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(LUSAKATIMES) The Economy and Development in Zambia

The Economy and Development in Zambia
By Chanda K. Chishimba
December 4, 2008

Often times Zambians have grappled with the problem of lack of job opportunities, shrinkage of industries in the post- SAP implementation era, lack of drugs in hospitals, low education standards, and a general low life standard. Many of these issues have led to the erosion of confidence in the government. Hopes of a better life grow fainter each day. In my view there is so much that our government can do to stimulate economic activity which in turn would lead to the creation of jobs and improve the living standards of its people.

1. Government needs to make a sacrifice on the way it spends resources of the state. Cut down the size of government by eliminating the position of Deputy Minister. I don’t see what D/Ms do which cannot be done by a Minister. It would be more prudent and cost effective to strengthen the office of the PS and other Ministry Directors. These are the professionals who run Ministries. Further, we need to let the Ministers and other government officials pay their own cell phone bills. The bills are a drain on government resources. There is no concrete proof that all cell phone calls they make are for government business. The amount of money saved from these adjustments can be redirected to improving infrastructure such as schools and roads. This would lead to the creation of new jobs. And then the issue of hundreds of government officials, the police, army, and air-force seeing off or receiving the President whenever he travels outside the country is quite ridiculous. This takes away the valuable man-hours that these individuals would have put into their work if they had not gone to the airport to perform a function less important than the one for which our people might benefit.

2. Government should seriously consider the issue of Chiefs owning so much land. This land can be used to create new industries, which would in turn create jobs for the Chiefs’ subjects. As a matter of fact, it would be important to stick a clause in the agreements with the new companies, that the Chief should be paid a certain amount as royalty. This royalty is what will sustain the Palaces and make the Chiefs less beggars than what they are today. This move would eliminate the chiefs’ participation in politics and improve their standing in the eyes of their subjects. The current practice where a chief owns thousands of hectares of land is just plain right retrogressive and a barrier to expansion and development. We all fully understand the importance of chiefs in our heritage, but this is the 21st Century and the role of chiefs must be upgraded to economic and social development participants.

3. Government can also implement a radical shift in the way duty and taxes in border towns are spent. It would serve our people well if government can allow every border town to keep 45% of revenue from duty and taxes in that town or even province. This is the money which can be used to improve schools, build hospitals, build roads and create new industries and jobs. This measure would also ensure that people will start to move back to rural areas where they can find employment, thus, relieving the urban towns of much of the currently suppressed carrying capacity. Our rural towns will experience development never seen before. The practice of all revenue eventually ending up at the central treasury has failed because the funds almost always are diverted to less essential activities.

4. I would also propose legislation that would enable Zambians manage a portion of their individual retirement funds. Enforce legislation that would create Individual Retirement Accounts (IRA). As employees earn income, a certain percentage should be saved in an IRA and people can determine their own investment choices. With the Lusaka Stock Exchange now providing most people with investment alternatives, this would be a sure way to create wealth, lessen the burden in retirement, and leave children with an inheritance. The current system where NAPSA manages retirement funds for the people is subject to so many bottlenecks. No wonder people never get their pension funds after years of hard work

The path to economic development is not easy. Sacrifices must be made by both the governed and those with the mandate to govern. It is not enough to sit back and ask the citizens of Zambia to tighten their belts when those in power cannot embrace the same. We need to be steadfast in our endeavors to improve the livelihoods of our people. These challenges have been tackled successfully in many parts of the world, and Zambia should not be an exception.

Categories: Headlines

Labels: DEVELOPMENT, ECONOMY

posted by MrK @ 9:08 PM