The Problem with Economic Integration

MAHEDER HAILESELASSIE TADESE/AFP via Getty Images

Economic Integration is not what it seems!

Eritrea’s Economic Integration with Ethiopia is dangerous to the long-term sovereignty and security of the Eritrean people. After signing the peace agreements with the government of Ethiopia last year, the Eritrean government began to advocate for Economic Integration between Eritrea and Ethiopia. However, since that time, the Eritrean government has not provided a thorough explanation on this matter. So far, Eritreans are forced to wait for future regional developments to understand the plan and effects of Economic integration. Without any clear details of its meaning and manner of implementation, the matter should be questioned and halted. 

It is paramount for nationalistic Eritreans to question why this failed policy is being re-introduced. The recent seminar by Mehereteab Medhanie, PFDJ spokesman, stated that this current policy is based upon a policy that was initially signed in 1993. The main pieces of the 1993 agreement were free trade and freedom of movement for people and goods between Eritrea and Ethiopia. This policy, less than four years later, by 1997 had completely broken down and contributed to the border conflict with Ethiopia. Ethiopia used the economic dependence of Eritrea as a weapon to cripple Eritrea. Continued economic integration with Ethiopia places Eritrea under the hegemony of Ethiopia. Therefore, the Eritrean government has a solemn duty to explain the method of integration, the benefit to the Eritrean people, and the method of avoiding the previous failure and conflict. Any national economic plan must avoid a strong dependence on Ethiopia, and should diversify our partners. 

In order to understand the reasons for the original economic integration policy in 1993, we must analyze the context. Previously during Italian occupation, Eritrean industries supplied European markets. After Eritrea was forcefully federated with Ethiopia, Eritrean industries were forced to supply only Ethiopia's market and army. The impact of economic integration was decreased industrial productivity. This was the economic vision Ethiopia had designated for Eritrea.  Haile Selassie’s regime tied economic integration to amharanization of the Eritrean population and annexation of Eritrean land and industry. This vision for Eritrea’s role within any relationship with Ethiopia was inherited by Meles Zenawi, and is a hereditary trait within Ethiopians. 

It is also important to analyze the impact that the agreement had on Eritrea, and, thus, the reasons why economic integration failed. In 1993, some Eritrean scholars like Dr. Tekie Fessahatzion, Phd in Developmental Economics, initially were strong proponents of free trade and freedom of movement agreements with Ethiopia. Then, Eritrean scholars were obsessed with the Ethiopian market, given how interconnected they had become. By the time Eritrea achieved its independence, tens of thousands of Eritreans lived and owned businesses in Ethiopia and many Ethiopians remained in Eritrea. By this time, many Eritrean industries had been systematically transferred to Ethiopia or abroad by the Ethiopian government. The remaining industries within Eritrea had become severely run down after being nationalized and mismanaged by successive Ethiopian governments. 

At its core, Economic integration between Eritrea and Ethiopia developed from Ethiopian imperialism. The federation, annexation, and war caused both nations to have a high level of interdependence. Thus, in 1993, it was inevitable for the Eritrean government and its scholars to champion the integration policies. However, by 1997, Eritreans finally came to a realization, in Dr. Tekie Fessehatzion’s words, “We knew if we wanted to grow we need to look beyond the Ethiopian market…We have to forget Ethiopia as a Primary market...For too long we have been lulled by the ready accessibility of the Ethiopian market.” This shift in attitude stems from the barrage of economic attacks waged by Ethiopia on Eritrean industry, Eritrean finances, and Eritrean sovereignty.

Today, Eritrea is no longer economically dependent on Ethiopia. Our economic dependence was harvested, and used to the benefit of the Ethiopian government and people. They seized Eritrean businesses and deported Eritreans from Ethiopia. Starting early on after independence, Eritrean industries were purposefully copied and recreated in Ethiopia in order to undercut Eritrean productivity. They also prevented Eritrean goods from reaching the Ethiopian market.

Ethiopia’s economic attacks were relentless. They attacked the Eritrean financial system: the Ethiopian government refused to pay Eritreans workers their pensions. and changed their currency in order to make the billions of birr in Eritrea valueless. Additionally, Ethiopia waged attacks on Eritrean trade. After signing a free trade and movement agreement with Eritrea, the Ethiopian government singled out Eritrean goods to be stopped by customs and left to expire in order to gain the upper hand. Last but most importantly, Ethiopia waged a large scale conventional war and later on a war of attrition in order to annihilate the Eritrean population, halt Eritrean economic productivity, and force Eritrea to divert any remaining resources towards defense. These last 20 years between Eritrea and Ethiopia is a period marked by the phrase and policy no war no peace. A harmless phrase with an alternate meaning, break the backbone of Eritrea. Prior to this era, Eritrea had been oppressed by Ethiopia, physically, culturally, psychologically, and economically for the decades preceding which lasted until today. Their has only ever been a single Ethiopian vision for the role of the Eritrean economy, which is as an economy that either supports Ethiopia or is nonexistent. Knowing these facts it is important for Eritreans to address the Eritrean government on this risky policy.

Eritreans must realize the extreme risk and security breach Economic integration will create. Eritrea was forced to rebuild from the ground up. Eritreans must ask themselves and the government the following question:

Will economic integration with Ethiopia cause the renewal of Eritrean subjugation?