JCTR launches 'demand a receipt' campaign
By Kabanda Chulu
Thu 16 Jan. 2014, 14:00 CAT
PEOPLE should demand a receipt for every purchase to enable the government have a higher chance of collecting revenue, says the Jesuits Centre for Theological Reflection.
Launching the "Demand a receipt" campaign, JCTR stated that it was everyone's responsibility to help the government maximise revenue collection.
"The link between tax and development is fundamental. A country that should sustainably provide services to its citizens must be able to mobilise domestic resources. But the reality is that many governments, including the Zambian government, struggle to collect sufficient tax revenues to be able to deliver the desired level of development," JCTR stated in a statement issued by the Economic Equity and Development Programme.
"As JCTR, we believe that if every individual took it upon himself/herself to demand a receipt after every purchase, the chances of collecting tax revenue will be enhanced."
It stated that it was more difficult for a trader to evade tax on a receipted transaction than on an un-receipted one.
"On the other hand, it is easier for the revenue authority to keep track of receipted transactions and collect tax than on un-receipted transactions. Therefore, all people should demand a receipt on every purchase they make as this is one sure way for government to trace all transactions, reduce tax evasion and increase tax revenue collection," stated JCTR.
"This will also address the current disproportionate tax burden which is largely borne by people in the formal sector and ultimately, increase equity in resource mobilisation."
Despite the income tax regulations requiring businesses to issue receipts and keep a cash machine, many traders do not follow the law and enforcement was lacking.
Labels: JCTR, TAXATION
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JCTR calls on govt to curb cost of basic commodities
By Masuzyo Chakwe
Sat 13 July 2013, 14:00 CAT
THE Jesuit Centre for Theological Reflection has urged the government to tackle the rising cost of basic commodities.
Releasing the Basic Needs Basket for the month of June, JCTR stated this was so in view of the fact that so far no well-articulated framework had been put in place to ensure that the poor do not suffer adverse shocks of price changes.
It stated that it was imperative that clear measures, such as zero rating some food products be put in place to mitigate the increasing cost of food items.
In May, the government sequentially scrapped fuel and maize subsidies contending that the measure would free resources for infrastructure development and poverty reduction among others.
This change in subsidies has generated a debate with various actors voicing varying views.
JCTR stated that at household level, the effects of the subsidies removal on prices of basic commodities were still being felt two months afterwards. According to Daniel Mutale, the social conditions programme manager, the effects of removal of subsidies on basic food items was deepening.' Mutale said this calls for an urgent response to address the rising food costs.
JCTR stated that the cost of living for the month of June as measured by the JCTR's Basic Needs Basket for an average family of five living in Lusaka stood at K3,684.46.
"The Basic Needs Basket total has increased by K59.26 compared to May 2013 when the basket was K3,625.20. Evidently this increase is almost double the Basic Needs Basket total increase from April to May which was K31.60. From the time the subsidies were removed in May, a cumulative increase in the Basic Needs Basket total of K90.86 has been seen. The total cost of essential food items contributed most to this increase by K41.78 while that of essential non food items increased by K17.48. Increases in unit price of food commodities such as mealie-meal, beans, dry fish and beef by K3.18, K1.49, K24.62 and K1.13 respectively, explain the increase," it stated.
Mutale stated that, "The fact that it is the basic food items whose prices are affected is worrisome as these are integral to the diet of the majority poor." JCTR stated that not only was the cost of basic food items such as mealie-meal, which on average costs K59.28, unaffordable but the price was steadily rising as evidenced by an increase of approximately K3 in the month of June.
It stated that data from the Satellite Home Survey carried out by the JCTR in some high density areas within Lusaka shows that a great number of families rely heavily on mealie-meal for their basic meals.
"Thus the current and potential future increase in its cost and those of other basic food items will both constrain the already struggling families and pose a threat to household food security," stated JCTR.
Labels: INFLATION, JCTR
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MUZ urges private sector to emulate govt on salary hikes
By Misheck Wangwe in Kitwe
Tue 16 Apr. 2013, 14:00 CAT
MUZ has challenged manufacturing and mining companies in the private sector to emulate the government that has adjusted upwards salaries for civil servants above the food basket value.
In an interview yesterday, Mineworkers Union of Zambia general secretary Joseph Chewe said the decision by the government to commit itself and ensure that the lowest paid worker gets at least above K2.8 million (KR2,800), which was the basic needs and food basket value of the Jesuit Centre for Theological Reflection (JCTR) speaks volumes of its commitment to addressing the needs of workers in the country.
Chewe said in the next round of negotiations for collective agreements, the union would ensure that other mining companies catch up the benchmark of government as mining was a very vibrant and productive sector as compared to the government which was a service provider.
"We appeal to mining companies and industries to emulate the government that has taken a bold step to emulate a worker. The mining companies paying below KR2,900 must pull up their socks and catch up with the government," he said.
He said employees in the private sector deserved to live above a minimum food basket as guided by the JCTR, adding that some companies were paying unjustified low wages with less amount of motivation.
"If we recall, the private sector used to pay better salaries than the government but the trend is different. We congratulate the PF government for setting up this benchmark and our challenge goes to the private sector that has become dormant in terms of attending to the needs of employees through salary increments. The government is now very particular about a worker," Chewe said.
He said many employees were running away from the private sector and joining the government which was not a good sign of development in terms of labour as the country's economy was private sector driven.
Chewe said the increase in minimum wage and the improvement in salaries for the private sector was an indication of serious political will being demonstrated compared to the past.
Labels: JCTR, MUZ
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A good constitution can eradicate poverty - Sikazwe
By Kombe Chimpinde
Thu 21 Feb. 2013, 15:10 CAT
WOMEN for Change executive director Emily Sikazwe says a good constitution can eradicate extreme poverty and improve the country's governance system. And JCTR says Zambians must ensure that economic and social rights are enshrined in the country's constitution by going to a referendum.
Meanwhile, Lubansenshi independent member of parliament Patrick Mucheleka says economic problems in Zambia are a result of poor governance exhibited by governments over the years.
Speaking at a discussion forum themed 'The Zambia we want' organised by the Press Freedom Committee (PFC) of The Post in Lusaka yesterday, Sikazwe said it was only through the constitution that economic rights of all Zambians would be guaranteed.
She said coming up with a good constitution would ensure the interests of the minority in society were protected.
"In there (constitution), we will make sure the poor are protected in a country where we are saying economic growth is high… There is no one to blame, not any outsiders but ourselves," said Sikazwe. "I have a nephew in UTH who broke his leg. I have been going to UTH now for the last three weeks every day.
They failed to operate on him for two weeks because there was no oxygen and it is true there was no oxygen and this is endemic, it's not today's problem; it's been there all along. People sleeping on the floor… The issue is what is our collective vision?"
And Jesuit Centre for Theological Reflection (JCTR) director Fr Leonard Chiti said participation of all Zambians in the constitution-making process was crucial in order to ensure economic, social and cultural rights and that this would happen through a referendum.
He said once this was achieved, resources made for poverty related programmes would be strictly administered and protected as government would be held liable for failure to provide the said rights.
"You can actually sue the government for failure to provide these rights, in the same way we can sue the government if they stopped having this forum that we are having now," Fr Chiti said.
He said the draft constitution currently has provisions for economic, social and cultural rights.
"These rights are rights such as the rights to education, the right to health, the right to food security, shelter, a safe environment but also, within the Bill of Rights in the draft, there are provisions for more rights for women, and the Millennium Development Goals (MDGs) are more less associating with these economic and social rights," Fr Chiti said.
"In terms of MDG number one, which is alleviating extreme poverty, if you provide education, health, shelter, job, a clean environment and security, clearly this would go a long way in having the proportion of people living in extreme poverty reduced."
Fr Chiti said if the said rights were enshrined in the constitution, Zambia would be on course in meeting the MDGs by the 2015 target date.
And UN country coordinator Kani Wignaraja said there was still much that remained to be done for the country to meet the MDGs by 2015.
"Enrolment of pupils in primary schools, we have done very well. We have seen enrolment in secondary schools but close to a half of our children Zambia don't complete primary and even a larger number of that, don't even complete secondary," she said.
"The other fact that we have to consider is three Zambians; two of whom are girls, every hour are infected with HIV. Now although we are doing well on HIV prevalence and upping the ability of those who have not had access to treatment and care and counselling, on the other side of the spectrum is quiet alarming, that every hour three Zambians are newly-infected with HIV. These issues are fundamental that we have to ask ourselves as a nation where we are headed."
Wignaraja said there was little benefit in pointing fingers at each other on what has not been done.
Meanwhile, Mucheleka said the government should begin to exert its efforts on serious national priorities that can accelerate development.
"It is a question of how we set our priorities. What steps are we taking to ensure that we strengthen and enhance domestic resource mobilisation?" asked Mucheleka.
Labels: EMILY SIKAZWE, JCTR, POVERTY
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JCTR calls for compliance with law in airing views
By Fridah Nkonde
Tue 28 Aug. 2012, 10:30 CAT
JCTR has advised Zambians not to break the law in their quest to have their views heard. In an interview, Jesuit Centre for Theological Reflection programme manager Geoffrey Chongo also said it is not a must that the government must always go by what people suggest because those in government also have a plan.
Chongo said although there was need for the government to exercise tolerance all the time, there was also need for people not to break the law.
"Every ruling party is supposed to exercise tolerance if development is to take place in a country. But a government being open-minded it does not mean that people should break the law; everything has to be done within the confines of the law," he said.
Chongo said since the PF were in government, they had all the rights to do what they thought was right for the country's development.
He said it was important for any government to embrace tolerance and avoid shooting down people's views.
Choongo said the government was expected take time to listen to whoever had opposing views concerning any issue.
"Government should not think that those with opposing views don't mean well for the country. They should give them space to speak out and bring out their own views. Government always has a choice whether to go by what someone is suggesting or not. But government should also be careful not to ignore people's views because those are the same people who would make them lose an election," he said.
Chongo said the PF had tried to give people space to express their opinions but had at times come out very strongly on certain issues.
"They should get used to it because people will continue giving suggestions to government. We are in a multiparty system. I remember when people accused the PF of failing to fulfil their campaign promises, President Sata said he needed evidence on what they had failed to do and asked people to give suggestions," said Choongo.
Labels: FREEDOM OF SPEECH, JCTR
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JCTR notes rise in cost of living
By Mukosha Funga
Sun 01 July 2012, 13:23 CAT
THE cost of living for a family of six in Lusaka has increased to K3,395,660 from K2, 909, 820 in May, signifying rapid increases in prices of essential goods and services.
And the Jesuit Centre for Theological Reflection (JCTR) says Zambia's desire to reduce poverty and hunger by 2015 can be strengthened through a wage that ensures reduced poverty at household level.
Releasing its June Basic Needs Basket (BNB) in a statement yesterday, JCTR acting Social Conditions Programme manager Sosten Banda stated that the upward adjustment was influenced mainly by increases in the cost of essential non-food items like accommodation and electricity which had been effected following comprehensive research and relevant stakeholder consultations.
Specifically, accommodation for an average three-bedroomed house in a medium density area increased by K250, 000 from K1, 500,000 to K1, 750,000, he stated.
"Further, the fixed cost of electricity in such an area increased by K242, 000 from K130, 000 to K372, 000. There was a slight reduction of K300 in the cost of a 50kg mealie Meal bag (Breakfast) from K40, 500 to K40, 200. However, the cost of essential non-food items such as charcoal and soap remained unchanged," Banda stated.
And the Jesuit Centre for Theological Reflection (JCTR) says the minimum wage that will soon be announced through the Minister of Information, Broadcasting and Labour should address the cost of living that is significantly high despite the observed reduction in some basic needs.
Banda stated that the country's quest to meet the Millennium Development Goal number one which seeks to reduce by half poverty and hunger by 2015 will only be attained through decent wages.
"As the cost of living increases, it makes economic sense that wages and salaries in both the private and public sectors correspondingly increase. If that doesn't happen, poverty will perpetuate as the majority of Zambians will be unable to meet the cost of basic food and essential non-food items, especially in the long-run," said Banda, further highlighting that .
He added that serious and sustained policy steps starting with the new minimum wage yet to be announced should be encouraged as they will ensure that a typical worker in Zambia gets a wage that enables them to meet the cost of food items.
Banda stated that it reiterates its call for concerted and sustained efforts
by different stakeholders, saying the government on one hand should come up
with a minimum wage that is fair for all stakeholders.
"a fair minimum wage and quick implementation will further reduce the industrial unrest that has characterized the country in recent times. Further, policies, strategies and initiatives that ensure sustained employment creation, especially for the youths that account for 80 per cent of Zambia's total population will help remedy the high income poverty that such groups are currently experiencing," stated Banda.
Labels: JCTR
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Rural development key to poverty reduction
June 5, 2012 | Filed under: Business | Posted by: web editor
By NANCY MWAPE
THE Jesuit Centre for Theological Reflection (JCTR) has called on Government to prioritise rural development to tackle poverty and create employment.
JCTR has also urged the private sector such as banks to consider investing more in rural areas to provide affordable financial products to farmers and other key players in rural development.
JCTR social conditions programme officer Sosten Banda said Government should accelerate and intensify its development efforts through targeted, clear and consistent policies that ensure sustained rural development.
In a statement, Mr Banda said the JCTR rural basket, which has been in use for the last four years, continues to show that rural development is being held back by widespread poverty.
“It is imperative that Government develops targeted, consistent and clear policy frameworks that allow the rural poor realise economic opportunities that empower them to leap out of poverty in a more sustainable and coordinated manner,” he said.
Mr Banda said the 2012 JCTR first quarter rural basket findings indicate serious failure by most households to meet minimum nutritional requirements, with the average energy in-take for most households being about 1, 000 kilocalories below the recommended World Health Organisation’s 2, 400 kilocalorie daily threshold for a rural population.
According to national statistics, about 77.9 percent of households are living in extreme poverty and still remain dependent on agriculture as their main source of livelihood.
He said despite the bumper harvest in most of the surveyed areas, household food insecurity is considerably high with many selling almost all their agricultural produce at once to meet other basic needs.
Mr Banda said lack of access to all-weather roads, which is a pre-requisite for rural development, has compromised household food security situation in rural areas.
He said despite the impressive economic performance, rural development such as access to roads and unemployment remain a challenge.
Mr Banda said the public private partnerships initiative should be strengthened at all levels with a clear focus on improving economic opportunities for the poor, addressing factors furthering poverty and household food insecurity.
“It is only when economic growth ensures sustainable development for all that the majority of Zambians will benefit from the country’s current strong economic performance,” he said.
Mr Banda said about 60 percent of households fail to meet the cost of essential non-food items like bathing soap and lotion while access to financial services is a challenge with limited accessibility to banks, financial institutions or products that meet the needs of these rural people.
Labels: JCTR, POVERTY, RURAL AREAS
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JCTR demands explanation for PF Government U-turn on Windfall tax
TIME PUBLISHED - Wednesday, May 16, 2012, 6:19 pm
The Jesuit Center for Theological Reflection (JCTR) has demanded an explanation from government over its u-turn on the re-introduction of windfall tax. The JCTR said that government should publicize its reasons for not re-introducing the windfall tax regime for the mines a u-turn on its campaign promises.
JCTR programmes manager for economic equity and development, Geoffrey Chongo said that it was unfortunate that the Patriotic Front government has Lost a golden opportunity to re-introduce windfall taxes because mining Companies after the PF’s victory, were ready to start submitting.
Mr.Chongo said that JCTR feels let down by the fact that the PF government has suddenly gone soft on windfall tax without offering a concrete explanation to the masses that voted them into office.
He said that JCTR was not against the government u-turning on its campaign promise to re-introduce windfall tax, but wants an explanation.
Speaking at a media workshop in Lusaka today, Mr. Chongo said that it was also unfortunate to realize how little the mining sector contributes to the country’s tax revenue considering how important the sector is to the country’s economy.
He said that there was still need for government and investors in the mining sector to strike a balance in sharing profits from the mines.
QFM
Labels: JCTR, WINDFALL TAX
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Government’s Economic policy inconsistent, positively look at Fitch’s downgrade-JCTR
TIME PUBLISHED - Wednesday, March 7, 2012, 4:18 pm
The Jesuit center for theological reflections JCTR has expressed concern over the inconsistency in government policy pronouncements has been a source of concern. Jesuit Centre for Theological Reflection Programmes Manager Geoffrey Chongo says that inconsistency in the PF government promised the people of Zambia on the windfall tax.
Mr. Chongo said that
after the PF got into power,the Minister of Finance suddenly announced that government was not going to reintroduce windfall tax. Mr. Chongo said that that the PF government also while in opposition and even after getting into power promised that they would
increase their stake in the mining companies but today
Zambians are being told it is not government policy.
He said that it is this policy inconsistency among other factors that has led Fitch to downgrade Zambia’s economic outlook. He has noted that the Minister of Finance has acknowledged that there is inconsistency in policy pronouncements in his Government and he has blamed this development on some top government officials.
He said that there is therefore urgent need to address this inconsistency and assure markets that there is no policy shift and not simply dismiss Fitch’s concerns as inglorious opinion. Mr. Chongo has added that it is also misleading for Government to say that Fitch’s recent economic outlook downgrade is inconsequential to the Zambian economy.
He explained that Rating agencies’ opinion world over have significant impact on individual countries’ economic performance as they influence investor sentiments. He has noted that the growth of the Zambian economy in the last few years has largely been influenced by increased inflow of foreign investment and the PF Government has not shifted from this focus.
He said that maintaining foreign investors’ confidence in the economy thus still remains cardinal to the positive economic outlook of the economy and the fight against poverty.
The JCTR programmes manager has since advised the Zambian Government to positively look at the recent downgrade of Zambia’s economic outlook by Fitch rating and become more systematic and consistent in its policy pronouncement and implementation.
QFM
Labels: DEBT, JCTR, NEOLIBERALISM, PF, WINDFALL TAX
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Government must address income, nutritional poverty - JCTR
By Misheck Wangwe in Kitwe
Mon 05 Mar. 2012, 11:58 CAT
THE government must address income and nutritional poverty if the wealth that flows from economic growth is to benefit all Zambians, states the JCTR.
In a statement released yesterday, JCTR programme officer in the Social Conditions Programme Sosten Banda stated that the significantly high percentage of households living in extreme poverty and consequently with incomes inadequate to meet the cost of basic food and essential non food items was clear testimony of the depth of poverty in the country.
Banda stated that according to the 2010 Living Conditions and Monitoring Survey Report, approximately 66.8 per cent of Zambians had incomes below K800,000.
He stated that nutritional poverty continues to be reflected by the unacceptably high chronic malnutrition rates at a national average of 45 per cent of children under five years being stunted.
Banda stated that the JCTR Rural Basket, which was a quarterly survey that measures nutritional poverty and social service delivery in selected rural districts of Zambia that include Chongwe, Masaiti, Mambwe, Mufumbwe, Kazungula and Shangombo, continues to reflect serious income and nutritional deficiencies.
He stated that the 2011 JCTR fourth quarter Rural Basket indicated that serious failure by most households to meet key nutritional requirements deviated significantly from the World Health Organisation (WHO) recommended standards for an individual to lead a healthy and dignified life.
"For instance, the average energy intake in this quarter shows that most households are consuming approximately 1,500 kilocalories, falling far below the recommended 2,400 kilocalories WHO recommended threshold for a rural setting. Furthermore, over 75 per cent of households failed to meet the cost of essential non-food items. This means that households are not only nutritionally poor but also income impoverished reflected by their failure to meet the cost of essential non food items like bathing soap, among others," he stated.
Banda stated that although policy pronouncements were important as a starting point for sustainable responses, the government should go beyond policy pronouncements to implementation of strategies and programmes.
He stated that stakeholders in the rural development agenda should recognise that nutrition was not just about food.
Banda stated that necessary change in the lives of Zambians affected by nutritional poverty required concerted, broad multi-sectoral actions across agriculture and community development sectors.
He stated that concerted response needs the full engagement of affected communities, working closely with relevant government ministries, especially at the local levels.
Banda stated that the country could also benefit from global expertise and good practices as proven solutions were available in addressing income and nutritional poverty.
Labels: JCTR, MALNUTRITION, POVERTY
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JCTR calls on govt to create decent employment
By Misheck Wangwe in Kitwe and Moses Kuwema in Lusaka
Sun 12 Feb. 2012, 11:50 CAT
THE government must address major issues that are an obstacle to strengthening the link between economic growth and poverty reduction through decent employment, says JCTR.
In a statement, Jesuit Centre for Theological Reflections (JCTR) social conditions programme manager Munyongo Lumba stated that decent work was a global agenda that denotes that the well-being of a person depends on work. Lumba stated that decent employment was an escape route out of poverty for Zambians.
She said poverty and economic inequality have pervaded the Zambian population despite continued economic growth of the country.
Lumba stated that according to the Living Conditions Monitoring Survey Report for Zambia, released in December 2011 by the Central Statistical Office, Zambia had one of the highest inequality indices in Sub-Saharan Africa at 50 per cent showing a wide divide between the rich and poor.
She said the report went further to show that in an economy comprising over five million people of working age, the percentage of those actively contributing to national development has declined from 65 per cent in 2006 to 62 per cent in 2010.
"Job creation is a clear avenue for the poor to participate meaningfully in the economy as labour is their main asset. Creating job opportunities must go in tandem with upholding of workers' rights as enshrined in national policies that promote the decent work agenda," Lumba stated.
She stated that one of the major causes of poverty in the country was the inability of work to provide decent levels of income resulting in people who work being unable to meet their basic needs.
Lumba stated that the JCTR Basic Needs Basket Survey showed that a family of six needed more than K2,968,280 to get through the month of January with food and essential non-food items costing K855,880 and K2,112,400 respectively.
She stated that BNB analysis showed a rise in cost of mainly food items alongside a rise in cost of charcoal, a major source of household fuel for the poor.
"Although government has shown commitment to the decent work agenda through identification of employment creation as a priority, more needs to be done to sustain the momentum. Workers must be paid wages that allow them to meet their basic needs, enabling them to become active participants in national development," she stated.
Lumba stated that enforcement of labour legislation by employers who include investors should be strengthened by designated institutions.
She said economic growth was meaningless if Zambians could not access the benefits of development through a real improvement in living conditions through better incomes, which in turn would enable them access social facilities including health, housing and education.
Labels: JCTR, JOBS, LABOUR
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JCTR urges government to tighten controls
By Kombe Chimpinde
Thu 24 Nov. 2011, 13:00 CAT
JCTR says there is need for government to tighten controls to avoid misuse of resources meant for various projects for the successful implementation of the 2012 budget.
In an interview, Jesuit Center for Theological Reflection (JCTR) director Fr Leonard Chiti, who described the budget as progressive, said the government had a responsibility to ensure that resources were applied on the intended projects if the objectives outlined in the budget are to be achieved.
Fr Chiti said the country had witnessed a lot of misapplication and misappropriation of resources under the previous government which led to an imbalance between the money released for various projects and actual projects completed in a given financial year.
"…There must be a debt resource monetary system exercise where we go to the ground to the grassroots to see whether the monies are eventually reaching the people," he said.
Fr Chiti said the JCTR had worked out a system to track and follow up on the disbursement and application of funds by allocated in the budget by the government through the yellow book and that it would not hesitate to query government on cases of misuse of public resources.
"Government has a duty to ensure that resources that are meant for public good effectively reach the public through deserving sectors of our society," Fr Chiti said.
He also noted that there was need for the government to ensure that any new contraction of both external and domestic loans were subjected to scrutiny.
"First and foremost, we must be prepared in terms of ascertaining what the need is before a loan is acquired so that it does not go beyond the limit of their sustainability," said Fr Chiti.
"We must borrow for the right reasons and ensure that the money is going to the intended projects."
Labels: CORRUPTION, JCTR
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Human-centred economics
By JCTR
Tue 14 June 2011, 04:20 CAT
Does the current understanding of economics benefit in any significant way the majority of citizens of this country?
Do the recent promises and development programmes in the light of elections offer an opportunity to direct economic growth to human development? Good economic models are those that constantly ask whether such policies benefit the people, and more especially, the most vulnerable in society.
The Jesuit Centre for Theological Reflection (JCTR) has insisted that the economy is unhelpful unless it serves the human person, and not the other way around. That we can never say we are developing unless the lives of the poor people are improving.
In the light of elections this year, there are many claims of development by both the ruling party and opposition political parties. The ruling party claims that it is their leader who is bringing about true economic and social development.
The opposition political parties discredit these claims and showcase how they will develop Zambia with the available resources once elected into leadership positions. Whether these claims are true or not, let us concentrate on looking at economic development as only being meaningful when it benefits the poor and the most vulnerable in society.
In the past few years, we have seen the face of Zambia changing. Before 2005, Zambia was heavily indebted, suffered from bad policies of Structural Adjustment Programmes (SAPs) that saw wage freezes, stagnation in the education and health sectors, high inflation rates, and high poverty levels. Now Zambia has a new face – low inflation rates, high Gross Domestic Product, and high foreign investment.
But with this celebrated “economic boom” where people have struggled to move out of extreme poverty, there always seems to be those who take advantage of such progress for themselves. Although many policies and economic models have mushroomed in an attempt to see that the people of Zambia develop and come out of poverty, underdevelopment and poverty continue to be a huge challenge.
The return to multiparty democracy in the 1990s came with the concept of liberalisation of the economy, a concept which was so good on paper that decision makers without much consideration of the people, especially the poor, rushed to accept it. Although most of the policies were aimed at bringing about more economic development, these policies led to much suffering of the people, mostly the poor.
For example, privatisation of state-owned industries and mining companies saw many people without jobs due to downsizing, technological advancements, and the search for more competent people. Privatisation and a stress on private ownership saw people in rural areas loosing markets with a withdrawal of services (such as banks) from rural areas.
The free market system that came with democracy saw important sectors such as health and education also being commercialised. User fees were introduced in hospitals and clinics, tuition fees became the order of the day in schools, and social security schemes were slowly becoming history.
The current view of economics tends to instil a belief in the minds of our policy-makers that once you concentrate on sectors that produce and make profit and produce high GDPs, e.g., mines, agricultural, manufacturing companies and tourism, the country will develop.
Human beings, who ought to be the owners of such economic policies, are only thought of benefitting from a “trickle down” effect. But there cannot be development when people are hungry, sick, uneducated, and lacking basic needs.
With such trends, we have rural areas back-rolling in development and general welfare. Rural poverty is still high at about 78 per cent. Access to markets is still a problem, and we are seeing a trend where investments and the benefits of the “economic boom” are only utilised to improve urban areas and to win popular electoral acceptance.
Infrastructure in rural areas is very poor, and educational standards in rural schools are plummeting (even when more new schools are being built), often with few books and desks, while the number of pupils being enrolled is increasing.
Although it can be argued that this situation is changing with the introduction of free primary education and health services, the unavailability of services such as drugs, education materials, and human resources still remains a problem.
In addition to the challenges of access to markets, health and education, people in rural areas consume far below the recommended calories of food per person per day.
In a world where we crave for policies and theories that will help to expand the economy, large sectors of the population are still marginalised.
Unemployment levels keep rising. There are too many people chasing too few jobs. Even when foreign investment is seen to have given many Zambians jobs, the type of jobs, the remuneration, conditions in which workers work, remain poor.
The precondition for any economic policy or theory should be the question, “how would such a policy or theory benefit the people involved?” The problems that people continue to face especially in accessing basic needs show that our policies and economic theories may not be specifically and directly directed to the wellbeing of Zambians, especially the poor.
Good economics and mature development processes are those that raise the standards and dignity of all the people. In the development process, human dignity and the common good should never be compromised. There is need to stop taking a limited view of economics under current models.
We need to constantly look at the broader view that places human beings at the centre. We should keep an eye on the most vulnerable in our society when making economic policy decisions. Our measure of development should be when we have many more people who were poor coming out of poverty.
Just how do you think that we can direct our economic benefits to improving the lives of poor Zambians?
dliche@jesuits.org.zm
jctr@jesuits.org.zm
www.jctr.org.zm (external link)
Labels: DEMAND SIDE ECONOMICS, JCTR, NEOLIBERALISM, SAP
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JCTR wary of Rupiah’s projects
By Kabanda Chulu in Kitwe
Fri 10 June 2011, 04:00 CAT
ZAMBIA is heading towards a debt crisis because mining tax arrears and loan portfolios provided for in the 2011 budget are not sufficient to pay for the multi-billion kwacha projects being launched by President Rupiah Banda, says JCTR.
And Jesuit Centre for Theological Reflection (JCTR) programmes officer Sydney Mwansa has said government’s promise to buy all the maize harvested this year will entail additional borrowing because the 2011 budget had only provided K1.3 trillion but over K2 trillion would be required.
Commenting on the Kitwe and Lusaka urban road rehabilitation projects launched by President Banda, Mwansa has challenged government to be more transparent in the way it contracted loans to avoid another debt crisis.
“The mode of financing these works is of great concern since the K3.1 trillion road allocations in the 2011 national budget did not initially include these new road projects but others such as Mongu-Kalabo road, Siavonga-Sinazongwe road, among other roads, government will have to borrow or reallocate resources from other priority areas to complete these new projects.
Even though government is saying these projects will be financed by mining tax arrears and loans, the K555 billion tax arrears and the foreign and domestic loans of 2 per cent and 1.4 per cent of GDP respectively, provided for in the 2011 budget are not sufficient to pay for these mega trillion kwacha projects,” Mwansa said.
“Government will therefore have to borrow beyond the budgetary ceilings which will certainly worsen the country’s debt burden that lately has been on the increase and these loan amounts, conditionalities attached, loan repayment period and the interest payable on the loan must all be publicly disclosed to ensure transparency and to hold government accountable.”
He said maintaining fiscal prudence as elaborated in the 2011 budget and Sixth National Development Plan was essential for translation of macroeconomic gains achieved into tangible benefits.
“However, recent developments don’t guarantee this process, when looking at how much will be spent on maize purchase and government has already borrowed huge loans for contentious projects like mobile clinics and hearses and any further loan contraction will just destabilise the economy,” Mwansa said.
“It will certainly crowd out the private sector (domestic borrowing) as it exerts upward pressure on the bank lending interest rates and creates inflationary pressures.”
There have been growing concerns over the huge expenditure by government and rapid implementation of infrastructure projects by President Banda in the run-up to elections.
Recently, former finance minister Ng’andu Magande also expressed concern about the handling of projects and expenditures that were not even in the national budget.
Labels: JCTR, RUPIAH BANDA, SYDNEY MWANSA
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JCTR warns of Zambia’s increasing debt burden
By Maluba Jere
Wed 23 Mar. 2011, 04:00 CAT
JCTR has warned that Zambia's sovereign credit rating may increase the country's debt burden.
In a press statement on Monday, Jesuit Centre for Theological Reflections programme manager of economic equity and development Geoffrey Chongo stated that while a sovereign rating is a milestone for Zambia as it offers alternative sources of financing to traditional ones, it is important to be mindful of the debt burden implication of this development for the country.
Chongo noted that as long as Zambia continues to borrow to finance projects that have no direct benefit to the people, the sovereign rating will mean nothing to Zambians.
He stated that the grade itself was not good enough to attract loans at very low interest rates. Zambia has been rated with a B+ by an American Credit Rating Agency, Fitch Ratings.
The rating is meant to estimate Zambia’s credit worthiness and has been partly influenced by, among other things, low levels of external debt, a fast growing economy and a stable political environment.
“As the B+ status implies a high possibility of default by the country issuing bonds, Zambia will have to offer high interest rate on bonds to attract investors which will certainly increase the county’s debt burden and ultimately compromise government’s ability to deliver social and economic services,” Chongo stated.
He noted that the country's external and internal debts had been steadily rising and warned that if left unchecked, they might take the country back to unsustainable debt levels of the pre HIPC/ Multilateral Debt Relief Initiative period.
“The public external debt currently stands at US$1.2 billion and with the pending issuance of US$1 billion worth of bonds it will soon rise to US $2.2 billion,” he stated.
Chongo stated that although a larger share of external debt is private, part of it was publicly guaranteed and that if private and parastatal borrowers failed to pay, the Zambian people would have to pay.
He advised the government to be cautious in the way it contracts new debts.
Chongo stated that the sovereign rating must bring about real development into people’s lives, otherwise it will be meaningless to the majority of Zambians.
Labels: DEBT, JCTR
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Fuel price increase will reverse macroeconomic gains - JCTR
By Misheck Wangwe
Tue 01 Mar. 2011, 04:01 CAT
THE 12 per cent increase in fuel price will hit the poor who are already struggling to meet basic needs, says the Jesuit Centre for Theolog-ical Reflections.
In a press statement, JCTR programmes manager of economic equity and development Geoffrey Chongo said the increase would also reverse some of the macroeconomic gains the country had achieved.
Chongo said the increased cost of fuel announced by the Energy Regulations Board would further heighten inflationary pressure, and the cost of production was bound to go up forcing producers to increase the price of goods and services, thereby eroding people’s purchasing power.
“Salaries for the majority Zambians are already not meaningful because of high tax rate and low tax-free threshold and therefore any price increase in basic needs that may result from fuel price increase will impact on households negatively. The cost of living in Lusaka for a family of six as reflected in the basic needs basket for January 2011 of K3,019,000 is beyond the reach of many people,” Chongo said.
He said the burden of the fuel price increase would ultimately be borne by consumers, especially the poor who had little or no savings to fall back on.
Chongo said that at the macroeconomic level, the fuel price increase was likely to adversely affect the balance of trade.
He said the cost of production would increase as fuel was the major factor of production and would translate into higher prices of final goods and services, thereby making locally produced goods uncompetitive on the international market.
He said the government should have subsidised the cost of fuel by reducing or removing some of the many fuel taxes.
Chongo said that last year alone the government increased fuel prices twice in a period of four months.
He cited a 15 per cent increase in January and a 13 per cent hike in May before the uniform pricing mechanism was introduced in September 2010 that saw a further increase in fuel prices in certain areas.
He said the government should find a sustainable solution to prevent frequent fuel price increases.
Labels: FUEL, INFLATION, JCTR
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JCTR calls for objective APRM review of Zambia
By Kombe Chimpinde
Mon 21 Feb. 2011, 04:00 CAT
THE Jesuit Centre for Theological Reflection has called for an objective and credible review of Zambia under the African Peer Review Mechanism (APRM).
In an interview, JCTR Zambia chapter director of governance Dominic Liche said the success of the outcome of the review was dependent on an objective gathering of facts as well as critical self-assessment, which would bring a true reflection of the state of governance and many other areas of the country.
“Our expectation is that it should be done in a credible and objective manner where there is no bias and politicizing of the process. We also expect that the process will be concluded within a good period of time. But most importantly we want the national plan of action report which clearly tabulates the weaknesses, challenges and how best they will be addressed,” Liche said.
Zambia joins 16 countries that have already been peer reviewed under this instrument.
It will be assessed on its performance on political, economic management, governance and social development among others followed by a validation of a self-assessment and subsequent implementation of a national programme of action based on the review.
Liche said the review should not just end up as an academic exercise but one that would be in tandem with the existing state of affairs in the country.
He urged Zambians to participate in the review for the enhancement of the country’s development.
“APRM will give an opportunity to citizens to begin to highlight the issues themselves when they are asked what they think the challenges of governance are, see where we are going wrong and where we are doing well. Citizens must start to speak out about governance issues,” Liche said.
Liche urged the government to synchronise the national plan of action with the Sixth National Development Plan once it is out in order to coordinate the efforts of both plans.
Liche also said the assessment would not have a bearing on the elections as most of the issues expected would not be new.
President Rupiah Banda this month launched the review to be carried out by a review mission team under the umbrella of African Union.
Labels: APRM, JCTR
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JCTR calls for objective APRM review of Zambia
By Kombe Chimpinde
Mon 21 Feb. 2011, 04:00 CAT
THE Jesuit Centre for Theological Reflection has called for an objective and credible review of Zambia under the African Peer Review Mechanism (APRM).
In an interview, JCTR Zambia chapter director of governance Dominic Liche said the success of the outcome of the review was dependent on an objective gathering of facts as well as critical self-assessment, which would bring a true reflection of the state of governance and many other areas of the country.
“Our expectation is that it should be done in a credible and objective manner where there is no bias and politicizing of the process. We also expect that the process will be concluded within a good period of time. But most importantly we want the national plan of action report which clearly tabulates the weaknesses, challenges and how best they will be addressed,” Liche said.
Zambia joins 16 countries that have already been peer reviewed under this instrument.
It will be assessed on its performance on political, economic management, governance and social development among others followed by a validation of a self-assessment and subsequent implementation of a national programme of action based on the review.
Liche said the review should not just end up as an academic exercise but one that would be in tandem with the existing state of affairs in the country.
He urged Zambians to participate in the review for the enhancement of the country’s development.
“APRM will give an opportunity to citizens to begin to highlight the issues themselves when they are asked what they think the challenges of governance are, see where we are going wrong and where we are doing well. Citizens must start to speak out about governance issues,” Liche said.
Liche urged the government to synchronise the national plan of action with the Sixth National Development Plan once it is out in order to coordinate the efforts of both plans.
Liche also said the assessment would not have a bearing on the elections as most of the issues expected would not be new.
President Rupiah Banda this month launched the review to be carried out by a review mission team under the umbrella of African Union.
Labels: APRM, JCTR
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Enact debt contraction law, JCTR urges govt
By Kabanda Chulu in Kitwe
Wed 09 Feb. 2011, 04:00 CAT
GOVERNMENT should urgently enact the debt contraction legal framework aimed at increasing transparency, accountability and participation of all stakeholders in the contraction and utilisation of debt resources. This is according to the Jesuit Centre for Theological Reflections (JCTR).
Currently the finance minister is empowered to borrow on behalf of Zambians and this position might result in another debt trap since there has been no transparency and accountability in acquiring debt resources.
Releasing the findings of a case study for Central Province eight water supply and sanitations project which the Zambian government funded through a US$36.9 million loan, acquired from the Africa Development Bank (AfDB) aimed at financing rehabilitation and extension of water supply and sewerage systems as well as ensuring 24-hour water supply availability, JCTR debt resource monitoring project officer Sydney Mwansa said the project had failed despite the huge investments.
“Majority of Kapiri Mposhi residents still have no access to safe drinking water as they still rely on water wells. This is evidenced by the number of wells found in the residential areas where almost each household has a well and a latrine which are placed close to each other thereby increasing chances of contamination and incidences of waterborne diseases,” Mwansa said.
He challenged the government to sit down with all the stakeholders in view of the projects’ failure to improve the living conditions of the people of Kapiri Mposhi.
“There is need for enactment of a debt contraction framework to increase transparency, accountability and participation so that intended beneficiaries have a say on how the project should be undertaken and this legal framework should include Parliament giving approval of all loans to be contracted by government,” Mwansa said.
He said after reaching HIPC completion point, which saw part of Zambia’s external debt cancelled and reduced from US$7.2 billion to US$500 million, it became imperative for the country to ensure that debts remained at a sustainable level.
“However, the country has continued to borrow (current foreign debt stands at over US $4 billion) from international community without legal binding framework of approval from Parliament since CAP 366 of the Laws of Zambia allows the finance minister to borrow on behalf of government,” said Mwansa.
“This lack of legal framework means prudence in loan contraction lies with one individual and Zambia is likely to fall back into the debt trap if this trend continues.”
Labels: AfDB, DEBT, JCTR, SYDNEY MWANSA
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Prioritise formal job creation, JCTR advises govt
By Misheck Wangwe
Fri 24 Dec. 2010, 04:00 CAT
THE government should prioritise formal job creation, says the Jesuit Centre for Theological Reflections (JCTR). JCTR social conditions programmes coordinator, Miniva Chibuye, said the creation of decent employment was a precondition for sustained economic growth.
Chibuye said there was need for the government to show commitment towards employment creation if the country was to graduate from a low-income to a middle-income state.
She said it was distressing that while other countries around the world were recovering form the 2008 economic crisis, unemployment remained a challenge in Zambia.
“While there has been a creation of jobs for recent investments, much more needs to be done. The labour scenario is imprecise to lack of recent data showing how many Zambian workers who were laid off have been re-employed and how many were the new entrants,” Chibuye said.
She noted that the draft 2008 Labour Force Survey indicated that though formal employment grew to 522,761 in 2008 from 416,324 employees in 2005, its proportion of total employment remained low at only 10 per cent of total employment in the country.
Chibuye noted that the report had missed data from the post-economic crisis period.
She said during the economic crisis, Zambia was one of the countries heavily affected by job losses and a slowdown in employment creation due to heavy reliance on the copper industry.
Chibuye said most Zambians considered to be in employment had insecure incomes and had not been paid their arrears for a long time.
She said the high levels of unemployment had continued to perpetuate poverty and negatively affect human development due to people’s inability to earn a decent wage leading to a reduction in life expectancy and access to quality education.
Chibuye said the poverty situation in the country had been worsened by the high cost of living in many urban areas as evidenced by the JCTR’s Basic Needs Basket (BNB).
She said for the month of November 2010, the BNB showed a mixed picture.
Chibuye said the increases were a result of upward adjustments in the price of kapenta, dry fish, meat and eggs and many other essential food items.
According to the social conditions research programme of the JCTR, food items increased by K5,550 from K895,000 in October to K900,550 in November.
The total needs basket for a family of six in urban areas stood at K2,861,480 in the month of November.
Labels: INFORMAL ECONOMY, JCTR, MINIVA CHIBUYE
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