Ethiopia: World Bank threatens aid

The World Bank, Ethiopia's largest donor, says it is considering cutting aid to the country if the current political impasse there continues according to a recent article in Voice of America by Ashenafi Adedje (16th November 2005). The Bank currently disburses four to five hundred million dollars a year in assistance to Ethiopia. However, Ishac Diwan, the World Bank’s country director for Ethiopia, noted that this amount will increase if governance improves or decrease over time if governance fails to improve. The World Bank representative declined to be more specific, saying the exact figures will have to be determined by bank management in accordance with prevailing circumstances.