A draft bill would ban private aid agencies and civic groups from “political” activities, such as advocating human rights, if they receive more than 10 per cent of their funding from foreigners.

A new media law permits government censorship and jail terms for journalists.

Prime Minister Meles Zenawi said the reforms were an attempt to bring Ethiopia's laws up to international standards, noting that US rules also ban foreign campaign contributions.

“We are institutionalizing democracy and getting the law right,” he said. “I don’t think the political space is in any way being constrained.”

But critics said restrictions on foreign funding and political activism were particularly galling, considering that nearly 40 per cent of Ethiopia's government budget comes from international donors and that the ruling party has hired a Washington, D C, lobbyist to attack US legislation seeking to tie aid to Ethiopia's human-rights record.

“This is a nationalist charade,” Human Rights Watch attorney Reed Brody said. Opposition leaders and some Western diplomats say the new laws appear to be an attempt to consolidate power before the 2010 presidential election.

Ethiopia is eager to avoid a repeat of the 2005 election, when opposition parties won in many cities, including Addis Ababa, the capital. Post-election wrangling led to the government crackdown in which nearly 200 people were killed and more than 30,000 opposition candidates and supporters were imprisoned.

In local elections this spring, the ruling coalition won handily in most locations. Opposition parties boycotted the polls after complaining that the government prevented them from fielding candidates in many districts.