Govt shouldn’t blame current problems on global economic situation – Kashita

Govt shouldn’t blame current problems on global economic situation – Kashita
Written by Nicholas Mwale and Nchima Nchito
Wednesday, December 17, 2008 9:51:10 PM

FORMER works and supply minister Andrew Kashita has said the government should not blame all the current problems being faced in Zambia on the global economic situation.

And European Union (EU) head of delegation to Zambia Dr Derek Fee has asked the government not to panic over the current economic situation in the country. In an interview, Kashita said the government lacked understanding on the country's priority areas.

“It is not possible to blame everything on the world economy. How can the global economic meltdown affect our maize production?” Kashita asked.

He said the country could never run short of food if the government's put in place adequate mechanisms to produce enough maize stocks.

“The country can sell maize if only there is so much in excess. This is the only way you can have maize in stock to the extent that you never run short of food,” Kashita said. “If that is how it was, this country should have been a maize basket for the surrounding countries.

Most farmers had maize in stock but they were saying that they did not have it because of the unattractive prices on the market. Most farmers, like those in Chipata were selling their maize in Malawi following better prices there.”

Kashita suggested that the government's strategy in promoting maize production should have been focused on small-scale farmers and not commercial farmers.

“Commercial farmers should be channelled in wheat production and things like that,” he said. “If planning was good, we can even be a very big producer and supplier to the neighbouring countries.

There are a number of things that have gone wrong because many ministers do not understand priority areas such as education, agriculture and tourism.”

Kashita further expressed shock that Luanshya Copper Mine would be closed without the mines permanent secretary knowing about it.

“It is very surprising that Luanshya Mines announced about the closure before the minister or the permanent secretary knew about it. Under normal circumstances, there should have been meetings first before the company make an announcement,” said Kashita.

And Dr Fee said it was important to note that copper prices usually fluctuate on the international market, urging the government to be calm.

“Even the issue of the copper prices, depending on market forces, they will go up or they will go down,” he said. “So far I think the government's approach towards the Zambian economy is ok.”

And Dr Fee said Zambia could not come up with measures to protect the economy from effects of the current global economic crisis because it was not an urgent issue in the country. [So the global economic crisis has nothing to do with the drop in copper prices? More unaccountable 'advice' from the free market economists; they are full of excuses while people are going to starve. MrK]

“Zambia is not at the centre of the current economic global crisis, so you cannot expect the same measures as those put forward in Western countries. What happens in economies like the US has a global effect, that is why there is so much done to rescue their economies,” he said. “I think so far, the Zambian economy is being well managed.” [Zambia cannot expect the same measures as rich countries, because thanks to Derek Fee, it are the rich countries which now have Zambia's money. MrK]

Dr Fee added that Zambia needed to diversify its economy and move away from its dependence on copper.[Which it can only do if it taxes the mines to the max, and then develop agriculture and infrastructure. MrK]

“Every commodity will have its periods of high prices and low prices, that is why it's not prudent to over rely on one commodity for revenue,” he said.

Dr Fee reassured the EU's continued support to different projects in Zambia despite the current economic meltdown.

“We have committed some money for regional projects from 2008 to 2011 and these will go on as planned,” said Dr Fee.[Money that will be worth considerably less. Let's hope it doesn't turn into paper money. MrK]