Friday, April 19, 2024
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Economy

Free Market Economy: The Cost We Are Paying Now

By editor
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INFRASTRUCTURE at the Nitrogent Chemicals of Zambia is becoming obsolete. The firm needs needs K120 billion to recapitalise but the government has insists the fertiliser plant is not viable
INFRASTRUCTURE at the Nitrogent Chemicals of Zambia is becoming obsolete.

By Wesley Ngwenya
A free market economy where government has less control and the market operates independently continues to sweep across Africa, Asia and Latin America in the last few decades. However, for a small and poor economy like Zambia one wonders what good the “free” market economy has brought to its citizens. Was the “free” market introduced seventeen years ago really free? What price are we paying now?

I grew up in Livingstone a border town in Southern Zambia. Livingstone at the time was a town that was filled with activities whose residents worked for state owned companies such as Livingstone Motor Assembly, Zambia Textiles, Zambia Railways, and the one my mother worked for–Zambia Cold Storage Corporation. At the time, the Livingstone residents were the tourists of their own town if you never mind the meaning of tourist. During weekends, we went to the Museums, Maramba Culture, the Victoria Falls, and other attractions in town. Life was good in the good old days until the day my vocabulary grew with a new term called “Free Market”.

Today Livingstone is like a ghost town. There are not many Zambians who really have good jobs unless they are working for the government or are business owners. The town is infested with foreigners who seem to be running the hotel and tourism industry there. The Zambians are the ones serving the whites. Have you ever been to the Livingstone Royal? That place makes you so uncomfortable in your own country.

Other than copper, today, Zambia produces nothing of its own. Before the free market economy we used to buy Zambian made blankets, shoes, clothes, bicycles, batteries, and even little Fiat cars assembled in Livingstone. Today, thank goodness for our free market economies like China (which is not a free market) are benefiting immensely. We have literally polluted our economy with cheap quality goods from China. While it is true that these goods are cheap can it be compared to the magnitude of people who have lost jobs?

Just a couple of weeks ago mines in Luanshya closed adding to the number of Zambians without jobs. A free market seems to be out of control here in our country. I think it was a big mistake for our politicians to have sold all major companies to foreigners. Zambia Commercial Bank, for instance, was sold to Robobank for a meager $25 million. I say that was a deal for the Dutch guys. Many other companies were sold at give away prices. What was the hurry for?

Today, we are seeing the problems that have come as a result of a free market. Unemployment rate continues to rise as more and more people lose their jobs. Crime continues to rise in many urban areas. Hunger is also on the rise. Corruption has been on the rise. Abuse of government resources has also been on the rise. With all these problems you would think that government would have a tangible plan to tackle them. I have not heard the current leadership address these problems head on other than the usual political rhetoric.

Government lost greatly on an opportunity to build its own industry. This industry could have been distribution powerhouse for goods and services in the region. Countries like Congo, Tanzania, Malawi, Rwanda, Mozambique, Zimbabwe, and Angola could have been buying finished products from Zambia. We indeed have lost revenue because we lack a visionary leadership. Needless to say, tax revenue would have been generated from manufacturing, agriculture, banking, tourism, and communication industries. This tax revenue today would have translated to be hundreds and hundreds of million dollars—money well deserved to build our infrastructure.

It is not too late for government to revamp some industry and share costs with the private partners. This way, government will continue to regulate and monitor the industries and avoid their sudden total collapse. The country has a lot of competent people who are able to run these institutions. We need to ensure that there is economic activity within our borders to avoid looking elsewhere. Zambian Airways is one perfect example where government has to bail out the company. The airline has so much potential especially with the world cup coming to our backyard in less than 500 days.

Finally, the need to do something about the state of our economy is so urgent. In fact, it is not only the obligation of our leaders to address the economic and social challenges but it is also a moral obligation. While you enjoy the benefits of a “free” market economy remember that there are many of us who are paying heavily for your freedom.

editor
editorhttp://www.lusakatimes.com

274 COMMENTS

  5. The free market economy in its self has no problem. This economy of ours is just being mismanaged, simple! its not the first time this system is being used in the world. You make it sound like a new concept all together. I refuse. Mismanagement, thats all!! 😕

  7. The proplem was the transformation from the social-based economy into the capitalist one.If there was indeed political will on the part of our govt then,Zambian today would be one of the most economically successfull SADC country especially with its geographic position.

  10. What purpose does this beautiful piece of critic writing serve??
    If it was sent to someone who can do something about it, perhaps, it would mean something but it will just be another complaint, typed, posted, commented on, and sent to archives…………

    Like IBM says, STOP TALKING, START ACTING!

  11. Wesleys comment on the lack of “visionary leadership”, sums it all! Tatwakwata!!!
    What we have instead is “illusionary leadership”!! Bena balota fye!! 😕

  12. Yes act y’all, and what are doing in foreign lands? come back to zed we need you. i see potential presidos, ministers e.t.c from the comments you make,hell yea! you can run a country.

  13. Mr. Ngwenya the state of affairs in this country has nothing to with Free Market or otherwise. This whole thing has to do with our successive governments. I dont know if you left Zambia briefly. If your around the start of the 1980’s you will have noticed that is the time Zambias economy started to decline. This was maifested in the shortages of essentials. The company you have mentioned never made any profits and the money they used to pay employees used to come from the Mines through GRZ.What is required now is to have a gvmnt that will not spend time on fighting for political survival. We need people who will be focussed on development only and we have such people among us.

  14. The underdevelopment and poverty of this country is man made.Gross mismanagement of the economy,nepotism,tribalism and corruption have been so rampant not only in Chiluba government but also in KK,Mwanawasa and indeed in the current RB`S governments.Yes, free market economy is another devil that has impoverished us, but largely,it is the type of leadership that we have had embraced.

  17. Iwe Wezi,it’s a world wild problem ya mene ti facing’a manje.The crunch shingananani.Does it ring any bells?.So ka article kako aka taka pasa che nangu four out of ten waziba.Thats a clear pass to some standards.

  19. Mrs Rashid, a free market economy is not regulated by government. So prices are set by the sellers and the buyers and government doesn’t have a say what they should and shouldn’t be.

  21. Words of wisdom from King Solomon:

    ECCLESIASTES 7: 10; Say not thou, What is the cause that the former days were better than these? for thou dost not enquire wisely concerning this.

  22. With all the negative’s in the article, Are we really ready for the animal called United states of Africa?

    “Free market Capitalist” dont even try to justify the situation cause it sucks big time.

    We started at the same time with Botswana and then instead our leaders chose to go backwards period

  23. We were so quick to embrace the free market economy which has not yielded any tangible results in any country .Even the proponents of free market economy have been stunned by the mass sufferings and miseries it has brought to mankind and Africa in particular.

  24. Zambia a land of plenty yet so poor. Early 70’s dad told me & I believe him, Zambia was rosy, so rosy that “whites” born in Zambia went & finished school outside on say ZCCM money due to their father working here, these luky offsprings later came back as expatriates to rule over us, got hefty salaries & other perks unheard of anywhere even when least qualified than indeginous people. Well the circus started a long time ago. Zambia bleed to death.

  25. Free market economy!! An excuse by recycled politicians!!

    A reasonable Government should dedicate itself in providing social services that will not operate freely in such an economy!! The Framework in which such social services operate should be defined and maintained by the state!!

    The Germans call it Social market economy!! Here again the state sees to it that there is social justice!!

    Again.. my people continue to suffer!!

  26. The suit the veep was wearing at the airport today!!! Yaba! When he is walking, you dont know whether he is approaching you or going the other way!! 😮

  30. #28 Sharp Shooter

    Yamene mafashoni aya! You know our kama airport is windy. When he stands, its difficult to understand who is putting on who: Whether he is putting on the suit or its the suit putting him on!! 😮
    Bwafya mudala.

  31. These Zambians !! How can you shine when your people are struggling sure?

    Ba KK never used to shine like that!!

    Safari Suit period naka tambala !! =d>=d>=d>=d>=d>

  33. LT we need some pictures of the Veep at the Airport please :d

    Ba Moze !! Which designer ??? So that we can google the price!!! :d

  37. Sharp Shooter
    Na designer ungaizibe?? Vintu vopasiwa nisochabe. In todays daily mail, he is shown kneeling. I thought he was standing!! I had to look closely.
    😮

  39. “Zambian Airways is one perfect example where government has to bail out the company.”

    Zambian airways to be a PERFECT example for government bailout!!!

    Indeed Thats just his (Wesley) opinion or point of view.

  41. As your faithful economic advisor, I am aware of the current economic situation occurring in Zambia.
    I feel that I should first inform you of the advantages and disadvantages
    The free market economy has both good points and their bad points, but it depends on how the community makes use of it.

    Advantages of a Free Market Economy
    (In a free market economy, the advantages are normally aimed towards the middle/upper class in a community. This is why we normally find them in richer commun—Conti

  42. Advantages of a Free Market Economy
    (In a free market economy, the advantages are normally aimed towards the middle/upper class in a community. This is why we normally find them in richer communities such as England and the United States of America; the concept of a market economy is to allow people to get through life by themselves.

    I dont think this can work in Zambia as it is not one of the richer communities.

  45. 1.To start with , there is no country is ia a total free market economy becuase the private sector can not provide all the services in any particular country., so we are a mixed economy.

    2.There is nothing wrong with a mixed economy. its by far the best types of economies becuase it encourages private entities to be part of the running of the country, ofcourse unless a country is mismanaged and sure we fit perfectly well in that category.

  48. #47. I`m good Jam@co. Well done. I like this one even more.

    The stuff you sent me is long winded. There is even a shorter way of doing it.

  50. There is no single country in the world which is a complete free market economy in real sense. Even the most acclaimed market economies like USA, UK, Germany etc are not that free. Government plays a very important role, they have not privatized everything.

    Zambians like going to extremes in everything. We are now in the process of privatizing Zamtel. You don’t entrust important ministries to novices like Siliya and expect much. We have no plan of our own,except expecting foreigner (FDI) to develop our country. Shaaaa

  51. 48. 3RqU

    perfect!! Nice to know… maybe you can update me.

    49. Ba Honey

    BRUDER L or Jam@co its one and the same !! So you will have to get used to it!!

    Cheers

  55. We are suffering peacefully pa zed.Boma latu ili siti tailako nzelu.The minister is saying the economic is getting better while the people are suffering.Which economy is getting better.Your home economy?.People in high places, don’t turn my country into a sinking sea.Pa zed it seems that we’re living on borrowed time.

  56. Zambian na Ba Moze.

    Ibele beats all! Kutimwalanda mwalanda, awe kufumyafye ibele naimwe bene awe sure ninshi namano wapwa. Ilya blonde lyena worse.

    Ask Jam@co na Chewe the virgin:d:d

  58. There is nothing wrong with a free market economy ,,one thng u must remember is that the only fault is the way it has been handled..Policies should have been in place at the time when privitization of most companies was done..but the government just rushed the process without thinking forward,there is noway u can can sell off the whole company and remain with nothing,selling of companies should have done in stages,so as to be able to monitor the capabilities of the new owners to grow the the company after which they could sell off the rest of the share holding.And policies should have been put in place that would benefit the country from future investment like the remission of profit.

  59. #56 3RqU

    :)) Ati shani?? Wansekesha mani!!
    You are right. ilya blonde, teti wapena fye? Twachula kanshi.
    You could actually write best selling novels on the happenings pa Zed. Sidney sheldon panshi.

  60. 56. 3RqU

    ibele lya ba Aretha Franklin pa Obama inauguration? Iyeeeeeeeeeeeee

    Awe ilya na Blonde kuti aunfwa na ma Jellasi !!

    :d

    Ama Black paliba ibele

  62. Instead of bailing out Zambian Airaways i suggest govt converts it’s debt into equity, part nationalisation in other words, after all they may never recover those debts.

  66. Wow,

    This article is something that is a well deserved read but I think we need to analyze the reasons as to why we failed to succeed in a free market environment when our neighbors like Zimbabwe, Botswana and Namibia succeeded in the free market environment.

    So buckle up kids, it is going to be another long post :d

  71. The reason as to why Zambia did not succeed in the free market system is because of KK’s mismanagement of govt resources and our ever growing reliance of copper. The problem with Zambia’s economy did not start when we adopted the free market system but rather it stems from a failed socialist economic ideology.

    From the time Zambia gained independence until the 1970’s, Zambia was a middle income nation. However the price of copper dropped, and things went crazy from there on. The biggest mistake KK made was instead adopting a system of reduced govt spending, he adopted a system of borrowing until you are certain the price of copper has recovered[tbc

  78. Ka honey nako , what do you want? attention? You are late mama! i once sought attention from all angles but it never worked. Each man has got the lady he thinks of here.

  79. I told you all !! Jam@co only comes out when its time to have a small laugh!!

    Ba Honey!! It was not a diss but a Compliment!

    :d

  82. cont. #71]

    However things did not work out and in 91, he was ousted. Now what are the economic effects of KK’s failed ideology.

    -Firstly, the companies that where set up did not have flexibility. Meaning the plants where either too big or too small and govt decided how much was produced and how many would be hired. Without this flexibility, it was either companies produced more than what was demanded or less than what was demanded. This fails because the company will either lose out on an opportunity to make profit or will continue to incur losses.
    [tbc

  85. “Corruption has been on the rise. Abuse of government resources has also been on the rise.”
    Quite true though the best to write on corruption is that it has now been more exposed than before. On Abuse of GRZ resources, the real thing is that the President RB Banda now 17 year old MMD GRZ is bent on POLITICS OF SURVIVAL as someone put it above. There is really no justification for the 68 or so member Cabinet when GRZ can be run with only 15 Ministers.
    I’m sad that many of my fellow Zambians do not read, but rather find pleasure in being cheated by some sections of the media. I hope 2011 elections will bring in a proactive GRZ to take Zambia to higher heights as opposed to failed characters.

  86. Awe nomba naine nasenda Jama@co twaya!! Like 3RqU has put it “paisa abantu”

    :)>- I will come when LT posts a new one :-h:-h:-h

  87. same ‘o’ same,certain things will never change just like chain remains on a blackman,s neck,we are in a war zone,our thoughts aint going to change nothing,the white boys are in control,no matter how hard we try,still nothing going to change,we lame in every aspect of life,lame thots,lame leaders,lame blog contributors,lame damn country,lame blog,thats what am talking about

  88. cont. #82]

    -Second was the issue of moral hazard. CEO’s of these firms did not care whether they where making profits or losses simply because no matter how bad they do, govt will still foot the bill. If the company is making losses, govt will still constantly bail it out.

    -Thirdly is lack of innovation. With no competition and govt controlling everything, there is little or no incentive to innovate. Companies will still produce the same product and consumers will still have to buy these products because there are lack of alternatives which brings me to my next point [tbc

  90. cont. #88]

    -Lack of customer satisfaction. Companies did not care what they produced or how they produced it because consumers are stuck with that product (if we produce it, they will buy it).

    -etc etc

  94. now the free market capatalist thinks he knows what he is talking about also, forgeting that he is lame perhaps more lame than maesrtro Hhehehe’s crippled head,lost in a political whirlwind,

  95. cont. #90]

    Now the problem when the free market system was introduced was the state of the economy to begin with, the fact that our balance of payments left much to be desired and the fact that under the socialist system, these companies where so badly run that some ended up closing whereas other companies had to make cut-backs because they found out either their plants/labor pool was too large or too small for the company to make profits.

    You brought up the issue of Zambian Airways and that is a good point but I dont see why ZA should be bailed out when ZAMBEZI AIRLINES is filling the space[tbc

  99. cont. #95]

    ON the ZA issue, I will say this, good business ethics must be praised whereas bad business ethics must be frowned upon

    Now I will say this, A govt effort alone cannot cause the free market system to succeed, it will need an effort by you and everyone else for it to work.

    You have been given an opportunity to own something that is 100% yours. Something you can be proud of because you worked for it and not something you work hard to build and the govt ends up owning 40% of your business. It is a tick off.

    [email protected]

  102. #100. Ba Moze

    I am very angry at this article. It goes against everything I believe in.

    In one long sentence, Zambia is no longer a monarchy/dictatorship where the govt is your daddy and is supposed to give you everything. It is time for all of us in a collective effort, innovate, get busy and start building our country through self empowerment. The same way a son lives his fathers house to go fend for himself is the same way we need to lay off the blame govt syndrome and innovate. Bazungu can do it, why cant we??

    [email protected]

  103. In Zambia ,we like the “copy and paste” things.Some idealogies and systems are not just implimented but followed up closely before setting the operation in motion.Free market failed because no study was done on repercusions.It was just seen in a commercy book by some person who did not even understand it firmly.How do you set up a free market in amidst of privatisation,structural adjustment program,high import duty with abnormal inflation?

  106. free market capitalist

    Dont ever advertise your email address like that. ladies here are after marriages espacially Zoe and honey. You will regret it man! ask Lt to delete it before they see it

  107. As long as we a ruled by old, tired brains which constantly fly off to South Africa for mending, you can be assured that Zambia will always be experiencing a “1 step up and 3 steps down” kind of economy. Good luck [-o<

  110. #106. Beautiful1

    LOL…That is not my private email address so I am expecting any kind of garbage people can send. I dont mind as long as it is not spyware, adware or a virus

  111. I’m new on this blog, I find most comments fascinating and hilarious. I am a Zambian quite often on the net and I had no idea that there was a Zambia blog doing the rounds.

  114. welcome #111,please send me all your details including your bank account number,passport and a fee of $1500 as a participation fee on this blog,details will follow later

  118. #116. Beautiful1

    I would direct her to some Bible verses and give her a lecture on the economics of legalized prostitution. :)>-

  119. #116 Beautiful 1

    Yashani iyo? has any lady asked Free Market fimo fimo out?……..or is it you asking? i can read btween the lines, ka? 😕

  120. #116,why are you trying to hook a brother,his gat kids and a wife,his family need him,go jark yaself if you want some

  122. Ba Moze
    I trust you so much mudala. help me deal with these two chaps(but i know that its one person) Recession and Mrs Rashid Jones.

  123. plus you must be an urgly one to be asking a man out,no market,hence trying to target the free market, he is not a free market for holes

  127. There was once a good name for this: CAPITALISM. Then in an era of ‘freedom’ speeches from western leaders, such as Bush-es, the phrase Free market has gained wide usage. There is nothing ‘FREE’ about this at all. Protectionism is rampant among the richer nations. They will pay peanuts for cotton while paying huge amounts to their own farmers to produce nothing! There are price fixing cartels like OPEC. What is free about this market? Let us call a spade a spade. This is Capitalism. i.e. It starts with capital to produce capital to produce more capital and that regardless of who gets hurt along the way!

  129. rashid. am not recession. in any case why would you want to deal with me? are you the only rashid jones on earth? ala iye…

  131. # 122 rashid. am not recession. in any case why would you want to deal with me? are you the only rashid jones on earth? ala iye…

  135. Ubu ni bu puba. we are saying the parastatals never made profit in KKs time? How much profit is Zamtel making today?… Nobody knows. And its 17 years since KK. A country of complecency and inefficiency is what we are. lets start a culture of real zero torelance to mediocrity, Zamtel and others belong to you and me we should speak out when we see the slightest sign of incompetence and wastefulness. we should mount the heat on these corrupt and incompetent characters till they opt for the cliff. we do not have to be politicians to make a difference.

  136. #132,whats up boo,whats that suppose to mean,I shine without the hand jewell,catch me if you can,I was jus trying to draw ya attention,I mean I dig you,cant beef with you ma,I love you

  143. Rashid

    Tawakwanishe boyi!! Mashilu ayo! balabeko fye. You are better off pretending they dont exist!! [-(.

    Ishilu lyalishupa boyi! Labako fye.

  146. I think the problem started with the way “the Ndola Boys” delt with the whole privatisation, free market economy should not be 100%, there should be a percentage the the govt should control for checks and balances, selling off all public institutions was a bunder, with the inset of the Global RECESSION, the govt has no plan of what to do because they are not a player in the economy!

  147. Anonymous
    Please, i respect you so much but please get out of this issue.
    Recession and Mrs Rashid Jones are one person trying to complicate matters to me but they will never succeed because they have touched a very wrong button.
    Just wait and see.

  148. Ladies and Gentlemen, let us constructively utilize this chat room, No wonder this country can not develop, everyone is clowning arround! [-(

  151. My brother Rashid Jones, Mr Bones or whatever you want to call yourself, pull yourself together…i have no time to waste on you bra! I gat resources to fish you out! Next time be carefull who want to pick beef with!

  152. #149,you must be some pretty lady,that i know,you recently changed ya name,never mind that baby,th GD is ya lover,from today on wards,if anyone does you wrong,call me,if things aint col with you count on me.

  158. #153,good to see to your wings flip,like you about to take off son,i aint the type you call sh*t,am more of a grand puba you little fag,dont make me bring drama to ya mama,you suc,i know u gat a recessed mind but dont make me double it up,reprobate,lame crooked b*tch a*s

  159. Ghost Dog

    Get this in your alien brain, i ve got two balls and a tail in between! If you are looking for love, try someone else coz am not gay like you!

  168. Am off! Going to see my lovely wife to be! Cheers! Ghost Dog, this is not a dating site ,find your fellow ~:> to marry

  172. Yaba…nama YO Exsay have access to LT, LT you need to screen some of these little fags…No under 18! And pull up your trouser Ghost Fag and No. 168…you are in a tie now!

  173. you c pipo the way the ecomony was treated can be compared to 2 doctors who have detected a thorn in your flesh. one decides to pull it quickly pull it leave you in pain. it may heal but it could take some time. the other doctor feels he will be pulling it slowly and consiously. the pain will be as slow but not as the other procedure.
    our grz felt the first one was ok. it left pain and some pipo have not even healed. others are nomore due to disappointment, sickness, depression, hypertension and the like.
    when uou are implemenying something you are not very sure abt, you need to be conscious. this is becoz you are dealing with lives of pipo.

  174. That is the price we are paying for having entrusted the presidency in a pygmy from the Ituri forest. No vision, no ears but full of greed, greed, greed and greed. That pygmy must be jailed to help him learn the lessons of irresponsibility and irresponsible actions in leadership.

  175. Wesley,
    Maybe more space than this would do if we have to exhaust our debate convincingly.Indesputably you are a product of Frederick Engel & Karl Marx’s school of dialectics.I know you studied business in the the USA so have i in economics and Politics.Your understanding of the free-market economy may be confined to the prism of some business school perspective only but without depth of Political-Economy of nations and practical mechanisms of Market capitalism or Command Socialism at extreme.We could look at ideal allocation mechanism,Role of planning,Icome Redistribution & social Satey Nets,typr of incentives,forms of ownerships, sunsets & indeed equity-efficiecy trade-offs.

  177. #172,whats LT,is it such big thang dude to be found on this sick blog,coward a*s,dont make me smoke ya stinking a*s,just a rot that needs a breather,you still in ya thought diapers,I graduated from that long time ago,you to me is like a tape am a dvd,I can read through ya mind design B*tch am like blind fury to you,am 8ball to ya crippled brain stu*id f**l,I remain a pain in ya lame a*s,middle finger up for you and everyone that knows you.Dont let it get thicker than that,dont throw that gasoline on fire,it will burnt ya sorry a*s

  179. The world is not static but a dynamic order in which there is no excuse whatever to be caught up in what economist call the “Malthusian low-level equilibrium traps” indefinately.We have factors of the market edge in the region hence we could engage in “dynamic-efficiency” strategies for macroeconomic stability in a market economy.Regulatory measures are not allien to the free Market economy.So don’t be disdainful of the free-market capitalism.Just understand why we have been victims as a nation.

  180. Recession, I agree with you.pimps of all hues and shades have come on LT. we need a change. every little rat is getting here. do something.

  181. #172 u r a stup*d cynical bastard, some ignoranusy p*ssy,aint gat time for you,keep ya self in check,if ya knuckles are hard enough roll on,am waiting.

  185. I disagree with the notion that the dire state in which our economy finds itself is a result of the liberalisation of the markets. On the contrary, the liberalisation of Zambia’s economy was thrust upon us as a consequence of the monumental failures of UNIP’s socialist regime. The collapse of our economy meant that it was not feasible for Government to prop up unprofitable industries using foreign funds. The sources of foreign funds (such as IMF and the World Bank) compelled our government to give up state run socialism. The continued decline of our economy is symptomatic of gross mismanagement. A well managed economy is a beauty to behold. Ours is hardly worth a second glance.

  189. Lt what do we do if we report someone insulting us and u dont do anything? we defend ourselves! so what moderation are u talking abiout?

  192. No 185..The difference is we went from one ideolism to another, I think the transition from Humanism (Industrialist state) to a free state confused kafupi! We should have been strategic in Liberisation and it should have been gradual, We went staraight from Depression to Inflation and now we are with GLOBAL RECESSION!

  193. #190. Awe Jam@co we have to think about starting our own website. I mean seriously mods should have dealt with this by now. Do you know, I will write you an e-mail. I think we can do a better job. After all we are here almost 24/7. :d:d

  194. Greetings Family,
    Hope you had a mighty blessed weekend,

    Interesting read,

    Capitalism has one major aim/advantage – it encourages and natures the best of human talent and creativity (God given albeit).

    I would go on and argue if such creativity is harnessed for the benefit of society as a whole, then thats good.

    On the contrary if left an attended or unregulated massive wealth will undoubtedly be amassed in the hands of a few but at expense of society as a whole.

    the credit crunch being a classic example

  199. Pastor J

    I do not think it`s anything to do with capitalism. Why is it that even the Chinese economy is affected.

    We know where this credit crunch started. One man will always be remembered for that.

    Ask Bush who came to perpetuate the lost cause his father started.

  202. The ravenous and gluttonous spirit of Parliament is gnawing at the hearts of those of us whose pay-slips are inverted pyramids, needle-sharp at the bottom from deductions.

  203. LOL! =))=))

    To carry on with this topic, or other burning topics, feel free to do so at

    zambiana.proboards86.com/index.cgi

    lot’s of space or room to type and entirely people driven.

    There you go bruva Jamako…. looking forward to your quality contributions

    Julian (Too Blessed To Stress)

  204. Zambia as a nation lost it when we became so desparate as to replace KK, a visionary and principled leader, with a mindless, greedy visionless and ill mannered Kafupi. Even the Gods will never forgive us for that callous mistake. Many people died because of that desparation and i wonder why zambians still allow that little pygmy to be enjoying in Zambia.

  205. So this is the solution right here !!

    Ghost and friends please feel free to cross over to
    zambiana.proboards86.com/index.cgi

    Cheers

    BRUDER L

  208. :O :O :O Pastor J- how do you announce your site HERE??? Jam@co ali pa plan[-x He wants abena Recession and Chipuku Dog to follow you there mamamama:-t:-t:-t

  210. #204 Kafupi i agree is the worst president to ever hit the face of zed, but kaunda was not good either. mwanawasa eve anaesako mwe.

  213. This article is hollow..does this guy think corruption, mismanagement and plunder are as result of free market economy? No baba..The economy was messed up during Kaunda’s socialism(Mismanagement) then thives and corrupt government (MMD) came in….When I attended the first MMD rally in Kabwe, the country was bad..Chiluba was busy telling us to tighten our belts. He later started untightening his built while preaching free market. Free to steal…We need to change our mind set as Zambians. Stop praising thieves like Chiluba…….. and now it appears we are going for poor finishing with RB ~X(

  214. conti…# 179

    Wesley, while your article contain “some” correct criticisms and apt political characterizations, is marred by a fundamental defect if not flaw. While polemicising against the ruling who consider themselves – without sufficient reason – above all as proponents as the rulers, the article deliberately did not elevate the problem to a theoretical height worth convincing.

  216. @ # 212. Ghost Dog,

    It’s a new community forum, intended for those with an interested in….

    1. Prolonged Debate- bear in mind there are space constraints here in the amount of words/characters you can type/write, we are looking at 60,000 characters on the otherside

    2.It’s people driven- you can initiate your own topic,question(threads) etc as opposed to only reacting to stories, not that there’s anything wrong but you have a burning issue,humour or jokes to share etc

    3.Contrally to belief or perception you’re not crossing over, you are free tp patronise both, just like am doing right now :d

    remain blessed

    Julian(D.t.r)

  218. Just as in the sphere of politics it has been thought possible that everybody could be convinced of the correctness of a “just” program by means of clever syllogisms you are advancing in bashing capitalism in hope that society could be reconstructed through “rational” measures you think, but in a dynamic world your Aristotelian logic is lower to the level of “common sense of Pragmatism we need- a mixture of rationalism and empiricism, to become our own national drivers other than these condemnation of political beliefs and systems.We need the free-market system as a country to foster an ownership society.

  220. @ # 216. Pastor J

    Great initiative Pastor, i registered with your site will be patronising it from time, will also be giving you some support and critique (rest assured, positively though) :d,

    It’s long overdue to be honest, i can’t help but notice wonderful attitude of not taking to heart what the expert detractors are spewing over here,

    as therein lies root of the Zambian woes, quick to shoot something down with no advise or positive critique….Shame on them!!!!!!

    ta.

  221. @ # 220

    The above is a personal sent to me by a one resident blogger here,(will not disclose their name)

    how encouraging,

    remain blessed

  222. #185. NAIBMAZ-Rogue Trader
    The idea that state owning companies is not compatible with free market is wrong. Zambia did not need to sell the most profitable companies. It should have gone all out to support one or two and then when these got stronger economically they could have been the financial backing for getting more. That is what the Chinese have done. Secondly, heads of Parastatals should not have been appointed by HE KK, but by open competition. It will not be long before the world adopts a system of PPP (private-public-partnerships) while allowing independent management. Capitalism as Marx knew it is not capitalism today. Neither is socialism as he propounded.

  224. #222. VOTE RIGGER
    It is not my belief that state owned enterprises and free markets are mutually exclusive. Rather, what I tried to highlight was the mismanagement of the UNIP era which resulted in the total collapse of most industries. Unfortunately, the advent of the MMD government brought with it malfeasance of epic proportions. My argument is that Zambia suffers more from poor leadership than the wrong ideology. However, the author seems to have wrongly identified a causal relationship betweeen free market economics and economic failure. The folly of such an argument is exposed by the success of all well managed economies that embrace the very model it attacks.

  225. Free market is here to stay whether we like it or not. It’s a challenge for each one of us to participate instead of sitting on the side line whingeing and whining. As Zambians we are brought up with free this, free that attitude. Even when we don’t need them so long as there are free we just grab.

    Correction, China is a partial free market which has made millionaires out of it’s citizens

    RB has only been in power for a few months and his presidential jet has clocked up so much air miles already. If the chief executive officer has no shame in abusing his position what more his subordinates. How does he fight corruption?

  226. this article is so biased. Let me tell the writer tourism is the biggest employer in the world today. he seems to be suggesting that tourism has to play no role in development.

    Let me also tell him that the power base is constantly on the move. Unless you have absolute power in any industry, you will leave yourself against competition. Zambia today is much a better place than under nationalism. One of the reasons for my moving away from Zambia is not because i did not have money, but becoz there was no food in the super market.

    yes Zambia is not perfect, infect far from it, but with good policies and accountability zambia WILL rise!!

  227. The the fuc**k doesn’t this website allow referenced links from other website?????

    No wonder Zambia lacks behind!!!!!!!!!!!

    I got some nice information on Zambia that will paint such rosy readings, that it will make the article above completely baseless.

    I wonder!!!!!

  228. Zambia needs to implement policies that should dwell on sustainability and accountability. #226 is spot on …and well said. I remenmber the days I used to run after the truck…’Superloaf’ to get a loaf bread, days when I use to queue up for mealie meal and stay in line from 4AM till 9am when my mom came and took over…point is Zambia is better today than it were 15 years ago!!! Has Zambia developed since the KK era? Yes and No!!! Yes in the sense that there is food around although the cost of living is high and no in the sense that education has gone down hill and continues to go that way!! These are just simple examples…but we need to acknowledge were progress is evident!! :-w

  230. However, for a small and poor economy like Zambia one wonders what good the “free” market economy has brought to its citizens.

    Nothing, of course, it was never intended to bring anything good ordinary people, or to develop the country. Free market theory was intended to create a global corporate economy, where corporate money can be reallocated to any corner in the world without hindrance (taxation, tariffs), and corporate profits could be maximized (low wages, again no taxation, no environmental protection), to create a capitalist Utopia where money could be allocated perfectly efficiently where it could bring the greatest return.

  231. 225. Musi

    ” Free market is here to stay whether we like it or not. ” The ‘free market’ is less an act of God, than an act of parliament. Most countries today have a mixed system, of government owned companies and privately owned companies. They also have social safetynets, a mininum wage, etc.

    Also, if you look at how Korea and Japan really developed, you will find the protection for infant industries, through tariffs on goods that were produced within the country. Also, government protection and ownership does not need to exclude real competition – the government can legislate comptition through anti-trust legislation.

  232. Free Market Economist, i for one share your views on here. From the way you write, i take it that u are a highly learned individual ( an economist may b).

    I too have a degree in Economic and the debate of socialism against capitalism all seem to bring out highly tempered arguments in my days at college.

    I always ask this…. why would someone prefer a NANNY state to FREE state. I experience has provided me with this answer.

    The LAZY ones always more often than not prefer Socialism (I havnt got the time nor the space on here, otherwise i would bring out a lesson on income and demographics to prove this concept)

    Even the writer above knows his chatting waffles in his article. tbc

  233. The problem in Zambia is not a problem with free market, the problem is more domestic than external. What can be more rewarding than having a free market system which allows businesses to trade without barrier. ( its not perfect, I kw)

    Zambia should learn to get good at something. something other nations can not produce or provide. Tourism is far more rewarding and sustainable than a textile industry, something the article seems to vouch so much for. It pains me when i read such baseless article.

    Where are the facts and figures to support the claim???

  234. Free Market economy is welcome in most countries but the govt still has the upper hand…..(in my own simple terms as am not an economist)
    In Zedi, free market economy was granted for these investors to rob all the resources (and Zedian senior officials(apamwamba) reaped their happiness)and when all resources were dried up these investors fled.. leaving eye sore and delapidated infrastructure crying for a new face lift.. maiweeee!! 😮

  235. I’ve just read an article ‘The Rise of Africa’s Frontier Markets’ on the IMF website where it has listed Zambia and 7 other nations in Sub-saharan Africa as the next emerging markets.

    It is a properly thought out article with all the relevant findings, facts and figures unlike the above. Without going into too much detail on the article, one will realise immediately the good that free market brings which is in complete contrast to the rubbish published above.

    One more thing where was the stock market in the KK days???? OR sorry we traded the coupons back in the day. tbc

  236. Mister Wesley Ngwenya… may be you can come on here then we can lay out the game better. I don’t wont to act too smart but some of your writing leaves a lot to be desired.

  237. Number234 what do you suggest the Government to do in formulating the way forward??? lets devise the way forward (solutions) than just arguing to play the name game with the Government.

    Don’t tell me you propose nationalising the mines?? I hope you understand that those are precisely the policies that have got Zambia in a little ‘rut’ that it finds itself in.

    Nationalism DOES NOT WORK i can sent you thesis if you want. In fact tell me one country in the world that has done well under this system?? challenge!! I will give you hundreds of success nations under free market.

    Zambia doesn’t need to rely on mining and foreigners it can do it in Agriculture and tourism by the Zambians.

  239. ‘It is not too late for government to revamp some industry and share costs with the private partners. This way, government will continue to regulate and monitor the industries and avoid their sudden total collapse. The country has a lot of competent people who are able to run these institutions. We need to ensure that there is economic activity within our borders to avoid looking elsewhere’

    The para above from the articles sums it all up. First sentence is in complete contratiction with the message. Aren’t PRIVATE PARTNERS capitalist??? :-?? complete nonsense!

  240. #237,
    First of all I must confess that I am not an economist .. but this is in my eyes only.. and what I have seen.The investors can run the transport system,water and sewerage,mining sector, and all the backbone of the economy that you can think of including all the viable companies like NCZ (as farming is the most lively hood of Zedian population) but the ‘GOVERNMENT OF THE DAY’ has the upper hand in all the decision making..Rather, when privatisation happened in Zedi, there should have been a ‘clause’ where the govt of the land should have the last word on any investors final decision, after all its Zambia’s resources and land.. No investor comes to stay .. No ways!!! mulebepafye!!…..

  241. #237,
    Tourism has ben attempted by all, poor and rich countries, but I can tell you now that even with the rich countries with this credit crunch they have not been spared.. We are lamenting in here as there is a big drop in the tourists influx. Believe me you, you can not rely on anything better than agriculture. ..

    A hungry stomach has too many insults my brother/sis….take it from me… 8-}8-}[-x[-x

  242. #237,
    The most thank less beggar is the stomach ;));));));))8-}8-}
    Govt should heavily revisit the agriculture sector. Most Zambian’s livelihood and job is to go to their small lima’s. Cultivate, reap, feed and go back to the same routine year in year out!!.

    If the govt can pour most of the tax payers money into agriculture , grow more food, feed more mouths and teach them to be self reliant in the long run… you are going to see big changes.. All I see is talk talk and talk, years gone by…:-@:-@:-@:-@:-@

  243. Greetings Sister Cutey,

    Yeah unfortunately the general pysche in the average Zambian is to look down on farming, it’s a dirty job, for the less ambitious, backward etc

    We all want to be accountants, musicians, politicians, footballers and yep pastors…. isimply easy money and easy life.

    If only we could see how the white zimbabweans(and britain) are refusing to relinquish every inch of the land.

    stay blessed

    Julian (Too Blessed To Stress)

  245. #242 Cutey, you do not need to be an economist to understand the economical situation in Zambia. Every Zambian knows why we are always in the same predicament yet, we keep recycling the same politicians that seem to tell us the same old story but with a different tone. Zambian politicians or the wanna politicians join the game of politics to fatten their wallets/bank accounts. For this reason, accountability is close to zero especially in most Govt. sectors. Zambia has tonnes of smart people as evidenced on this blog and the people in higher offices know exactly what to do,but they won’t anyway!! Why should they be at the same level as the commonZambian interms of status. This egalitarian..

  246. Wesley, I strongly respect your sense of national pride and outrage that Zambian tourism seems to be being run by foreigners and foreign corporations. There is nothing worse than feeling like a stranger in your own country. I ask this though, surely the people who actually live in Livingstone would make better tourist guides restauranteurs and hotel owners than foreigners, because surely they know the area, local customs and beauty of the area better than everybody else and would be able to offer tourists an insight into the “real” Africa that manufactured tours can not provide.

  247. Further, unfortunately if you are against the free market economy, Zambia is in the position whereby even if you object to it, it needs the free market economy to allow it to function. The position of government and government debt in modern society has created a stituation where outside trade is needed by governments to pay off internal debts. Studies have shown that open economies have much higher employment rates than closed economies. My advice is find a niche market that cannot be filled by foreigners and export that.

  248. I have no doubt, as evidenced by the intellegent conversation on this blog and the enjoyable articles that I have witnessed over the last 2 months since discovering this website that there are many, many intellegent Zambians who could definitely help revive a national economy. Id love to see you beat the foreign tour providers at their own game, who wants to go on a local tour with a foreigner anyway!

  249. Why doesn’t the government create an independent but transparant state agency, and develop the mines themselves?

    They already have technology – existing mines – and the state can simply issue bonds to cover startup costs. The entire population would pay with slightly higher prices for everything, but in the end they would get their money back, because all the money and profits stay in the country.

    The state would then have the money to expand agriculture, infrastructure and manufacturing.

    Why are ‘foreign investors’ needed at all?

    The key to economic growth is the continuous reinvestment of profits and costs in the economy.

  251. Anyone read the book ‘ Invisible Hand’ by Adam Smith? Am for a free market economy. But our leaders have disappointed us. Poor fiscal displine and lack of a vision.

  252. Anyone read the book ‘ Invisible Hand’ by Adam Smith? Am for a free market economy. But our leaders have disappointed us. Poor fiscal displine and lack of a vision.

  254. 251. Lt. Gen.,

    ” Anyone read the book ‘ Invisible Hand’ by Adam Smith? ”

    Just the Wealth Of Nations.

    ” Am for a free market economy. But our leaders have disappointed us. Poor fiscal displine and lack of a vision. ”

    You want both a visionary government and a free market?

    Let’s forget all about ‘free market’ economics and focus on how real economies have been built. Japan, Korea, they used protectionism, tariffs, and sponsored business conglomerates (Keiretsu, Chaebol). Let’s look into ‘import substitution’, and let’s have a big plan to professionalize agriculture, so subsistence farmers can step up to become middle income producers.

  255. Mr K, Japan and Korea are poor examples to use if you are trying to say they built their economies on protectionism. These economies only boomed when they opened themselves to outside trade. Think about the propensity for the Japanese in the 70s and 80s to reverse engineer electronics and auto technology and make it more efficient and cheaper to manufacture. The did this and onsold their products to the west, which was in effect opening up their economy.

  256. Also, Lt. Gen was also correct to challenge your contention about the government “issuing bonds to cover start up costs”. This is not an option for the Zambian government, as the Zambian currency is just not strong enough to support such an issue. Further, the risk of inflation and hyperinflation from such an issue is high and Zambia would struggle to find buyers, especially considering the majority of potential purchasers of bonds would be scared off due the comparisons they would make to Zimbabwe and the current state of its economy. NOTE: I am not saying Zambia’s economy is the same as Zim, I am saying that the rest of the world would be afraid similar mistakes would be made.

  257. Although I do agree with your idea about professionalising agriculture, in order to move farmers from subsistence to middle income. I still think you would struggle to do this without an export market and an open economy though, because the wealth has to come from somewhere to purchase the products and god knows its not coming from the Zambian government.

  258. ” Mr K, Japan and Korea are poor examples to use if you are trying to say they built their economies on protectionism. These economies only boomed when they opened themselves to outside trade. ”

    Check out the history of the Keiretsu, and before that Zaibatsu.

  259. ” Think about the propensity for the Japanese in the 70s and 80s to reverse engineer electronics and auto technology and make it more efficient and cheaper to manufacture. The did this and onsold their products to the west, which was in effect opening up their economy. ”

    On the contrary. For instance, it is very difficult for you as a non-Japanese company to do business in Japan. You need a Japanese partner, there are all kinds of hurdles, not in the least pre-existing relationships between manufacturers and suppliers, the language barrier, and all kinds of cultural barriers.

  260. People make the mistake to think that because Japan and Korea sell electronic goods all over the world, they are engaging in ‘free trade’. Not so – they are selling Japanese manufactured goods to the world, while keeping foreign producers out.

    They have never courted FDI, and in fact because they insist on manufacturing, they own large amounts of foreign currency.

    What they never did, was bend over backwards to attract foreign companies over to extract their wealth, without paying taxes, without sharing profits or re-investing in other economic sectors – which is what is bleeding Zambia dry to the point of abject poverty.

  262. This shows why FDI does not work, and why a corporate driven economy has the least amount of effect on the any local or national economy.

    yesmagazine /org/article.asp?ID=1565

  263. 261. The big issue,

    ” We have tackled everything bane and talked too much now,when are we going to do the action part. ”

    The way it works is that you 1) decide where you want to go and 2) decide on the policies you need to get there, and 3) agitate the political party which is most likely to implement them.

    I would like to see a highly decentralized government that is responsive to popular input, more than just holding elections every 5 years. I would like to see an economy where 90% of the population or more is middle class – they have jobskills, a car, a house, land or anything of value that gives them options.

  264. So how to get there – 1) massive agrarian reform that puts land, machinery, training into the hands of anyone who wants to farm; 2) easy credit, education, infrastructure and enabling legislation for anyone who wants to set up a business to eliminate poverty in the cities; 3) spend 50% of national revenues directly at the local government level, and eliminate waste from central government, like reducing the number of ministries from 29 or so to 10 or 12.

  265. Now how to get there. Obviously, there are only 2 to 3 viable political parties in the country. Therefore, it is crucial to get the parties with the manifesto we want, and try to get either the PF, UPND or MMD to adopt it’s policy points. In an effort of national unity, let’s pull together the manifestos of the CDP, the Agenday for Change, the PF and UPND and hammer out a national development plan that does not depend on ‘foreign investors’ and donor aid from the IMF, but is based around taxing the heck out of the mines and putting that money to work in the Zambian economy.

  266. Mr K, I do agree with alot of your ideas and you have made some good points. Japan and Korea have both benefited from an open economy as a result of “forced trade” which is the direct result, unfortunately, of the after war clean up of their countries and regardless of their degree of openness, their wealth has come as a direct result of being an open economy and trading with other economies, not only trading internally. But you are right, the trade was once quite one sided and it is hard to do business in either country due to language and other barriers. The thing about Zambia is it doesnt have the advantage of having available markets to trade with on a one sided basis like Japan and

  267. Korea did. Zambia more or less needs to start from scratch with an open economy because if it does not trade with another nation on even terms, unless it is producing particularly price competitive goods, (providing manufacturing labour or something very low cost) or inelastic goods (such as oil) it will struggle to find trading partners. But as you have pointed out, the way forward is definitely farming for starters. Zambia has an abundance of other nations around it crying out for food supplies (so there is clearly a market for Zambian farming) and that would be an excellent place to start. I think farming grants and training provided by the government are good way to start this.

  268. I think a focus on infrastructure is also clearly required and as you say, a great way to increase infrastructure spending is to remove the waste from central government and again, as you have pointed out, there are tax dollars for the taking in all the FDI currently occuring, in that these are just crying out to be taxed at a higher rate. The way forward has to start not with foreign investment but heavy government reform. Politcal parties need to find some solidarity if they are ever going to create the Zambia that Zambians deserve to live in. I really hope I see it in my lifetime.

  269. 267. James,

    ” Zambia has an abundance of other nations around it crying out for food supplies (so there is clearly a market for Zambian farming) and that would be an excellent place to start. ”

    And because small and medium sized farms must be mechanized, that could be the basis for farm machinery manufacturing, completely for the domestic market. The government could create a company from scratch, or engage in a joint venture and attract an existing manufacturing company.

    There are ways to employ FDI, while maximizing technology transfer and sharing profits.

  270. whoah this weblog is wonderful i really like reading your articles. Stay up the great work! You know, many persons are searching around for this info, you can help them greatly.

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  272. Excellent points altogether, you simply received a emblem new reader. What may you suggest in regards to your put up that you made a few days in the past? Any certain?

  273. Don’t look to government or your “leaders” for much. They’re not on your side as much as many would like to think. It’s a major waste of time and resources.

    There is no genuine free market on planet earth. What is a free market? It means free people. It means people who make things can sell them to whomever they want who wants to buy them, and people who can buy what they want from whomever makes them. Governments control markets . . . for protected interests. Asking a government to manage an economy is asking to be a slave.

  274. Very nice post. I just stumbled upon your weblog and wished to say that I’ve truly enjoyed browsing your blog posts. In any case I will be subscribing in your rss feed and I am hoping you write again soon!

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