IMF urges govt to revise agricultural policy
IMF urges govt to revise agricultural policyBy Kabanda Chulu
Mon 01 Oct. 2012, 11:50 CAT
THE government should urgently revise its agricultural policies to avoid having maize taking up a significant amount of available resources in the industry, advises IMF resident representative Perry Perone.
And the IMF has advised the government to investigate privatised public entities in a manner that is transparent and consistent with the laws of the country.
Perone noted that huge subsidies to maize were being done at the expense of other crops that could enhance food security and increase incomes for small-scale farmers.
Recently, the Zambia National Farmers Union called on the government to consider paying attention to other crops such as rice, which had the potential of becoming the country's major staple food, unlike maize that had turned into a political crop.
Perone stated that it was important for the government to implement agricultural policies that would create incentives for farmers to diversify from growing maize only.
People who would take the advice from the IMF on anything needs to have their heads examined. They have not track record of success, nor do they ever apologize for their screw ups. - MrK]
"This will increase food security and can help farmers increase their incomes. Moreover, government's emphasis on channeling more money to agricultural extension projects can also be a better use of resources than purchasing maize beyond what is necessary to maintain sufficient food security supply," he stated in response to a press query.
"IMF also agrees with government that state policies should be directed toward the agricultural sector but it should be noted that the current agricultural policies that favour maize take up a significant amount of the government's available resources and it is important to improve the transportation infrastructure to make it possible for farmers in more areas of the country to bring their products to market."
And commenting on the government's stance of increasing its role in the markets and the economy in general, Perone advised that consultations with all stakeholders would be important.
"Based on public statements by government policy makers it is not clear that there is an intention to increase the state's role in markets and the economy," he stated. "In cases where government believes that previous privatizations of public enterprises did not conform with the Zambian law it would be important to conduct the investigations in a manner that is consistent with law and transparent."
Perone stated that Zambia's economic outlook was positive despite the inconsistencies in policy pronouncements that characterised the first half of the PF's rule.
"As noted in the IMF's recent Article IV report, the economic outlook for Zambia remains good. Growth potential is good, inflation is in single digits, and fiscal policy has remained consistent with macroeconomic stability," stated Perone.
"Going forward, the key challenges, which government has publicly stated, will be to ensure policies contribute to job creation and meaningful poverty reduction so the key challenge for government is to implement policies that will maintain the good macroeconomic performance of recent years and help ensure that the growth is broad-based to enable more Zambians to improve their standard of living."
Labels: AGRICULTURE, IMF, NEOLIBERALISM
posted by MrK @ 2:47 PM
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