World News
Zambia blasts IMF, World Bank donors
LUSAKA, Zambia (PANA)-President Frederick Chiluba recently accused western donors of arbitrarily altering conditions for assistance to Zambia without regard to the adverse economic impact this had on the national economy.
President Chiluba said Nov. 19 that the donors, who had earlier promised to cooperate on the basis of "good governance,'' had now changed the benchmark to tie it to the sale of copper mines, the country's major foreign exchange earner.
The president made the complaint when he opened an Economic National Convention called to discuss and recommend strategies to revitalize Zambia's ailing economy.
"Our donors are making the point that copper is a new millstone around our necks by insisting that aid is tied to the sale of the copper mines ... a condition at complete variance with pledges made at the last consultative meeting where governance issues were seemingly the main concerns of our benefactors," said Mr. Chiluba.
"Of course as donors they are entitled to change in midstream, for whatever excuse, regardless of the consequences on our economy as the case is now,'' Zambia's leader continued.
He challenged Zambians to take the current stand-off over aid between the donors and government as a challenge to explore alternative means to ensure the country's economic survival.
"As the saying goes, 'to every dark cloud, there is a silver lining' ... the bottom line is that time has come to seriously look elsewhere for the survival of our country.''
This requires that Zambians make clear result-oriented decisions focused on stimulating those areas and resources that can help resuscitate the economy, said Mr. Chiluba.
The convention, jointly sponsored by the Zambian government, the United Nations Industrial Development Organization and German technical assistance, and convened by President Chiluba, comes in the wake of a deteriorating economic scenario partly blamed on tough IMF and World Bank-backed economic reforms.
The donors, who had assisted in settling Lusaka's balance of payments bills, have lately withheld financial aid claiming the government had reneged on agreed political and economic aid conditions.
Donors are currently demanding that Lusaka should first sell off two of its remaining and more lucrative Nchanga and Nkana mines before aid is resumed.
Mr. Chiluba insisted Nov. 19 that the mines would only be sold upon receipt of a reasonable bid. Early this year, the Zambian government broke off sale negotiations for the two mines with the Kafue Consortium whose offer was considered too low.
The consortium had offered to buy the mines for $105 million, with a down payment of $31 million, and the balance paid over a long period.
The three-day convention was attended by representatives of business and industry. Mr. Chiluba challenged them to recommend policies to help maximize exploitation of natural resources and boost Zambia's agricultural output enough to attain food self-sufficiency and provide extra food for export.
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