MMD Chairman for Economics and Finance Dr Situmbeko Musokotwane has expressed shock and disappointment at plans by Government to re-introduce INDECO in the Zambia economy. In a statement released to the media, Dr. Musokotwane, who was the Finance Minister in the MMD government, said that the predominant presence of many sickly parastatal companies in Zambia until just before privatization was primarily responsible for the many years of economic stagnation that Zambia experienced from the mid 1970s.
Below is the full statement
Thoughts on Reviving INDECO
Situmbeko Musokotwane, M.P. Liuwa
MMD Chairman for Economics and Finance
____________________________________________
The government says it wants to revive INDECO as a way of stimulating industrial activity and job creation in Zambia. This is shocking and very disappointing. It is like history repeating itself. It reminisces of UNIP inheriting a promising economy only to land it on the rocks. Now the PF wants to repeat the mistake.
A forest is only as healthy as the individual trees that it is comprised of; so the saying goes. Similarly, an economy can only be healthy if alongside vibrant workers and other institutions, the business entities or companies are also healthy. Sickly companies cannot sustain jobs. They don’t pay taxes which government needs to pay for public services and they may even require subsidies to keep them afloat. Moreover, they don’t generate surplus cash for new investments that create future jobs. In short, sickly companies may actually subtract rather than add to the economy.
The predominant presence of many sickly parastatal companies in Zambia until just before privatization was primarily responsible for the many years of economic stagnation that Zambia experienced from the mid 1970s. To this day, the effects of those moribund state companies are still being felt.
The deteriorated urban infrastructure such as potholed streets is a consequence of an economy that had collapsed without the capacity to produce surplus cash for the Treasury to finance the mending and expansion of infrastructure. To this day, the state is still embroiled in disputes with some former parastatal workers whose companies went down but had no assets left to pay off terminal benefits. The workers want the government to pay them.
[pullquote]The deteriorated urban infrastructure such as potholed streets is a consequence of an economy that had collapsed without the capacity to produce surplus cash for the Treasury to finance the mending and expansion of infrastructure.[/pullquote]
INDECO was the state holding company with subsidiaries in the manufacturing sector. Examples of companies under it included Refined oil Corporation, Lenco, National Milling, Consolidated Tires, Superbaking, Livingstone Motor Assemblies etc. In turn, INDECO was owned by the apex state holding company called ZIMCO along with other holding companies like those in the hospitality industries, the agricultural sector and mining.
INDECO acquired its subsidiaries via two main routes. Firstly, by nationalizing existing private companies either partially or totally. At the time this was done, this move was appealing to many people who believed that a company they would “own” through the state would bring more benefits as compared to a company under foreign private ownership.
This view of benefitting more from state owned company was to prove to be a big illusion in many instances. A state enterprise may indeed desire to do more for citizens and employees but this can only happen if it makes profits. In most cases, this was not to be and, except for a few people in top managerial positions, workers gradually saw their situation deteriorate. For example, as the mining company ZCCM kept on losing money, it found it hard to reward workers well, let alone maintain social infrastructure like township roads.
[pullquote]A state enterprise may indeed desire to do more for citizens and employees but this can only happen if it makes profits.[/pullquote]
The second route by which INDECO acquired operating companies was by starting them off from scratch. Funding for such subsidiaries came from borrowing, direct government equity injection or even taking surpluses from subsidiaries that made profits.
With a few exceptions, state enterprises were a failure. The few with the potential to succeed saw their surpluses swiped away to subsidies companies that were failing or to start new companies. In the process, good companies found it hard to expand because re-investable surpluses were being taken away from them.
The macroeconomic consequences were clear: jobs were not growing and, in fact, many of the existing jobs were artificially maintained. The United Bus Company of Zambia, for example, had hundreds of drivers for just a handful of buses at the time it wound up. Same for Zambia Airways with respect to the staff aircraft ratio.
There were other important macroeconomic results beyond the labor market. Rising external debt was among them. Many parastatal companies like UBZ, Zambia Airways, and Zimoil acquired external loans either directly or indirectly through the government, thereby contributing to the rising public debt. The debts that some of these companies failed to pay long ago were still being paid by the government as recent as three years ago. The activities of the failing parastatals were also important contributors to the shortage of foreign exchange which was endemic those days.
[pullquote]The debts that some of these companies failed to pay long ago were still being paid by the government as recent as three years ago.[/pullquote]
Finally on the macroeconomic consequences of state enterprise failure was the issue of rising inflation. In the early 1990s, inflation was rising almost to the point of getting hyper at 300 percent annualized at some point. The failing state enterprises did contribute to this via fiscal and quasi-fiscal support.
The former refers to money extended to the state enterprises by the Treasury, which was itself illiquid and therefore needed borrowing. The latter refers to unintended loans given to state enterprises by the Bank of Zambia in giving such enterprises foreign exchange without them paying for it in Kwacha. Both instances did result in excessive monetary expansion in the economy, leading to rapid depreciation of the Kwacha exchange rate and the rising inflation. It is therefore not quite coincidental that the macroeconomic stability in Zambia occurred together with the decline of the state enterprises because these enterprises did contribute to the instability in the exchange rate and rising inflation in the first instance.
Why did state enterprises fail and bring all sorts of problems to the Zambian economy? Is it a must that they should fail? What has been the experience elsewhere in the world in terms of state enterprises’ role in development?
Except for the early years after independence, the Zambian economy hardly experienced consistent growth. The causes were as follows:
Firstly, state enterprises, as a mode for industrialization strategy has not been successful in most although not in all countries of the world. The difficulty seems to arise from the fact that when enterprises are state owned, the drive to succeed by the managers never matches that when an enterprise is under private ownership. This is the general global experience.
Secondly, the choice of investment projects under state ownership can be influenced by non-economic factors some of which can strongly undermine enterprise viability. This is less so in private enterprises. A good example of this in the Zambian context was the Livingstone Motor Assembly (LMA). Motor assemblies elsewhere depend on high volume of output to bring the unit costs down and render the product price competitive. With Zambia’s small market and with no export market, the LMA plant was doomed from the beginning. It is a good example of a project that was not influenced by economic realism.
Finally and perhaps most important of all is the issue surrounding management. State enterprises were considered part of the wide statecraft. Politicians – mostly the President himself, chose boards, chief executive officers and general managers The President cannot surely know good business managers because he is not in business. At times, senior managers were selected out of political considerations and not for competence. Soon, people aspiring to top leadership positions in the state enterprise sector learnt that the qualification for political correctness was important if they were to realize their aspiration. Business competence became secondary.
[pullquote]In the 1980s, state enterprises in East Asia performed better than those in Africa and this was reportedly because politicians set performance goals and held managers accountable to meet those goals. Failures were not tolerated.[/pullquote]
Although state enterprises have not been successful in many countries, exceptions do exist. In the 1980s, state enterprises in East Asia performed better than those in Africa and this was reportedly because politicians set performance goals and held managers accountable to meet those goals. Failures were not tolerated.
Africa has had a few successful state enterprises such as Debswana in Botswana and Ethiopian Airlines. Generally, however, there have been more failures than successes. Western Europe has drastically reduced state enterprises because they too tended to be prone to political interference. Former East European countries have drastically reduced on state enterprises as is China doing.
[pullquote]Africa has had a few successful state enterprises such as Debswana in Botswana and Ethiopian Airlines.[/pullquote]
It is against this background that we must evaluate the reasonableness of the desire by the PF government to revive INDECO and most probably the state enterprise sector in general (e.g. Zambia Airways, Zambia Railways, etc.). I consider this desire unreasonable and dangerous for the Zambian economy for the following reasons:
Firstly, it can only be done if our government quickly gets deeper into debt. For now, the Zambian government has no free cash to invest in state enterprises to the level where jobs can expand significantly. The sovereign wealth fund the government talks about does not exist now to fund these investments.
Secondly and assuming we can borrow, I am not convinced about the capacity of the present government to invest the money wisely. This is the government that rushed to borrow $750 million through the Eurobond without a plan of how to invest the money. In the end, the money seems to have been casually allocated to different uses.
How then can we trust them to seriously analyze and appraise investment options for sound state enterprises? Is this not the same government that rushes into creating new districts without consultations and evaluation, but rather just issues orders? Will they not borrow and then casually throw the money at ill-conceived projects without serious regard to evaluation as they have done with new districts?
Finally, on management. For state enterprises to be successful competent managers must be selected and they must be given the room to act professionally. The record of the present government in this regard does not give any comfort at all. Online social media have reported before about the rampant tribal and nepotistic appointments by the government at ministerial, permanent secretary, diplomatic and parastatal levels. It is therefore far fetched to imagine that all of a sudden this government will appoint people on the basis of confidence because it will not happen.
[pullquote]For state enterprises to be successful competent managers must be selected and they must be given the room to act professionally. The record of the present government in this regard does not give any comfort at all.[/pullquote]
Taking all this into consideration, the likelihood that a revived INDECO can bring about development and the jobs that the government promised during the election campaigns is very slim. The country will just sink deeper into debt, experience rising inflation and worsen unemployment as serious private sector people with ability to create jobs will become more skeptical of our country and shun it.
The mere contemplation of reviving INDECO shows that the PF were never serious about their promise to create jobs for the youth. The promise was a mere campaign gimmick for getting power. The contemplation of reviving INDECO shows there was no plan then and there is none now to move the economy forwards. The country risks being taken backwards after two decades of hard work to clean up the problems left behind by state enterprises.
This is not a listening government. This choice was the worst in the history of our country.
well, Dr musokotwane do not waste your breath telling these chumbu munshololwa. you can give the best advice but the recipients are unwilling to take it. they feel inferior that is why they will not accept. chensambu they can feel inferior with their grade seven quali9fications. the best qualification they posses is telling lies
Thats the difference between a finance minister with a PhD in Economics and the dinosaur currently wasting oxygen in the finance minister office
One thing Mr. Musokotwane has not pointed out is that during the UNIP era, we were caught up in the cold war situations. We were aligned more to socialist principles (USSR, China) than to capitalist principles (USA, UK). So our economy became government led. We have learnt from that mistake. We then swang into the opposite direction – under the MMD, we became a capitalist state. We have learnt from this mistake. What we need now is to combine the wisdom of the KK era (let Zambia create its own industries and compete at global products stage = jobs) and the MMD capitalist era (let private sector exploit us for their own profit = jobs). The wisdom is therefore in the middle – the mixed economy. We have got private sector developing, let us also develop government companies to create jobs.
Paya Families (PF)
Lt whay have you killed the reply button ?
Thank you Dr.Musokotwane for breaking down for every lay person with a brain to understand.Zambia, we are in trouble with these ignorant people in the PF goverment.They surely want to take us back two decades.MMD made mistakes but at least they were slowly takign the country forward.PF is taking us backwards at a very fast rate.
We should not be worried much about this INDECO Sham project.It is just another PF populist lie like all the other projects Sata went round the country promising the people.It is already dead before it starts just like many stadiums,schools, universities,and hospitals promised to be built in all provinces apart from Muchinga.
PF is broke and one of the major lenders IMF has already struck the INDECO project down because it is a highly unsustainable project given the shambolic ways in which the PF are implementing both the fiscal and monetary policies.
Only fo.ols would buy PF’s dodgy schemes
UPND and HH camp? I am in.
There has to be some state involvement in industry, it creates mass employment at a snap of a finger. And with competent Management of such state industry I don’t see why it can’t work. Take the UK as an example, we say its capitalist but when the UK was at its height economically, industry had major state involvement, i.e British Rail, British Telecoms, British Steel etc. But now that these industries are private, the Uk economy is struggling and there is not a great deal of wealth. Another comparison to illustrate that the capitalist economies we keep pointing to are actually socialist is the fact that many big banks i.e RBS, Lloyds and the group of US banks that collapsed post recession are all state run. The majority of people in the west are paid (welfare) by the state to survive.
In a poor country such as ours and at this stage, it surely must be appropriate to have a certain amount of stimulation by the state. Although, I do agree that the current leadership of SWEET-POTATOES have no integrity what so ever to successfully run a re-birthed INDECO, its assured that they will run it into the ground, because they are only good at being failures when it comes to governance issues, due to greed and self-conceit. Therefore, maybe under a different government, a more mature one.
Engineering Australia you are the id.i.o.ts bringing a curse on our land by insulting the elders. Keep your insults within your family. It is better you insult your mother or father as a dinosaur. You have no morals at all. The ministers you are supporting are the ones who messed up our economy when we were just young. For God’s sake Mr Chikwanda is old enough to be your father or even grand father. That is the problem of Africans. You think if the system did not work, then it can’t work again. Ask the guys who created the planes. . Africans lack persistence. They give up easily and are too lazy. If you want to raise your points just do it without insulting. You think the government just woke up and said we are starting INDECO without looking at the prons and cons?
@BBC
Ine shocked, when did the word dinosaur become an insult?? are you campagining for a job in INDECO??
#1.3,You are either a capitalist or a socialist but socialism is no longer in existence only in the history books.The Chinese are more capitalist than the capitalists themselves,Cuba is on it’s way out.They are now adopting some capitalist measures.
Botswana economy which is based on minerals and tourism is doing far mush better than Zambia because of sound economic policies.For Zambia to develop wa need first to eradicate CORRUPTION however difficult or impossible it sounds.
Seriously speaking , pf is a chimbwi no plan government . I can’t wait to kick them out with my vote. It’s is the worst government in the history of Zambia. In 2 yrs they have taken us 30years backwards, in 5 years ?????
The reintrodution of INDECO is aimed at Nationlising Industries which in the first place should not have been privatised. Please ZNBC rebroadcast ” WHY POVERTY ” I think we will have a better understanding of PF’s intention.
Who gave a laptop to this Monkey..have you even taken time to read the wealth of advise contained there in..and have you even read what the IMF said about you party. You and your kind are really a danger to the future of this country ..2016 come early please
@Kasaka
i pity you my brainless boy,,, you are still seated on a sinking boat,…..what PF has been in 2years is nothing but confusion.
in fact that INDECO project wont even take off,, because your PF is brok to the bone
I`m still sitting on the fence on this issue, but i have to agree with Situmbeko here.He has a very valid point.
The man has very good arguments, it is only that he has added a lot of political overtones in the article which have ended up diluting his supposedly well thought-out arguments.
@saulos,that’s the way to look at issues from analytical point of view.am sure u evaluated,refocused and u used your God given mind.u have shown a rare breed among the pf cadres.keep it up bro.
@Saulosi
I am happy to see that you are now sobering up from the “donchi kubeba” intoxication.
Bravo! Good call.
@chikubabeniso thanks for that bro@Wanzelu…i always do it.It is just a pity that you mostly overlook my points because i`m PF.I always look at issues for what they are.The problem most of you have(yes you) is that you debate issues of national importance in party lines.You always shoot down anything aslong as has a PF tag, while anything UPND or opposition is taken as gospel truth.This is the reason why i keep saying that Zambians are not yet matured politically and socially.The moment we will start debating on issues based on merit is the moment our redemption will start as Zambians.Otherwise there is no difference between you Wanzelu and that grade 7 drop out next door.The only difference is that you feel improtant because you support UPND and him PF.Talk about a little man’s…
…little mans syndrome.
Yes Wanzelu suffers from that syndrome.These creatures are just too blinded by party loyalty to see anything positive in PF.
@Saulosi Although, I don’t agree with your SWEET-POTATO gang of incompetents, I must agree that yes, we Zambians desperately need to mature over and above viewing every single thing through the lens of “which party is it? Are they Barotse? Are they Bemba? Are they Christian?” etc etc … this is the cancer plaguing our Motherland today, and arresting our salvation and progress. If we don’t mature quickly, am afraid we shall be mortgaging the future, and not laying a good foundation for those yet to be born from all the tribes, Bemba and Lozi. We really need to start corporating in thought and deed as African brothers and sisters!!
@Chibamba…you are spot on. I couldn’t have said it better myself.
@Saulosi,@Daka,
Guys I cant see any thing positive that PF and Sata have done for Zambia so far.
All I know,is Sata and PF have declared a state of emergence by stealth by requiring political leaders to seek police permits when visiting their electorates.Price of Mealimeal and all other goods and services have sky rocked beyond most workers’income within 2 years of Sata being in power.There is no more food security in place at the moment.Agricultural , monetary,fiscal and many other policies are all in Shambles under PF.
So when some of you talk about anything positive from Sata and PF I can’t see any.
To honest, only those afraid of criticizing Sata for fear of losing their government jobs are the ones suffering from little mans’ syndrome.
UPND and HH ‘s camp? I am…
I think people from Western province like Southern province are very difficult to like
On what basis is this man speaking? He was a minster for a few months and he talk like an expert
Lt stop interviewing this nonenties that don’t add value to our beautiful country
The man needs to find a job, and realise that politics have left him, the PF is here till 2021 earliest and
We have Mr Chikwanda who is twice more astute, intelligent with Finesse and more experienced
Can’t stand people that think they are smart when infact they aren’t,
Could someone please say Amen?
Just saying the truth again sorry.
Thanks
Amen !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Amen !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
“On what basis is the man speaking?” As an educated economist. Typical of Pa Fwaka cadres, they are only seeing regions in a technical subject of this nature.
@Mushota. Some facts for you. Dr Musokotwane is one of our successful compatriots. He is astute. An economist (monetary), lecturer, businessman, former World Bank & IMF official, BOZ deputy governor, President Special Assistant – Economics, Secretary to the Treasury, Minister of Finance. Simply stated, Dr Musokotwane has the brains, the experience and of course he is a RICH man. Visit his farm and go to any supermarket for the Ilya brand of products. Anyday I would rather believe Dr Musokotwane than you cyberspace Mushota whose PHD is fake.
……….”Never,Never,Never and Never again” should those horrible days be allowed to be repeated again in this country……I dread and shudder to think of the consequences of those failures again……
Well my friend, believe it or not THEY ARE COMING! I tell you I wake up depressed everyday when i think of where we are going and then this nonsense of teaching vernacular. A friend was telling me even Private schools have to comply lest they lose their licences. Ati ‘any school found teaching in the English language will be in trouble.’
Well said Dr Situmbeko.
One reason that explain the down fall of some parastatal organisatins was the belief that being government own meant that the government could use the services of such companies for free. So during unip meetings a fleet of buses could haul unipists to wherever the meeting was taking place. The same aplied to Zambia Airways where ,in addition to politicians using planes freely relatives were given free tickets. And UBZ was doing the same…….
Musokotwane’s concern that this could happen again if the appointment of the management of these parastatals is left to the president is true. Dr. Musokotwane was my lecturer in the early 1990s. He knows what he is talking about and he has very valid points, less political under tones of the article. Creating a mixed economy where you have state enterprises competing side by side with private entities is a sound and viable idea as long as you address the modalities of appointing management for state enterprises. There is need to understand the sectors of the economy where private enterprise is failing for the government to intervene through state enterprises.
Capital for investment can always be raised as long as the project is viable and has management capacity. PF think through this!
@Kasaka, Try to re-read the article and grasp the logic therein before passing on a comment because the informantion contained is valuable enough to well-meaning Zambians. May be you are too young to realise and remember the setbacks and contrasting results the so called INDECO brought to Zambia in the past under the so called KK wamuyayaya and your current president was one of the drivers in that scenario. It would be evil for our country to get back to that premitive arangement which failed us as nation so badly. There are other promising avenues and some new brains are available to help move our country’ s economy forward other than depending on those fossil suggestions. Be realisitic.
@mshoto
of late you have been featuring on LT frequently. you stopped aggrandizing your nick. you really miss his screw, its like he has dumped you and opted for a fresh catch unlike you the used one. even your comments are commensurate with your new bizarre mood. come back to zambia economic refugee
They say wisdom comes with age (age meaning experience) but I am seriously failing to see it in our three dinasours. Sorry old folks. Alex Chikwanda: we thought he would combine wisdom with education and guide his unschooled nephew Sata; Sata: we thought simply by having been exposed in politics and working with the poliical elite since the 60s if not 50s, one would equal anybody who went to school; KK: as advisor to Sata, he “was” the architect of INDECO and saw it fail in his hands and now wants another INDECO. Is it not just an issue of wanting to get loans and commissions from Europe? Or maybe it is donchi kubeba part 2 for votes in 2016?
The Finance Minister is from UNIP error
Well done Dr Musokotwane for telling it as it is. You are an economist and you understand this subject matter better than our 1960s trained “economist” and current Finance Minister to is also lead trying to impress a 1950s trained President.
Please do not listen to PF cadres or sick little chair academics like “Mushota”. We know Mushota is struggling in the UK and is looking for a job at INDECO.
The 1970s style socialism will destroy our economy. We know that capitalist is not perfect and hence the need for a mixed economy like in the UK, we all know that the PF government has no capacity what so ever to manage profitable parastatals.
We all know that INDECO will lead to cronyism. Look at the cadres in the civil and diplomatic services.
@Mushota,
Now you are making a big mistake by bringing in Western and Southern provinces. Mr Musokotwane is not talking about regions but Indeco. Why don’t you talk about your province or better still express yourself in your language because you never make sense with your poor English language.
I we ka Mushota – Dr. Musokotwane is a bona fide PHD in economics, trained in Germany and having taught for many years at UNZA. Your Chikwanda only has a social-economics degree from Sweden and nothing else, and that obtained in the early 60s! You claim to be what you are not – a fake academic with no capacity whatsoever for in-depth, objective to analysis. Number one sign of academic frauds is that they tend to accumulate a string of meaningless qualifications like you with no real grounding in anything. Your and your ilk are a disgrace to this country.
Kasaka and Mushota have your heads examined. debate the issue not the person. That is a wealth of free advice. You are probably a PS or ka Deputy Minister who is blind to reason all you care is your stomach to feed those small girls you are molesting! With chaps like you…I dread were we are headed!
“The government says it wants to revive INDECO as a way of stimulating industrial activity and job creation in Zambia. This is shocking and very disappointing. It is like history repeating itself. It reminisces of UNIP inheriting a promising economy only to land it on the rocks. Now the PF wants to repeat the mistake”. If this SATA cannot understand this statement then he should go back to school. This explains why the MMD wanted to have a minimum of a degree for the highest Job in the land. This man is busy taking us back to un palatable Unip era of the late 80s and early 90s this is a shame.
The proposed IDC will refine our country economic development by stimulating the development of strategic industries, expanding entrepreneurship and pursing sustainable economic development alongside social harmony and stability. There have been great changes in the economic and business environment. Many new factors have emerged, new trends are forming. We must have new ideas, new strategies and new initiatives to meet these new challenges. The country needs a new economic growth model rather the failed MMD led capitalism which has left more of our people in poverty. The people opposing the IDC should give alternatives to it and explain how we are going to create jobs and wealth for the people. This so called Doctor fails to point out that China, Brazil, South Korea, Malaysia used IDC
And where will you get the money from when you are broke…. go and look at the size of the economies of China, Brazil, Malaysia..
You can do well by first growing maize to eat before you start dreaming about grand ideas
I 100% agree with the sentiments of the former Finance Minister. We are simply going back making the same mistakes as before. We are now going to be in a situation were companies created by this state body are going to be subsidized by the state. This would mean that private companies would not compete on the same basis as their state counterparts thus leading to job losses. GRZ cant run ZESCO properly..and yet they think they will run subsequent companies formed under INDECO efficiently ? Nothing but incompetence and stupidity from this administration they no nothing about creating real sustainable jobs and running the country. One just dreams for 2016 to come soon so we can eject these people out of power.
IN ZAMBIA WE AV A VERY VERY SERIOUS PROBLEM. THO SOMEONE SAID ‘TOO LITTLE EDUCATION IS DANGEROUS’ I BEG TO DIFFER AND SAY ‘TOO MUCH EDUCATION IS DREADFUL’. WHY DO I SAY SO? EXPERTS OF ALL SHADES: PROF SAASA, MAGANDE,MUSOKOTWANE,CHITALA, HAVE SPOKEN. OTHERS ARE 4 THE INDECO IDEA BUT MANY AGAINST. THE POINT AM STRIVING TO COMPREHEND IS, IS IT THAT ONCE U R A GOVERNMENT U CANT BRING EXPERT BRAINS TO BRAINSTORM ON SUCH IDEALS 4 PROGRESSION OF THIS NATION? I AM NOW APPRECIATING MY DADDY WHEN HE USED TO TELL US HIS CHILDREN: ALL GOVERMENTS ARE CROOKS AND THEIR BREAD AND BUTTER IS OBTAINED CROOKEDLY. WORK HARD AT SCHOOL AND STAND BY YOSELF,THEN U WILL B A BIT HAPPIER IN LIFE.TOO MUCH CONFUSION. AND AM WONDERING WHERE THIS INDECO THING HAS COME FROM COZ AV PERUSED PF MANIFESTO BT ITS VERY…
These widening budget/fiscal deficits, excessive contraction of debt, moneyless stadia and university constructions, doomed to fail national airline, new districts, excessive public sector wage increases and now INDECO/parastatals (probably to be followed by re-nationalisation) are a recipe for economic ruin. Govt rather legislate local content laws, that will force foreign companies to partner with Zambians when they set up business here and use local materials were possible. Also restrict certain businesses to locals only and legislate restrictions on expats to encourage recruitment and training of young Zambians. Basic skills (artisan) training in brick laying, carpentry, plumbing to match the standards of the Chinese or South Africans. ABASH THIS INDECO GIBBERISH!
Thumbs up to your objectivity in your factual analysis of the defunct INDECO, Mr Situmbeko. I like your well articulated and objective arguments against the formation of this INDECO. It’s a pitty the PF leadership would deliberately choose not buy into such sound analysis and advice. Even when the writing is on the wall, no one would care to listen. IMF has openly given their vote of no confidence to the economic policies of this government. BROTHER LEADER’S economic policies are simply sending shivers to the private business sector as it is a disaster. Fili uko tuleya! Another dooms day lurking behind the corner.
who are you trying to scare with your english ayi iwe kapoli mwishibila nsala Musokotwane? Sata is in a hurry to develop this country with english or not.
don’t hide your stup.idity in the so called educated, Ronald Reagan was a musician but controled the most powerful economy under the sun. what if you lectured at UNZA should we stop implementing what we think can work. your magande came up with subsidies, what are the results lazy people.
I know you and Miyanda read comments here and you are trying to entertain these UPND cadres who have mushroomed on these online news these days.
Es geht, um Sozialdemokratie. Ganz Europa ist sozialdemokratiche. In Amerika gibt es mehr Armut. Neger, Neger. Was ist los? Die Zweiterepublik wuerde eine Diktatur. Punkt.
Ich bin sicher, dass das in Ihrem Land socialisim Zimabwe so gut funktioniert.
Sata is in hurry to develop this country but because of these know it all mentality our economy cant perfom. Musokotwane, my grandmother in chinsali will never eat your grammar waumfwa ayi? you will never succed with your threats in the name of PHD in economics by the way,Kaunda is a doctor aswell.
I know you and Miyanda follow all the comments posted here and you are trying to entertain These UPND cadres who have mushroomed on this site
Kekekekekee! UPND spreading like wildfire to engulf the PF.
#19,Yes UPND cadres have mushroomed because they are professionals in different specialties who can intelligently dabate unlike your cadres who are panga wielding thugs who only know how to insult.Re introducing INDECO is sign that PF is completely clueless in developing this country economically.
hahahaha, Limpombo whatever, we’s comin to get you’all and scrub your brains clean of PF mediocrity! hahahaha, elo ask your grandma ku chinsali how much she’s buying mealie meal at.
To me, although musokotwane has tried very hard to appear to be proffessional in his analysis, he is just politicking because he is the same chap who says government should create jobs and when governments tries to create jobs through IDC besides the ones being created by the private sector and main stram public service, he now wants to sream murder! we have tried the commandist economy in UNIP, Musokotwane and his MMD had capitalist economy and lets allow PF to carry on with the mixed economy idea. After all, MMD was kicked out of power for failure to create meaningful employment and i would want to believe that if PF faill to create employment it will face the but!
It is very clear that we are in a mess with PF. We need to vote them out in 2016 but in the mean time we need to pressure them to avoid their ill thought indeco and stadiums and universities which are not congruent to any economic policy.
They want to create parastatals and over employ the youths to create an impression that they have created jobs at the expense of the economy. It would be very sad for zambia to return to the days of structural adjustment programmes just because people made wrong decisions, come on people we can do better than that.
After over two decades of extensive state reform and privatization, state capitalism still looms large in developed and developing countries. State owned enterprises (SOEs), development banks, public pension funds, sovereign wealth funds among many other vehicles of government capital have taken centre stage in the global economy. Governments, particularly in emerging markets have justified the rise of such forms of hybrid capitalism as a way to solve market failures like the one Dr Musokotwane was part of. The MMD Economic model is a total failure in terms of job creation and industrialization. For 20 years the is no industry to talk about even to manufacture soap. The IDC that the PF is proposing will solve the MMD failures and that is why the opposition is scared because that’s the…
Iwe Ka Mushota, you are MAD! Whats wrong withyou ka head? Nu.t.
MR MUSOKOTWANE,
WHAT DID YOU DO ABOUT OUR AGING INFRASTRUCTURE? JOB CREATION?
PLEASE TAKE TIME TO STUDY HOW INDECO RUN SO SMOOTHLY IN OTHER COUNTRIES LIKE ITALY, CHILE AND SOUTH AFRICA.
YOU HAVE SIMPLY REALIZED THAT SOMEONE HAS BEATEN YOU TO THE BALL WITH BETTER IDEAS!
Iwe Ka Mushota, you are MAD! Whats wrong with your ka head? Nu.t. You are very controversial.
After over two decades of extensive state reform and privatization, state capitalism still looms large in developed and developing countries. State owned enterprises (SOEs), development banks, public pension funds, sovereign wealth funds among many other vehicles of government capital have taken centre stage in the global economy. Governments, particularly in emerging markets have justified the rise of such forms of hybrid capitalism as a way to solve market failures like the one Dr Musokotwane was part of. The MMD Economic model is a total failure in terms of job creation and industrialization. For 20 years the is no industry to talk about even to manufacture soap. The IDC that the PF is proposing will solve the MMD failures and that is why the opposition is scared because that’s the…
Where will the money come from? Nkongole again? How has the $750m Euros been used? You have failed even to tell us how we have benefited from it apart from paying salaries now.
Mushota is dull and like the people in government ,he is very myopic and cant see the collapse of the Zambian economy under THE PANGA FIGHTERS. Wake up and analsye real issues economically and with an open mind.
Can the PF come up with such a well presented statement? Or is it just “Iwe, yamba INDECO”. Will Chikwanda respond with intelligence or trash this report with “no time to consider your useless article. You are useless yourself!”
My money is on the latter.
@ Mushota
AMEN…..
SP & WP DOMINATE LT SPACE LIKE THEY DID IN 2011 INSTEAD OF CAMPAIGNING IN CRUCIAL PROVINCES, AND THINK THEY ARE WILL WIN!
AMEN………..
Thank you Doc for your analysis. You have put things correctly in the sense that you are able to look at issues economically and politically because you have been in both of them.
It may be necessary to find out why the PF government want to bring back INDECO. If it is for political reasons, then sorry but if it is for economical then let us analyse further. We should get points from the socialism part and then from the capitalism part. The two will have their merits and demerits. The merits of the two will definitely give a certain direction which may require polishing and then map a way forward. The bottom line should really be that the common Zambian should benefit from the outcome of these decisions.
SOEs were instrumental to industrialization of Brazil in a context of scarce capital markets. Public enterprise has been considered in Brazil and China among others as a shortcut to industrialization. Governments may boost economic growth by allowing both the SOEs and the private sector to exist side by side. Some of the largest and most influential businesses in China are controlled by the Government. To support industrialization China undertook large scale investments through SOEs. Musokotwane knows that with the economic model the PF is proposing, the opposition will be wiped out as people will whole heartedly support a regime that creates jobs and wealth for its people. The setting up of a sovereign wealth fund will go a long way in stabilizing the economy during volatile cycles.
Imwe ba bb#30,Can you please tell us the model of SOE’s in China and Brazil.Are these politically or economically oriented?I get extremely worried when you say the success of the SOE’s will wipe out the opposition.Do we have the funds to revive the extinct dinosaur like INDECO?Does PF possess the proper qualified people to run these SOE’s ? How long did it take for China and Brazil to get where they are?Time is running out for your PF to wipe out the opposition.24 months away from 2016 and counting…..
By 1991 there was not even one successful Indeco Company standing on its feet. Almost all of them, from ZCCM, needed financial support from the government to operate.
With due respect to the good intentions, the major achievement of the parastatal sector was to breed and entrench the culture of nepotism, favouratism, cronyism, bootlicking, cadreism and job hunting through blind support. All the boards and General managers, sometimes even typists were appointed from state house.
Warning bells in the name of NCZ “2013 success story” are there for all to see. The 70,000 tons of D Compound fertilizer produced at cost a cost of K374 million or K267 per 50Kg bag(Daily Mail 8th Nov 2013) is K82 Million more costly to the nation than private sector supplied D at K200/50Kg bag or K4,000…
INDECO=nepotism, favouratism, cronyism, bootlicking, cadreism and job hunting thru blind support.
Awe mwandi! God save us from these thugs.
dfdg
@Chibwe
WHEN DR MUSOKWANE FINISHED AT THE UNIVERSITY OF TANZANIA,
WHAT WAS HIS PHD RESEARCH PAPER BASED ON?
INDEED, DO YOU NEED A PHD OR TO BE GENIOUS TO PLAN FOR 600 CLINICS? OR FOR A NEW AIRPORT? ETC
@ Luapula
Are those clinics being constructed right now or they still just Sata ‘s populist lies?
If and when they are finished, who will work in those clinics when all experienced nurses have been fired by a schizophrenic in state house?
To say Sata plans is gross misuse of the word planing. Sata doesn’t know how to plan. He just vomits wishes and in his little brain he thinks he has planned something.
Going by your age (60 did you say?) I am sure dementia has seriously caught up with you,. You need a medical check up.
UPND and HH camp? I am in.
Doc, your analysis on why the PF government CANNOT succeed in reviving the State Enterprise Sector in general, is spot on! Let those that have ears hear!!!!
This is article by Hon Musokotwane is a correct account of what happened in the past. It is a good history essay and, no sensible person will deny that parastatal companies were mismanagement in the past. But, you should remember that this happened just after independence and there were very few qualified Zambians then. Zambianisation (then) meant that these companies were being run by clowns who had no clue of what they were required to do. This is not the case today!
I have a problem with PhD holders who are narrow-minded and choose to mislead others. Bo Musokotwane are you telling me that you would fail to run a company profitably, given the chance?! There are many capable and highly qualified Zambians now. Bring INDECO back; we are ready for it! Cowards step aside and watch.
@kavundula. I concur with you even if I am reading comment first before I read the article by Prof Musokotwane.
@spartan and Kavundula
What ever killed INDECO then will do the same under PF beacuse there is rampant corruption and cronyism. To make matters worse tribalism is rife in PF. INDECO is not being created for most Zambians but only for relatives of those in power for a start and then loudest and vicious panga fighters only.
Sata is open about tribalism ,cronyism and nepotism in PF.He does not hide it. So many times he says “wako ni wako”. Unless you do’nt understand Nyanja for you think it means the opposite.
You will remember my words if and when this INDECO is formed.
Sata and PF = Cronyism , nepotism and tribalism.
Wanzelu (or Opandanzelu) when people think like you nothing gets done. If the U.S. president listened to people like you in 1969 nobody would have gone to the moon. Be positive!
@Kavundula
What is positive about PF regarding the following;
1. Requirement by opposition MPs to obtain police permits to visit constituencies.
2. Unpredictable price increases of food,goods and services.
3. Poor Agricultural and food security policies.
4. Selective justice and lack of rule of law.
5. Poor health standards in hospitals due critical shortages of nurses.
6. poor maintenance of existing Hospitals ,schools,Universities and colleges.
7 Lack of adequate funding to runs existing institutions including created districts.
8. Poor Fiscal and monetary policies implementation as highlighted by IMF.
9 PF intra party Panga fighting and dead body stealing.
10Sata’s arrogance and stupidity.
If Sata and PF can’t correct the above listed mistakes, how can run INDECO…
@Kavundula
If Sata and PF have failed to correct the mistakes I highlighted above, how on earth will they manage to create and run INDECO successfully. All the problems I listed above were created by Sata and his PF. If he has failed to improve upon the foundations laid down for him by MMD how will he pull off all these wishful projects of his. I don’t see it happening at all.
I think you are one the PF cadres who suffer from little man ‘s syndrome because Sata belittles you in public and you thank him for that and call it positive move for fear of losing your job. Learn to use your brains to stand on your own two feet and avoid being a political slave and avoid letting little mans’syndrome take over your life.
Sata thrives on wishful thinking!
UPND and HH camp? I am in.
Bwana Wanzelu I am NOT a PF cadre. When I said be positive; I was not referring to PF being positive. I was telling YOU to be positive. Just read your own posting objectively and see how negative your thinking is!
HOW IS THE PF GOVT GOING TO MANAGE NEW STATE ENTERPRISES WHEN THEY ARE FAILING TO RUN EXISTING PUBLIC INSTITUTIONS SUCH AS UNZA, CBU, UTH, MULUNGUSHI TEXTILES, E/HONE, JUST TO MENTION A FEW. LET THE GOVT PROVIDE A FERTILE ENVIRONMENT FOR ATTRACTING PRIVATE INVESTMENT AND COLLECT MORE TAXES AT THE END OF THE DAY. TIME FOR APPEASEMENT IS LONG GONE. NOTHING ELSE.
Kasaka and your friends are running this country into the ground. Problem is you have no understanding whatsoever on the consequences of your recklessness. When Kaunda started on this path. Your illiterate friends are borrowing heavily, stealing from the same loans then trying to do a many projects at the same time. Right now many of the so called projects have stalled due to lack of funds. Take a drive on the Chongwe to Chirundu road. You lot are driving us into a ditch and u seem proud of it!
YOu guys who says IDC will take root this year or years in the near future? This just policy statement subject to poilcy analysis by experts and our president knows that as he has been in all governments.He is the only man who has experience in all the three republics and has seen it all.Stop calling it INDECO it is IDC with a different direction.
Ichikop echinga chita ague with what this leaned economist has said.Unfornately PF was shining on MMD victories,now the dust has settled.PF no direction on everything apart from fighting each other.PF please humble yourselves and get some wisdom from people like musokotwane.Apapena ba Sata bu man of action tapali na chama chakomboka would have done better mwe.
If the IDC is really bad as this so called opposition leaders say, then that a good way to up their campaigns. But alas on this one the opposition have been bitten pants down. They no that this is a serious solution to job creation and they will not have anything to talk about. Viva PF, Viva Sata 2016
What happened to Luangwa Bicycle plant, Mansa Batteries and Mwinilunga Pine apple canning factory?? The story is the same as all were sunk to the deepest part of the ocean because of cadreism, nepositism, favoritism and all manner of isms’….Should we cross the same bridge only to be eaten by the same crocodiles??????
People like Mushota and her kind are defenseless and devoid of any intellectual argument. They quickly run and hide under the tribal tag to disguise their lack of capacity for any sort of coherent reasoning. Unfortunately, their kind still live among us wasting space and time.
Dr. Musokotwane has brought out cardinal arguments on why parastatals failed to deliver as per their design capacities. If Mushota is who she says she is, then she should have brought out counter proposals and tell us how this new IDC will create quality jobs and deliver to our expectations. But alas!
Mushota, you are a waste of space!
@zhar
You are spot on! These PF cadres on LT always hide the banner of tribalism each time they feel defenceless. Once some one makes a sensible contribution they retreat to their cocoons and bring out tribalism as their only defence.
Shame on you lot because Zambia is a country of 74 tribes now. Which ever tribe you support is just a tiny fraction and can not win an election all by it self.
This Nation is Finished!!
Scatter Brain’s are running the show.
The Dr has given reasons why state enterprises did not succeed in Zambia. Some of the reasons are plausible and we should learn from them. This should not stop us from trying again. I am disappointed though because he has not offered any solution, him being an educated person. We need solutions from people like him and not just a historical background. The difference must be seen between him and ordinary people in situations like this.
Advice here by Dr SITUMBEKO MUSOKOTWANE is free. Take it or leave it. Do not insult the person giving it and worse still individuals and regions not mentioned in the article. Dr SITUMBEKO MUSOKOTWANE’S analysis is good, mature and timely. He has laid the facts bear. He has not insulted Govt but simply brought out hard facts. May be the truth pains! If you are to carry out a TOWS analysis before establishing a business enterprise in any country of your choice, the geo-political/economic environment, the Laws including taxation, culture, etc … should be analyzed. This is a good article and do not use the excuse of political undertones to water it down. If you have a different view, well and good, give us the facts as the doctor has done so that we can compare and contrast. Probably the ans
Advice here by Dr SITUMBEKO MUSOKOTWANE is free. Take it or leave it. Do not insult the person giving it and worse still individuals and regions not mentioned in the article. Dr SITUMBEKO MUSOKOTWANE’S analysis is good, mature and timely. He has laid the facts bear. He has not insulted Govt but simply brought out hard facts. May be the truth pains! If you are to carry out a TOWS analysis before establishing a business enterprise in any country of your choice, the geo-political/economic environment, the Laws including taxation, culture, etc … should be analyzed. This is a good article and do not use the excuse of political undertones to water it down. If you have a different view, well and good, give us the facts as the doctor has done so that we can compare and contrast. Probably the…
Concerning Dr SITUMBEKO MUSOKOTWANE’s article, may I just lean a bit on the political environment which others are calling undertones. Yes, the political environment is a factor for either success or failure. Look at the people employed in our foreign missions, look at ZESCO with their tariffs (countries that import power from Zambia sell it cheaper to their citizens than ourselves), Look at Zambia Railways two years down the line, look at the embarrassment with KONKOLA COPPER MINE (KCM) Chief Executive officer KISHORE KUMAR and the dressing down of Shoprite management in the media. Compare it with UTH now, any lessons to draw? Look at sneaking in of the ONE PARTY PARTICIPATORY DEMOCRACY through the back door using by-elections at a very great cost to the treasury and the administration…
Further at Ba MUSOKOTWANE: Look at sneaking in of the ONE PARTY PARTICIPATORY DEMOCRACY through the back door using by-elections at a very great cost to the treasury and the administration seems not care. KABIMBA alluded to this although they had denied it in the formative stage of this crusade. Actually the trend of events sold them out. If you still doubting and cannot provide the facts, at least believe the story of the blind man. Look at the Judiciary with their judgments marred with political undertones. Add the constitution to this. How sure are we that this proposed Parastatal Mother Body will not be run like the RDA and its mangers called idiots in public? Can such a manager have room to maneuver? If it is for pay purposes, well but who will bear the cost?
This is just a tip of…
@Musha Kelvin
You have said it better than I could have. All these people supporting the idea are doing it because they are hoping to get a job in INDECO. But after those jobs pass them by they will cry foul and start criticising then.
Doc Musokotwane…you have hit the nail on the heard! Whilst job creation is essential, this kaponya government has no capacity to effectively run a public institution let alone funds to create one as you have highlighted. They need to do their home work first, plan proper and show us how you will ensure that the INDECO created is not destined for failure as before. Sata stop rhetoric! Next year kuyabebele…Satana very disappointing. Runing a country on ad hoc decisions without proper planning. chumbu….
Lastly, at Ba MUSOKOTWANE: The views and facts given above are just a tip of the ice berg, to show you how current politics can affect the smooth running of INDECO if it was to be re-introduced. This is not to suggest that we desire this dinosaur with a better political leadership, no. But merely to show that there will be much waste under the current administration. This is a dead horse and the idea can simply not work not even with best leadership in our backyard as already suggested by the Doctor in his well articulated article. Tale tell marks are there though you refuse to see. We still have a few companies of course but let us not create this so called INDECO. Let me also ask. How are the few companies that we have (parastatals) being run? Remember COPPER HARVEST and DUNLOP in Ndola.
Good points but do you mean with these Good comments and the entrepreneurs skills and expertism done Zambians can not comfortably run industries and other sectors to create further value like neighbours and others including the Chinese
Its being done elsewhere but here we too much negatives inclinations that is why others consult on everything we ought to be doing and initiated
Currency rebasing
Sim registration
Afmis
Simple excel models
Construction and mining
when are we going to create value from our graduates in Unza and others
Sata should follow the example set by his wayward brother, the Seleka rebels chief, President Michel Djotodia, of the Central African Republic by resigning also. We do not want mad people in power, they need to go to psychiatrics.
A combination of private and Public cements the economy making use of past experience and lessons with new skills and minds to make a difference like our colleagues
If you are not attractive to attract funds venture capitalists and later own do an IPO fully subscribed do it slowly do initiated to create those funds with a long-term view Levying a fee to create that reserve on existing to support the selected creation like in Botswana and Namibia
learn to balance systematic and unsystematic risks in industrial sectors or is it diversify
The same is true as above if private failed you can have a contagion also Lets avoid giving up We have read of turn around managers and Zambia has
The…
Take time to follow the Global National Regional and firms that are a composite of the industries understanding the structure make up and trends in financing and composition.Understand also the risks and returns imbedded in the same and how others have maximized there potential and minimized the risks in the same.Understand also the initiatives and opportunities available in venturing and raising capital and recommend appropriate given the SWOT of each every industry or sector.Follow also the turmoil that affected private led and structural arrangements made by Gov. and with our experience in past given new skills and minds and drive to cement and consolidate the economy as our colleagues have shown with resolve
PREDICTION:
Sata and his ministers wont make any valid counter arguments at all, instead ka George Chellah will script a statement attacking the character of Dr. Situmbeko.
@Vilifier, exactly my thoughts too.
These PF guys are nuts, are they not?
World Data Bank from the World Bank – Global macroeconomic time series data for different countries and indicators.
Organization for Economic Cooperation and Development (OECD) Statistics – Global macroeconomic time series data.
United States Federal Reserve Economic Data.
International Monetary Fund Data and Statistics – Global macroeconomic time series data.
Bank for International Settlements – Global financial time series data.
learn and follow but carefully see to Zambia and lets refine and help matters
Good evening
The former minister’s arguments are valid. Nevertheless, the concept of a state owned industrial enterprises is still relevant.
Yes, mistakes were made and INDECO did fail. BUT failures do not make history, and mistakes are there to be corrected. Germany was defeated in 2 world wars, yet they rebuilt their economy. With French products by chance? No! With a state owned industry of products “Made in Germany”.
Times have changed and Zambians should not be shy to learn from their past. I am confident that our people have accumulated vast experience and potential which will not only benefit our economy but makes us rule our destiny. PF government must take it upon itself to empower our people and upgrade our industries. Foreign investors wont do it for us.
Good and clear illustration, but I think we are missing the root cause here. It is not that Sata is not aware of some of the points and concerns Dr.Situmbeko has raised. Surely Sata knows, after all Sata was in UNIP for a long time, and then in MMD for long time. To Sata, its all about POWER. Some people are addicted to smoking, some to alcohol etc.. Sata is now addicted to power. Absolute power, just like KK was. To Sata this INDECO ‘master plan’ is, first and foremost, a means to brandish more power to appoint (and fire) with immediate effect, Company MDs, GMs etc.. and then preside over them as the supreme Board chairman. The one and only. He has this illusion that he can decree Companies into profit mode. Truth be told, he is simply ‘POWERHOLIC’ and in a World of his own. Disaster.
This issue of IDC is a indeed opened a good debate to see how we can bring Zambia out of poverty and and empower people economically through wealth creation and value additions. We have all the natural resources and having manufacturing companies will help industrialize Zambia under IDC. Even though the IDC and INDECO seem to be synonimus, there are different due to the fact they Global trends have shifted from the UNIP ERA as compaired to 21st Century.
I advise the govt of PF to consinder making IDC through the following:
1. Implement IDC as a Joint private -public partnership
2.IDC should be listed on the LUSE and other International Market to attract FDI
3.IDC should be managed by qualified/meritorious seasoned managers
4.Set up 5-10 main Industries in each province under IDC.
World Data Bank from the World Bank – Global macroeconomic time series data for different countries and indicators.
Organization for Economic Cooperation and Development (OECD) Statistics – Global macroeconomic time series data.
’United States Federal Reserve Economic Data
International Monetary Fund Data and Statistics – Global macroeconomic time series data.
Bank for International Settlements – Global financial time series data.
Tools to help you see and comfirm matters
Dr. Msokotwane expressed shock and disappointment the same way we expressed shock at his Pepsi/Varun deal. Anyway thats beside the point.
Indeco was the best vehicle zambia used to nationalise industries. Today zambia controls next to nothing and if we do not ‘ indeconalise’ we shall remain tenants in our land.
@kapuli ……dont you think Economics Associstion, ZACCI and other business forums should be hosting discussion forums to deliberate the Indeco affair better?
I am tired of advising organisations and reminding them of what they should be doing!
No need to preach to Fossils!
Fossils are only good for the flames!
If this is the culmination of that high-pitched PF yapping of “MORE MONEY IN YOUR POCKETS,,, BRA..BRA…BRA…then this party has lost the mandate to rule Zambia. No sane person can think of bringing back to life the same Kaunda nonsense from which the country is yet to recover! They surely don’t even know how to paddle their own canoe which is, right now, about to capsize!
Now January, 2014, some 50 years after Zambia’s independence and nearly 700 years after our ancestors at Ingombe Ilede, in Kalomo, had figured out how to extract iron from iron ore, the PF government’s stone age stinking thinking about INDECO is the biggest insult and slap in the face of the Zambian people who voted them into office. You mean this is what all that relentless yapping of ‘MORE MONEY IN YOUR POCKETS..’ and paddling of canoes on dry ground is all coming down to?
How much jubilation do you think we should afford ourselves, in this our presumed year of Jubilee, if we are still that stunted in our thinking? Is Zambia cursed? Trying to decode INDECO in this day and age is utter insanity.
Ok INDECO failed in Zambia, but why are state owned companies in China and South Korea so successful? State owned companies in China are buying the ‘so called’ privately owned companies in UK. Can Dr Musokotwane enlighten us. It is bad to practice to give an example of an extreme case like failed INDECO. Private Banks failed in Zambia. Tell us more Comrade Musokotwane.
You can never reason with an ignoramus. Zambia has seen enough, we don’t have to wait another two years to call the fire brigade whilst the country is in flames. We need to act now so it serves as a lesson others with hidden agendas. We need to impeach this government before it causes irreversible damage.
Educated f o o ls who luck creativity and innovetion.Phds on imitations and extremely bad at that.lf the first lndeco failed u think this one will go the same way? Useless pipo who cannot even produce ‘amatebela’EDUCATED F O O LS !
Yo Doc knows that lndeco is a bliriant ldea and this time it will work successifully but as a politician it is politicing as usual.The idi ot is deadly scared for he knows 2016 will elude them even the more.EDUCATED FO OLS!
The problem with u critics,u are sick and yo don’t see it.Even yo doc is sick.Even if pf was to do the right thing u will still condemn.Who can believe u?Why don’t u learn to support based on how benificial something is 2 o nd not on partisan line?
Look research education should not be used to promote unnecessary fear rather promote advancement.This Dr. situmbeko has mentioned areas were we need serious improvement if indeco has to be a viable idea.
2016 is too far! Can someone please put a bullet in the head of this illiterate chumbu munshololwa before this Country is back 5 decades!
The return of INDECO can only succeed under UPND – a party of intellectuals, not under the governance of bus rank ‘call boys’. For those calling for a mixed economy, you need to sober up a lot by realizing that mixed economies in other countries have made it due to governments that are serious in corporate governance, and that are truly allergic to corruption, nepotism, and unprofessional-ism. PAYA FAMA is neither in Europe nor in the EAST. PAYA FAMILIES is in Zambia. So debate properly. Don’t compare a mango to a water melon. Let like be compared to like. The only party in Zambia at the moment that has the resolve, capacity and integrity to run a successful mixed economy is the party of intellectuals – UPND. So wait until 2016 or even earlier if the LORD will allow a presidential…
@ Hoi polloi
Mushota is very correct this time although we give her a lot of flack.What ever u have said about this so called ‘DR Musokotwane’ does not change the fact that he and RB failed to run the economy and that is the reason why they lost the elections.Fact. Yourself and him are so bitter at the projects PF have undertaken so far,Link Zambia 8000 etc. A case of sour grapes.
Your Dr does not say in the 80s the problem was budgetary both on revenue and spending.The country was running at a loss and had no tax receipts except for payroll tax from the miners. Today the budget is almost 75% financed by tax receipts . So the problem u have is that PF have a problem of spending.But the economy is in a better position to withstand budgetary pressures than in the 80s.
The government says it wants to revive INDECO as a way of stimulating industrial activity and job creation in Zambia. This is shocking and very disappointing:
This is a desperate attempt of a failed economists who happened to have been a Finance Minister now trying to do the right job at the WRONG TIME and had done a terrible job at the RIGHT TIME.This guy, the so called DR( theorists), giving us a lecture on how INDECO had failed and not providing solutions as usual.Why is he giving advice in a vacuum?He was a Key minster and failed to use his position to influence RB. He is just shocked at the projects PF have undertaken.
My advice to you is take this lecture back to UZA and continue churning out half backed economists like you.
Lack of INTROSPECTION!!!!
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