Maravi

KK urges Zambians to fast against debt

KK urges Zambians to fast against debt
By Brighton Phiri and Joan Chirwa
Saturday October 13, 2007 [04:00]

DR Kenneth Kaunda yesterday said he would today join Jubilee Zambia in fasting for the country's responsible borrowing and lending patterns to demonstrate that debt was a deadly disease to humanity. "I have been invited to participate in fasting and I am glad to be part of Zambians who are fighting this deadly disease," Dr Kaunda said. "I want to demonstrate to those who have been imposing debt on our heads that they have been very unkind in their motives."

He urged Zambians to join forces in fasting so as to denounce the debt inflicted on them by unkind forces.

Dr Kaunda, who has supported Jubilee movements in the past, will fast today to call for a quick enactment of the Jubilee Act in the United States as well as to speed up the loan contraction reforms in Zambia.

The Jubilee Act would compel the US government to cancel the debts of up to 25 additional countries currently ineligible for debt cancellation, end harmful economic policy conditions as well as establish an audit of past lending and set more responsible lending practices for the future.

Jubilee USA coordinator Neil Watkins said: "Dr. Kaunda's fast is an act of solidarity, which should speak to the conscience of the governments of rich countries. Many poor countries are still paying external debt, which is as a result of both their own borrowing and in many cases, irresponsible lending decisions and policing by rich nations as well."

Watkins indicated that indebted nations currently spend an average of $100 million each day to service their debts - money they cannot spend on food, education, health services and other necessities.
"Cancellation of these debts is needed to help reach the UN Millennium Development Goal (MDGs) of cutting worldwide poverty in half by 2015," he said.

Watkins has also urged the US government and other rich countries to put in place legal measures that would promote creditor responsibility and end illegal practices of private commercial creditors - also known as "vulture funds" - which seek to benefit from purchasing the loans of poor countries.

Jubilee-Zambia coordinator Muyatwa Sitali hailed Dr Kaunda's long commitment to debt and social justice.

"As Jubilee movements, we recall how in 1987 Dr Kaunda's government cut off the IMF Structural Adjustment Programme and they chose to pay only 10 per cent of Zambia's export earnings for debt service while allocating more resources to social economic sectors that were needed to propel growth from Zambia's own resources.

This commitment exemplifies the need for prudent debt management and it resonates with the Jubilee movements calls for prudent debt management," Sitali said.

"For Zambia, the need for prudent management of debt resources is extremely important, especially now after the HIPC and MDRI debt relief initiatives.

Zambia's debt is steadily rising and Parliament's participation in loan contraction continues to be marginalised."
In July 2006, Zambia's external debt was only US$502 million but this dramatically increased to US$1.5billion by December 2006.

"The concerns being shared by Dr Kaunda form a key component of a society which should be guided by values of accountability and transparency in debt management and utilisation of debt resources," said Sitali.

And Dr Kaunda, who is also Marli Investment Zambia board chairperson, said the outgrower model of growing jatropha oil plant in Zambia under Marli Investment was the opposite of what the rich nations feared that indigenous people risked being displaced by jatropha production.

"This is not for the rich, but peasant farmers because they will be empowered economically and maintain their traditional land," he said.

Maril Investments director Kamal Desai said his company had raised US$45 million capital through Technopreneur Angel Ventures, a Singapore-based renewable energy company.

He disclosed that his company would contract over 250,000 farmers and was expected to produce over 1. 5 billion litres of Jatropha oil per annum, of which 240, 000 litres would be refined and blended for local consumption and 1. 3 billion litres would be exported.

"Jatropha oil is considered to be an international feedstock of choice for bio fuel as it does not compete with food crops, grows well in marginal land, creates large-scale employment, prevents soil erosion, can be intercropped with food crops, produces more than 30 per cent of oil content from seed and requires low maintenance," said Desai.

Labels: DEBT, JUBILEE ZAMBIA, KENNETH KAUNDA

posted by MrK @ 4:09 AM