LOWER FOOD PRICES BUT NOT HIGHER FOOD CONSUMPTION
Is the decline in the cost of the monthly food basket for a family of six means an increase in the well being of most Zambians? This question is raised by the minimal fall for three months of the cost of the food basket. The latest findings of the survey conducted by the Economic and Social Development Project of the Jesuit Centre for Theological Reflection pegs the cost of the food basket for the month of September at K239, 840. Down from K250, 660 in July and from K243, 100 in August, the survey reflects slightly lower prices in items such as mealie meal, vegetables, cooking oil and eggs.
According to the Director of the Economic and Social Development Project, Mr. Alex Muyebe, there are a number of economic factors that account for the continued decline in the cost of the food basket the past few months. Mr. Muyebe observes that one of the cardinal factors is the developments in the food supply situation, particularly the maize supply around this time as farmers manage to get their produce on the market, thereby resulting in a downward effect on prices of mealie meal. Prices of other food commodities have also experienced insignificant decline due to the slight strengthening of Kwacha on the foreign exchange markets last month as a result of the increase in the non-traditional exports, i.e., tobacco and the increase in inflows owing to disbursements by bilateral donors. The report by the Bank of Zambia on the percentage changes in the consumer price indices indicates that the inflation rate continues to register minimal decline from about 31 per cent at the beginning of January 1999 to about 27 per cent at the beginning of September 1999. Therefore, the inflation rate might also be taken into consideration as one of the factors for the decline in the cost of the food basket.
Mr. Muyebe notes that there is yet another important social factor for the decline in the cost of the food basket. It is the fact that there is a decline in the number of people having sufficient income to meet their needs. Many people have had to adjust their food budgets because they simply do not have money. The levels of income of the majority of Zambians are not commensurate with what they are required to pay for the basic necessities, such as food, housing, clothing, education, health, etc. A good number of families are being forced to go without certain food items or to consume less of the habitual food items. This has resulted in decline in the demand. Traders have had to adjust accordingly by reducing prices of the affected commodities. This means that the decline in the cost of the food basket does not mean improvement in the livelihood of most Lusaka residents. The marginal decline in the cost of the food basket is unlikely to lighten the burden of survival for ordinary families in Lusaka. The high cost of living in comparison to low salaries continues to bring great hardships.
Mr. Muyebe observes that food is the major indicator for measuring the cost of living mainly because food does take up by far the largest portion of monthly income. Food is one of the primary necessities of life and its accessibility is a good indicator of the levels of poverty. The recently launched mid-term review report by GRZ/UNICEF, entitled, "Overcoming Barriers to Zambia's Development: Dismantling the Tripod of Deprivation, Debt and Disease", indicates the rise in the overall economic and social hardships. For instance, the report notes that the per capita consumption of maize, the single most significant component in a Zambian meal has declined drastically from 153.2 kg in 1990/91 to 123.3 kg in 1996/97. The per capita consumption of practically all other food products (cereal, vegetable, dairy and meat products) either remained constant, declined or increased only marginally during this period, which must imply a reduction in calorie intake and hence a decline in nutritional status. It is for this reason that the Jesuit Centre for Theological Reflection continues to advocate for a strong political commitment for policies to improve the living conditions and eradicate poverty. Key to these policies, Muyebe suggests, is the establishment of a recognised 'poverty datum line' against which all salaries can be measured.
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