Maravi

CSOs bemoan govt’s slow pace over global crunch

CSOs bemoan govt’s slow pace over global crunch
Written by Mutuna Chanda in Kitwe
Wednesday, May 20, 2009 11:10:45 PM

CIVIL society organisations have expressed concern over the slow pace at which the government is moving in mitigating the impact of the global economic downturn on citizens.

In a joint communique issued at the end of a two-day international conference on the impact of the global economic crisis on the mining industry in Zambia, Caritas Ndola director Fr Misheck Kaunda said the crisis has had tremendous impact on Zambians.

The communique which was read by Fr Kaunda was also signed by Zambia Congress of Trade Unions (ZCTU) representative Stephen Mumbi and Vincent Lengwe of Mineworkers Union of Zambia (MUZ).

“This has exacerbated the high unemployment levels and led to closure of some major companies and down scaling in some companies,” Fr Kaunda said. “The dire situation facing the people of Zambia who continue to suffer in untrammeled poverty whilst their national resources are being exploited and the rewards accrued there from are externalised cannot be allowed to continue. If we do not take action now, the situation in which we are in now will be worse.” Fr Kaunda urged the government to consider taking up equity in mining.

“This will help to reduce heavy dependency on foreign investors who tend to put us at ransom when a crisis as this one occurs,” he said.

Fr Kaunda also said Zambia needed a mine strategy to guide activities and the behavior of investors in the sector.

He further called for a reduction in the government debt to ensure the country from future financial shocks.

“The government should come up with a policy that supports the people's views through the national budget as representative of the people's needs,” he said. “The government should also have a conservative and prudent fiscal policy while pursuing simultaneously a permanent budget surplus and a reduction in government debt as an insurance against future financial shocks.”

He added that investment in infrastructure, especially along the growth corridors, needed to be increased.

“Poor infrastructure and inadequate access is resulting in significantly increased cost of doing business, making it difficult to integrate the rural population with the rest of the economy,” he said.

“The government should restructure its expenditure and reduce on its recurrent expenditure so that freed resources can go into infrastructure development.”

He called for increased investment in agriculture extension services and research, irrigation as well as the improvement of rural roads.

“There is huge potential for agricultural exports but this will not happen without a predictable export policy especially for food grains without underestimating the significant potential of the livestock sector,” said Fr Kaunda.

Labels: CSO, GREAT DEPRESSION II

posted by MrK @ 10:13 PM