Development in Ethiopia

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Music.

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Ethiopia, oxen treading out grain from chaff As for millennium's past, and a bridge built by the Portuguese in the 16th century, still serving the same traffic it was built then to serve.

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Is that Ethiopia, or is it the bustling activity of Eris Ababa, the capital?

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Or is it the wall enclosed Coptic Church at Axon, one of the world's oldest centers of Christianity, where village girls still wash dust from their feet beside the communal well in the shadow of ancient Stella, erected to mark the graves of kings whose cities flourished here long before Christianity.

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Another kind of monument in the capital, a new Hilton Hotel.

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Foot worn trails across the plains are still the most common roads even with modern construction.

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Half of Ethiopia is more than 10 miles from an all weather Rd.

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Or is it poverty that typifies the nation?

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The per capita income is the equivalent of 60 American dollars a year.

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Or the ravages of disease in a land of 23 million people.

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There are just 1300 modern medical doctors.

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The grim past of Ethiopia and Africa has been depicted by Ethiopia's own artist in Africa Hall.

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That could be the future too.

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Or is this rather the beginning of an era of prosperity?

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The future of Ethiopia is ultimately in the hands of its own people.

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An international organizations and individual men can help.

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This is the story of one such man.

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His name is Mahmoud Bernie.

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He is a Pakistani citizen and he works on Ethiopian development for the World Bank in Washington, DC.

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He talks in millions.

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The economy as a whole, now you can take let's say out of this about 6 or $6 million for port and about 10 or $11 million for for Rd.

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This is a 1990 kilometer, 1995 kilometer Rd.

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all by the road.

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Gautam Petrus, Minister of State.

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Ministry of Planning and Development.

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Mahmoud Bernie is only one of the bank's 1700 employees who come from 75 different countries, and Ethiopia is only one of the 93 developing countries that have received loans from the Bank or its affiliates.

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The record of a few weeks in the life of Mahmoud Bernie can tell the story of a new kind of banker and part of the story of Ethiopia and the World Bank Group.

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That will give us a total in the next 5 years of $20 million bank and $20 million Ida.

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The story begins at the World Bank's headquarters in Washington, DC.

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Good morning, gentlemen.

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We have a very interesting and important project before us this morning.

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This is our 4th highway project in Ethiopia.

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At a meeting of the loan committee, Bernie and Noah McIver, the deputy director of the Africa Department, are asking approval of a new $21 million loan and credit for Ethiopia.

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Mr.

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Chairman, we have in putting this.

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Proposal together.

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The staff of the bank feels quite convinced.

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Once the loan is approved here, it is voted on by the board of directors who represent the banks 107 member nations.

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All have subscribed funds to the bank.

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The United States, Great Britain, West Germany and France are the largest shareholders.

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Agricultural Development.

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Which is the backbone of the economy?

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The board approves the loan and as Bernie makes arrangements to leave for Ethiopia, he is led to consider what 13 years of work at the bank have meant to him.

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Or, you know, I came to the bank for for one or.

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Two years of.

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Experience I thought it was a good idea to to work in an institution like this, but then when you become a.

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Part of.

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Of an activity which is so very important for the development of the of the lesser developed countries.

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Actually, he gets in your blood and then then many other opportunities or offers that you get which may be attractive.

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They're not as exciting as the work in the bank.

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And you feel you're part of the forces in the world that are trying to combat the the very overwhelming odds.

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This is sense of loyalty to the the work of the bank.

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A sense of.

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Being part of a a movement to to better the world which we live in.

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Before I could leave for Ethiopia, we also had to have a meeting of the Bernie Family Executive Board to appoint a new chief.

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I'm the chief.

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No, he's the.

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Chief, Yeah, but I'm going.

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Away.

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Well, he's still the chief.

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No, I'm so now it is the acting chief.

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Yeah, I'm, I take her.

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But if you don't behave properly then Ian is going to take over.

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He's.

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2nd in command.

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And how about if if she does, he doesn't?

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Act well.

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Then mommy's turn.

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Then Mommy's turn.

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Yes.

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And how does she does?

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Well then we'll be in a mess.

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This is a flight I have made many times.

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For over 2 years I was stationed by the bank in Ethiopia with my family.

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Those were very pleasant years.

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My flight from Washington to Ethiopia took me across the Atlantic, across Spain, then Italy and Greece, southward to Cairo, following down the Nile to the source of the Blue Nile and beyond to Addis Ababa, the capital.

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In the years I have been working on Ethiopian development, I have come to love the beautiful country and its people, as handsome as any on the blow the Whether on the high plateau or in the marketplace, the faces speak histories and styles of living the on the coast of the Red Sea at Pasawa, I go to meet again a man whose perseverance and courage have meant much to his nation and to others, Emperor Haile Selassie.

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I'm very happy.

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To be back, Your Majesty and I feel.

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As if I have come home.

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We are very pleased to have you again because this country have been here before.

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The problems of Ethiopia are not simple and as we talk, I'm aware of the difficulties facing a leader who must maintain stability and at the same time encourage rapid change.

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We.

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Would like to reassure Your Impaired Majesty that the Bank will stand ready to assist in all the efforts that that the government is pursuing in in improving the economic well-being of.

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Of the country, His Imperial Majesty tells me that the help of the bank has already been important in accelerating development not only in Ethiopia but in the world at large, and he looks forward to closer relations in the future.

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In Ethiopia, flights in little aeroplanes are always a bit scary, but with 14,000 foot mountains that absorb a plane or two a year.

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But the most important element to be financed by this new loan is a road between Awash and Thunder Ho in the Rift Valley.

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It is interesting to see the route it will take, but this trip to Ethiopia has a much more important goal.

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We want to be assured that this road will lead to agricultural development of the valley, which will benefit the people there and the economy of the country.

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The pilot is Robert Bensov, who has been in Ethiopia for only six months, but already he knows it like a map.

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Bob's Bush Flying is a vital communications connection in this country, where lack of all weather roads cuts off many people three months out of every year.

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But flying agriculture produce to market, as is sometimes done here out of necessity, is terribly wasteful and.

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This.

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Is where the.

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Road begins.

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From Arash to Ghawani and there it is now just a dirt trail, but it is already being used by trucks in the dry season.

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A vast area of fertile but dry planes.

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Water is there.

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The Awash River flows to the sea, now largely unused.

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There is an agricultural project in northern Ethiopia that gives some idea of what the Awash Valley could become once nothing grew here but cactus.

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Now Elaborate Farm supports a large Ethiopian population with an agricultural surplus for export to Europe.

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It produces milk, cheese, citrus, tomatoes and even the tomatoes skin are processed for fodder.

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The new road in the Awash Valley could lead to development like this on a much larger scale.

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This is why I want to talk to the Italian manager of Elaborate Farm, Giuseppe Toti.

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Men like Toti.

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Can bring in the new investment and know how for the agricultural development of the valley that will make the road a success.

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You have been able to do at Elaborate is a success story and you don't find too many projects.

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Like this?

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Now there are hundreds and thousands of hectares of of land Good.

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Land.

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Water is there, Abash River is there, there are there are programs to to store the water to use it for irrigation.

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It's all gravity irrigation now.

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I've been told that's ideal place for, among other things, for citrus.

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Now the road will be built, the road will be completed in 3 1/2 years.

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It's very interesting, very, very interesting.

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So this.

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Is.

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Very more Toti is interested and that is fine, but that is not enough.

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Much more must be done that can only come from the Ethiopian government and the people of the valley.

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Noel McCarver and I asked for an interview with the Prime Minister.

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His Excellency, a clear look up the world.

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I'll certainly put it on record in the bank and we get back for that fact one or.

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Two more things, Your Excellency, if we could discuss with you if you have a few more minutes.

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We have a certain understanding with your government, one of which is the development in the Awash Valley Authority, because this road, which is a very expensive.

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Rd.

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Costing many $1,000,000 to go from awash to Tandaho.

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One of the reasons why we have agreed to.

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Finance that road is that.

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It has great agricultural potential, but we are a bit concerned that very little has been done so far in organizing large scale agricultural development in that area, although the soil is good.

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Water is there.

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And and a lot of good products can be produced.

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There in that.

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Connection What is the government doing with improvement of tenant landlord relationship?

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Long term development of agriculture can not be done until landlord tenant relationship have been improved and also cadastral survey has taken place, registration of land has taken place, marketing facilities have been created, feeder roads have been developed.

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These.

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Are all various aspects of of a of a total development of agriculture.

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They are working very hard.

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We are beginning.

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He tells us that the new Ministry of Land Reform is preparing important legislation that is encouraging.

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So ours is not ordinary banking.

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We start talking about a loan for a road and we are LED into talking about land reform.

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Roads don't produce food, but a road can lead to an increase in agricultural production if the people who till the land are convinced that they will reap the major benefits.

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Quite often I find myself explaining to various groups what the bank is trying to do.

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This is a group of students from highly Selassie First University concerned about the future of their country.

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Of course we are a.

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Nonprofit organization, but because we are very business like.

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We have a lot.

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Of accumulated profits, which we are.

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Applying back into investment.

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Do you require countries developing countries to raise part of the fund that?

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You are.

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Giving for a project, because this is very important concerning the psychological satisfaction of the people in doing part of the job, at least is half of it.

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This may motivate interest in the people or in the youths to do the job.

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Properly, yes, we do.

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We we finance as I.

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Said earlier we.

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Finance part of the cost of a project, usually about the foreign exchange cost of a project.

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Which means there is a local contribution.

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It is partly for the same reason that we.

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Would like to have the country and.

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Corporate bodies to feel.

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And be a part of the of the.

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Development process we don't want to do.

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The 100%.

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Financing.

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Of a project.

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So then.

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Any other organizations see to it that the man is These days, students all over the world are in a questioning mood.

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This young man seems to doubt that bank projects ever get built.

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And we have, we have seen to it that the roads that we have lent money for have been built.

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We are now we have financed.

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Power Project.

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Awash 2 and three are practically completed.

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Power is going to be produced there, which we hope will benefit the economy and the people in the villages and in towns.

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Industrial wheels will begin to churn.

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We have, we have given now lent money, not given money because we always lend money, because we get our money back for school, secondary school.

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Construction.

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It's on schedule.

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The.

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20 schools are all over the country are under construction.

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Actually I visited a school only yesterday.

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They are not luxurious schools by any means.

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These are.

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Better schools.

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1000 secondary school students will be housed in that that one particular school telecommunication facilities.

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We have lent money to the to IBT International, I mean Imperial Board of Telecommunications and we have seen that the facilities are built.

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We are very strict in supervising the execution of a project.

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We do our best to check that the commitments are met.

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And sometimes, too, we even become directly involved in an enterprise.

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For instance, five years ago, the cotton company at Diridawa was floundering.

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We agreed to take a 20% equity in the company but insisted on new management.

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A Japanese company took over and bought stock in the company.

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Now that company makes a handsome profit.

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Its success means that 3600 Ethiopians have good jobs and many young Ethiopians are receiving management training in Japan.

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Roads, power projects, schools.

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That is the kind of things we finance.

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But our prime concern is to assist the government in fulfilling the hopes of Ethiopia's 23 million people for a better life.

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The greatest pleasure for me is to see something I have worked on come to life.

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I go to Jima, 200 miles from Addis Ababa, to see a road built with the banks assistance.

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This is Mike Egan, an American working for the Ethiopian government as a road consultant.

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Construction of this road was underway when I joined the bank.

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I helped negotiate a loan to extend it.

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A road grader means dust in the eye to some people.

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To me it's a proof that the road is being maintained.

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Mike tells me about the villages that have sprung up beside the road.

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Villages where once there were almost no houses, commercial traffic where there was none before.

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We see a truck loaded with coffee beans for market and drying slab for coffee beside the road.

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Before this road was built, these coffee beans moved to market by donkey caravan.

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They still do in many parts of Ethiopia.

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The road is being extended by a French firm.

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At the construction head we meet the young French engineer.

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He and his wife have prepared something to wet dusty throats.

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You hang your hat on the skin of a Python.

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Very dead lunch is served in a corrugated tin Hut, while from outside comes the kind of serenade we like to hear.

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We are not the only visitors.

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A busload of Ethiopian parliamentarians have also arrived on an inspection trip and their bus needs a little assistance.

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Many of them are old acquaintances.

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And then we push on.

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The road is only a track cleared by a bulldozer, but passing trucks tell us that commerce is already beginning in this area.

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The traffic is lighter and not all the wildlife has been driven away.

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A family of calibus monkeys.

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These monkeys are famous jumpers and I throw a rock near them to try to get them to jump for their pictures.

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A cock fight beside the road is not something you see in the streets of Washington, nor warthogs and a small dig dig blending almost perfectly with the grass.

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At last we come to the heart of the construction, an open air factory crushing stones for the base and the surface of the road.

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And how much do the Ethiopian drivers make?

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I asked the French engineer how much the Ethiopian drivers make.

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He tells me the average $0.60 US an hour in a land where $60.00 is the average annual income.

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That's not bad.

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Jobs now, development in the future.

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This is Money at work.

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And for us in the bank.

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This site makes all the frustrations, the meticulous scrutiny of projects, the paper pushing worthwhile.

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Not much further on, beside the track, we see the meaning of our road, and perhaps the meaning of development for every emerging people, as generations have before.

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A shepherd boy armed with a spear brings his herd to water at a stream above him rises a bridge to the outside world and to the future.

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To this boy, perhaps, the road now seems to help only those that have cars and trucks.

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It may be years before his family sees the benefits in higher prices for cattle, lower prices for things they buy, more opportunities.

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The transition to a modern economy is never painless, but it is a road sought by all emerging peoples of the globe.

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With eyes open to the dangers, we at the bank are trying to help.

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