Comment: Eritrea - Biting the Hand that Feeds ItFeb 1, 1999"U.S. development assistance to Eritrea is the highest per capita in Sub-Saharan Africa. Total assistance for Fiscal Year 1998 approaches $35 million in low interest loans, humanitarian and development assistance, and military programs." (Mr. W. Clarke, US Ambassador to Eritrea. Eritrea Profile; October 17, 1998) "The Government of Eritrea is eagerly awaiting delivery of the approximately 30,000 metric tons of wheat under this [PL-480 Title 1] program. The GSE has requested an additional USD 5 million line of credit for this year to help fill the gap between grain production and demand. This shortfall in food supply has come to a critical stage." (U.S. Embassy Report; Asmara, Eritrea, February 1998) BITING: Another of Eritrea's major financial sponsors is the United States. As the above quote from October 1998 shows, U.S. development assistance to Eritrea is the highest per capita in Sub-Saharan Africa. In addition, the US was instrumental in helping Eritrea implement its policy to "monetize" food aid despite the objections of the food aid donors from Europe.
Eventually, the US helped persuade the Europeans to go along with Eritrea's stubborn insistence on selling food aid and controlling the money raised from this activity as it saw fit.
Other activities of the US in Eritrea include: US Peace Corps; US "non-lethal" military aid; US demining operations; US clearing of Massawa harbor etc. etc.
It simply doesn't make sense. If anything, US policy is biased toward Eritrea. The major US business investment is in Eritrea (Anadarko Petroleum). The US is always ready to respond to the needs of its oil companies. They have huge influence in Washington thanks to their financial contributions to the campaigns of prominent American politicians. Last year, Anadarko ranked among the largest contributors to political campaigns in Texas.
Although Eritrea seems to be getting something from its sleazy liasions with Libya, the story is far from over. Gadhafi is a very erratic individual. It remains to be seen who will end up biting whom when this sick little relationship eventually breaks up.
- Dagmawi
Attachment 1: USAID activities in Eritrea: USAID/Eritrea, in close collaboration with the Government of the State of Eritrea, developed an Investment Partnership Plan which was approved in 1997 by USAID Washington. This partnership comprises USAID's assistance in support of three investment objectives:
The Investment Plan also supports the Greater Horn of Africa Initiative (GHAI) which focuses on food security and crisis prevention. Since 1993, USAID has obligated resources on the order of approximately $23,000,000 to the health sector, specifically, Primary Health Care; $12,229,000 in Enterprise; $9,850,000 in Human Capacity Development / Governance sectors; and $26,000,000 in P.L. 480 Title II and Title III food programs.
Attachment 2: US Acquiesecence to monetization of food aid: "Food aid has been a contentious issue. In 1996 the government ended all free distribution of food. Henceforth, it announced-over U.S. and European opposition-that it would sell donated grain on the domestic market at subsidized rates (rather than giving it away) "Washington and other food donors balked at losing control over the distribution of grain shipments within Eritrea. They also insisted that subsidies should be eliminated and that donated grain must be resold at world market prices. When the Asmara government refused, the U.S. withheld grain aid, forcing the cash-strapped Eritrean government to purchase food on the open market and to postpone its jobs program. Late in 1996, with Eritrean grain supplies running short, the U.S. agreed to permit the sale of donated grain as proposed by the Eritreans, rather than take the blame for renewed hunger, though European donors continued to oppose the program." |