Maravi

Income inequalities threatens poverty reduction,observes CSO

Income inequalities threatens poverty reduction,observes CSO
By Joan Chirwa
Saturday June 21, 2008 [04:00]

RISING costs of foodstuffs need to be tackled alongside existing income inequalities, Central Statistical Office (CSO) head of living conditions monitoring branch Kambaila Munkoni has advised. And Jesuit Centre for Theological Reflection (JCTR) social conditions programme officer Miniva Chibuye called for increased investments in agriculture in order to tackle rural poverty and rising food prices.

Munkoni said high inequalities in income distribution were posing a serious threat to poverty reduction efforts as monthly earnings of a majority of workers were far below the average cost of living.

"Household incomes and household assets contribute to poverty alleviation but the income inequalities in the country have become a major challenge to poverty alleviation," said Munkoni during a discussion on rising food prices and their impact on Zambia's economy held at the Agriculture Consultative Forum (ACF) in Lusaka on Thursday.

According to CSO's recent data, 75 per cent of the country's workforce earn below K600,000 per month while only 25 per cent take home more than that.

"If we had to do another survey this year, the figures could be a bit different because civil servants have been awarded salary increments," Munkoni said. "We are getting into an income crisis because of rising costs of food and people's expenditure patterns have been disturbed."

Munkoni noted the need for increased investments in rural areas where the economy is largely driven by agriculture.

"We need to invest more in rural areas because that is where we have the farmers," Munkoni said. "When we place investments in rural areas, we will be assisting in reducing the number of people living in poverty."

Recent data compiled by the CSO indicates that Western Province still remains the poorest region, with 84 per cent of people living below the poverty line while Lusaka has the lowest at 29 per cent.

And Chibuye said farmers have failed to increase their production levels owing to inadequate infrastructure and reduced funding to the sector.

"How can the farmers take advantage of the current food crisis to grow a lot for the country when no significant investments have been made in the agriculture sector?" asked Chibuye. "Infrastructure development is also something that needs to be looked at. We also need to diversify our food portfolio to include crops such as cassava."

Labels: JCTR, POVERTY, PRSP

posted by MrK @ 4:01 AM