Press Release
Reuters Fumbles Again

In a report titled "Eritrean Economic Growth Dealt Heavy Blow by War" (April 12, 1999) attributed to Alex Last, Reuters has misquoted Eritrean officials on facts about the Eritrean economy, made inferences that are not supported by the naked facts, and sensationalized a topic that otherwise deserves serious consideration. In so doing, Reuters not only abused and misused economic statistics but also did a great disservice to its readers. In this report which is replete with innuendoes and inept interpretation of statistics, Reuters resorts to cheap journalism by using sensational phrases such as "strangled economic growth," "suffered a severe blow," and "a buying spree of foreign weaponry and aircraft." This is nothing but sensational journalism that characterizes throw-away tabloids of the worst kind. The following are the relevant facts:

1. Obviously, the reported GDP growth rate of 4% (1998) is not as spectacular as 8 percent (1997). It is, however, a relatively respectable rate that not too many countries enjoyed in the same year. The fact that the period 1992-1998 recorded a formidable average growth rate of 7% should not diminish the significance of 4 percent in real growth. It is worth noting that, according to the United Nations, Sub-Saharan countries recorded on the average only 2.4 percent growth in 1998. Without even minimum due diligence, Reuters describes an economy that recorded a 4 percent growth rate (1998) as "strangled" and dealt with a "heavy blow". This is simply a sham.

2. Reuters also indicates that Eritrea's foreign currency reserves have been reduced from the equivalent of seven months of imports to that of three months. Again, little does the reporter know that, at present, few developing countries can boast reserves of 3 months of import equivalent, much less the 7 months that Eritrea enjoyed prior to 1997. We believe again that by African standards a reserve level equivalent to 3 months of imports is respectable while 7 months would be enviable. Obviously, there are reasons why reserves might decrease, but at no time did we mention the reasons why reserves declined. Without quoting, the reporter attributes the phrase ''buying spree of foreign weaponry and aircraft" to Abraham Kidane. This is false and deliberately misleading.

3. Without enclosing in quotes, the reporter misrepresents Woldai Futur as having said that ''Eritrea had suffered a severe blow with loss of revenue from Assab after Ethiopia switched its shipping trade to Djibouti last year." This is, indeed, Reuters own conclusion. Again, at no time did Woldai Futur make such or similar statement to that effect. The simple truth is that of the two Eritrean ports, the port of Assab's business was mainly Ethiopian and, with the decision of the Ethiopian government not to utilize the port, Eritrea's revenues from that source have been reduced.

4. Oscillations in economic statistics including those pertaining to reserves, general level of prices or trade are indeed frequent. One should not, however, conclude that every time those changes take place that devastation or doomsday are in the making. A more meaningful measure of well-being or economic viability are the continued availability of essential goods and services such as food, energy sources, health care, and transportation. In so far as the Eritrean economy is concerned, the availability or the prices of such important supplies have not been impacted significantly since the beginning of the conflict.=20

Undeniably, the conflict between the two neighboring countries is impacting negatively the economies of both countries. It would be disingenuous if claims were to be made to the contrary. The problem arises when a news medium like Reuters ignores facts which are made available to it and misleads readers by deliberately misrepresenting them. The report attributed to Alex Last ignores the figures that were provided to it and makes conclusions that are untenable, serve no purpose or, even worse, insult the intelligence of the general public.

Embassy of Eritrea, Rome, Italy
20 April 1999