LIBERAL ECONOMY VERSUS PRICE CONTROL: CASE OF ZNS MEALIE MEAL
Economic liberalism opposes government intervention in the economy when it leads to inefficient outcomes. They are supportive of a strong state that protects the right to property and enforces contracts. They may also support government interventions to resolve market failures.
In this sense, market liberalism depicts a political ideology, combining a market economy with personal liberty and human rights in contrast to social liberalism, which combines personal liberty and human rights along with a mixed economy and welfare state
Further, Zambia is a free market economy with no price controls. Now, the issue of ZNS imposing a price for retailing in their mealie meal, does this not contradict a free market policy?
If I open a corner shop and buy my supplies from ShopRite, can ShopRite compel me to sell at a price dictated by them?
Each retailers fixed overhead costs, such as rentals, transportation costs, labour, etc, will vary from one location to the other, so is it sensible to apply uniform pricing under such circumstances?
Is there a statutory instrument or regulation that has been issued to control ZNS mealie meal pricing? If not, is the confiscation of ZNS mealie meal priced above ZNS recommended price, not an illegality?
Traders in ZNS mealie meal need clear guidance backed by the law. We ask the Minister of SMEs/ Minister of Commerce Trade and Industry to provide clear guidance on this matter.
Simply put, can ZNS impose a uniform national retail price for their mealie meal and which legal instrument are they using? Where is ZNS deriving its authority to harass small retailers trading in their mealie meal?
A good example of acceptable national uniform pricing is fuel, which is legally regulated by ERB. Do we have a similar regulation with ZNS mealie meal pricing?
Fred M’membe
President of the Socialist Party