Maravi

Kapoor urges pro-growth policies

Kapoor urges pro-growth policies
Written by Chiwoyu Sinyangwe
Thursday, November 06, 2008 6:45:32 AM

WORLD Bank Zambia country manager Dr Kapil Kapoor has advised the government to come up with pro-growth and pro-poor policies to cushion the country from external shocks.

Commenting on the recent political transition in the country amidst the current global economic crisis, Dr Kapoor cited energy and agriculture as the sectors that needed urgent attention as they had proved to be emerging obstacles to development.

“The Fifth National Development Plan (FNDP) targets a rate of economic growth of about seven per cent if Zambia is to achieve its goals of becoming a middle income economy by 2030,” Dr Kapoor said. “With recent external developments, it is even more important now for the government to critically examine its policy environment and ensure that its policies are pro-growth and pro-poor. In particular, from my vantage point, two sectors need urgent attention and these are energy and agriculture. As is widely acknowledged, the energy sector is emerging as a significant constraint to growth.”

And Dr Kapoor observed that the current policies being pursued by the government were a constraint as they were preventing the agriculture sector from becoming a potential engine for Zambia’s economic growth.

“With its abundance of land and water, Zambia should be a bread basket for the region, especially since food prices remain high and this provides an excellent opportunity to take advantage of the terms of trade that have shifted in favour of the agriculture sector,” said Dr Kapoor. “While the provision of fertiliser is important, it is not sufficient to put agriculture on a sustainable footing. There are several other issues that need to be addressed, including instituting a predictable and transparent export policy for food grains; pass the agricultural marketing Act; invest in irrigation, research and extension; better target the Fertiliser Support Programme; and urgently address the numerous issues afflicting the livestock sector.”

Labels: KAPIL KAPOOR, World Bank

posted by MrK @ 6:47 AM