Friday, July 15, 2011

(LUSAKATIMES) Zambia’s re-classification means reduction in Donor Aid and increase in Foreign Investment-Musokotwane

COMMENT - It never seizes to amaze me how neoliberal economists can define 'growth' without taking into account the masses that will hang them in the streets when they are going to be forced to wait for an end to poverty for another generation - poverty will not be reduced in another 30 years following the MMD's policies, according to the finance minister. As if they have another 30 years in office. 'Per capita income' merely means that they take GDP and divide that by the number of citizens. As we know, the mining sector is now foreign owned and does not pay taxes. It is utterly meaningless when there is massive inequality, which results in 40% of the population being malnourished. FDI is just another heist.

Zambia’s re-classification means reduction in Donor Aid and increase in Foreign Investment-Musokotwane
TIME PUBLISHED - Friday, July 15, 2011, 1:55 pm

Finance and National Planning Minister Situmbeko Musokotwane (right) talks to Deputy Minister Chileshe Kapwepwe after he addressed journalists in Lusaka

Finance and National Planning Minister Situmbeko Musokotwane has described the classification of Zambia to the lower Middle Income status country by the World Bank as a clear manifestation that government’s economic policies are materializing.

Speaking to Journalists in Lusaka this morning, Dr. Musokotwane said this classification means a reduction in donor Aid to Zambia and increased foreign investment.

Dr. Musokotwane says Zambia will now be able to access non concession loans adding that previously the country had been constrained by concession financing which is limited.

The minister has further explained that the country now lies in the range of 1,600 to 3,975 dollars per capita income adding that the target for government is to reach up to over 1,200 dollars per capita income which is for a high income status country.

And Dr. Musokotwane has said the economic reform process has not been easy for government and that this achievement is as a result of political will towards driving the country to economic prosperity.

On whether Zambia’s classification translates into poverty reduction in the country, the minister says the effects on the average household will slowly manifestadding that even in the High Income status countries, problems of the effect are there.

QFM

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