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Thursday, 15 September 2011

A Broken Maize Marketing Policy, 2nd Edition

"For instance, Zambia currently subsidises maize exports in regional markets, I feel that is not sustainable for a developing country like Zambia whose larger portion of the budget is donor funded...It is unsustainable and it can just lead to the government rushing to banks and other lending institutions to borrow more money to sustain such a venture. And if caution is not taken this could be the case for Zambia. The country could fall into serious debt...."
The warning comes from Kenyan economist John Mshiu. Recent Reuters analysis echoes the point. It suggests that the input only support model championed by Malawi and Zambia is unsustainable.  Zambia's problems are deeper than Malawi's because in Zambia its funded solely by the Government, though Mshiu is right to note that at the end of the day its an indirect donor aid.  We have previously touched on Zambia's broken and costly maize policies here and here, among many others

2 comments:

  1. Very good advice. He should however desist from making unfounded claims. Zambia's 2011 budget only has 7.7% combined component of donor funding and commercial loans. This does not constitute a 'large' portion of the budget. Equally sick of the 'experts' who still insist that 'only 300 000' Zambians are in formal sector employment. When the correct figure is 750 000! Or that life expectancy in Zambia is 38 years when it is actually 48! Why is my motherland so lowly regarded?

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  2. I think the key issue is that the current path is unsustainable. We should try and avoid focusing on a single when the whole forest is on fire. Perspective is vital.

    The real question is how we avoid the path of the 2nd Republic.

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