A BAND-AID ON A SEPTIC WOUND
[The curious case of Kings and paupers]
THE solution to Zambia’s development and prosperity, as a function of its sovereignty, remains, through fair trade, its judicious management of its resources and the translation of these into forex, silver and gold.
With this policy, as its anchor for the recovery of its economy, Zambia would then be able to pay back its debts or maintain the requisite debt-carrying capacity.
Placing band-aids on economic abscesses is folly.
Curiously, note that, for reasons of power, control and leverage, the West is NOT interested in debt-free countries.
Besides, under the current financial world order, the world does NOT have enough money to enable a debt-free existence of corporate entities, nations and individuals.
Nonetheless, note that Zambia is among the top ten most-resorced countries in the world.
What it lacks only is COGNITION and COURAGE.
For now, debt restructuring, is a distraction.
Debt restructuring must never be a priority for any country. The priority must remain wealth translation as a sustainable occupation for that country’s balance of payments’ health, socio-political wellbeing and the security of its sovereignty.
In the absence of building sustainable capacity for the debtor to generate his or her own income security, debt restructuring, even actual cancellation, is akin to placing a band-aid on a septic wound.
It perpetuates poverty and dependence.
It does NOT address the root problem, the idiocy of the borrower. To state it politely, it does NOT address the incapacity of the borrower to fully comprehend his environment and adapt to it.
You see, Zambia has not been servicing its debt since it defaulted in 2020. In 2022, the IMF gave us an initial USD 185 equivalent of SDRs. Did Zambia get better? No.
Statistics show that poverty in Zambia has actually increased by eleven percent in the last two to three years.
Money velocity is slow, inflation is high, the private sector is bleeding jobs, teenage pregnancies are on the rise, prostitution has increased, divorce rates have soared and crime rates have skyrocketed.
The Bank of Zambia is now running out of money [imports cover] and the Kwacha’s strength isn’t helping citizens.
The Zambia Revenue Authority in Q2 reported an unprecedented drop in its targeted collections.
Investor confidence has fallen as evidenced by the recent under-subscription of Zambia’s bonds.
All these indicators of economic malaise and social collapse or a failing country are occurring at a time when health facilities remain without medical and surgical supplies, and the quality of education has plummeted.
Zambia is not only a vassal State but it is currently also a pauper country.
Paradoxically, Zambia is intrinsically wealthy but without money.
Zambia is now surviving NOT on its own ability to stay alive and vibrant but on the mercy and crumbs of its masters, the West.
A tutored eye will see that the West has sensed political danger.
This explains why it has lobbied that debt serving for Zambia focusing on the principal repayments should be delayed until after 2026 to help their agents here in Zambia stay in power.
The West has noticed real political and power-threatening tectonic shifts in Zambia today.
Note that the West has its own serious interests to secure in Zambia.
Zambia is presently a veritable THEATRE of geopolitical war between the West and the East.
Explains why ECL was pushed [read lost].
To what end should Europeans through the EU be financing Zambia’s social sector budget? You will ask.
What sovereignty is there if your healthcare and education have to be financed through THANDIZO from others.
For instance, such consumptive expenditure which Zambia ought to finance itself will now come through an EU Euro 60 million donation towards healthcare and education.
And our expenditure might just be of the kind to require additional bailouts.
Quite shameful, if you ask me.
Note that anyone whose survival is sustained by another often gets screwed.
What many Zambians are ignorant of is that the Euro 60 million coming to Zambia is part of the EU’s Euro 300 billion Global Gateway Initiative whose chief aim is to diminish and displace the presence of China in Africa.
Observe that the just-ended Paris meetings did NOT achieve any specific milestones for the development of countries of the South as a promotion of their sovereignty.
To the contrary, another USD 100 billion was made available as loans [read yokes] through the IMF to poor countrues ring-fenced under the guise of climate aid.
Barring the policy outlined in the opening paragraph of this treatise, Zambia will remain in economic choppy waters, citizens will continue to be disgruntled and the UPND’s hold on power will remain tenuous going towards 2026.
When the managing director of the IMF, a Western construct, Kristalina GEORGIEVA, patronising and condescending, refers to our Republican President as her brother, then you know what is at play.
Such friendly banter is not only scary but it is also demeaning and revealing.
Similarly, you should wonder why many Westerners, some of them diplomats stationed in Zambia, have now gone into a PR overdrive for the UPND, rejoicing at the turn of events.
Zambia remains a colony.
Zambia remains a vassal State.
It is not FDI alone with its anticipated but elusive trickle-down benefits which will improve the per capita income of Zambians and end their poverty, but this must be coupled with a deliberate policy by the government of the Republic of Zambia to, say, create about 200 sector-specific US dollar [reserve currency for now] millionaires that are indigenous citizens by 2031 each with an annual turnover of not less than USD 100 million through targeted investments from commercial and concessional debt, aid-for-investment, tax and non-tax government revenue [dividends from SoEs].
Zambia, as it steadily translates its resources into other forms of wealth, must formulate policies which, as a priority, aim to sustainably empower its citizens through ownership of various means of production.
This is how we will drain the pus from the worsening septic national economic wound and facilitate its healing.
Placing band-aids on economic abscesses is folly.
For now, pepani abale ndi alongo, we are NOT on track.
As 20 million Zambians, in exchange for our national integrity, sovereignty and liberty, the paltry USD 188 million support now coming our way, primarily to shore up our forex reserves at the BOZ, which our own economy ought to do, is only equivalent to a footballer’s transfer fee 😭.
We pray 🙏.
Dr Canisius BANDA
Development Activist
23 June 2023