will further empower the people (voters).
As the same time, this would also serve as a mechanism to remove incompetents and bring fresh talents into the governance system of the country– at all levels. Such a system would intrinsically powerful enough to bring local level democratic reforms where the monopoly of the few power the mighty could be democratically countered by the right to reject blessed with the people. More importantly, it would be a useful in building a system of popular checks and accountability for the contesting parties to find the best candidates with a clean image and immaculate records. Besides, such a voting system would also; help in motivating the people to increase their participation in Politics and Governance process of the country, as no longer would a voter cast the ballot to be the decision of selection of one from a wide choice of candidates – rejecting the underserved once at all.
The Right to Recall
The recall is basically a process whereby the electorate has the power to remove the elected officials before the expiry of their usual term. Thus, the recall right confers on the electorate the power to actually ‘de-elect’ their representatives from the legislature through a direct vote initiated when a minimum number of voters registered in the electorates sign a petition to recall.
It hinges on the philosophy that just as it is possible to fire an incompetent official, there should be a mechanism to determine and terminate the tenure of an elected representative who is proven to be irremediably incompetent to discharge the duties vested upon him (her) by the Constitution and/or otherwise unethical.
Indeed, the right to recall an elected is not a new concept and enacting such a right has been a matter of discussion in many nations, yet three Nations particularly stand out in its implementation of this right – the US, Canada, and Venezuela in South America.
In particular, article 72 of the Constitution of Venezuelan reads as follows:
”…officers filled by popular election votes are subject to revocation. If one half of the term of office to which an official has been elected has elapsed, several voters representing at least 20% of registered voters in the affected Constituency may petition for the calling of a referendum to revoke that official’s mandate.”
To date, 18 out of the 50 states in the USA allow elected officials to he recalled from their positions after a petition by 12- 40% of the registered voters. Since, its inception, the right to recall has been exercised against several elected local officials in the USA — like mayors, Local Governors etc.
In 1921, North Dakota’s Lynn.J Frazier was called over a disputed about state-owned industries, and recently, in 2003, California’s Governor Gray Davis was recalled over mismanagement of the state budget to be replaced by Armold Schwarzenegger.
In 1995, British Colombia in Canada also enacted the recall law. If a critical minimum number of the petitioners reached, it will lead to a by-election to decide a possible recall.
Furthermore, Venezuela has the option of recall even for the highest office — that of the president, under article 72 of its Constitution.
There is question that the right to recall is viable in Ethiopian scenario and need to be adopted into the FDRE Constitution.
In case of a threshold number, it might be considered to initiate and effect recall petitions. Let Say 20% of the registered electorate approach the election board and seek a recall. It should also lead to the beginning of the recall proceedings. As with many other countries, the recall election can be held with the people having to indicate their chance for or against the recall.
The election can also be accompanied by a set of new options for the representation. The recall would be successful if the majority of the people vote in favour of the recall, and also an alternative candidate secures more votes than the votes for the existing representative in the form of against- recall votes.
To establish checks and balances and prevent misuse, recall elections should be allowed only after at least one year of completion of the term and only once during the entire time of the representative.
Thus, the right to recall is the highly efficient tool for Cutting short political tenures, which are marked by misguided promises and serious misconducts. It would empower the local watchdog bodies, which would be monitoring the representatives’ performance against the promises made, and in case if severe discrepancy, many emerge as agencies for initiating people’s actions for the recall.
It would also dissuade the candidates from making undeliverable and impossible promises to the people and work for the Constituency throughout their tenure, rather than make a contribution only towards the time when the elections are in near sight.
CONCLUSION
This work has tried to touch upon fundamentally, untouched academic research and grounds in the area of voting rights, paying deal of attention on the citizen’s rights to reject election candidates in totality and the right to recall an incumbent public official from their representative offices before their term expires) and the right to recall respectively.
In doing so, Raft of reasons have also been discussed from various points of view, meanwhile, well though suggestions were formulated and forwarded for Ethiopia, to reconsider and adopt (Constitutionalize) these two fundamental voting rights, ahead of its forthcoming (post Covid19) general elections, allowing these rights in a well structured and consequential manner which in turn would create a colossal change in the pace and intensity of Democratic reforms.
Besides, the inclusion of these rights( the right to reject and recall), have not only been recommended because, of the mere fact that these rights are based on very attractive ideas in theory, rather, but their adoption into FDRE Constitution as public empowerment rights would also help a lot in solving widespread practices of Bad Governance or the problem of real-time public accountability in the country, being a supreme and Constitutional cornerstone to ensure Good governance at all levels of the Governments.
Apart from this, incorporating these rights, in the State Constitutions(Regional Constitutions), with required surgical and standard (due process) and precision of laws, would also serve as an effective Democratic tool for ensuring real-time electoral accountability of elected public representatives —-at the local level.
Along these lines, the right to recall ( in particular), would also ensure the ‘license’ to stay in elected office in the hands of the electorate, being subject to revocation or real-time accountability, injecting additional grace and values into our Constitutional Democracy. Thus, Ethiopia needs to consider adopting this right (the right to recall) option into its Constitution, mainly on the grounds like Serious criminal activities, corruption and the squandering of public money for private consumption and failure to deliver on ‘certain election promises’ etc. it should be made automatic grounds for the initiation of recall proceedings of leaders at all levels of the Governments.
Lastly, there should be certain methods to analyze the performance of the representatives on a timely basis through an independent body. These records of the performances of various representatives should be made public in order to enhance public awareness thereby facilitating the recall process. If such cautions are undertaken while formulating processes, we can minimize the risk posed by the recall and benefit from being not led by unworthy officials.

Mohammed Usman Darasa is Lecturer and Researcher of Law and Federalism at SLF, Ethiopian Civil Service University, Addis Ababa, Ethiopia

Danawit Alema

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Name: Danawit Alema

Education: BA in marketing management

Company name: SEMA Clothing LTD

Title: Creative designer and owner

Founded in: 2018

What it does: Make new branded clothes

HQ: Shiromeda

Number of employees: 8

Startup Capital: 2,500 Birr

Current capital: 100,000 birr

Reasons for starting the business: To make our cultural cloths influential in the modern fashion sector

The biggest perk of ownership: I believe in GOD

Biggest strength: My dreams

Biggest challenging: Having an affordable workplace

Plan: To take Ethiopian fashion to the next level

First career: Designer

Most interested in meeting: PM Abiy Ahmed

Most admired person: Priyanka Chopra

Stress reducer: Praying

Favorite past time: Designing

Favorite book: Any motivational books

Favorite destination: Anywhere in Ethiopia

Favorite automobile: Range Rover

Why it’s time to revisit the development mandate and business model of the Ethiopian policy bank?

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By Atsebaha Abay

Globally, well over hundred countries have policy banks aimed to expedite their policy objectives. Though, financing long-term development projects is the dominant characteristics of policy banks they are not profit maximizing ventures. Despite various similarities, policy banks differ in terms of their funding mechanism, ownership structure, lending models, etc. Some countries have more than one policy banks each specializing in different development targets: South Korea has 5, china 3, Brazil 2, Germany 6, Ethiopia 1, etc. Policy banks have different ownership structures: Many of these are owned by federal governments while some are owned by regional states and still others by the private sector or a mixture of these. Based on their specialization, policy banks have different names: development bank, investment finance, industrial development bank, agricultural development bank, SME development bank, export development bank, EX-IM bank, etc.
The Ethiopian policy bank was given different names in different times: Agricultural Bank of Ethiopia (1945-1949), Agricultural and Commercial Bank of Ethiopia (1949-1951), Development Bank of Ethiopia (1951-1964), Investment Bank of Ethiopia (1964-1970), Agricultural and Industrial Development Bank of Ethiopia (1970-1994) and currently Development Bank of Ethiopia (aka DBE) since 1994.
The policy mandate of DBE is clearly indicated in its mission statement which says that “ DBE is a specialized financial institution established to promote national development agenda through development finance …….. to viable projects from the priority areas……..”. Further, the priority areas/ sectors are identified as “commercial agriculture, agro-processing, manufacturing and recently lease financing” with a list of potential investment projects under each of these 4 categories. This policy mandate, which can be considered as “narrow based” compared with similar development banks elsewhere, was given to it in 1994, i.e., when it was established anew. Since then, DBE has been delivering long-term and sustainable finance to key economic sectors that are in-line with government policy objectives. However, over the past two decades, a number of changes have been taken place on the economic structure of the country. For instance, the construction sector has been emerged as the second largest sector, only next to agriculture, in terms of volume of economic activities, job creation, etc. In addition, the service sector including education, health, hotel, telecom, real-estate, import-export, etc have enormously grown and contributed to country’s economic growth.
As the survey made by the WB (World Bank) in 2011 revels, 86% of the development banks operating globally said “trade and service sectors” are within their policy mandate, 74% said construction and housing, 48% said health and 45% of them mentioned that education is within their policy mandate. It would, therefore, be commendable for the Ethiopian government to revisit the policy mandate of DBE to broaden its development mandate and bolster its economic development role in the country.
Development banks adopt various business models. Considering source of fund, various development banks operating elsewhere use deferent funding options including saving and deposit mobilization from the public. Others receive budgets from government or get finance from different financial institutions and/ or raise fund from domestic and international capital markets. Indeed, many financial experts believe that development banks should focus on their lending activities to avoid competition with the private banks in mobilizing savings. Coming back to Ethiopia and considering its funding mechanism, DBE (contrary to its establishment purpose indicated in proclamation number 83/2003, Article 6.6) is a non-deposit taking institution and uses first-tire (i.e., direct delivery) business model for over 90% of its credit operation. Further, it is fully owned by the government.
Starting this year, the Ethiopian government (i.e., NBE) is terminating its fund supply to DBE due to the end of the in-famous 27% NBE Bills. The closure of such major financial stream of the bank would undoubtedly undermine its liquidity. In economies such as ours where the private sector has acute shortage of investment finance and that the margin between deposit rate and lending rate is so high, it is advisable for development banks to receive saving and deposits from the public and other institutions in addition to their regular sources. This can help them to remain profitable and improve their sustainability. Applying the same logic, allowing such funding mechanism can help DBE to diversify its funding sources and compensate the fund frozen by the NBE which, according to the writer of this article, has come at a wrong timing.
Investing in other profitable ventures is another cushion used by many governments in shielding their development banks from financial losses. For instance, this year, despite the huge operational loss it faced from its banking operations, the Korean Development Bank did not suffer much because of the sizeable dividend it got from Korean Electric Power Corporation which 32.9% of the capital of this huge corporation is owned by the bank. As per the aforementioned Proclamation Number 83/2003, Article 6.4, DBE is allowed to participate in equity investments which the bank has never exercised it yet partly due to shortage of investment fund. This year, the government has increased the capital of DBE and that it should look into some selected lucrative investments.
The Covid-19 driven economic crisis and its huge impact on the operations of SMEs is another major concern of DBE. The NPL ratio of DBE’s corporate loan portfolio has sharply declined and reached the required single digit level. However, NPLs that come from the SME (project financing and lease finance) credit line is soaring beyond one can imagine. Due to this, DBE is at risk of this potentially devastating threat. Therefore, all concerned bodies should sit and come-up with short and long-term strategies ahead. Here is my two cents proposal.
As a short term solution, the bank can replicate its success story of the corporate credit portfolio to the SME (both project financing and lease finance) loans that are under watch list or have already entered NPL. But, in the long term, i.e., for new SME loans, DBE may reconsider its business model towards adopting a second-tier strategy (i.e., through other financial intermediary). This model is beneficial to DBE because it enables to reach out to a large number of SMEs (project and lease finance) beneficiaries operating throughout the country without increasing its branches or incurring disproportionate branch operation costs. It is also in-line with the government policy because such model helps the growth of other financial intermediaries (private banks, MFIs, SACCOS and RUSACCOs) to serve the under-served clients in the deep rural areas.
What other business models can DBE re-thinks of? Recently (as of August 18), NBE has allowed local banks to borrow from their foreign counterparts. Therefore, broadening its geographic scope through building business partnership with international development banks such as the EX-IM Banks of China and South Korea, European Investment Bank, BRICS’s New Development Bank, etc. can help DBE to absorb foreign currency through both loans and FDIs. In turn, this will help to improve the foreign currency supply that can be used for the purchase of capital goods (machinery, equipment, etc.) for its clients.
Regional states in Ethiopia are one of the political and economic entities in the country that have huge leasable and leased (not fully paid) land collateral but have acute shortage of development finance. Therefore, providing loans to regional states can be considered as one business portfolio of DBE in the future. What else? In Ethiopia, the Muslim community constitutes 35-40% of the Ethiopian population and above 50% of the business community. Therefore, it would be unfair to ignore this community in their efforts to develop their business and country. And as a long term financial specialist, DBE has the most relevant experience to Islamic banking compared with the other commercial banks operating in Ethiopia. It would therefore be wise to re-consider the interest free credit line and introduce to DBE as one of its business portfolio.
So far, DBE has a sound record of balancing the bank’s dual objectives of fulfilling its development mandate and its profitability. This year alone, it accrued a record net-profit (before tax) of 1.1 billion Birr without compromising its grand goals. And if DBE is needed to be profitable and financially sustainable, then it has to revise its policy mandates and business models right now.

Atsebaha Abay is a banking and financial services expert currently serving as director at the Development Bank of Ethiopia (DBE). He can be reached at atsebahaabay@gmail.com.

The Ladima Foundation Adiaha Award 2020 presented to Finding Sally

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The Ladima Foundation have presented the 2020 edition of the Adiaha Award for Best Documentary from an African Woman on Sunday August 30th at the Encounters International Documentary Film Festival.
The jury selected Tamara Mariam’s Dawit personal political story, Finding Sally. The jury, represented by Theresa Hill of STEPS said, “the jurors and I thoroughly enjoyed watching the films selected in this category and were unanimous in our selection of the top 3 films. In 3rd place is Beyond My Steps by Kama Lara, 2nd place Mother to Mother by Sara de Gouveia and the winner is Finding Sally by Tamara Mariam Dawit. This film is a touching exploration of personal and collective history. The filmmaker questions notions of family, identity, belonging, personal conviction, idealism and political engagement. This film is not only about family history, it’s not only personal. It’s about a country’s history.”
The personal and political Ethiopian film sees Tamara Dawit draw together the pieces of mysterious life of her aunt Sally forty years after her disappearance. She revisits the Ethiopian Revolution and the terrible massacre that followed, which resulted in nearly every Ethiopian family losing a loved one. Her quest leads her to question notions of belonging, personal convictions and political ideals at a time when Ethiopia is going through important political changes once again.
The Adiaha Award was initiated at the Zanzibar International Film Festival in 2017 and has previously been awarded to Samantha Biffot (2017), The African Who Wanted to Fly, and Phillipa Ndisi-Herrmann (2018), New Moon.
The Adiaha Award includes $2,000 towards the winner’s next film, and also an invitation to screen the film and attend The Dortmund | Cologne International Women’s Festival 2021 edition.
Adiaha means first daughter in the Ibibio language of Akwa Ibom State in Nigeria and the award is meant to both celebrate the achievements of African women directors, as well as encourage African women directors to submit their films to film festivals.
The Ladima Foundation is a Pan-African non-profit organisation founded with the aim of contributing to correcting the major gender imbalances within the film, TV and content industries.
The Ladima Foundation supports and recognises African women in Film, TV and Content. Through training and networking programmes, we uplift, connect and include. Ladima operates in the spirit of positivity, excellence and integrity.