Maravi

Government needs to explain its actions to curb poverty - DFID

Government needs to explain its actions to curb poverty - DFID
By Tilyenji Mwanza and Bright Mukwasa
Tue 19 June 2012, 13:24 CAT

THE Department for International Development says the government needs to explain concrete policy actions it will take to reduce poverty, create employment and expand the economy because previous government policies did not benefit the poorest rural households.

During the poverty reduction budget support review meeting held at the Mulungushi International Conference Centre in Lusaka yesterday, DFID head Mike Hammond said while the government's intentions had been clearly stated, the DFID was concerned that it was yet to present a concrete strategy or roadmap for implementing reforms.

"Whilst the government has set out very clear pronouncements to focus its energies on reducing poverty, we, and more importantly the people of Zambia through the ballot box, will judge its commitment on the basis of its policy decisions, resource allocation and results achieved," Hammond said.

"We, and the people of Zambia need to learn about more concrete policy actions this government will take in order to reduce poverty, create more employment opportunities, expand economic development throughout the country, in rural areas, and distribute available resources more equitably."

Hammond said strengthening public financial management was a cornerstone of good governance and any Budget Support programme.

"Government's intentions have been clearly stated, but we are concerned that it is yet to present a concrete strategy or roadmap for implementing reforms. The 2011 PAF assessment shows worrying deterioration in key public financial management indicators and Cooperating Partners are concerned about the lack of availability of timely budget execution reports," Hammond said.

"The Auditor General's Report on spending in 2010 shows that there remains a need to sustain and deepen progress in implementing reforms to Zambia's public financial management systems."

Hammond said DFID's poverty reduction budget support commitments for 2012 were pledged on the understanding that the PF government would not sustain high levels of public spending on uneconomic purchases and subsidies of maize.

"Evidence, notably from the 2010 Living Conditions Monitoring Survey, clearly shows that previous policies did not benefit the poorest rural households, crowded -out development in agriculture, and wasted resources that could be spent on tackling poverty," Hammond said.

He said cooperating partners were concerned that the previous government's commitment on roads crowded-out vital spending on social services such as health and education.

"A government's commitment to the underlying principles cannot be measured on words alone. Real commitment must be demonstrated by actions, concrete plans, resource allocation and ultimately by the progress made in achieving results," Hammond said.

Hammond said according to the revised ROADSIP2 Road Sector Investment Programme2, 36 per cent of the unpaved core road network remained in poor conditions, including 34 of the primary feeder roads.

Hammond said the roads budget allocates the majority of resources to the expensive paving of new roads at the expense of rehabilitation and maintenance of unpaved roads.

"Cooperating partners will continue to offer support to enhance Zambia's capacity to critically appraise infrastructure projects, particularly in the road sector, to ensure that the government has the correct evidence and analysis on which to make investment decisions," Hammond said.

He also said a third supplementary budget allocation for Food Reserve Agency could raise serious concerns over the credibility of the budget process.

He also said another aspect of the budget support was to reinforce and strengthen domestic accountability.

"It is the responsibility of Zambians to hold their government to account. Civil society, parliamentarians, media and others all have a critical role to play," said Hammond.

And Secretary to the Treasury Fredson Yamba said donors have raised a number of concerns relating to the government's commitment to principles of poverty reduction budget support process.

"...these concerns are in the areas of public financial management, commitment to structural reforms, and commitment to effective governance. I would like to take this opportunity to reiterate that the government's commitment to these issues remain unwavering," said Yamba.

"Our plea, therefore, to you our cooperating partners is to engage constructively with us, in our quest to meet these challenges for the betterment of the Zambian people. The tremendous support that the government continues receiving through budget support is highly appreciated, as it impacts positively on improving the livelihoods of our citizens."

Labels: DFID

posted by MrK @ 2:33 PM