GOVERNMENT has expressed concern that the International Monetary Fund (IMF) instruments have not been fundamentally tailored to help meet fiscal requirements of Low Income Countries (LCIs).
Finance and National Planning Deputy Minister, Chileshe Kapwepwe said the IMF resources should be allowed to be used to meet fiscal needs and financing gaps in the budget as part of structural reforms in Low Income Countries.
Ms Kapwepwe said this in Livingstone today when she officially opened a Workshop on Formulation of a Strategic Framework and Action Plan for the Enhanced Engagement of Africa with the World Bank group at Zambezi Sun.
She said as regards to the Zambian experience, the World Bank’s rate of reaction to the global financial crisis has been lukewarm adding that the bank still has delays emanating from too many procedures and excessive conditions.[quote]
Ms Kapwepwe further noted that the World Bank lacked predictability in the disbursement of resources citing the US$20 million budget support facility that was agreed in January 2009 as having not yet been released as the bank has cited an unachieved conditionality.
She said this was despite the country being faced with huge revenue deficits in the budget caused by the crisis adding that the bank, unlike other International Financial Institutions (IFIs) has also been reluctant to frontload assistance to deal with the effects of the crisis.
”We have also noted that the bank has still maintained an excessive number of missions for feasibility studies on projects, which studies take long. These are followed by lengthy project designs and approvals. This practice has continued without reform. This has resulted in the undermining of the bank’s role as global leaders in development financing,” she said.
She further noted with concern that the IFIs in general were not putting in place long term support beyond the crisis stage to ensure full recovery.
Ms Kapwepwe said as part of the strategy, the Bank needs to show flexibility by allowing access to more funds for high return public sector projects rather than continue opposing alternative borrowing from new lenders such as China and India without offering lasting alternatives.
She commended the World Bank and the African Union for organising the three day workshop currently taking place in Livingstone adding that it would surely resolve some of the problems facing the Low Income Countries.
Ms Kapwepwe said the meeting was a prudent idea for Africa as it would soon position the continent in a way that would ensure that it benefits from the facilities that had been put in place.
She added that African countries should not allow current facilities to become political tools by some sections of the international community to manage the continents’ economies as had been the case in some instances.
Ms Kapwepwe urged participants at the workshop to ensure that strategies formulated from the workshop are accompanied by continued advocacy for greater voice and representation in the World Bank Group.
And speaking earlier, African Union Commissioner for Economic Affairs, Maxwell Mkwezalamba said the outcome of the workshop would be tabled at the G20 summit due to take place in Washingston later next month.
Dr Mkwezalamba noted that in as much as funds were available, African countries found it difficult to access the funds due to conditionalities attached to it.
He hoped that after tabling the resolutions of the workshop, the World Bank would consider easing conditions for accessing funds.
Dr Mkwezalamba said the AU was looking forward to the revision of the conditionalities to allow Low Income Countries to access the funds in the face of the financial economic crisis.
He also challenged Africa to look at the need of mobilising the continents’ own resources.
ZANIS
