Let's have a fair share of the cake
Let's have a fair share of the cakeBy Editor
Friday November 02, 2007 [03:00]
The confession by former finance minister Edith Nawakwi that the International Monetary Fund and the World Bank blackmailed the government over the sale of our copper mines is not surprising, although it is a sad reality.
It is not surprising because this is how the IMF and the World Bank have operated since their creation - to blackmailing, sabbotaging and manipulating governments of poor and vulnerable nations. The sad reality is that these two agents of neo-liberalism continue to savagely manipulate our governments, even though they vehemently deny doing so. Through their imposition of unworkable economic policies, the IMF and World Bank continue to mess us up economically and other.
It is unimaginable that our government today continues to entertain these institutions which, going by Nawakwi’s confession, have brought us to where we are in terms of copper mining agreements where we have basically lost our own national asset to foreign capital. As Nawakwi admits, the IMF and the World Bank were among the advisers who gave the government a false impression that the future of copper mining was doomed and there was nothing wrong with selling the mines for a song, for a whisper.
Unfortunately, we are not a learning people because we still give the IMF and the World Bank every opportunity to do whatever they want in our country. If we want a policy review on taxes, for instance, we have to rush to the IMF for guidance and they are always eager to ‘help’ us out just like they have ‘helped’ us in giving away most of our national assets to foreign capital. Last year, it was the IMF which was called upon to help the government to review the tax regime, and we know the kind of policy measures which were proposed to the government.
If most of the recommendations had been implemented according to the IMF, there been a guarantee for more and more misery for the majority of Zambians. Over our land policy review process, the World Bank is deeply involved and it is making all kinds of recommendations which are clearly not in our own interest. Today as we speak, the World Bank is busy researching on our land tenure system and it will not be long before we hear its final verdict in terms of which route or approach we should take in the management of our land.
When it comes to dealing with these institutions, we have to come to a realisation that they have played a central role in selling our assets and our country for a worthless price and we have to learn to do things differently. Last week during our independence anniversary celebrations, we pointed out that there was need for us to start breaking with the past, especially in terms of economic determination.
We know that doing so is not easy; we are acutely aware of the intricacies of the global economic system. We know too well that our leaders are in a weak position. If it were not so, leaders like Levy Mwanawasa would not be incessantly trotting to Western centres of power, begging for foreign investment, trade and aid. They do so because they stand on weak ground; they always find themselves locked into the global capitalist orbit, co-operating perforce with rich nations for investment, trade and aid.
It is good that our government has admitted that the copper mine deals were poorly handled and there is need to have a second look at them. We wish the government had listened earlier because all these renegotiations would not have been necessary if Levy’s government had cared a little to pay attention to people’s concerns. But as they say, experience is the best teacher and we can only hope that the bad experience over our mine deals is enough for us not to repeat mistakes that were made in the past.
As we embark on the renegotiation process, let us not forget that the forces arrayed against us are not small, and we would be foolish to take things for granted. Officially, we have been told that the mining firms are willing to renegotiate the contracts with the government. However, there is need to distinguish between willingness and agreement. The two are not the same thing because one may be willing to discuss but that does not mean that one would agree with the propositions from the other side.
We agree with the Action for Southern Africa and the Scottish Catholic International Aid Fund groups that renegotiation of these mining agreements is an important step in the right direction because this is the only way Zambians will be guaranteed some benefits from copper resources. Not to be overlooked in this process is the fact that while renegotiation should also endeavour to protect the profit interests of the investors, everything should be done to ensure that the mine contracts reflect the interests of the majority of Zambians.
Yes, the results of renegotiation may not translate into an immediate overflow of resources because, after all, the percentage being pursued by the government – from 0.6 to 3 per cent mineral royalties – is not that sufficient when we look at the actual windfall profits arising from the boom of the copper industry. What is important is that the process should begin. The rest can follow later. After renegotiation of the current mining contracts, it would be necessary for us to start looking at long-term measures so that in future the government should maintain a larger stake in the management of our country’s natural resources and we should not feel shy about such prospects.
Of paramount importance in this process is that we do not allow any external influence from such not-so-helpful institutions as the IMF and the World Bank because we may just end up orbiting around the same cycle which has so far not taken us anywhere. It is important that those involved in this process ensure that no special interests from within or outside are allowed to frustrate this decisive process. Everything should be undertaken to ensure that the process is successful so that for once the people of Zambia will have a fairer share of their prized possession. It is time Zambians had a fair share of the cake.
Labels: DEVELOPMENT AGREEMENTS, EDITH NAWAKWI, EDITORIAL, IMF, MINING CONTRACTS
posted by MrK @ 7:27 AM
2 Comments:
COMMENT - I really like Fred M'membe and The Post, so forgive me the slight hyperbole, when I say - screw a fairer shake. In negotiations, you go all the way, demand the moon and whatever you can squeeze out of the other side is the right price. It is economic warfare. As evidenced by the timid attitude in previous negotiations. And the horrible 'results'. Zambia has lost billions of dollars in profits already. Such is the cost of being thought of as 'a good chap'.
That is what is at stake, and that is why no effort can be spared. Billions of dollars will buy you a lot of enemies, and they are not going to play fair.
So let's not talk about a 'fair shake' for Zambia. Right now, billions of dollars are going to the mining companies, and it is our duty to the people of Zambia and future generations to wrestle those billions away from them and secure our future. This money is needed for infrastructure and to develop agriculture and manufacturing.
This time around, an honest government can benefit from international exposure. I have already e-mailed Greg Palast, Progress.org, Human Rights Watch and more about this report (just in case they missed it).
Cho, please re-visit Bernie Ross's book on negotiation - it is going to be very relevant in the next few months.
I wonder if the IMF can be sued for loss of income, giving incompetent or malicious advice, conflict of interest (it was demanding privatisation, while at the same time being instrumental in whether or not the Zambian government received 'donor aid').
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