European Stars And Stripes (Newspaper) - September 21, 1986, Darmstadt, Hesse                                The famine of 1984-85 killed an estimated million people in East Africa mostly in Ethiopia despite emergency Relief shipments from abroad. The world s most poverty stricken nation by Philip Williams United press International n 1983. Ethiopia thought it had a population of some 32 million. It look the most appalling famine of the 20lh Century to establish the True Ligure 42 million plus. A in sponsored count demoted the socialist slate irom Neol the most poverty stricken in the world to the most  its annual Gross Domestic product per capita is about $100 the reality however is even colder than the statistics. Walk a Block or two from any of the capital s big Public buildings and pitiful squalor assaults the Eye and ragged thin children play football with a tin can in alleys lined with rotting garbage. There is no running water Little electricity. The streets Are a Jumble of tiny mud walled huts with corrugated Sheet roofs. Women Pound Staple led Corn or Maize in hollowed tree trunks on empty lots to make rolled shoots of Flat in Era bread. Beggars with hideous disfiguring diseases crowd the Street Corners. The famine of 1984-85 kilted an estimated 1 million people in East Africa mostly in Ethiopia. Seven million Are still hungry. Yel 22 percent of Ethiopia s annual government budget is spent on defense. Ii maintains Africa s biggest standing army 250,000 men and is fighting three civil wars on three fronts. President Mengistu Hailo Manam is a nationalist said a Western analyst. He must have a military solution to the unification of his country. Economic and development priorities Are therefore Low " ironically Ethiopia has one of the Healthiest balance of payments positions in Africa As a result of massive foreign Aid during the famine foreign currency holdings Are High. But the Overall picture is for from healthy. Agricultural production on which 85 percent of the population depends dropped 16 percent last year there was a corresponding 16 percent drop in Coffee exports from which 60 percent of foreign Revenue is earned. The thriving National airline is the next biggest earner of hard currency. Manufacturing growth dropped by 0 5 percent to 1.4 percent. Inflation is running at 20 percent. Yel because Low Western Banks will lend Ethiopia Money its external debt stands at a modest by african standards $1.4 billion neighbouring Sudan owes $10 billion. Prompt debt repayments by Ethiopia Lake Only 37 percent of Export earnings Sudan currently cannot meet any of its International Commilla meals. Yet there is Only one doctor in Ethiopia for every 69.000 people. Twenty percent of children die before age 5 disease is Rife. Western sources estimate Only 150,000 women in the entire country have Ever heard of contraception. Mengistu a Friend of the soviet bloc gets Little economic assistance from that Quarter except discount Oil. He has responded to famine with traditional conservative austerity measures. A drought tax takes a staggered percentage of All company revenues and salaried employees pay a month s wages per year to the emergency fund. Every sunday National Gas Economy Day the streets Are Clear of private cars. Mengistu refuses to veer from his socialist reforms despite Western estimates that 7 million countrymen remain dependent on food Aid this year centralization of the Economy remains a priority. Under the current 10-year plan the present 5 percent level of collect sized land will Rise to 50 percent by 1990 ninety percent of manufacturing already is in government hands. The state markets 40 percent of agricultural produce and 70 percent of co fee sales. But the fledgling system is already showing signs of Strain fifteen years ago Ethiopia was a net exporter of Tood now Only an estimated 1 2 million tons of 7 million ions of Grain it produces annually Roaches Urban markets outside producer areas the transportation network is grossly inadequate Grain quotas Are hopelessly High forcing agriculture cooperatives to buy from private markets to fill their obligations the government buys Grain at a Price below producer costs then Sells it at up to 100 percent markups. Mengistu has been under pressure irom the european Community and other potential donors to lower the centralized state profile in food marketing to give private Farmers a Chance to balance Supply and demand and make producer prices More realistic the measures Are still under consideration. Other signs of pragmatism Are shown in ethiopian acceptance for the first time in five years of $27 million Worth International monetary fund help to boost the Contee Industry. Also foreign companies operating in Ethiopia were a inn a lab. 8 Lime in six years to take Parl � Lei earnings out of the country. Ethiopia s future is not without Hope despite its cyclical famines. The search for Oil goes on the soviets Are helping develop Gas reserves. Iron can be mined when Cash permits ifftl9. " remain pow cupped with Page in the stars and stripes sunday september 21, 1986 client " their East african development in Ethiopia is impossible without Western help said a diplomatic analyst. That brings development and ideology into direct