Transcript: Why Trade Matters

ELENI GABRE-MADHIN (VO) If you look back at how economies have grown, you can almost trace their take off as a society directly to a time where they were able to establish a functioning, reliable trading mechanism. Trade is always a central part of economic development.

NARRATION: IT IS ALSO A CENTRAL PART OF FEEDING PEOPLE; MAKING SURE THAT THEY HAVE FOOD TO PURCHASE WHEN THEY NEED IT.

NARRATION: BUT ETHIOPIA’S TRADING SYSTEM IS ARCHAIC. THERE ARE NO QUALITY CONTROL STANDARDS.

CORN BUYER (SUBTITLES – AMHARIC) This one is full of dirt.

NARRATION: SELLERS ARE NOT ASSURED OF GETTING PAID.

ELENI GABRE-MADHIN (SUBTITLES – AMHARIC) Who are you going to sell this sorghum to?

TRADER (SUBTITLES – AMHARIC) - To traders.

ELENI GABRE-MADHIN (SUBTITLES – AMHARIC) Is it difficult finding a person you can trust?

TRADER (SUBTITLES – AMHARIC) The only way we can know how a person is trustworthy is by word of mouth.

NARRATION: AND WHILE ONLY TRADING WITH PEOPLE YOU KNOW YOU CAN RELY ON MIGHT SOUND LIKE A GOOD THING, IT IS NO WAY TO RUN A MODERN ECONOMY. IMAGINE HAVING TO ACTUALLY FIND A BUYER EVERY TIME YOU WANTED TO SELL A STOCK. TRADING GRINDS TO A HALT, AND IN ETHIOPIA THAT HAS DEVASTATING CONSEQUENCES.

NARRATION: FAMINE IS A VERY REAL AND PRESENT THREAT TO MILLIONS OF ETHIOPIANS.

MEKONEN MOTBAYNOR (SUBTITLES – AMHARIC) Drought occurs almost every three years. And when that happens it’s inevitable that everyone will starve.

NARRATION: THE MOST HORRIFIC DROUGHT IN RECENT MEMORY WAS 1984. NEARLY A MILLION PEOPLE STARVED TO DEATH.

MEKONEN MOTBAYNOR (SUBTITLES – AMHARIC) 1984 was a very hard time. There was a very intense drought. Everything was completely destroyed. If there is no rain, then there is nothing. Fleeing the area was the only option.

NARRATION: THE STARTLING REALITY OF '84 IS THAT THERE WAS AVAILABLE FOOD IN THE SOUTHERN PART OF THE COUNTRY.

ELENI GABRE-MADHIN (VO) To think that in that year where one million people died of famine, and Bob Geldof and everybody else was helping Ethiopia beg for food, there actually was available food.

NARRATION: BUT ETHIOPIA'S BROKEN TRADING SYSTEM FAILED TO DELIVER THE FOOD TO WHERE IT WAS SO DESPERATELY NEEDED.

ELENI GABRE-MADHIN (VO) If we produced it why couldn’t we get it to where people were needing it? That was must mind-blowing. Then I started reading about the nature of famines and I realized that famine is not so much about a lack of production, but lack of entitlement, lack of access.