OLIVER SHALALA SCHOOLS EMMANUEL MWAMBA
By Shalala Oliver Sepiso
Mr Emmanuel Mwamba sir
The reason past IMF programmes failed was not because of the bailouts. It was because of failure of the policy and economic programming “despite the IMF bailouts”. An IMF bailout helps you with two things:
1. balance of payment support and
2. debt restructuring.
After getting a bailout, you won’t default with loan payments and credit ratings and so worthiness will not be ‘junk status’.
After the bailout, as a country you have to now come up with your own economic programming to lift yourselves out of the abyss albeit a yawning chasm. You don’t use IMF money for salaries or mundane expenses. You can do that with World Bank or Eurobonds money but not IMF money. So those who failed before misunderstood the remedy.
A good example would be Panadol. It doesn’t cure you but it removes the pain. It allows you to now cook a meal that will nourish you to better health. It’s not the Panadol to heal you but your health and exercise regime which you indulge in once you have self-administered the Panadol and relieved yourself of pain.
And not all past IMF bailouts failed in Zambia. Remember that in June 2008 we got a bailout under Magande and Mwanawasa. Zambia then used the IMF Bailout, among other remedies, to recover from the hyperinflationary economic situation that we were in. This then created the fiscal space to upgrade our economy from a recession to one of the fastest growing economies in the world. That progress was only reversed by PF and its poor “dununa” governance which reversed all gains.
So don’t get it twisted. What will get us to the promised land is not the IMF bailout but the economic programme HH has set for Zambia which includes:
1. Ramping up production of Copper to 3 million metric tonnes of copper per year from the current 800,000 MT.
2. Increase the installed capacity of electricity to 6000MW and export the excess 3000MW to Angola, Zimbabwe, Congo and South Africa.
3. Increase intra-regional trade to increase markets for SME through Kasumbalesa, Kazungula, Kipushu, Jimbe and Sikongo.
4. Long term free education for the masses so we have a base of not only employees but erudite and skilled people who can do entrepreneurship.
5. Have rule or low, peace and ease of doing business to attract vast, varied and voluptuous FDI (Foreign Direct Investment).
6. Handle fiscal and monetary environment to ensure a competitive Kwacha, stable low inflation and favourable lending interest rates that advantage Zambian business and make Zambia a competitive destination.
So don’t expose yourself sir by thinking the IMF bailout will fail. It doesn’t fail. What fails is what we do to get ourselves out of the hole.
And be remorseful your PF party, which Zambians rejected overwhelming, is what got us where we are.
Insoni ebuntu tata. Your time passed. Lekeni tutekeko. We know what we are doing and we won’t fail.
In the meantime, may the Lord protect HEHH and Our Mum Mutinta. May all the praise singers say “Amen”