To the Editor in Chief

To the Editor

CAPITAL

Dear Sir,

I have seen your editorial about the acquisition of Varnero by MIDROC construction Company. I regard the situation as a ringing bell for the authorities to introduce competition laws (Anti-trust Laws) for the healthy operation of a market system that we are trying to embrace. The objective of competition law and policy is to obtain an optimum situation in productive and allocative efficiency by bringing about workable competition.

In a situation like this a giant company like MIDROC is trying to take over the market and this could result in an eventual dominance of such company, which could lead to the abuse of such position.

In a non-contestable market like this it is easy for companies to over turn the healthy competition that exists by various means, the immediate threat being this sort of merger resulting from the acquisition of Varnero whose long run effect on competition would be dangerous.

The immediate interest of the business community in Ethiopia seems to be one of how to deal with unfair competition among themselves. In my opinion one has to look beyond that.

But it is in the interest of all stakeholders to critically look into various practices prevalent in Ethiopian market that are anti-competitive. For example, hardcore cartel agreements, both vertical and horizontal are wide spread in our markets. The abuse of dominant power is another one which is quite a possibility in a scenario we referred to in the case of Varnero's acquisition.

In the command economy the government determines prices, or at least there is a strict control by the government. Now, when the market is allegedly left to the operation of the "invisible hand", there is still a need to deal with anti-competitive practices whose object is to restrict, prevent or distort competition.

Furthermore, in light of Ethiopia's future accession to the WTO, there would come a demand for Ethiopia to have a regulatory framework that deals with the issue of competition laws.

By the way what is happening with Ethiopia's negotiation with the WTO? The web site of the WTO indicates that no progress has been made with Ethiopia on the negotiation process. I think the Ministry responsible for this should take its duty seriously and move ahead with the process. Ethiopia cannot anymore afford being left outside.

Sincerely,

Firew Kebede,

Fukuoka, Japan

It seems like the organizers helped   themselves to the profits from the show and dumped poor Hyatt on her own.

To the Editor

CAPITAL

Dear Sir

I read with great amusement you interview with Hyatt Ahmed Miss World Ethiopia, Miss Ethiopia, the First miss Ethiopia, Queen of Africa, continental queen of Africa, Miss Africa or what ever name she is going by these days, since she changes her name every day it seems like, and she was lamenting the lack of sponsorship and the fact that she was alone at the Miss World contest when other contestants had entourages to do their hair etc,

Well lets start at the beginning, if you read what was written in the press about this contest you will see that the organizers were able to tell fantastic stories and hype the show to the maximum their claim is that it cost them $100,000 to get the licenses for miss world, {a very doubtful claim} and then flew in people from all over the world. If this newspaper calling itself the sponsor sub-Saharan Informer is to be believed,

This is what they have said”

“The celebrity judges are set to arrive on the 19th of October. The judges will be coming from South Africa, Tanzania, Kenya, the US and Europe with their names being released one week before the final event. In the training of the contestants, beauty school owner Zemi Yenus, Pageant Director Jerusalem Ketema, fashion Designer Gi Gi, Psychotherapists and motivational speakers will train them in speech and drama over the next four weeks. In addition there will be one of the best chorographers in east Africa present- Ben Konairu.”

My question then is with all the financing that went with the show where did all the money go? And why was there none left to send Hyatt to China, even Ethiopia airline had to step in and give her a first-class ticket? Is seems like the organizers helped themselves to the profits from the show and dumped poor Hyatt on her own.

How much was Hyatt’s prize money? And then of all the designers there, no body could give her dresses for her show?

So who is to blame? The designers? Maybe they did not get paid for their services? Did Hyatt think of this? It is easy to point fingers, but did she have any written agreements to have the sponsors give her dresses?

Surely if the Organizers of Miss World [Ethiopia] can spend $100,000 to get the licenses they can afford to fly people in from all over the world for the show they could have sent someone with Hyatt to miss world, or was this not about Hyatt and miss world but about them enriching themselves and using miss world as an excuse,

There were so may alleged sponsors such as:

The Embassies of Belgium, China in Ethiopia, Hilton Addis, FM Addis, ETV, The Sub-Saharan Informer,   National Motors Corporation, Coca-Cola, Ethiopian Airlines, DKT Ethiopia,  Cosmo Trading,  The Embassy of the Federal Republic of Ethiopia in Brussels (Belgium),Kenyan Airways, Diana Beauty School, Tewanney Studio,  KLM, GT production, Zenith,  BGI’ BROMHEAD Chartered Accountants, 21.  Light of Eda, Alem Creative Arts Center, and   Bishangari.

And the list goes on, so how did they sponsor miss world if they could not come together and help poor Hyatt and they sent her to china alone? These were the questions that the organizers should be made to answer.

And poor Hyatt should not be the one answering the questions and defending someone who does not care enough about her to send someone with her.

Thank You.

AZEB

The Editor welcomes brief letters from our readers on topical issues. Letters will be considered for publication only if they carry the author’s name and address. Write to: The Editor, Capital, P.O.Box 95 code 1110 Addis Ababa, or e-mail us at: syscom@telecom.net.et, or fax 53 33 23.