Bnb Press Release August09

PRESS RELEASE

02 September 2009

EQUITY SHOULD BE AT THE CENTRE OF THE SIXTH NATIONAL DEVELOPMENT PLAN, SAYS JCTR National Development Plans have played a major role in Zambia’s development trajectory since independence. However, throughout the implementation of these development plans, poverty has been a daunting challenge. Over the years, there has been a heightened concern about this issue prompted by the growing inequality between regions within the country. For example, while national absolute poverty rates have marginally reduced -- from 68% to 64% -- it has been attributed to the reduction in urban poverty rates from 53% to 34%. Conversely, rural poverty has risen from 78% to 80%. This evident contrast is an indication of the lopsided development favouring urban areas at the expense of rural areas. During the implementation of the Fifth National Development Plan (FNDP), particularly from 2006 to 2008, real Gross Domestic Poverty Growth averaged 6.1%. Nevertheless, this growth performance was below minimum levels of seven to eight percentage points required to meet the Millennium Development Goals (MDGs) and achieve sustained poverty reduction. “The Sixth National Development Plan (SNDP) currently being formulated is very significant and will test Zambia’s commitment to development plans,” says Miniva Chibuye, Coordinator of the Social Conditions Programme. Two reasons for the above assertion are worth underscoring. The first is that the end of the SNDP implementing period, 2015, will be the same deadline as the MDGs, an important set of goals and targets aimed at promoting human development. Secondly, the deadline will just be over 50 years of Zambia’s independence; as such, progress should clearly be seen. The JCTR has since 1991 been conducting a research in urban areas on the cost of living through its Basic Needs Basket (BNB). An upward trend in the past year has been recorded, especially in some of Zambia’s major cities, Lusaka, Ndola and Livingstone. The JCTR links the Basic Needs Basket in quantitative figures and the actual qualitative living conditions of the people through monthly interviews with select households in high density areas. During July for example, this work showed that the largest source of expenditure in many households was on food, followed by non-food items and then expenditure on self prescribed medicine. Findings from select rural areas through the Rural Basket research have continued to show deficiencies in food consumption falling significantly short of the recommended 2,400 kilo calories per person per day. For the month of August, the Lusaka BNB revealed an increase of K2,800 in the cost of food. The source for this increase was an upward adjustment in the price of beans which went up by K3,300 per kg, Kapenta by K8,200 and meat by K800. These increases were somewhat offset by a K2,000 reduction per Kg of vegetables, K5,000 reduction in dry fish and a minimal K800 reduction for a 25kg bag of mealiemeal. The upward adjustment in essential non food items was mainly influenced by the cost of electricity. For the month of August, 300 units of electricity -- the recommended monthly household consumption for a medium density area -- has been increased from K53,000 to K70,000. However, the reduction in prices of charcoal from K61,700 in July to K56,700 in August has helped reduce the overall cost of energy. In view of the seasonal variation of charcoal prices, energy costs will become unbearable in the rainy season when charcoal is scarce. The total cost of the Basic Needs Basket, that is, the sum of the cost of food (K787,300) and non-food essential items (K1,448,430) amounted to K2,235,730 in comparison to K2,226,930 recorded in July. From the above figures and the preceding observations, one important question arises: What should form the SNDP in light of these figures and the high poverty levels in rural areas? “Certainly”, says Ms. Chibuye, “to make worthwhile and effective discussions of a nation’s development, human development and equity must remain central”. The JCTR strongly believes that equity is what will lead to the creation and reinforcement of human development and attainment of national development plans. This obviously means formulating policy strategies on reducing poverty and translating them into concrete action. It is obvious from the above discussion that the SNDP should be aligned to the Millennium Development Goals, which can only be attained if the country comes up with specific and practical strategies of equity based growth. This will call for a disproportionate allocation of resources to rural areas, higher investment in agriculture of at least ten percent (10%) and creating employment for the low skilled. Indeed, the SNDP expressed through national budgets should deal with the basics of reducing inequality through equitable distribution of resources. [For more information, contact the Social Conditions Programme of the Jesuit Centre for Theological Reflection, P. O. Box 37774, Lusaka, Zambia; Tel: 260-211-290410; Fax: 260-211-290759; e-mail: [email protected]; Website: www.jctr.org.zm]