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Economic crisis has worsened social problems – JCTR

Economic crisis has worsened social problems – JCTR
Written by Agness Changala
Saturday, April 11, 2009 5:48:40 AM

THE effects of the global economic crisis have compromised the inherent dignity of most Zambians, Jesuit Centre Theological Reflection (JCTR) coordinator of the Social Conditions Programme Miniva Chibuye has stated.

And the JCTR has disclosed that the cost of living for a family of six in Lusaka was recorded at over K2.2 million in March largely on account of rising mealie-meal prices and other non-food basic commodities.

In a statement yesterday, Chibuye stated that the current economic crisis had worsened Zambia’s social problems.

She noted that Zambia had been cited as one of the worst hit developing economies from the global economic crisis.

Chibuye cited the latest slump in copper prices which was largely attributed to the reduced demand at the global level and consequently led to a sharp decline in the trade balances with imports exceeding export revenues.

She wondered what impact the economic crisis would have on the Zambian people, most of whom were already poor.

“The rising unemployment levels have been one of the prominent socio-economic consequences at the national level,” she said. “For example, a recent study by the Overseas Development Institute revealed that the fall in copper prices has led to the loss of a quarter of the mining jobs.”

And JCTR stated that the March Basic Needs Basket (BNB) had shown a continued increase in the cost of mealie-meal.

“For the month of March 2009 in Lusaka, on average a 25 kg bag of mealie-meal cost K64, 000 indicating a nominal increase of K4, 000 from the K60, 000 recorded in February,” Chibuye stated. “Increments were also recorded in beans, meat and cooking oil. However, reductions were recorded in the cost of kapenta, dry fish and vegetables.”

She observed that despite the price decline in some food items, the total cost of food still amounted to a large amount of K766, 500.

Chibuye stated that the slight reduction in food prices was unlikely to lighten the burden at the household level as the cost of essential non food items increased by K21, 800 from K1, 425,630 in February to K1, 447,430 in March.

She stated that the main contributor to the increase was charcoal which rose from K57, 500 to K67, 000 per 90 kg bag.

“The total cost of the Lusaka March 2009 BNB therefore totaled K2, 213, 930,” stated Chibuye.

Labels: GREAT DEPRESSION II, INFLATION, JCTR

posted by MrK @ 4:49 AM