Give Africa economic freedom, says Ethiopian leader

By Tsegaye Tadesse and Barry Malone

ADDIS ABABA (Reuters) - The global crisis will ruin African economies over the next decade unless rich countries stop attaching conditions for aid and allow the world's poorest continent to formulate its own economic policies, Ethiopia's Prime Minister said.

Meles Zenawi said reduced growth, low commodity prices and high oil prices were likely to affect Africa for about 10 years and the west needed to give African nations the ability to devise their own policies to lessen the impact of these issues.

"I do not know whether I need to explain why sovereign African nations should plead to be given policy space," said Meles. "The simple answer is that they are not so sovereign when it comes to economic policy making."

The Ethiopian leader asked rich countries to stop attaching economic policy conditions to foreign aid, which he said the hungry continent was dependent on.

"(African) countries are faced with a very well-coordinated and solid policy orthodoxy (from donors)," he said. "They either adhere to it and get the money, or chart their own course and face the risk of the drying up of external assistance."

Meles, who represented Africa at April's G20 meeting of rich nations, was speaking at a U.N. meeting to discuss how Africa can continue to develop during the crisis.

The continent was thought to be largely insulated against the worst effects of the global downturn but has recently seen healthy growth projections slashed as exports have fallen and foreign aid, investment and remittances have dried up.

Africa's largely agricultural exports have been hit hard by the crisis and Meles said the sector needs reform to maximize profits.