Europe

The European Union, which currently comprises 15 affluent European countries, constitutes a huge market and is poised to accept 10 more members. This market is comparable in scope and prosperity to that of the U.S. and in due course, it could surpass the US. Next to the U.S., it represents the second most powerful market, determining the rules governing globalization. It is also noteworthy that the EU has as its main objective, the establishment of peace and democracy. The development aid we receive from its member states, added to that coming from the EU (Commission) itself, places the EU as our largest source of aid. It is also the main destination for our products. As regards investment, although it is regrettable that the results are so far not encouraging, there is no doubt that the EU continues to be a huge source of investment opportunities for our country. Furthermore, this region remains to be a critical source of assistance for our development endeavor. At this time we do not see the EU as posing a security threat to Ethiopia. To the contrary, as the EU and its members have the objective of ensuring the respect of international law and the promotion of peace and democracy, we consider them as partners and sources of support in our effort in this area.

One main concern regarding our relationship with Europe has to do with our failure to make maximum use of the opportunities that the region offers. Admittedly, we have not done enough in terms of exploring sources of credit and aid to finance our development plans and ensuring that the money thus obtained is properly used. More importantly, there has been some failure to gear our relations with the EU toward expanding trade and investment in the country. The main reason for this is our poor image in Europe. Ethiopia is perceived as a country wracked by protracted war and poverty rather than a potential destination for investment and trade, and the efforts deployed to correct the image have not been adequate. Furthermore there has been little effectively planned work done in terms of creating an environment conducive to attracting investment.

Since the EU represents one of the powerful agents shaping the rules governing globalization, there is likely to be a tendency to regard the EU as a source of the negative influences associated with the phenomenon. However, it is encouraging to see that the EU has recently agreed to allow poorer countries, including Ethiopia, free access to its market without any tariff and quota on entering goods. Nevertheless the subsidy the EU provides to its firms with which we would have to compete, and other practices relating to trade and investment, are having a negative effect on the development of the poor countries.

With respect to bilateral relations, there are problems caused by attempts to impose options that contradict the political and economic strategies that we carefully designed to suit our context.

The strengthening of our relations with EU, and the maximization of the benefits we could gain for our development and security, are predicated on the domestic work we carry out in Ethiopia. Important are the efforts we deploy to implement the development and democratization strategy we have adopted. We should thus identify gaps in the resources needed to implement the development plan with a view to determining the kind of assistance the EU can provide to help fill the gap. Moreover, we should be prepared to engage in consultative meetings with EU member states and explain our strategies. Given the fact that our development strategies are based on democratic principles and are to be implemented within the framework of globalization, we do not expect them to be in conflict with the fundamental interests of European countries. It should also be our policy to try and resolve differences through dialogue and mutual understanding in a manner that does not jeopardize or compromise our fundamental strategies and goals.

We should strive to acquire from European states credits and grants for the development and technical assistance required by our initiatives, and work hard to ensure maximum and effective utilization of the resources secured. In due course, our main focus should shift to trade and investment. Based on detailed and continuing research, and study we should, find markets for our products and export those that are in demand in Europe. Work along these lines will also require us to establish and maintain close contact and cooperation with private investors, NGOs and states that are ready to contribute. Similarly, steps should be taken to establish through research the parties that can help us in our efforts to attract the type and amount of investment we desire, and to work together with them in a more coordinated fashion. We need to work hard to change conditions within Ethiopia and cooperate with those that can help in changing the image of our country.

Europe has a significant role to play in efforts aimed at ensuring peace, stability and democracy in our region. Thus, we believe that there is a clear need on our part to make sure that member countries have a firm grasp of our interests and role in maintaining the security of the region. We need to consult on issues that crop up on different occasions, and ensure that we receive sustainable political and diplomatic support.

Government-to-government relations are key in our overall relations, but we cannot expect to get comprehensive benefits in the confines of state sectors. The greatest benefits come form trade and investment, and the key here is in the hands of the private business community. We therefore need to widen our focus to include the governments, the NGOs and the private sector. Our diplomacy in Europe should aim at involving and even coordinating all three sectors, based on detailed and continued research studies and analysis. Considering the EU as a union may be correct, but the role member states play are not the same. While we should work to maintain good ties with all EU members' states, we should focus on cultivating extensive ties with major countries, and those better disposed towards Ethiopia.

Differences that could arise with Europe have to do with differing appreciations of the policies we pursue to promote development and democracy in Ethiopia. Some policies may not be pleasing to European businessmen. Our policies should be drawn carefully and on the basis of detailed study. Should better options be identified, they should be pursued unreservedly. We should also be prepared to defend fundamental policy matters to which we are deeply committed, and we should try to resolve such differences in opinion by showing the significance and validity of the policy causing disagreement.

The EU is beginning to take some positive steps to mitigate the negative influences of globalization. We are also aware that the people of Europe and non-governmental organizations hold views that are more supportive towards poorer countries. We believe we have to take advantage of this and push hard to persuade Europe to work towards creating a more favorable condition for Ethiopia and the whole of Africa. Efforts along this line can bear fruit only when African countries join hands under the framework of the African Union.