Tag: Western economic hegemony

It’s time to move away from Western economic hegemony and dictatorship and see things for ourselves, analyse things for ourselves and come to our conclusions.

We have been swallowing their recipes without chewing and blindly following their prescriptions. It’s time to take our own paths – and every path is different.

For example, take inflation targeting used blindly by the Bank of Zambia through interest rate hikes, it does not work for our country because very few Zambian companies/SMEs and individuals have access to credit which is used as a transmission mechanism for interest rate hikes in the hope that it subdues expenditure consequently bringing down inflation. But this cannot work in Zambia because very few people have credit and therefore not directly impacted by rate hikes.

By contrast in the Western world and a few African countries like South Africa literally everyone there has a credit facility – be it contract phone, domestic equipment/furniture hire purchase, credit card, home and motor vehicle finance and so on and so forth.

Those who disagree with what we are saying let them explain to us how this works in Zambia!

We know this is what the World Bank and the International Monetary Fund recommend. But is it working, is it the right way to go?

Fred M’membe
President of the Socialist Party