Liberalisation equals exploitation

Liberalisation of economic policy had left people open to exploitation by multinational corporations, a report on how economic structural reform had contributed to the decline in living standards, has found. ‘The Post’ reported on Thursday that a study among workers of Nitrogen Chemicals of Zambia (NCZ) and Kafue Textiles of Zambia (KTZ) had noted that the government’s privatisation policy - instead of contributing to economic growth - had only served to hamper production at the two plants and had not helped in sustaining existing state enterprises. The research was conducted by the Workers’ Christian Movement - Kafue Estate Group.

According to the report, the study found that advantages of major policy reforms to revive the country’s economy since 1992 had been overshadowed by a lack of improvement in people’s living standards, a decline in the economic and agricultural sectors and a fall in exports. The study also said that policies intended to allow the market to function more effectively and freely may aid further contraction of the country’s economy, increasing unemployment and poverty. It indicated, according to the newspaper report, that the policy on devaluation had increased the cost of living without any improvement in domestic output.

“The problem of this policy (economic liberalisation) is that rather than helping, it has some potentially negative effects. For instance, it leaves people open to exploitation by multinational corporations and increases people’s vulnerability,” the report was quoted as saying. The report suggested that improvements in the liberalisation policy - with an emphasis on putting in place measures to protect companies like the NCZ and KTZ from undue competition - would help improve the economy.