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PRIVATISATION SOLIDARITY

Representing the JCTR, I stand here this morning in solidarity with concerned citizens of Zambia in addressing the serious issues raised by the government's decision to privatise some remaining para-statal organisations.

The JCTR studies and advocates for social justice in Zambia on such critical issues as living conditions (the monthly Basic Need Basket), debt cancellation (Jubilee Zambia campaign), poverty policies (Civil Society for Poverty Reduction), and religious promotion of justice (Church's Social Teaching.)

In all of this, our aim is a people -centered, integral and sustainable development. Our position is clear: the economy is for the people; people are not for the economy. Any economic policy must be evaluated primarily with one central criteria: what is the impact on the people, especially on the poor?

Therefore we view with concern the privatization process compelled by the Structural Adjustment Programme (SAP). Any honest evaluation of the past ten years of privatization will acknowledge that overall it has done great damage to the Zambian people's livelihood: loss off jobs, closure of businesses, foreign dominance of assets, increase in poverty levels, etc.

The para-statal in question at the moment-ZESCO, ZANACO and ZAMTEL-face serious economical and management problems largely caused by the inefficient and frequently corrupts use of their resources by government and the ruling party. It is understandable that a cry comes from some circles-especially international financial institutions and creditor nations-for privatization. With most Zambians we believe that that some immediate and serious action must be taken to guarantee that electricity is delivered, that people's money is safe and that communications work. But we believe that any such actions should only be taken after:

• Serious evaluation of previous privatization experience in Zambia is carried out in order to learn both positive and negative lessons from accountable and transparent reports of what has occurred to date
• Full and open process of negotiations are conducted with public monitoring of the processes by civil society
• Complete explorations of various options are made to determine the most efficient and most equitable procedure to follow, e.g., concessions, management arrangements, etc.
• Thorough employment impact studies are made to look at numbers of people affected, wages, retrenchments, severance packages, etc.
• Explicit integration of any actions taken into the priorities of the Poverty Reduction Strategy Paper, which is the mandated development guide for all government and public economic action.
• Clear de-linking of this process from Zambia's qualification for HIPC, so that the debt relief process is not held ransom to foreign manipulations.

Until such steps are in place to the satisfaction of all stakeholders-especially the poor of Zambia -no action should be taken.

February 2003