Zambia Budget Speeches (2002 to 2022)

Zambian Budget Speeches

Zambia Budget Speeches from late 2000s are relatively easy to come by. I however have noted that it is almost impossible to find Budget Speeches from earlier days especially in soft copy. 

In my part to ensure we have these documents preserved for generations to come, I now share my personal collection of the Budget speeches with an initial period (of the those I have) from 2002 to 2022. I will however, be striving to add to this collection as new documents come my way or the order ones are scanned from hard copy to soft copy.

Budget Speech Download

2002 Budget Speech

2003 Budget Speech

2004 Budget Speech

2005 Budget Speech

2006 Budget Speech

2007 Budget Speech

2008 Budget Speech

2009 Budget Speech

2010 Budget Speech

2011 Budget Speech

2012 Budget Speech

2013 Budget Speech

2014 Budget Speech

2015 Budget Speech

2016 Budget Speech

2017 Budget Speech

2018 Budget Speech

2019 Budget Speech

2020 Budget Speech

2021 Budget Speech

2022 Budget Speech

Digital Migration: Zambia's Direction Part I

The Zambian digital migration direction seems to be non-Zambian driven and with little benefits to content providers and citizens. Serious, what has come out of this apart from a creation of a company when we expected many companies being handled by one distributor of content. What are the current licenses for content creators of digital media? Where can you even find such information? All these have no one particular person to push the agenda on a public point of view. So we have a process with little information and only seeing channels popping up in digital and then going into encryption, etc

But lets first look at this point from an angle we can handle for today. A simple introduction to such elements and then look at it in detail in follow-up write-ups.

So let's start simply with definitions of concepts that are involved. 

Digital Migration is a world-wide programme coordinated by the International Telecommunications Union (ITU) for countries to change the technology used in terrestrial television transmission from analogue to digital. This process was supposed to be completed by June 17, 2015.

The advantage of digital over analogue transmission include these important ones:

1. Clearer signal reception (High resolution picture of HD compared to analogue)

2. A wider selection of channels (the reduced spectrum entails more channels can be transmitted as compared to analogue) So a variety of channels will result at lower transmission cost - this follows on point 3 below

3. Reduced broadcasting stations’ cost. More companies can come into the broadcasting sector with reduced costed. Less is needed to setup broadcasting studios as before.

So simply put - digital migration is moving from analogue transmission to digital of the TV signals we used to receive in our homes with those antennas. 

Basically the simple explanation will make things easier as it makes simple things out of this process which seems to be complicated in Zambia. First the only complication that was expected was the delay due to limited funds to buy the necessary equipment for the process. However, we seem to find ourselves in more complications as the process now seems to have been taken over by private entities and we are not sure what is expected at the end. I will explain this. 

From the simple directive by the ITU, you would expect the simple change in your life will be the removal of analogue TVs and replacement with digital TVs. and from business and entertainment part of it, you expect more players in the sector with high quality products. Some issues in Zambia's digital migration are as follows:-

1. The delay to migrate has obviously created a problem in that few companies can now compete with countries in the region that migrated earlier. They have gotten better at creating content and will be supplying such content to Zambia at lower costs to make it impossible for our local content providers to compete. This puts most local content providers in a very bad position as they may not find means to produce and compete.

2. We are also facing teething problems with this process and probably not learning from the mistakes other countries made and corrected.

3. We seem to have moved from "digital migration" to "get topstar" decoder - of the two are not the same and this must be communicated effectively.

4. There is so much politics in the issue that is totally technical - maybe it is because of the money involved. But on this blog, politics are not on focus and ignored at best.

This post will focus of 3 above.

We need to clearly stick to the ideal situation of digital migration and then focus on the benefits that will come from this. Particularly, move local channels from analogue to digital. Then add more local content. So for a person owning a digital TV, they should see this improvement on their TV. If you want to encrypt the channels - the leave the ones which are supposed to be free to air (FTA). The likes of ZNBC. Encrypt those that are transmitted for purposes of making money. But I do believe our local content channels should be given a platform to be free of charges and subscription.

I mention as I have followed the digital migration process as I prepared and got myself a digital TV many years ago. I saw the first transmissions from GoTV (encrypted of course as I expected), and then the local channels being added including ZNBC 3. Then QTV, Prime TV, etc in digital transmission. Then the local channels got encrypted with only ZNBC 1 and ZNBC 2 remaining FTA. Now I have no problem with ZNBC 3 being encrypted if it was meant to be like that. Right now you can only access the local channels on TopStar. If this is the way things will be, can we spread the right message that - those without TopStar should only expect to watch ZNBC 1 and 2 and the rest on TopStar at a subscription.

Very few will have means to pay for local content at the same amount as more entertaining programs as European football which are only a few kwachas away. I'm then forced to ask, what are we doing to the local content providers if the aim is to charge subscription for these. Can we now compete with the likes of eTV and OVHD (www.openviewhd.co.za) at no cost? Do we expect these channels to grow when they start giving viewers a charge before they even make a name for themselves? These are issues of public interest which differs to a focus on "get a TopStar decoder" addressed below.

With a focus on get a TopStar decoder, people will only need to go out there and get a TopStar decoder and pay for it. With such, you throw it to the people to decide on which content they should pay for: - TopStar, GoTV, Kwese, DSTV, StarTimes, Zuku, and other various online IPTV services. 

With a monopolised system in premium content grabbed by Satellite TV providers, who would look at such content providers which wont provider world class series, sports, pay-per-view, etc which is based on license holders for Zambia. Such license is not controlled by any authority in Zambia. Which law would compel premier league to equally distribute rights without making monopolies in this country, ZICTA? Or will game of thrones be thrown at any of the service providers bidding for Lusaka, or other provinces? 

These are issues that need serious attention for our nation. What is the benefit of digital migration to a country if everyone is required to pay subscription to watch local channels? What advantage will the local channels have over foreign based channels which already have great advantage in terms of content and licenses?

Can policy be made over digital migration process to the benefit of the country both at producer level of content and viewers of the content. Let's not pick this process into making it into a monopoly of content distributor who will bring nothing but content from their countries. Right now, check all these content suppliers and the content they bring. Not one of them comes with Zambia content apart from bundling whatever they have with the FTA channels in Zambia and their country's content. We should at least promote our content in a way that will benefit content providers and viewers. We can't even watch our own local league without paying a foreign company for it. Next we will be paying foreign companies to make cartoons in Bemba and Nyanja! Then what benefit is that to us?

Let's not waste this opportunity to improve lives by making digital migration a wonderfully beneficial process to local content creators. The Zambian people have hunger to access local content, do not kill that with foreign content. 

The Dying Ability to Analyze

I get interested in topical issues in Zambia at any one time. In all cases, my interest is to see how people look at issues and their take on them. Sadly, every single time, I have ended up being given the political side. The famous words we use in Zambia being "you are being political". Some have taken this as an insult really - because they feel you have undermined their thinking. I believe this is the right term and happy it has gained following in Zambia. Let me explain.

If you try to get a definition of politics (simpler way is just to google "define politics"), it will give you definitions that involve views, power, etc and I'm yet to find one which says .... analysis ...., etc. Like the simple definitions are:

"the activities associated with the governance of a country or area, especially the debate between parties having power"

"activities aimed at improving someone's status or increasing power within an organization"

Which all point to that fact that analysis of issues are not the core issue of politics. The fields which have analysis at the core and "technocrat", "scientist", "expert", etc. So I expect these to have the issues analysed before they are brought to public consumption.

Honestly, the worst people in this are people who would make sure you know what qualification they have in the field and go on rampage to give opinions and claims with no analysis whatsoever! That is killing the nation because someone will pick up your lie and assume it is gospel truth and contaminate others. We have to be responsible in issuing claims or political statement. We should not mention qualification in an area or field is you will give a party position, mention the party or philosophy you subscribe to. Let people who will objectively respond to an issue or their expertise use their qualification.

I believe this will help people know who to listen to, and not any person who has been given a microphone to speak should be believed. In this same sense, I think the authority charged with higher education should also make it a point for people who have received honorarily degrees not to use them. I get confused to hear a "Dr Something" said something in which he deliberately ignored the facts or has no clue what the facts are. Further, we as a people need to realize that when one takes on the hat of politician, they want employment and will say anything they can to get that job regardless of what the truth is. They are politicians at the end of the day!

The effect of misinformation is so bad that certain sectors that rely on confidence would fail to stand regardless of what you do as a damage control measure! We may not clean up the mess in time. All for a position? Really?

I remember someone showing off after voting in the referendum in August that "I couldn't vote for that thing! It says the moment you get married, your wife will have more power than you in your home and marriage!". I was so shocked and I said "No! You didn't read it." He never said a word after that. I could see the guy fighting in his mind of what to do or say which would repair the damage. But what can you say when you have no idea on an issue you wanted to by pass without the facts? That is the sickening levels we have reached! This same person may have told all his family as a person who knows what he was talking about.

Then there are those twitter who say whatever their mate says and repeat it over and re-tweet as much as they can manage in a day. In the end, they don't realize they only speak about it among themselves connected by a political line which they can't think outside of. Really people, if you speak among yourselves with no outside endorsement, so to speak, what exactly are you doing - re-convince yourselves like a cult? You know you have a good position when other people not linked to your by that common line support your idea. Otherwise, it is meaningless in the world of building support. You will have the same people supporting you on the basis of the line you have.

The dying ability of people to analyse must serious be checked before it gets out of hand. We need to push to a position where we only speak if we know something but speak on what we have no idea. Zambia needs you to think, read and be exposed to an issue before you speak about it.

Zambia Referendum 2016 Issues

I have been asked on the issues of the Referendum and what issues we should look at. So I took time to look at various websites and the people encouraging the "No" vote. The most important observation is that people have not read it and so have carried what they think into the advise and decision they made. As usual, the problem of people not reading is what leads to many problems in Zambia as people depend on what their "people" advise them. Funny enough, this issue has even people I consider learned enough to read have avoided to read. So here are simple sources of the document in un-edited form. These can be accessed here: 01 (CSPR Zambia), 02 (PDF scanned document), 03 (ECZ Cartoon - Understanding Referendum.

I have avoided picking political party links as they look at the Referendum on the basis of what they want, not exactly what the people should consider.

I also should point out the interest people should take by looking at the old constitution and compare it with the Bill you will be voting for. 

Take note, the National Referendum is on Part III and Article 79. Part III is the famous Bill of Rights. The rights have been enhanced as more have been added compared to what was there. I should point out that "Gay Rights" have not been added as some people have been saying. Please ask them to point to where this is when they tell. Our interest at Kwacha Economics is the addition of the "Economic, Social, Cultural and Environmental Rights". This is a thing that every Zambia should take time to understand and they will be happy with this inclusion. 

The most interesting excuse given to vote "No" is because the constitution has added the "grade 12 clause" which has been promoted by some political parties. I may be incorrect, but I think from the Mvunga commission, there has been a call for this limitation on Members of Parliament (MPs). So I think this has been backed on this need. Our interest on this blog is simple, how do you entrust people to make the law without the basic education? What kind of laws would they make? These are issues we need to address before we look at the Grade 12 requirement. The issue of it being discriminatory is interesting as this is the basic job requirement for MP which we have tried to set for many years.

After reading the Bill I'm sure you will be like me - hoping for a "Yes" vote. After all, a "no" should have something higher than establishing improving on the rights of the people as it will be a rejection of these improvements and going back to the old Bill of Rights. That is the stand. I see no reason anyone would want to vote "No" unless the rights are aimed at being suppressed. 

You are free to engage me on this issue as to why a "no" is promoted.

Glencore

When many Zambians watch this documentary, here, they blood boils with hate. We end up hating the people benefiting from our wealth and the money that is generating. Not that we want to be selfish, but we want our fair share of the profits. 

Glencore has done a lot of harm. Unfortunately like many sad stories out of Africa. Our very own people are involved and at the middle of all this. Look at the man defending Glencore when his own children or grand children will have to ask him twice to what his contribution to this country was when he worked for Glencore.

But one thing we must see from Glencore, is how they used what we called a president to get what they wanted. In return he got hundreds of shoes, jackets, suits and shoes. African fools we end up being!

I have no favour for names like Glencore. I hope to live long enough to see fairness applied on that company. And the link to Bill Clinton makes sad reading that he even said there was no crime committed.

Godfrey Chitalu Vs Lionel Messi

This really looks like an issue for football fans. But think about it. Messi holds the European record now. Chitalu holds the world and probably there is some one who gets closer.

The only difference is the fact that the European media would blow anything that links to them and ignore the other records around the world. Now we have the proof and have provided the evidence. The issue now, is... will they be bold and set the record or ignore it as they always do on matters from non-European countries. We, as Zambia, are not claiming recognition on this matter. We have been looking at this issue long before Messi came on the scene. Records have been collected to prove that fact. We have the name in our heads ringing "ucar" as he was popularly know. He is still regarded as the best player to ever grace the CECAFA tournament and still, that number of goals (yes 107 in one calendar year) has been mentioned. I even remembered an article on the issue in 2010 found here. That's a Uganda site which had the record plastered. Now we have the details we always wanted. Lucky enough they came at they came at the time the world wanted to honour someone else.

Just get that record and let the person who did wonders in Africa be honoured for it.

This is one thing that Zambians should always look at. We work hard, we produce results, no matter how big the obstacle we fight, the great works will be rewarded. We have our great not standing among the greats not because his achievements are easily beaten, but because we have no huge global media to scream on our behalf, 88 clearly looks greater than 107!!! The story has always been the same. Remember at the African Cup of Nations when no one (but a Zambian believed in us? We had to organise ourselves as Zambians to get rid of one member of Super Sport panel who clearly disrespected and insulted us. Only after the win did they see what we wanted to do and delivered that trophy to Lusaka

Now FIFA says it wont back anyone because they don't keep records! Ok we have our records and so does every country that has a claim to how many goals were scored, so lets start the counting my verifying these and see how it goes, maybe when one playing in Europe comes past 107 we will have FIFA backing of the records?

At Kwacha Economics, we feel proud to be Zambia and always will say what "ucar" did should make us know we can achieve the greatness if we put our mind to it. I hope one day, we will have a Kwacha economics story like Godfrey Chitalu's record on an economic achievement from Zambia. This is a local great and should be filed among the local greats.

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Our records have been buried in the achieves for a long time. But every Zambian knew of this record. People are asking why it has taken time and we have only come up with the records now after Messi "broke" the record. Seriously who knew of such a record in Zambia? We were just shocked to hear that Messi is about to break a record of most goals scored in a calendar year! The debate of getting Chitalu's goals recorded and presented to the world has been on going in Zambia since the 90s. The world has ignored this. But we have been talking about this for years. It is even on this blog in 2010! So we have not only made that claim, we have proved it.

So sad that a simple issue of verifying the numbers and setting the record straight has become a popularity contest. All because this is Africa and our records matter little in the world! I don't think so. FIFA should have come up and set the record straight. The western media is actually taking it the wrong way. Imagine if this record was held by a player in southern England! FIFA would have confirmed, named and medals presented. But because the story is coming from Zambia, Africa in a town called Kabwe and on official games, the results are not so official. So to avoid confirming that, it now a no-backing for either. 

I think the world need to come to terms with facts and stop discriminating on the basis of location. 

Godfrey "Ucar" Chitalu has a record that the world should see and keep. Until someone breaks it, we have to live with it. The idea of football those days was not as competitive as it is today is as silly an idea as to claim everyone those days would have invented a light bulb!

Honour those who need to be - and do it fairly.

Bank Holiday - 31st Dec. 2012

With the re-basing of the Kwacha so close, there is need for strategic plans on the part of government and people/ organisations involved. Software has to be configured to enable the handling of the rebased currency. Coins have to be given special recognition as this has been missing from our economy for some time. All these calls for banks and other inancial institutions to be given time to run around and organise themselves.

Just imagine, if the rebase was to happen today, how many ATMs would cope? What currency would the ATM have? What will happen to the software in banks having to run with rebased and normal currency notes simultaneously?

These are critical questions to any rebasing and the banks and other financial institutions have a perspective which matters on this aspect. The bank system must be ready to handle all possible situations that may rise from rebasing. And that requires time. But then again, we seem not to have time.

So the government came with a statutory instruments to handle such a time that banks need. So 31st December is a full time bank holiday. No banks, ATMs or Financial institutions are supposed to open. They have to sort out their software, ATMs and any other matter that would make the rebasing a challenge. They can best do it without worrying about the clients in the bank or the ATMs. And by the time they finish, only rebased notes will be in the ATMs and that will be 2013!!!

So if you plan on having a good New Year's eve, please have your cash ready as no ATMs will serve you.

I think it is a great idea to make sure all things move smoothly. I know how unbearable things get when you are trying to sort out some items and some clients are on your neck. This should help with the rebasing and we could move smoothly to 2013 and ZMW currency!

Kwacha Redonomination (Rebasing)

The Committee stage of the RE-DENOMINATION OF CURRENCY BILL, 2012 (N.A.B. 8 of 2012) went through Committee Stage yesterday and will have Third Reading today 21st Nov. 2012.

So we can safely say, we have the ngwee to our Kwacha. Kwacha economics has taken another mile stone of maintaining the Ngwee part of it. As far as things look today, we have the ngwee coins in our pockets by 1st January, 2013.

What I like about this whole process is how much economic activity is expected as a result of rebasing. We are being given an opportunity to use the coin in various ways. The simple one coming to mind is the vending machines (typically, we could have been using the 'notes' only type), but I think the coin idea makes people feel comfortable and at ease on a vending machine than notes. But more so as a parking attendant.

What people excited about these prospects highlighted about forget is the economics of just that idea of vending machines - they cause unemployment! Why would a shop owner employ one more person to help with snacks and pay him minimum wage when he can plant a vending machine in the shop and attend to those customers doing other things not snacks? This point is unfortunately the evils of development. We reach a stage we do away with labour intensive Technics and employ machines. I actually think, it would be better to have machines in that way than shop attendants who bring inefficiency to getting a cold drink.

We have to guard against bad outcomes of this rebasing though. Many of our uninformed people will be cheated out of their hard earned kwacha through street "crook-dom". So education (not sensitization which is a word wrongly used in Zambia) has to be intense and to the point. People should know that the value of the kwacha is not touched. Just the face - make up so to say. Good make-up in this case.

So we need to prepare for the new notes and new activities in our economy. The Kwacha has taken a new face and new clothes.

Zambian Independence Joke

Here is a Zambian joke going around the internet - whatsapp and blackberry.

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Once upon a time in the kingdom of Heaven , the angels did not see God for six days. Eventually, St. Peter Happy independence!Once upon a time in the kingdom of Heaven , the angels did not see God for six days. Eventually, St. Peter came across Michael the archangel on the seventh day.

He inquired of God and Archangel Michael explained to him what God had been upto. He pointed downwards through the clouds, "Look, Peter. Look what God has made!"

Peter puzzled and said, "What is it?" 

"It's a planet," replied angel Michael, "and he has put Life on it. Hez going to call it Earth and it's going to be a great place of balance." 

"Balance?" inquired Peter, still confused. 

Michael explained, pointing to different parts of earth. "For example, northern Europe will be a place of great opportunity and wealth while southern Europe is going to be poor. Over there he has placed a continent of white people and over there is a continent of black people," 

He continued to explain pointing to different countries. "This one will be extremely hot while this one will be very cold and covered in ice." 

Angel Peter, impressed by God's work, then pointed to a land in the southern part of Africa and said, "What's that one?"

"Ah," said Archangel Michael. "That's Zambia the most glorious place on earth. There are beautiful savannas, mountains, streams, hills, and water falls.

The people from Zambia are going to be very handsome/beautiful, peaceful, modest, intelligent and humorous and they are going to be found traveling the world holding good jobs. 

They will be extremely sociable, hardworking and high-achieving, and they will be known throughout the world as diplomats and carriers of peace, they'll play football and win boxing medals." Peter gasped in wonder and admiration but then proclaimed, "What about balance, Michael? You said there would be balance!!!" 

Michael replied wisely, "Wait until you see their kind of politicians."

Happy 48th Birthday, Zed - The Real Africa!!!

::: Happy Independence Day Zambia :::

24th October 1964, marked the birth of a great nation.... Zambia.

Today marks 48years of independence of this beautiful land. Notably, it is at this time that we can look back and say we helped Southern Africa be liberated. And since all parts of this part of Africa are free, we need to look at our own liberation! 

We need that economic independence that will make us move on! I always think the hardest fight from now will be economic path as we have the whole world with selfish aims that will make our fight a great battle.

So lets start by emancipating our selves from mental slavery, believe we can achieve all the greatness that we desire, and over come our problems.

Be blessed Zambia and stand proud and free!!

Zambia National Anthem

Stand and sing of Zambia, proud and free,
Land of work and joy in unity,
Victors in the struggle for the right,
We have won freedom's fight.
All one, strong and free.

Africa is our own motherland,
Fashion'd with and blessed by God's good hand,
Let us all her people join as one,
Brothers under the sun.
All one, strong and free.

One land and one nation is our cry,
Dignity and peace 'neath Zambia's sky,
Like our noble eagle in its flight,
Zambia, praise to thee.
All one, strong and free.

(Chorus)
Praise be to God.
Praise be, praise be, praise be,
Bless our great nation, Zambia, Zambia, Zambia.
Free men we stand Under the flag of our land.
Zambia, praise to thee! All one, strong and free.

Zambians lackadaisical???

I have always been a person advocating for serious approach to work and all associated with it. I think a lot more can be done when we take it with hard work and the seriousness it deserves.

I proudly say, the lazy people are always willing to let things be the way they are and are not keen on seeing change or fighting for it. Partly I assumed was the casual approach that most of us Zambians have to certain things. However, in all the countries that Zambians have gone to or emigrated to, the situation is different. They work harder, are united like a serious community, are found in all high earning positions etc. So the coming of the Chinese seem to show us as being lazy?? Well, I think the cultural differences may show up in areas of serious concern.

The China-Zambia relation has been one of mistrust and serious concern economically. They are known to pay less to Zambian workers, have little or no respect for the country's laws and feel like the bosses of this small population. Chinese goods are considered fake and weak or unreliable. Words like "gonga" are always associated with Chinese goods. In particular the Chinese dual-sim phones with TV! And they come in many shapes some claiming to be Iphone, others Nokia and those that have no name to steal, are simply called MP4 phones. Now whoever got a chance to buy one, will confess of the ills of these phones.

Now I wondered why we always say we have a lot of Chinese people among us and yet, we never see them in night clubs, malls, or mingling among us. So to read on The Economist that these people consider us lazy ... or by the exact terminology lackadaisical made me wonder. So my first action was to coin the exact meaning of this word. To understand the perspective as I saw it, I will quote the meaning I came across it.

lack·a·dai·si·cal

adjective /ˌlakəˈdāzikəl/  Lacking enthusiasm and determination; carelessly lazy - a lackadaisical defense left the Spurs adrift in the second half

So is it "carelessly lazy" or "lacking enthusiasm and determination" that Zambians have? Seriously I think we need a serious check with such words being labelled on us.

On one hand, these are the companies that give slave wages and expect people to work and be productive? I have heard of people say 'work as you are paid' and 'you are valued as a worker, as much as you are paid'. Lackadaisical!? Maybe our change in country management, especially that people say the new leader has no room for laziness will make us move from being considered lackadaisical! Hard work is what I feel has been a problem in many aspects of the Zambian life but I don't think we ever reached a level of carelessly lazy! We have done a lot more with the little that we are given. I know corruption is a big issue in the country. And a serious approach to that will make things a lot better.

Lackadaisical is a word that we Zambians should not be placed next to. We have to do our ultimate best in all that we have. We can start by cleaning out the mess that corruption has brought, make every single investor abide by the laws of the land and bring value to their investment and not seem to be begging for investment. I firmly believe anyone coming to invest will have looked at the business gain before they get on the plane to Lusaka! So why should they come and ask for incentives? Or make requests which have no business logic! This is the disaster we have to work on!!

We need to start from scratch and make an investment worth while. No need to have investors for the sake of being investors when the overall value addition is zero!

Economics of Growth or Development

There is always a way in which something easily be judged and presented for verification. Even the ideas of a nation doing well has a way that it can be evaluated and presented for verification by someone or anyone to prove the results. I blog more when I feel low, that too can be analyzed in that perspective and like all things which have a way of being analysed, one can easily seen how many blogs I have actively been writing to assess my mood, if I felt low in the past month or not. All these are ways in which one can assess.

The Economics of Growth or simply put, The Economics of Economic Growth, have also there ways in which one can assess the progress a nation is making in attaining certain benchmarks in growth or whatever one wants to find out. And from these, we can see if we have made progress, or gone back in time by taking two steps backwards for every step we took forward. Each of these steps that were undertaken presents a yard stick on which certain levels can be assessed and evaluated.

A country can be called 'Third world' or 'Less Developed Country - LDC' or indeed 'Developed Country' based on certain evaluations or certain benchmarks that it must achieve to be called that. It's this strict following of measurements or sticking to certain aspects of the whole economy that will grade a Nation or degrade it. What issues are considered will determine what a nation is looked at as being.

My economics of growth or development has very few aspects to be looked at. These matter and are good yard sticks to measure any such progress with great easy and accuracy they can be a basis for any evaluation of a nation. With rich tools at our dispossal, using these aspects as measures can surely make analysis easy.

The measurements of development of any nation based on the ideals of simply analysis are:

• Economic growth
• Reduction of Poverty
• Efficient utilization of economic resources

These stand out as a good measure of how well a nation is doing. The definition of these are as vital as any other measure that one can place on a nation for developmental assessment.

Economic Growth
The simplest definition of Economic growth that I know is 'Annual rate of change of real Gross Domestic Product (GDP)', but lets use as many of these as we possibly can make the understanding as inclusive as we can 'long-term expansion of the productive potential of the economy.' (tutor2u.net) sounds the best possible technical yet simple definition of economic growth.
From the two above, we see that economic growth has the basics of any form of growth in life. There is change, and that change is obviously leading to better production, increase in quantity of a good, etc.

This is important as it qualifies what your measurement of that growth will be. If Zambia's economy grows by 7%, it should be clear what elements are being addressed and what implications they have on the people or citizens of that country. What has really changed and what does the change entail for the ordinary person. As only the resulting changes will have an implication on the life of the people.

Reduction of Poverty
Many people see economic growth and reduction of poverty as one and the same. But think about this. If a country produces produce and the following year it increases that production. Will poverty be reduced or will that change be merely an increase in the production of goods? Clearly, the two will not be the same. Reduction of poverty is simply an improvement in the living standards of people while economic growth can be taken as an improvement in the 'producing standards'.

Reduction of poverty has many aspects, and a collection of improvements in these aspects will surely be an improvement of a country's outlook. For example, reduction of unemployment levels will result in a number of people having work and earning a living hence better off than before.

Poverty provides a politically filled aspect of day to day living - especially in Zambia. The government may sound and blow their trumpets at the gains and the resulting economiy growth, the opposition will also roar on the unemployment levels and the low living standards of the common man. Surely one is politically correct and the other isn't, right? Wrong! There is economic growth indeed. But the poverty levels are not changing. Or maybe they are changing slowly!

So they are both politically correct. And the result is one section fondly loved by the well-to-do and the other loved by the common people and unemployed. They appeal to different people as these relate to what is being said and truelly believe the voice they follow has the truth being spread.

For an observer, you simply expect that if economic growth is happening, this should surelu lead to other aspects of an economy to benefits from this growth. It then may lead to lower unemployment levels, inexpensive goods and generally a well fed and looked after population. Unless we expect this economic growth to be strangely setup.

Efficient Utilization of Resources
This generic explaination produces a situation which will have less wastage and more output which will be fairly distributed amongest the people. Its this utilization which will determine what a country gets from the resources. This grouping of resources if not limited to production resources of raw materials but goes further as to include people. A developed country will use its labour in productive ventures and will not waste man hours through shrinking.

So a mixture of the development of these things will surely have a bearing on classifying a country as developed or developing. And should be evaluated in looking at the country and its resources.

The Economics of Kaunda's Humanism

Happy Birthday Kenneth D. Kaunda

I have never had anyone person linked with socialism or communism to talk about in my economics beliefs, except Kaunda. The former Zambian president has impressed me, not with what he has done, but what those that came after him failed to do. I'm a strong believer of letting the forces of the market determine what is produced, supplied and consumed. But only to the extent that Government oversees these activities through fiscal, monetary measures and also any that will ensure equity and avoid abuse from the capitalist.

So Kaunda would is expected to rank low in my list of great men in my economics, but this man has really impressed me in what he did for his country and the region. He had done more public works than you normally would have expected of him. But this is little compared to what we could have. But yet, I argue, none who took over as a president of this country came even close to what he did! So then, his works stand out, not because of what he failed to do or could have done, but because whoever came after, was interested in other issues than the welfare of the Zambia people. I have weaknesses with that. I prefer to see works standing that cadres shouting or writing books of what they did or did not do when Kaunda's works still stand! If they have fallen (like most roads and streets in many cities), its because the current leadership or the one they took over from has failed to simply maintain the infrastructure. That is the sad story.

So what economics would I call this? I know it will be a socialist kind, but maybe call it by what he believed in "Humanism". I did a quick search online for what it really means and I have found many links to one kind or the other. I have no idea which one Kaunda linked himself with.
http://en.wikipedia.org/wiki/Humanism
http://www.humanism.org.uk/humanism

But what 'Humanism Economics' was it if there is anything like that. The close one I could find was Humanistic economics which is associated with E. F. Schumacher a German born economist. This aspect of economics as Wikipedia puts it: "Proponents argue for "humanity-first" economic theories as opposed to the ideas in mainstream economic theory which they see as putting financial gain before people."

So was Kaunda following the doctrines of Humanistic economics? After all, his intentions shows he had people to look after. Most of his decisions were centered on people's welfare - regardless of where they were from. So does that take him to that level?

I know many South African freedom fighters love the man and what he did for them in the spirit of helping 'fellow man'. They adore his efforts. Many people in Zambia appreciate him after years of political power condemnation of him, only to stand less than him on what they did for this country. It is such ideas which make me ask the doctrine of one such called humanism relating to economics. How many writers came up with theories of what this school of thought had about human beings? Can it be a moderate socialism? A hybrid of capitalism and socialism with positive aspects from both schools married in one? Can people be made the center of every action? What can we produce in a nation if the main focus is on creating and uplifting the lives of the people? Can economics really be human centered and not financial gain centered?

I still search for answers to those questions. In so doing I wish to thank Kenneth D. Kaunda for having taken your time to look at an angle we may wish to look at when we approach matters that concern our beloved country. I still see many buildings that you built, many roads, hospitals, clinics, houses and I wonder every day what the para-statal companies now sold would have been turned into, if we had a well calculated effort to push the country out of poverty into the mainstream glory we desire. A regional super-house. I know that dream fades every day, I just wonder which economics will save the country.

Happy birthday!

Zambia-China Relation

There has been alot of debate on Chinese investments in Zambia and the negative/ positive results this will achieve. I have not had a good time to look at alot of these investments and loans that Zambia gets from China. So I will reserve my comments on the topics for now. I would have done a good service to myself had I taken my reading on China - Zambia relation and come up with a good academic paper on the issue, I may look at that and see how it goes in the near future.

Anyway, this appeared like good reading. I came across it as I searched for that elusive bi-lateral agreement between Zambia and China of 2003! I copied and paste, then informed the author, not good, but better late than never right???

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Zambia: From the World Bank to China and Back

By Peter Bosshard*


African governments have often praised Chinese investment as the panacea for their infrastructure sectors. Zambia’s experience demonstrates that it is not. A Chinese hydropower project on the Kafue River has brought up the whole conundrum of financial problems, environmental impacts, hydro dependency and delays that is typical for large dams. Mining is the mainstay of Zambia’s formal economy, and consumes a lot of energy. When the copper sector started booming in 2002, finding new sources of energy became a necessity.

Since the mid-1990s, the Zambian government had tried to attract funding from the World Bank and private investors for the Lower Kafue Gorge Dam, a 750 megawatt hydropower project on a tributary of the Zambezi River. In December 2003, the government signed a Memorandum of Understanding to build the dam project with Sinohydro, a large Chinese hydropower developer. China Exim Bank was supposed to provide 85 percent of the funding. “After the World Bank dragged its feet on the project for years, we reached an MoU with the Chinese within three weeks”, Israel Phiri, a Zambian government official, announced triumphantly in 2004. Lower Kafue Gorge seemed to become a symbol for the fast pace of Chinese dam building around the world.

Or so Zambia’s government hoped. During the next few years, it repeatedly issued promising statements about the progress of the project. First, construction was supposed to begin in 2004. Later, construction was supposed to start in 2006. In January 2007, the country’s energy and water minister announced again that Lower Kafue Gorge was “coming through very well”, and that Zambia would negotiate a construction contract for the project very soon. The government also kept signing agreements for other hydropower projects left and right. Yet on the ground, nothing happened.

The reasons for the delays seem to lie in the problems of Zambia’s electricity sector. According to a recent report by the International Monetary Fund (IMF), the country’s state-owned electricity utility is “a troubled company, beset by inefficiencies and high costs”. One third of all customers are unmetered, and staffing costs and distribution losses are very high. Tariffs are low by regional standards, but at $500-600, connection fees are unrealistically high for the large majority of the population. The IMF report proposes to steeply increase electricity tariffs for all consumers. The government in turn argues that the World Bank’s push for privatizing the electricity sector was unrealistic, and the main cause for the electricity shortage.

Unlike the IMF, China officially attaches no strings to its loans and grants. Yet in February 2007, a senior OECD official observed that China Exim Bank “does not hesitate to discuss changes in project-related governance to ensure loan repayment (e.g., pressure to raise electricity tariffs to finance hydropower projects), while claiming that it does not specify firm conditions”. China may be dragging its feet over Lower Kafue Gorge for the same reasons as the World Bank five years earlier.

Sinohydro also interfered with the environmental impact assessment for the project. The dam would have serious impacts on the Kafue Flats, a wetland of international importance with two national parks. Anabela Lemos and Daniel Ribeiro, two experts on the Zambezi, report that Zambia’s power utility chose the project site after a balanced assessment of economic, social and environment factors. However, Sinohydro told the utility that this was not how they did things in China and that they wanted the site to be assessed only according to economic factors. In the end, the original site was selected, but, Lemos and Ribeiro say, “the role of the Chinese dam builders in trying to focus only on the economics of the project does not bode well”.

On February 26, a representative of Zambia’s power company announced that her utility was now discussing a $600 million financing package to boost power generation with financiers from Japan, India and western countries. The first priority was on the Lower Kafue Gorge Project. The World Bank’s International Finance Corporation was undertaking a feasibility study for the project. The IMF estimates that completing the dam would take six to eight years, with mobilization of finance as “a central challenge”. Five years after Zambia turned from the World Bank to Sinohydro, Lower Kafue Gorge seems to be back to square one.

While the government chases its dream of multiple new dam projects, the country’s existing power infrastructure is falling into disrepair. According to the IMF, more than a quarter of Zambia’s power plant capacity is currently being repaired because of neglected maintenance. In mid-February, the failure of a generator caused widespread power outages. Maintaining infrastructure is just as important as building new projects, but less prestigious and often neglected.

Meanwhile, the country’s power sector strategy with its focus on large projects has left poor people in the dark. A full 98 percent of rural people and 60 percent of urban dwellers don’t have access to electricity. In July 2007, the power utility began to ration electricity supply to residential consumers in order to service the growing mining industry. And the proposed new hydropower projects will not be used to expand power supply to rural areas, but to serve the mining companies and export power to other countries.

I am not an expert on Zambia’s power sector, but supporting mining companies through large dams seems to be a highly questionable development strategy. If the copper boom fades away in another five or ten years, Zambia will be straddled with an overcapacity of expensive power plants. If Zambia guarantees the mining sector a secure supply of power from additional hydropower projects but climate change reduces the stream flow in the Zambezi Basin, the government will have to cut out residential consumers from power supply altogether in order to fulfill its guarantees to the mining companies.

It seems to me that mining companies could take care of their own power supply by developing their own projects (as long as they follow the state’s social and environmental guidelines), or by negotiating power purchase agreements with foreign suppliers. Rather than taking on huge risks for a few private companies, the state and international financial institutions should concentrate their resources on expanding access to electricity in poor areas, particularly in the countryside. This will not require risky and potentially destructive dam projects, but support for decentralized, renewable energy technologies.

*Peter Bosshard is the policy director of International Rivers. His blog appears at www.internationalrivers.org/en/blog/peter-bosshard

Economic Inequality in Zambia

I have been told that almost all our problems in Zambian economics (from a maximum of 3 possible problems that I wanted narrowed down) are Inequality, Duality and Non-diversification. I will try and address these issues and see where we stand in Zambia on these aspects.

I will start with Inequality as I believe it is not only vital, but an aspect of Zambia's economy which has received a fair share of screams in the political arena. So a look at this will have a much more needed avenue to the problems of Zambia.

Economic Inequality
Defined as: Wealth and Income differences. This is differences in the distribution of economic assets or resources among the people (mainly between the rich and the poor). Street-wise definition would present a better understanding as it simply says "the gap between the rich and the poor".

Of course we can't call for an absolute equality in economic status, where all citizens are economically equal, as that is not only impossible but the mere existence of such a situation would present difficulties in running the economy itself. But a situation of a smaller gap between the rich and poor, would present a good economy as it will mean, resources are at least equitably distributed - under those cirmstances. The bigger the gap between the rich and the poor however, the more the resources are unequally distributed. As dramatically put "no citizen shall be rich enough to buy another and none so poor as to be forced to sell himself." (Rousseau?)

I have noticed (with sadness) that most Zambian politicians are always taken by ideas of Economic growth. What will this translate into? How will they define Economic growth?

This has little to do with the inequalities that face its people. It is in its crudest possible sense, mere politiking. I would appreciate a look and addressing issues of economic inequalities before we address issues of economic growth. As this will create a situation where the benefits of economic growth will be equitably distributed among the people. Under the existing structures, the more Zambia's economy grows, the wider the gap between the poor and the rich grows (unless specific measures are taken). I think it will make sense to aim at reducing inequalities in the economy also as it will translate into better living, if it's accompanied by meaningful changes in income distribution. No sense in having a growing economy with more than 70% of the people in absolute poverty. Or having a very rich elite benefiting from the economy and the majority of the people in absolute poverty. So we should aim at having a growth, with specific distributional policies aimed at making the gap between the rich and poor smaller and ensuring everyone benefits from the endorements of the country. Any other direction will result in bad and non-benefitial growth - if that is even achieved.

Ideas of empowering citizens will produce better results, if there is political will to achieve equitable distribution of resources in the country. Such sad statictics make me think we need to re-visit the planning aspects of our economy:

"80 percent of the population in terms of earnings were reported to have acquired only 31.3 percent of the total income, while the top 20 percent of the population claimed 68.67 percent of the total income" (April 2008, CSO monthly).

A good economic idea, would be to have policies which will encourage and move the poorest of the poor, to a more meaningful economic standing. This would greatly improve the living standards of the people, encourage them to aim higher, educate their children, and live a moderate life. Under the prevailing situation, the poor are seriously trapped in the poverty trap. Where movement to any meaningful economic life is not only limited, but in some cases even impossible. And so they end up taking their children out of school, abuse them through child labour, prostitution and early marriages. Their children will either go through the same path or even worse.

On the other hand, the rich keep getting richer. Corruption is the order of the day. It gets so bad that you even expect all government workers to be corrupt in one or the other. If there are policies which would get some of this money enjoyed by the rich and ploughed into education and health, we will have a better people living a better life.

Where Do We Start From?
This is easy. Leave it to the economist to design, you will produce a good product. Add politicians to the equation, eveything is a mess! And yet, its the politicians who ultimately decide what to do. I believe having a very honest political team, could even do better than the economist. Unfortunately, politics in Zambia is all about getting rich and not providing a service! Every project has to be looked at with 'benefits for me' or 'blocking X's party or X himself from enjoying this'. The politics of the belly as one once coined the phrase!

The African Problem
Africa would move fast than most places on this planet. It has the resources to do it. From oil to Uranium. It can ultimately live with no worries about tomorrow as its endorements have whatever the African people need. However, Africa is always hurt and destroyed by it people. The selfish politician running the country, and the people close to him. Sometimes you wonder if we got our independence to early before people could understand the true meaning of a 'States Man' or maybe the colonial masters trained the wrong people to start with. Our freedom fighters had a vision of the continent. They sacrificed alot to achieve what we have achieved now.

But the worse group came after these left. In some cases, the ideas they had before independence died with the new found power of being a President of such a country! Corruption, brutality, rigging, self-enriching method of governance has spread in all corners of Africa. Inequality came like wild fires.

So maybe to rid this continet of inequality is to start with leadership. We need to put in motion a system that will favour systems and governements that strive to address inequalities of the people. Then we can set in motion, economics which addresses these problems. Its not a one country problem, its an African problem.

Solutions!
Besides the mere fact of changing the politics of any one country, the solution of inequality is to put in place 'Pro-Poor' Economic pathways. An economy must recognise the problems of the poor, find simplest possible ways of addressing these problems, setup mechanisms which will address these and any problems which will result from the elimination efforts.

Over the next blogs, I will look at the remaining problems and address possible 'Pro-Poor' solutions.

Kwacha Economics - The Dawn

Welcome to my new blog dealing with economics issues.

I set aside most IT issues that I have blogged on, and take my time to look at issues in the economics arena.

Why Kwacha Economics?
Lets start with the definition of Kwacha Ngwee, it self, the money unit of Zambia. As wikipedia simply puts it:-
The name derives from the Nyanja and Bemba word for "dawn", alluding to the Zambian nationalist slogan of a "new dawn of freedom". The name ngwee translates as "bright" in the Nyanja language.

Need I say more? This is my new dawn of economics blogs. Let my thoughts make my economics come bright as the morning sun of a new dawn...