PDA

View Full Version : An Economic Lesson We Can Learn from Eritrea


food for thought
07-18-2011, 02:44 PM
http://ranaslist.com/news/an-economic-lesson-we-can-learn-from-eritrea

An Economic Lesson We Can Learn from Eritrea

In the midst of the banking crisis and credit collapse, one country's development policies stand out as a lesson to the rest of us

By: Mark D. Juszczak

Eritrea, a war-ravaged land of extremes in the horn of Africa where the per capita GDP hovers around $2 a day, is an unlikely place to find lessons in economic development for wealthy western nations. And yet, in the midst of a global credit meltdown and a crush of pollution related ecological phenomena that are wrecking a higher and higher economic toll, it appears that our persistent paradigm of growth for growth's sake is reaching its limit.



Eritrea stands out, despite a strong grip on power by the country's sole party, People's Front for Democracy and Justice, for one distinct principle that has managed to persist above the pressure of both internal and global politics. This principle is a strong commitment to self-reliance and virtually zero debt.



Given the unsustainable cheap price of credit over the last several years, this is of specific interest. But, if one examines the context of credit in Africa, a clearer picture emerges. Africa currently spends about $15 billion a year on debt repayments, mostly from loans given by international agencies. In addition, for every $1 that African countries receive in grants, they pay back $13 in interest on debt. Without going into the history of this debt crisis, it is sufficient to say that prudence and a long-term perspective on sustainable growth were not at the forefront of policy makers and government leaders.



Eritrea, on the other hand, has taken a different path since its independence in 1993: one that can stand out both within Africa and to the rest of the developed western world as an example. Since its independence Eritrea has been ruled by the guerilla hero of their struggle with Ethiopia, President Isaias Afewerki. The President has rejected most foreign aid and promoted an agenda of internal development: by and for Eritreans. Although there have been sporadic periods of long bread and milk lines and the economy remains largely subsistence, with over 80% of the population working in farming and herding, a number of distinctly visible results have produced a unique national profile one that is a time capsule on the surface and a design for a sustainable future at its roots.



The New York Times ran a series of travel articles on Eritrea over the past two years. While the articles highlighted distinct tourist attractions, one paragraph stood out: "In 1994, the Eritrean government decided to rebuild the railway. It had hardly any money, and it asked for none. Retired railway workers, some in their 80's and 90's, came forward, and eight steam engines were painfully rebuilt, the parts made from smelted brass and iron. Eritreans were asked to return any parts they found. The lines, tunnels and bridges were repaired and rebuilt by hand. [The reporter visited] the workshops where the old men show me the ancient lathes and cutting machines that they have used to restore two more steam engines. They recycle and melt scrap metal to make parts."



There are several economic and ecological principles that the Eritrean approach to the restoration of the railroad demonstrates:

-a preference for skills building of the native workforce instead of opting for turn-key solutions by foreigners that may be more modern but do not provide opportunities for self-development

-a respect for the intelligence and competence of Eritrean nationals by the Eritrean government

-a zero-debt approach to ground-up development

-a model of development that produces a smaller carbon footprint than focusing on building highways and importing foreign automobiles through credit

-a tremendous pride in the craftsmanship and durability of Eritrean made goods and services

-a closed loop approach to industrial projects: zero-debt and zero-waste.



These principles might appear insignificant to the technological race that liquid capital is producing in powerful western economies, but they are the cornerstone of sustainable growth. Eritrea barely sips on the hydrocarbon economy. Although this might appear to be its weakness it is really a strength. It's nearly five million people consume approximately 5000 barrels of oil a day or 1/3 of a barrel per person per year. To put this in perspective the US consumes approximately 68 barrels of oil per person per year, over 200 times as much per person.



Precisely because it does not yet have a cumbersome hydrocarbon based infrastructure or development model, there is a great opportunity for Eritrea to develop a 'natural capital' economy from the ground up focusing on conservation, solar energy, converting its steam powered rail network to electricity and developing an extensive inter-modal transport network focused on the human dimension of scale.



At the same time, Eritrea stands out as an unusual example of wisdom and prudence in government. We could all learn lot from its example.


http://thumbnails.truveo.com/0010/72/80/72805D61795F39686DB97A_Large.jpg

food for thought
07-18-2011, 02:46 PM
AB0siLi0r50

BASCO
07-18-2011, 03:06 PM
cosign.

the way western countries are running they can only go so long before they crash and burn.

netscape check two
07-18-2011, 09:37 PM
Was that Borat? lol

EAGLE EYE
07-18-2011, 09:47 PM
cosign.

the way western countries are running they can only go so long before they crash and burn.


China and Japan are well on their way too.

food for thought
07-18-2011, 09:52 PM
@ chekc two
hahaha

i wish you could understand what they were saying fully

his mom was going off on him lol

Uploader Comments (aabbiieell)
yooo follow on twitter!!!! @Savedbyabiel

aabbiieell 1 month ago
you are the best of the best!

si1234mo 7 months ago
@si1234mo hahaha ayyye thanks! lol

aabbiieell 6 months ago
Reply
Top Comments
LOOL "NDI LA DYAHA" "I DONT CARRRE"

habeshas will be habeshas.

PriNceSsbUbbleZ13 3 months ago 11
2:00 "mum be quiet" lool you lucky you ain't in eritrea, my nigga you cracked me up

hermonnw1 5 months ago 5
see all
All Comments (52)
Sign In or Sign Up now to post a comment!
Lol be quiet mom then the mom in the background is like ohhhhhhh....

freebusta123 1 day ago
I love your mom swearing she's not going to pay for the pizza.

ElisabethLovesMusic 1 day ago
LOL u r so hilarious!!

thepokigur 1 week ago
LMFAO!! the background comments by your mom are hilarious!! and your accent is ON PT! "sharrap!" "anta wedi sinesirat giber aneh aykeflonye!" "indila adeka!" lmaooo

ea4b 1 week ago
Lmao My Mom Did This Once On Purpose x D

JulieeeBabeey 2 weeks ago
lmfao!!!!!!!!!!!!!!!!

ashley11231 3 weeks ago
@PriNceSsbUbbleZ13 Which is so funny when moms say it cause they're really dissin themselves if u break it down lolol.

Allinmoderation88 1 month ago
1:54 "Ende'eladecha!" Hahahaha gotta love my Eritrean ppl man!

shukoriina 1 month ago
lmfao.! ane aye gezon ye, i dont care.!

neyatadiam 1 month ago
View all Comments
1 2 3 4 5 6 Next

diggy
07-18-2011, 09:57 PM
I respect what Eritrea did.

^O^

mcca555
07-20-2011, 12:21 AM
the key doing big things

food for thought
08-03-2011, 12:10 PM
Was that Borat? lol

hahaha...so this broad on my facebook apparently knows that nigga who made the video lol. she posted that shit a few days ago

shes a looker though.

http://a4.sphotos.ak.fbcdn.net/photos-ak-snc1/v397/248/59/588265146/n588265146_4898732_1208.jpg


http://a7.sphotos.ak.fbcdn.net/hphotos-ak-snc6/267361_10150731071790147_588265146_20065186_458738 1_n.jpg
look at that ASS bro. that stallion WAGON BRO.

#EritreanManIsGodFTW

food for thought
08-03-2011, 12:14 PM
http://a1.sphotos.ak.fbcdn.net/hphotos-ak-snc3/16233_368505405146_588265146_10130094_3445881_n.jp g

cutn' heads
08-03-2011, 12:38 PM
the first chick is cute as hell. i would buy her coffee and a muffin.

food for thought
08-03-2011, 12:41 PM
lol its the same broad

the first one is her when she was younger

cutn' heads
08-03-2011, 01:20 PM
i like her better back then.

TSA
08-03-2011, 02:46 PM
ertriean chicks have cartoonish fatties. I'm down with that movement.

EAGLE EYE
08-03-2011, 09:56 PM
hahaha...so this broad on my facebook apparently knows that nigga who made the video lol. she posted that shit a few days ago


http://a7.sphotos.ak.fbcdn.net/hphotos-ak-snc6/267361_10150731071790147_588265146_20065186_458738 1_n.jpg
look at that ASS bro. that stallion WAGON BRO.

#EritreanManIsGodFTW


What's up with this nerd glasses movement?

diggy
08-03-2011, 10:30 PM
What's up with this nerd glasses movement?

Yeah. I mentioned something about this to my nephew - about how a lot of the frames for glasses and shades are retro and nerdy.

netscape check two
08-03-2011, 10:41 PM
Maybe it has something to do with how some people wear those funny looking big ass sunglasses that cover the whole person's face.