ࡱ> @ ?bjbjצצ .V72222222F <F Fn n n n n I I I (******$_R>N2I I N22n n cF2n 2n ((22n b O_ |(y0DjFF22222dI  k w I I I NNFF FF  WALSALL GROUP TRANSCRIPTION OF TALK BY GRACEWELL MWANSA FRIDAY 28TH OCTOBER 2005 AT THE CROSSING AT ST. PAULS I will be talking about what I am familiar with. I will tell you the reason why I am here which is because of the problems and I will elaborate on that. And then we will look at the way forward and conclude. Various comments were made during and immediately after the G8 and some of those such as the Prime Minister Tony Blair said that they made substantial progress. The global action campaigners said that they listened but really their response was not the roar that the campaigners were expecting; it was really just a whisper. Bob Geldof had his score card and gave the G8 for their promises ten out of ten and eight out of ten in terms of debt. Now a number of British NGOs were disappointed and said Well this is not going to make poverty history and then the civil society from the South where I originate said Really nothing very much has happened; it has been too late and it is really not charity that we are after. And most of what was promised was charity. What is poverty? Poverty has many faces. The main one that we know about is hunger; not having food or insufficient food. But there are these others as well which all constitute the definition of poverty. Lack of shelter, being sick and unable to see a doctor or when you see a doctor there is no medicine available unless you buy it. Not going to school and not knowing how to read and write. Not having a job, fear for the future, living a day at a time and worse, you cannot plan. Losing a child to an illness brought about by unclean water or an unclean environment. And in general there is a sense of lack power, powerlessness and lack of representation and freedom and often poverty is a situation people want to escape from. Which are the most affected countries? They are mainly in the South excluding Australia. The rich are mainly in the North. And Sub-Saharan Africa, where Zambia is, is the worst. So what are the contributors to poverty? Unpayable debts, and I think there was an attack on fair trade. Then there are natural disasters, droughts, floods, hurricanes. And then there are man made disasters. Those of us from developing countries know there are dictators, corrupt governments and so forth. They have contributed to the poverty situation. Conflicts some are still going on the Congo has been bad for quite some time. That does not help. The major factor in starting off poverty has been the debts. Just quickly, most of you know why most countries found themselves in this debt. In the 1970s, soon after independence, most countries were getting their independence from their colonial masters and were in a hurry to develop, in a hurry to demonstrate to their own people that what they had achieved was going to bring progress and than therefore they needed to build schools, they needed to build hospitals, roads and so forth. And for that they required money. And at that time, commodities Zambia in particular, copper which was the main export, was doing very well. And as you know bankers lend to those people who they think have security and an income stream and this is what actually happened and they contracted this debt. But sadly, this turned into a crisis. Why? Because of the oil price shocks of 1973 - recession, high interest rates and low commodity prices. So all the assumptions there were at the time the loans were given did not hold and that became a crisis. Now the initiatives to tackle this debt crisis. There is the Paris Club and now I will go quickly through this because we want to focus mainly on poverty but I want to deal with the background to why we are in the situation that we are, why we need to make poverty history. The initiatives were mainly from the Paris Club, where countries go and meet their creditors and go through how they have not performed well. Many times the Paris Club ended up rescheduling the debts -the interest continued but they said We understand your problems so we will reschedule, until it became untenable; rescheduling was just postponing the reckoning day. And then in 1996 the rich countries came up with this Highly Indebted Poor Countries (HIPC) initiative which was further enhanced in 1999. The Africans also had their own initiatives from1980, including structural adjustment plans, up to the new Partnership for African Development. The problem with these is that they are dependent on finance from the West and the strings attached normally make these initiatives not go very far. And the there was the Tony Blair initiative Commission for Africa, which did a great job to outline what the issues were and also suggest what needed to be done. And the there is the campaign which I will continue to urge you to do, for complete debt cancellation. Then we have talked about the G8 and a little more about the Gleneagles meeting. The Millenium Development Goals are a very good set of goals if only they can be achieved, because they will contribute greatly to wiping out poverty if they work, halving poverty by 2015. The way we are going right now I am sorry to say, we will not halve poverty by 2015. I will give you a case study of Zambia which is representative of many of these countries. Achieving primary education might happen. Gender equality - yes; I think that may be achievable; currently it is on track. Reducing child mortality is questionable. Improving maternal health is also questionable. Combatting HIV/Aids, malaria and other diseases, I doubt very much that we will do that. Ensuring environmental sustainability the whole issue of global warming and other environmental aspects, I do not know a big country like America in the forefront has not signed up to that so it is difficult to see how that will turn out. Developing Global Partnerships well I think those are yes, going on, but whether the aspirations are going to be fully realised by 2015 remains to be seen. I will then move on to Zambia. What I say about Zambia can be said about many other developing countries. First of all, Zambia is in Central Africa, landlocked, which has its own problems, surrounded by a number of countries that were in conflict and some of them are still in conflict. How did Zambia contract its debt? When Zambia got its independence from Britain in 1964, the country had less than 100 graduates, there was no national university, the population was 3.5million, it had very healthy financial reserves, very poor road network, the copper prices were riding very high as they are right now, very limited health facilities. Soon after independence, the country began supporting liberation movements in neighbouring countries and that came at a very, very high price to the country because the healthy financial reserves were quickly depleted. And then the country had to build the road networks because at the time the main routes for export and import were through South Africa, passing through what was then Southern Rhodesia. After that, Ian Smith declared his own independence and that created a lot of problems and Zambia had to find alternative routes and that was quite expensive. And then there was the railway, built by the Chinese through Tanzania, and the tarring of the road through Tanzania and they had to construct the university and the hospital. All that required a lot of money. What is now the current situation in Zambia? The population tripled. You hear a lot of HIV/Aids 10% HIV positive, and that is ravaging. There are arguments about life expectancy, around 35, primarily because of HIV/Aids. Employment had fallen; currently we are looking at only about 400,000 out of a population of 10.5million in formal in employment and only 150-200,000 more in informal gainful employment, bringing the figure to 600,000, which is far short of what is required. The HIPC programme for Zambia started in 2000 when the country met the conditions for being on that programme and there are various things which you have to fulfil. Ideally Zambia should have reached he completion point and be eligible for substantial debt relief in December 2004 but unfortunately, because of a budget overrun caused by salary increments given to Civil servants, and I dare say they deserved them, that breached the fiscal arrangements with IMF and World Bank and they were ruled offside and put back onto a probationary period. So what the government had to do was to freeze wage increments for civil servants for one year despite inflation being between 15 and 20%, so people in fact took a pay cut. There were also a number of other very draconian measures. So, in April this year, the country qualified for the debt relief because it had reached the completion point. What means is that at that time, Zambia had a debt total of $8.6 billion dollars. Now having obtained the completion point it can negotiate over the next 22 years to have $3.8billion written off, so it is not immediate, and during that time it has to be a good boy and if it is not it will be ruled offside and again it will have problems. You have probably heard of the street kids in Zambia. Up to eight yeas ago we did not have this problem but it is there now. Poverty levels of 80 %. And the other aspect is that the emergence of what is called the urban poor because of redundancies due to privatisation. These conditions affected me. I used to work for the Zambian copper mining company, the last eight years at their London office until June 2000, when the mines were privatised and that was it. The new owners retained the technical staff but those of us who were in management, of course they brought their own managers and those of us in management were thrown on the scrap heap. Now six of us were encouraged by the World Bank and agreed to buy one of the companies which were being sold off in the privatisation. That worked very well until January 2002, when the major buyer of the assets of the mines, Anglo-American, announced out of the blue that they were pulling out of Zambia and the bottom fell out for a number of these companies and the country went into an economic tail spin from which it has not recovered and the consequences of that are still continuing. So the unemployment level is quite high and it has led to a very high brain drain. Right now we have in the UK over 3000 Zambian nurses. The country itself does not have that many. We have well over 100 doctors here in the UK. My daughter is training as a doctor in Zambia and she says she is not staying because there is no incentive over 95% of doctors leave within three years of completing their training. Budgetary constraint is one of the reasons I am here. Yes I was here and went back to participate in the economic development of the country. I had my family; three of my children remained here and three in Zambia I said At least some of them will be in Zambia. Our last twin girls completed their secondary education in 2001 and in the following year we tried unsuccessfully for them to go into further education. I do not think I need to tell you that you will have problems with teenagers staying at home doing nothing. And tensions began. That is why I am here I brought them here so that they could continue their further education. Trade liberalisation, all these conditions which the IMF and World Bank impose on countries for them to have a chance of debt relief, are very punishing. There are those like good governance which are quite good but they are very few. A lot of them come with social costs to the citizens. Trade liberalisation the West has had some experience of this with the trade wars with China and that is exactly what countries like Zambia have been experiencing. The IMF and World Bank say Open up your markets and you find the big guys come and dump their stuff which is cheaper because of economies of scale where they are coming from and they then really suppress the local producers. My personal experience is that I have a farm - for agriculture, food security is important. In 1998 we grew onions which were very good and we went to a supermarket chain and said to them We have these onions, please can you test them and they said they were very good. But the procurement officer could not make the decision when they went to head office they said they already had a contract with suppliers from South Africa. We said What about the country in which you re operating? and they said No. I went to the Minister I knew him personally and he said No, I am sorry there is very little I can do - this is what we signed up to, it is trade liberalisation. There is no way that we can do anything. If we do we will breach one of the conditions with the IMF so there is very little we can do. And what I had to do - we lost money. So since then I have not grown onions and declared those farm workers redundant. Those are the problems we go through. But there are benefits. Of the debt relief we have been given, one of the things we campaigners have emphasised, we need to emphasise the transparency of the money which is sent otherwise it is just going into other peoples pockets and the situation will continue. One of the most important things is safe, clean water. Normally in villages they maybe have to go two or three miles to get water. The money which has been saved from debt has gone into wells fairly near the residents. Opening something like that is an occasion for rejoicing. Bridges to ease communications, fairly strong ones, are another benefit of debt relief. Communications, upgrading the feeder roads so that peasant farmers can get their produce to the markets; and sometimes tarring them. Housing shelter is one very important aspect and what has happened with the social fund, which benefits from the debt relief, is that health workers and teachers have some of the houses which are built for them. This is a progressive programme in Zambia because most of the new teachers do not want to work in rural areas. The tape ends here and resumes but with poorer quality for three questions. It may be possible to add them later. 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