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For the past month, state
media had been busy talking to economists, political leaders, and even ordinary
members of the society about their reactions to the increasing rate of
inflation, about which there seems to be unanimous agreement among sellers and
consumers, as well as among opposition as well as ruling political leaders.
On November 23, 2006, Prime
Minister Meles Zenawi appeared before Parliament to give his version of the
possible causes and solutions to inflationary problems. Meles, who apparently
had been listening to the broadcast views of the populace, seemed to disagree
with most of the opinions he had heard.
Meles believes that the
main cause of the inflation is the pressure on the cereals that make up the
major food items of Ethiopians. Price fluctuations of cereals during drought and
rainy times have negatively affected the farmers’ desire in agriculture. The
government intervened by encouraging farmers to become involved in market led
agriculture, particularly focusing on those crops that could be exported.
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