From: barnhart@ddsw1.MCS.COM (Mr. Aaron Barnhart)
Subject: IPS:ZAMBIA: INFLATION THREATENS TO DERAIL ECONOMIC REFORMS
Date: Tue, 26 Jan 1993 23:09:56 GMT
Organization: Evanston, Illinois, U.S.A.

Copyright Inter Press Service 1993, all rights reserved.  Permission to re-
print within 7 days of original date only with permission from 'newsdesk'.

Title: ZAMBIA: INFLATION THREATENS TO DERAIL ECONOMIC REFORMS


lusaka, jan 18 (ips) -- a runaway 178 percent inflation rate in
zambia is fuelling arguments that president frederick chiluba's
free market policies are not working.

''the cost of living is killing us. i used to manage a few
years back, but i can't manage to feed my family of three
adequately'', says government sternographer joyce muyunda.

her monthly salary of 23,000 kwacha (about 68 dollars) barely
meets basic requirements.

the price of staple maize meal, sold in standard 25-kg bags,
has shot up from 57 u.s. cents in 1990 to the current 6.3
dollars.

bread, also at 13 u.s. cents during former president
kenneth kaunda's last year in power, now costs 71 u.s. cents.

''every thing is hard these days'', concedes david diamango,
the governtment's chief statistician.

beef, once an integral part of the zambian meal, is now a
delicacy for the privileged few. from 86 u.s. cents in
1991, mixed beef cuts today cost about three dollars per kg.

still muyunda is better off many of zambia's workers.

zambia, with an estimated nine million people, is one of
africa's most urbanised countries.

monthly minimum wages in the public and private have been set
at between 51.4 dollars and 71.4 dollars. but many zambians earn
as low as 14 dollars.

voted into power oct. 31, 1991 on a reformist platform and
with overwhelming support of zambia's ordinary workers, chiluba
is now tossed in a fierce wrangle with the zambia congress of
trade unions (zctu).

the zctu, which chiluba headed before becoming head of
state, is demanding a minimum 83 dollar monthly
wage acroos the board.

''this minimum wage, based on the poverty datum line, is
supported by the nutrition commission'', says zctu chair fackson
shamenda.

''the government should just yield and no more rhetoric'', he
added.

but the chiluba administration says austerity measures are
key to turn around zambia's economy from its tatters inherited
after 27 years of former president kaunda's socialist rule.
(more/ips)


zambia: iflation threatens to derail economic reforms

''many zambian firms are not solvent enough to afford such
high salaries'', explains deputy labour minister peter
machungwa.

''the consequence of this would be massive lay-offs'', he
said.

david frost of the zambia confederation of chambers of
industry and commerce agrees.

''salary demands should be matched with production. we
should all sacrifice now in order to get out of this web and
tanglement'', he says, urging governnment to restrain the
workers.

world bank and other donors are still urging the government,
now 15 months in power, to cut deeper on subsidies to parastatal
and overall government spending.

a happy life under a free market economy chiluba promised on
the campaign trail two years ago remains illusive for many
zambians.

''yes we did not reduce infaltion as targetted at 45
percent in the 1992 fiscal year. but we have drastically reduced
it from 400 percent in 1991 to 178 percent in 1992'', says
finance minister emmanuel kasonde.

''the worst is behind us. the 1993 fiscal year will see many
economic changes to benefit both the nation and individuals
alike'', he added. (end/ips/jm/fc/93)
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