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Fri 20 Dec, 2002 02:38 am
The Swiss based Nestle demands money from Ethiopia, enough to feed one million for a month.
NESTLE has come under fire for suing the world's poorest country for a disputed multi-million payment as its government struggles to cope with one of its worst famines in 20 years.
The Swiss-based multi-national wants compensation from Ethiopia after its ministers sold off a joint business venture they had with Nestlé. Ethiopian officials have offered £1.5million, but Nestlé is insisting on the full £3.7 million it says it is owed.
Today the 'Guardian' reports:
Retreat by Nestle on Ethiopia's $6m debt
The Guardian: Letters
This is an Arabian opinion on that:
Arabnews : Editorial
Thanks for the Guardian links. I read a shortened version of the story in my local newspaper today and could hardly believe Nestle's demands! I'm glad they have dropped the demand now. Interesting that Oxfam points out that boycotting Nestle could harm poor coffee farmers, I hadn't really considered that particular effect. However, I still prefer to buy fair trade coffee to Nestle.
OK, I understand everything. Of course, Ethiopia lacks money even for feeding her citizens (it has enough money to make war in Eritrea, but this is another story), so it cannot pay its debt. And the multinational giant will surely retreat under threat of products boycott.
But another question: which business group will invest into economy of the Third World if prospects of returning of investment seem too indefinite? Maybe, we should understand difference between business companies and charity funds? Nestle is not supposed to substitute Red Cross and different relief organizations of the UN.
Disclaimer: neither me, nor my relatives are employees of Nestle or hold its shares.
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