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EmbassiesAreWrongtoCongratulatethePFsOne-PartyStateSubsidy

OpenLettertoHisExcellencyAkioEgawa,AmbassadorofJapantoZambia,His

ExcellencyMarkStorella,AmbassadoroftheUnitedStatestoZambia,andHis

ExcellencyJamesThornton,HighCommissioneroftheUnitedKingdomto

Zambia

June6,2013

YourExcellencies,

Werespectfullyaddressthisopenlettertowardyourdistinguishedofficeswith

regardtorecentcommentarypublishedintheZambianmediaontherecent

removaloffuelandmaizesubsidiesbythePatrioticFront(PF)government.

OnMay21,HisExcellencyAmbassadorStorellawasquotedassayingRightnow

yourgovernmentismakingharddecisionsonagricultureandgovernmenthadto

maketheseharddecisionsbecauseyoucannotkeeponsubsidingmaizeforever

becausethecountrycangobankruptand,ultimately,farmerstoo.1

OnMay23,theTimesofZambiaquotedHisExcellencyAmbassadorEgawa,

commentingGovernmenthasmadeatoughdecisionwhichmaycausepainon

thepartofthepublicbutwillcontributetothewelfareofthepeopleinthelong

term.2

HisExcellencyHighCommissionerThortonwassimilarlyquotedonJune4as

sayingIcommendtheGovernmentofZambiafortacklingthesesubsidies.()It

isbetterthatmoneycurrentlyusedforsubsidiesisusedformoresustainable

1See:http://www.mwebantu.com/2013/05/21/american-ambassador-mark-storella-

supports-subsidies-removals/2See:http://www.times.co.zm/?p=12606

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measurestargetedtohelpthereallypoorandtopromotedevelopmentin

Zambia.3

OnbehalfofnumerousZambiancitizens,includingmembersofopposition

partiesandcivilsocietyorganisations,theCoalitionfortheDefenceof

DemocraticRights(CDDR)wishestoregisteritsdisappointmentwiththese

statements,whichmaybebasedonmistakenassumptionsregardingthe

motivationsofthePFgovernment.TheCDDRrequeststhatthediplomatic

communitytakeastrongerstancetowardthedeterioratingenvironmentforcivil

andhumanrightsinZambia,ratherthansolelyfocusingoneconomicpolicy.

Itisnotourintentiontoenterintoadebateovertheshort-andlong-termcosts

ofmaintainingsubsidies,andgenerally,weacknowledgethecommonsense

notionthatprinciplesofunfetteredmarketcompetitiontendtoproducethe

idealefficienciesthateventuallydeliverthelowestpricestothepoor.

However,itisagravemistaketoassumethatthePFhasundertakenthispolicy

outofadesiretoimplementreformsorachieveanysortofefficiency.Itisalsoa

mistaketoassumethatfundssavedfromthecancellationofthesesubsidieswill

beappliedtodevelopment.

Thetruthofthematteristhatthefuelandmaizesubsidieshavenotactually

beenremoved,butrathertheyhavebeentransformedbythePFintotheOne-

PartyStateSubsidy.

Farfromrunninganausterityprogrammeofreform,thePFgovernmenthas

spentprolificallysincecomingintopowerin2011.Forthe65%ofZambias13

millioncitizenswholiveonlessthan$1.25aday,itisnotcomprehensiblehow

theyshouldbechosentocarrytheburdenwhileatthesametimethepresident

3See:http://www.zambianwatchdog.com/british-high-commishiner-support-pf-on-

subsidises/comment-page-2/

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cangivehimselfandhiscabinetsalaryincreasesof100%,4initiateare-

nationalizationandexpropriationspreeofnumerousprivatecompanies,5

whileatthesametimeengineeringanunprecedented10parliamentaryby-elections,

withmoretocome.

ThesuddenremovaloffuelandmaizesubsidiesbythePFisnotaquestionof

economics.Itisaquestionofhowtherulingpartyintendstofunditsdestruction

ofZambiandemocracy.

ItisunreasonableforforeigngovernmentstocongratulatethePFonfiscal

policyatamomentinwhichthepresidentscabinetisbloatedtomorethan70members.Thereextraordinarycostsofkeepingsomanydeputyministers,many

ofwhomaresaidtonotevenbotherreportingtoofficeandfunctionmoreas

ghostbureaucrats.Eachofthesedeputyministersisgivenabrandnewcar,

supportstaff,travelallowances,fuelallowance,ahouseoraccommodation

allowanceandotherfinancialdisbursements,costingZambiantaxpayersmillions

ofdollars.

ThemainreasonwhythePFhascreatedthelargestcabinetinthehistoryofthe

ThirdRepublicisbecausetheawardingofthesepositionsrepresentsthekeyinstrumentofbriberytoengineerthedefectionofoppositionMembersof

ParliamentfromtheMovementforMultipartyDemocracy(MMD)andtheUnited

PartyforNationalDevelopment(UPND)tothePF,thusforcingthevacationof

theseatandtriggeringacostlyby-electionwhichisusuallysnappedupbythe

rulingparty.

ThePFsby-electionsstrategy,whichisaimedattakingoverarubber-stamp

majorityintheNationalAssemblyinordertopassanewconstitutiontore-

4See:http://www.zambianwatchdog.com/sata-and-his-ministers-increase-their-

salaries-discreetly/5ThePFgovernmenthasre-nationalizedZamtelinahighlyirregulartakeover,whilealso

revokingtheprivateconcessionfortheoperationofZambiaRailways,andhasseized

controlovertheCollumCoalmine,whilealsothreateningtotakeovernumerousother

privatelyownedbusinesses.

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implementtheone-partystate,isenormouslyexpensiveandhasdrainedstate

cofferstothepointthattheleadershiphasimprovisednotplannedthecancellationoffuelandmaizesubsidies.

AccordingtotheElectoralCommissionofZambia(ECZ),thecostofholdingthese

by-electionsrangesanywherefromaminimumof5billionkwachatoa

staggering11billionkwacha.Theupcomingby-electioninFeirawillcost7.7

billionkwacha,whileonJuly25therewillbeanotherfourby-electionsinSolwezi

East,Kafulafuta,ChipataCentralandMkushiNorth.6

ThePFgovernmentisfacingbudgetshortfallsdueinparttotheadhoccreationofunplannedandunbudgetednewdistrictsandministriesforpolitical

expediency(andbriberyofoppositionMPs)whichisdrainingthetreasury.

TheAmbassadorscommentthatitwasbraveordifficultforthePFtoremove

thesubsidies.Howeverthatisnotthecase.

Weaskthatyouconsiderthereasonsbehindtheextremehasteandtotallackof

preparationorcommunicationregardingthecancellationofsubsidies,especially

withregardtothesocialconsequences.Whenthefuelsubsidywasremovedin

April,pricesshotup21percent,whileworkerscommutingtoLusakasawatleast

a1kwachaincreaseinminibusfaresposingasizablecutintotheweeklysalary

formanypoorpeople.Asformealie-mealprices,whichhavemorethandoubled

sincetheelectionofthePF,7realissuesofstarvationandfoodriotsmaysoon

becomearealityinmanypartsofthenation,withnoprovisionsmadebythe

governmenttoprotectthemostvulnerable.

WereitpossiblefortheUnitedStatestosuddenlycurtailthestaggering$84.4

billiontheyhavespentoncornsubsidiesbetween1995and2012,8itwouldmost

likelybedoneinacarefullystagedandplannedmanner,astoavoidashockto

6See:http://www.ukzambians.co.uk/home/2013/05/18/bye-elections-cost-billions-

says-ecz/7See:http://www.postzambia.com/post-read_article.php?articleId=32665

8See:http://farm.ewg.org/progdetail.php?fips=00000&progcode=corn

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theproducers.IftheUnitedKingdomweretocanceljustoneofthe3.5billion

subsidyprogrammesthatitpaysouttowealthylandowners,itsurelywouldnotdisappearovernightwithoutaplan.9Japanseconomicmiracleofthepast

centuryiswidelycreditedtoitsstatistpoliciesofsubsidiesforsteel,machinery,

electronics,chemicals,autos,shipbuilding,andaircraftindustries.10

ButinZambia,wherethesubsidyremovalhasanimmediateimpactoncitizens,

notjustproducers,therehasbeennoplan,preparation,orexplanation,which

hasalarmednotjustcivilsocietyorganisations,butalsoindustry.

AccordingtoadetailedstatementbytheZambiaNationalFarmersUnion(ZNFU),whilealthoughtheydonotsupportsubsidiesontheconsumptionside,

thewayinwhichthePFhasremovedtheseprogrammeswithoutanyclearplan

mayleadtodeeperproblems:

Itisveryeasytoremovesubsidiesbecauseanyonecandoitbutwhatis

simultaneouslyandurgentlyrequiredistoputinplacebridgingmeasures

toavertafoodsecuritycalamityandmoreimportantlytofindsolutionsto

thechallengesfacingourpoorsmallscalefarmersintheruralareasin

ordertokeepthemalive.Anin-depthanalysisandfullappreciationof

whatittakestobeafarmerinaruralareawherebasicsocialamenities

andservicesarenearlyabsentandevensophisticatedbusinessmodelsflop

shouldhavebeendone,andinfullconsultationanddialoguewiththose

thatsuchadecisionwasgoingtoaffect.11

Finallyandmostimportantly,theCDDRwishestomakeYourExcellenciesaware

thatmanyZambiancitizensaredeeplydisappointedwiththediplomatic

9See:http://www.bbc.co.uk/news/uk-1722565210See:http://www.foreignpolicy.com/articles/2010/10/11/lie_of_the_tiger11See:

http://www.znfu.org.zm/index.php?option=com_content&view=article&id=626:znfu-

reaction-to-the-changes-introduced-by-the-government-on-the-farmer-input-support-

programme-and-the-food-reserve-agency-for-the-2013-marketing-season-and-

beyond&catid=46:press-statements&Itemid=67

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communitysfailuretorespondtoarecentviolentattackonachurchinMatero

byanallegedPF-organisedmilitia.CivilsocietyorganisationssuchastheFoundationforDemocraticProcess(FODEP)andtheYoungAfricanLeaders

Initiative(YALI),aswellasoppositionpartymembershadonlygatheredinthis

churchbecausethePFdeniedtheirconstitutionalrightstoorganizeanoutdoor

assemblyunderthePublicOrderAct.Thenfurthertobeviolentlyattackedbya

PFmilitiasimplyfordebatingtheissueofsubsidyremovalfurtherrepresentsa

flagrantviolationofbasichumanrightsthatthisgovernmenthasbecomeknown

for.

Tobesilentinthefaceoftheseviolentincidences,butthenonlytocomeforward

andpraisethegovernmentforrecklesslyendangeringthelivesofZambias

poorestcitizensinordertofundtheirtakeoverofeverybranchofgovernment,is

nothelpfulforthefutureofdemocracyinZambia.

Weunderstandthattheprincipleofsubsidyremovalmaybepositive,butthe

realityisthatthismoveisnotgoingtoproduceanydecreaseingovernment

spendinginZambiaorimprovebalanceofpayments,butratheronlyre-direct

thisportionofthebudgettowardhighlyquestionablepoliticalobjectivesto

benefittheprivateinterestsofaverysmallcoterieofrulingeliteswhoare

alreadyincontrolofthemainnewspaperandoneofthecountryslargestbanks.

Thesuddenappearanceoftrainedmilitiasisbutoneproductoftheone-party

statesubsidy.

Whilerecognizingtheimportanceofstrongbilateralrelationshipsbetween

ZambiaandJapan,U.S.,andU.K.,andunderscoringourcontinuedcommitment

tocooperationandcommunicationwithyouroffices,weherebyrespectfully

requestthatthediplomaticcommunityremainvigilanttotheabusesofpowerby

thecurrentZambianleadershipandcognizantofthefragileconditionof

democraticfreedomsinZambia.

Yoursfaithfully,

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RobertR.Amsterdam

InternationalCounseltotheCoalitionfortheDefenceofDemocraticRights

(CDDR)