Interview with Yves Gazzo, EU representative

Yves Gazzo is the head of the European Union (EU) in Ethiopia, one of the country's largest financial contributors, granting Ethiopia over US $100 million a year. Here Gazzo talks to IRIN about business opportunities, the EU's call for an investigation into recent shootings in the country, and food needs in Ethiopia. QUESTION: Is the US outstripping the EU in terms of food contributions after announcing large donations at the government’s emergency appeal earlier this month? ANSWER: It is part of the political game and 11 September, and the political situation in the Horn of Africa also plays a role. On one side you have objective elements – yes there is a crisis for this year with needs of about 100,000 tonnes, but you can cover it quite easily. There is no problem covering this year. For next year we have to think about 1.5 or 2 million tonnes. Then you go to a different scale. In the past we have favoured, and we still continue to favour, local purchase, which other donors don’t do. If you use local purchase there is little publicity. It is good for the country and it is good for the farmers... But on our side we prefer to soundly assess the needs together with the Ethiopian authorities. We don’t want to be taken to these sensationalist situations. And we do not want to lose our focus on the structural support... Q: Do you think 11 September has played a role in US humanitarian assistance? A: 11 September certainly has in many cases had an impact on the US readiness to further step up assistance. Also Ethiopia benefits from this. We hope that this stepping up forms part of a new long-term approach, and that we can increase convergence of our development policies and food aid interventions... For a long time under the [former Marxist] Dergue regime [of Mengistu Hailemariam] we offered strong and full assistance, because we did not want to punish the population. Yes, we did pull out during the war with Eritrea, but the Commission decided no way would we be used again to feed soldiers. So there is a lot of attention from our side given to the responsible direction of food aid. Q: What, according to the EU, are the key structural weaknesses within Ethiopia? A: You need well educated people, decent health conditions...If you have these health and education problems, it has a negative impact on potential economic growth. Then population increase is a problem, because you have to feed more and more people, and then you have the economic system. I know you have some who say 'privatise everything'. However, I understand pretty well the Ethiopian authorities’ concerns. But if you don’t let people have access to the supplies they need and so on, then there is a problem. If you don’t facilitate access to farms inputs in a decent way, it is a problem. And it goes all along to the banking system. I don’t think you should put your banks for sale. Just establish as a first step partnerships with some banks so they have an interest in the results of the banks – and that could change a lot, like access to credit. Ethiopia should proceed step by step. Q: If you were a businessman, would you invest in Ethiopia? A: I am not an investor, but a civil servant who is concerned with the improvement of the conditions that investors will find in Ethiopia. Take the example of access to credit in Ethiopia. This may be perceived by potential investors as a problem. If you are a foreign investor, then you have to proceed from foreign countries. The weakness of the banking system for instance does certainly not encourage increased foreign investment in Ethiopia. The government also sees these problems, and we are cooperating to improve the situation. We also want to do more to inform about market access... How can Ethiopians get access to European markets? In my view, I see more opportunities in small- and medium-sized companies to address the needs of the population with something that is not sophisticated but is good for consumption which can be affordable and so on. But these small companies will not take risks unless they see the environment is prime for investment. Q: What is the current situation on the shootings in Tepi and Awasa which prompted calls for an investigation by the EU? A: Currently we made one official demarche and we had several discussions. To be frank, you can feel the irritation on the Ethiopian side: what are you looking for? We have been transparent, we have been sacking a lot of officials who misbehaved, and the investigation is on its way and so on. On the European side there is a pressure to get some results quickly. On the Ethiopian side there is an irritation for insisting too much on concrete results too quickly. I think it is still too early to come to an assessment if the government has done enough. And in the spirit of true partnership we will continue to discuss these incidents. But this should not detract our attention from long-term issues Q: Is the EU under pressure from its constituents regarding issues like Tepi and Awasa? A: Yes, some of the more outspoken segments are saying: Listen, we have been pouring money into your country [but] now it is difficult for me as a member to justify to my constituency to continue to support you, because I don’t see results on your side. So, more and more we have to report to our populations that yes, this aid is justified. Now when you look at the world, this is not the exception. I think you have to maintain dialogue, express concern when something is wrong, but also we should consider helping them, because the prime minister [Meles Zenawi] was saying: yes, I take the blame, but when I ask you to help with the training of my police force because they are not up to the standard, you don’t want to help me. Q: Critics say incidents like Tepi are the results of so-called 'ethnic federalism' in the country. What is your view on this? A: It is difficult to make a strong, concluding assessment. Federalism is in my view one of the most radical changes in the political system in recent history. It is a huge undertaking, because if you align on ethnic grounds, then you risk some ethnics to secede or to go away, so it is something that is not easy to realise. Q: What does the Ethiopian government have to do to satisfy the EU with its investigation into the shootings? A: We have been asked by the [EU] president [Romano Prodi] to ask for an explanation on this issue, and I am sure they will be forthcoming. But maybe there is some misunderstanding on that side. If I take the European side, people are expecting something like a progress report, action to be taken to bring the guilty people to court, and not be satisfied with statements that people have been sacked from the regional government because they did not behave. This is something internal. The misunderstanding between two sides may be because they say: we sacked people - but this is their internal business at a party level. But what about justice, about bringing people who are guilty to court to see if they are guilty of misbehaviour. But I think through discussion we can reach understanding about what the two sides expect.