OUR POVERTY CRISIS

WE

must decisively deal with the Lords and Agents of poverty who reside among us. They are largely responsible for our poverty crisis and our governments must cause the citizenry to ensure and assume civic responsibility.

Who are the Lords and Agents of poverty? They are mostly decision makers and enablers who push special files and projects. They are the shakers and movers of special projects, includ-ing a series of unfortunate incidents and chal-lenges that affect National Development. (I in-dicated last week that there is no free lunch!)

The Nation is agreed in principle about issues and obstacles of fighting extreme poverty. Afri-can politicians have since before independence campaigned on the “ticket” of improving peo-ple’s livelihoods.

It is evident that they do improve their personal and family lives! Some say that the debt prob-lems, which include loan repayment, are part of the story of poverty.

I have a different view point in the sense that the development template that we have adopted is totally unsuitable for our realities. I respect what Economists articulate, but they have been articulating these views for decades and the Ministries of Finance are packed and managed by professional Economists (at least in Zambia).

But you know what? You cannot bury yourself in Economic or Political theories which do not factor in reality. In fact it is fair to say that alt-hough most politicians engage with their sup-porters on the basis that they will improve their lot, they actually also invest a lot in aspects of subterfuge. Herein lies the problem; and we must incisively discuss, distill, dissect and ana-lyse it, as the Zambia Daily Mail says, “without fear or favour.”

First, there is a problem of “rent seekers” (the 10 percent or Nchekelako club). These will not do anything unless a personal gap addressing poverty is sealed. They look quite, serious and appear professional but have challenges with integrity. You can very easily identify this crew by going down memory lane or any useful ar-chives.

What was the story and position of XYZ before picking on a “game changing card”? Please note that some “cards” are mere fronts for illicit activities and ill-gotten wealth.

The only exception to the “game changing card” is the country’s most Top prized job – the President. The trappings of the Presidency, as designed, barring human temptations, are such that, favours are inherent and could easily at-tract problems of abuse.

Because power is magnetic, it largely explains the scramble or jostling for the Top job. The only challenge is it easily degenerates into poli-tics of hate, deception, betrayal and cut-throat treachery.

As an observation; many who drink from the poisoned kettle of political scheming, have lit-tle space for either loyalty or uprightness. It is me, my partner, my children and possibly, pets, such as cats and dogs! These have killed their conscience and lie in bed with the devil.

It is doubtful that some office holders who are expert rent seekers but, unfortunately, mistake or confuse their station in life, are there to serve. No Sir. No Madam, the country only vot-ed for the President and not his delegates!

It only takes a Presidential announcement to tilt or alter the balance of power negatively or posi-tively. It is for this reason alone, why many will sing melodious songs, which they do not believe in. Some go as far as renting support to justify or defend misdeeds, after authoring their own predicament.

Second, the rent seekers have created a Nation-al crisis that makes defeating poverty a difficult undertaking. It is civic duty to actually lobby our governments about the dangers posed by well positioned profit-oriented cartels.

For the profit oriented cartels, the major deter-minant is the bottom-line, represented by fat bank balances and exotic tastes, entangled in doubtful lifestyles.

The profit-oriented cartels, constitute the mas-ter mind league. No matter what we do, unless we change fundamentals, these have mastered the art of “supporting and working” with every government, in the name of business.

This is where “democracy” becomes a problem. It supports the right and freedoms of speech and association by all human beings. It has also pre-sented the law in a way that is amenable to de-fend problems.

In the area of Taxation alone, the profit-oriented cartels understands too well that it is not an offence to avoid tax. What is an offence is to evade tax as smugglers do and some cross-border traders do. As a matter of fact, the profit-oriented cartel, will use the law to defeat jus-tice.

Examples are abundant. Just look at the Energy and Mining debacles, including the Cost of Ser- vices! Who should determine the cost of a ser-vice? (I am not sure you will succeed to walk in a car shop and tell the owners the price you wish to buy a car!)

It must be said that avoiding Tax, is by its na-ture a very sophisticated undertaking involving highly trained professionals. For instance, if company X acquires consulting services from an Italian firm, that Italian firm will have to be paid in an international currency and that ex-penditure is a cost that eats into potential tax.

The straight line of eating into tax, are dona-tions to charity. We know the story of how some entities were exempt from paying tax be-cause of the nature of their work, but begun to abuse the exemptions. Ask, why would this be the case?

Take the milling industry as an example. Most milling entities are owned by individuals whose staple food has nothing to with Maize. But Maize brings the money – so that is the main at-traction!

They have invested heavily in maize processing and are a very powerful lobby with a big inter-est on promoting Maize as a Staple food. We all know now that Maize at times becomes so ex-pensive and this lobby has succeeded in making maize loosely classified as political food.

But this is only true to the extent that all the lobby needs to do to bring any Zambian gov-ernment down, is to either create artificial shortages, but export and benefit.

So, I ask, what is the difference between these “smart guys” and the “dogs of war” who mar-shalled and managed military take overs in Af-rica and South America? The real difference is that the “dogs of war” style is illegal (but can be legal) and the other, is part of private sector development and the acclaimed economic lib-eralisation!

Then there is the “scandal” of exports to other countries in need of the commodities. Please note, there is nothing wrong with exporting Maize. But, there is everything wrong in ex-porting maize or its by-products if Zambians are treated to zero options, with its associated diffi-culties, such as availability or affordability.

Not long ago, we had a powerful team from State House visiting milling companies, who while benefitting from cheap maize from the Government of the Republic Zambia, still hiked Mealie meal prices.

These millers do so without moral standing be-cause morality is not part of their understanding of business. Their understanding is to make money and the rest only follows as a necessary accident. KEY question: Can this attitude of blackmail and scandalous deceit help end pov-erty?

The answer is a big NO. Le me explain:

In our case, Zambia, is for Zambians. Zambians and nobody else has a duty to develop Zambia. Zambia needs long term concrete investments and not trade alone.

As documented, in 1965, the then Rhodesian Prime Minster, Ian Smith, slammed the borders and importation and exportation became diffi-cult and expensive.

The politically-induced option of Tanzania Zambia Railways (TAZARA), holds the key in many ways. The fact that TAZARA was born out of necessity, responding to the total libera-tion of Southern Africa, is beside the point.

TAZARA is and was an answer to accessing the sea. I see great merit in ensuring that the TAZARA project works.

Yes, Cecil Rhodes is most known for his op-pressive antics.

But he is the one who originally put up Zambia’s (then Northern Rhodesia) first railway line. TAZARA was an accident of struggle and a critical ally in ending poverty.

I find it interesting that we have seriously in-vested in damaging our roads by abandoning the usage of rail. We know that there is a Statu-tory Instrument requiring a certain percentage of goods to be carried by rail. We must not on-ly increase the percentage but also restrict the weight on our roads.

Because Zambia is for Zambians, it is up to Zambians to come up with a Win-Win strategy where we can save on the huge amounts of money used on road construction and repairs to deal with the realities of combating poverty.

For instance, if we look at the road sector alone and compute how much money has been spent since independence, we may come to a sad con-clusion that we are our own enemies.

Get me right. We need a solid and good road network throughout the country. A good road network should never result in killing the rail industry because transportation is vital to indus-trial development and the rail sector accounts for a huge chunk of heavy duty materials. Here, the Ministry of Transport and communications, is in the dock.

Bite the bullet!

It must be said that avoiding Tax, is by its na-ture a very sophisticated undertaking involving highly trained professionals. For instance, if company X acquires consulting services from an Italian firm, that Italian firm will have to be paid in an international currency and that ex- penditure is a cost that eats into potential tax.