Tuesday, January 27, 2009

A relevant and credible 2009 budget

A relevant and credible 2009 budget
Written by Fr Pete Henriot
Tuesday, January 27, 2009 9:38:46 PM

So what do I say about Obama? Many people have asked me that question since the swearing in of the 44th President of the United States of America a week ago. And I’ve repeatedly asked myself that question!

Well, there already have been some really excellent analyses of his inaugural address and the hopes and expectations that this man is bringing not only to the USA but to the wider world. I really can’t add too much more – other than a very personal word.

For me, the opening of the Obama term of office has enabled me to begin to say again, “I’m proud to be a USA citizen!” I haven’t been able to say that in recent years, and now maybe I – and millions of others – can say it! Ask me again in a year’s time….

But today I want to share some reflections on something very important coming up in the next few days here in Zambia: the presentation of the GRZ Budget for 2009. I’m sure that the Budget address is already prepared and the copies of the Yellow Book already printed. Yet here are at least I offer two suggestions for some priorites of the address that I believe would make the overall Budget exercise both more relevant and more credible.

Poverty priority

On 16 January, when President Rupiah Banda addressed the opening of Parliament, he emphasised that the number one priority in the country had to be dealing with the issue of the poverty conditions in which the majority of our citizens live. Repeating a promise he made in his inaugural address, he emphasised fighting poverty would be his priority.

In a moment of global recession that has already affected Zambia’s struggling economy, and will affect it even more sharply in 2009, the poverty issue is Number One. The Budget must make that same point in its orientation, operation and outcome. My suggestion for the new Minister of Finance and National Planning is that he depart from the ordinary order of presentation of the Budget and make this point right from the start of his Address.

Such a start would be fresh and encouraging, demonstrating the relevance of the Budget to the real world situation of Zambia today. That real world situation has aptly been called the “Poverty Paradox.” That paradox is that Zambia is one of the richest countries in Africa with some of the poorest people in the world! So rich in so many resources, but ranking 165 out of 177 nations on the UNDP Human Development Index.

Zambia of course faces each day more and more the consequences of the global financial crisis. Recently, a high-powered seminar on “Business Unusual,” sponsored by the Economics Association of Zambia (EAZ), heard presentations by top-level Government officials (including the Minister of Finance and National Planning and the Governor of the Bank of Zambia), academics and civil society representatives. Again and again the sentiment was expressed that we simply can’t do “business as usual” and expect to move forward as a nation.

Thus I would urge the minister to put upfront in his coming address the government’s commitment to deal effectively with poverty and let the Yellow Book demonstrate that commitment on every page. Let the social sectors be adequately funded, because no nation can develop without healthy and educated citizens. Let agricultural development be put in the context of rural development, improving the context within which our farmers will willingly and efficiently grow the crops to feed the nation. Let revenue measures acknowledge the rising cost of living of ordinary taxpayers (check out the JCTR’s Basic Needs Basket on www.jctr.org.zm!).

In short, without making the fight against poverty the priority of Budget 2009, the Address and the Yellow Book will lack the relevancy needed to be taken seriously!

Corruption priority

Moreover, the Budget 2009 will simply not be credible unless it acknowledges the shocking and unacceptable drain on the national economy of the widespread corruption and lack of accountability currently experienced in this government’s operations. Evidence of that drain does not come from opposition party criticisms or civil society organisations’ lamentations but from the government itself.

I wonder how many people noted the extreme anomaly reported in two headlines on the front page of the Daily Mail on Saturday, January 24. One headline reported that Zambia was receiving K850 billion from generous donors for budget support. But another headline on the same page exclaimed that the government had lost K767 billion through rampant misuse, theft and misappropriation of public resources, according to the just released Auditor General’s 2007 Report.

Well, honestly, how can a government expect to function when in one door comes donor aid and out the other door goes stolen assets? Yet year after year this anomaly goes on, apparently without any real effective effort to halt its tragic impact on the lives of Zambian citizens!

Just two years ago, Transparency International-Zambia (TIZ) released its sobering report, Show Me the Money, detailing 20 years of the huge loss of money revealed in the annual Auditor General’s Reports. But is it fair to ask how many government officials have been suspended, fired, prosecuted or jailed because of their “rampant misuse, theft and misappropriation of public resources”?

I want to suggest that the Minister’s Budget Address will not be credible this year unless he explicitly acknowledges this shameful situation and announces specific steps to correct it. For how can we continue to be grateful for donor aid – needed this year more than ever – if we continue to allow the waste of that aid to go on unchecked?

It would really make some people sit up if the minister could say that he was directly instructed by the President to announce during his speech that individuals named in the Auditor Generals’ Report would with immediate effect be suspended from government service. Yes, innocent until proven guilty in court trials – but not allowed near government money unless cleared by judicial action!

What I am saying is that no one can, no one should, give credibility to accounts shown in the up-coming Budget unless action is taken to be sure that the disgraceful deeds of some government officials from Cabinet rank down to lowest civil servant rank are effectively dealt with without delay.

Yes, relevant and credible. Zambians will be listening carefully and hopefully this Friday to the new Minister’s first Budget Address. God bless him!

phenriot@jesuits.org.zmThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it

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Sunday, August 03, 2008

Ministers oppose proposal for Parliament oversight over debt

Ministers oppose proposal for Parliament oversight over debt
By Mwala Kalaluka
Sunday August 03, 2008 [12:49]

TWO ministers in the Public Finance Committee of the NCC on Friday opposed a proposal from the Jesuit Centre for Theological Reflection (JCTR) that Parliament must approve debt before it is contracted. JCTR Debt, Aid and Trade programme coordinator Muyatwa Sitali in his submission before the committee said in view of the inadequate parliamentary control over the borrowing process, there was need for the new constitution to provide for the selection of a parliamentary committee to scrutinise debts.

Muyatwa, who was flanked by JCTR executive director Fr Pete Henriot, said this proposal was in tandem with the JCTR's proposed debt management bill.

"The bill proposes a broader and inclusive debt contraction process which is not only limited to the Minister of Finance but also provides the authority to Parliament to strengthen its oversight role in the contraction and management of debt," he said.

"The 'select committee' of Parliament could be either one which is already existing such as the Economic Affairs and Labour Committee, the Public Accounts Committee or the Estimates Committee or any other that may so be established for purposes of exercising oversight."

Muyatwa proposed that the select committee should analyse every loan to be borrowed in the ensuing financial year, together with the estimates of revenues and expenditure of the government.

"It is our considered view that the preparation of 'Debt Management Strategies' should be made more explicit and a directive of law," Sitali said.

He pointed out such interventions were necessary to cushion the country from getting into another debt trap.

But works and supply minister Kapembwa Simbao argued that borrowing was an unavoidable need.

He urged people to have confidence in the Minister of Finance over the loan contraction process.

Transport and communications minister Dora Siliya, who left the committee room before the issue could be put to 'rest', said Sitali's proposal would dilute the roles of the three wings of government.

She said Parliament was still privy to the debt contraction process because the Minister of Finance usually provided percentages during the budget presentation, as to how much of it would be funded from external sources.

Sitali maintained that it would be good if Parliament had an idea of what the government wanted to borrow.

Sitali said the JCTR's debt management strategy transcended political boundaries.
However, committee vice-chairperson Charles Milupi said the proposal was a progressive one and required attention, because the issue of debt was vexing.

"If you look at what is proposed here, it is not to diminish the powers of the Executive," said Milupi.

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Friday, October 26, 2007

Fr Henriot calls for democratisation of UN

Fr Henriot calls for democratisation of UN
By Sheikh Chifuwe in Antigonish, Canada
Friday October 26, 2007 [04:00]

JESUIT Centre for Theological Reflection (JCTR) director Fr Pete Henriot has called for the democratisation of the United Nations and the international financial institutions if development and peace were to be meaningful. Addressing St Francis Xavier University students and the community of Antigonish in Canada on Tuesday evening under the theme, “global perspectives on the work of development and peace”, Fr Henriot said one of the solutions to underdevelopment was to make the international institutions such as the United Nations, International Monetary Fund, World Bank and World Trade Organisation more democratic.

"These institutions were set up without the interest of the developing countries. They need to reform the power structures of these international financial institutions and the UN so that they are more representative," he said.

Fr Henriot also challenged the governments of the south to become more transparent and accountable to the people as the only other alternative of ensuring there was development and peace within their countries.

He said developing countries needed more regional co-operations and strengthened regional bodies such as the African Union and the Southern Africa Development Community (SADC).

He told the audience that globalisation had impacted negatively on Zambia and other developing countries as it had left most of the already poor people without employment due to its profit-oriented approach.

"The process is within the discredited neo-liberal market paradigm where they want to pursue economic reform without consideration of the social impact," Fr Henriot said.

"The political structures of the IFIs (International Financial Institutions) do not effectively include participation of government or civil society."

He said the imposed policies such as the Structural Adjustment Programme/Poverty Reduction Strategy Paper had weakened cultural values once cherished among the Zambians because of entrenched poverty.

He said there was no fullness in trying to transform the world economically in the absence of justice. Fr Henriot added that development was about movement of people from less human conditions to more human ones.

"We live in a country where economic indicators are taking off but people are remaining behind," he said.

He challenged the church to stand up for social teaching and campaign for social justice among the citizens of the world. Fr Henriot urged the church to pay special attention to controversial global issues.

"Influence church people to become activists, not just in charity but in justice. Development and peace must continue to grow and flourish," said Fr Henriot.

Women for Change executive director Emily Sikazwe thanked the organisers of the event for inviting participant from Zambia to address them.

The discussion was hosted by the university's Development Studies Students' Society.
Sikazwe is in Canada conducting a lecture at the Coady International Institute.

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