Archive for healthcare

Barack Obama Socialism Quotes

barack obama socialism quotes

Universal groups of health care and death – Sarah Palin was right

Sarah Palin has been criticized, mocked and condemned by Obama to their supporters when he said the universal health plan result in signs of death. Characterization of the expression "the death of the panels is rapidly associated with people wearing foil hats. It is ironic that a group of people who believe the twin towers were felled by the plots and the plane crashed the Pentagon could call other people "to wear hats of aluminum foil.

When the liberals are afraid of a person or a certain point, attack with a vengeance. It's like the story "The Emperor's New Clothes" by Hans Christian Andersen. The emperor said that his clothes be invisible only to the incompetent and stupid. He did not want to appear incompetent if, of course, he said he saw the clothes, like all the world until one child said: "I do not naked!"

The moment that the term "panel of death has been referred to as final crazy, everyone is supposed to be afraid to explore the logic behind the term. It is a strategy often used by liberals. We see evidence that there is, in effect, "groups of death, but we are supposed to be afraid to say for fear of being labeled incompetent or stupid – but if you see that the emperor was wearing a pair of underpants stripped, it is absurd to pretend that he is using a three-piece suit.

When the health care debate began, the first instinct was to look at other countries that have tried universal health care. What we saw was terrible – long waits for images MRI, the survival rate for cancer of the horrible wait for hip surgery and so on. It is so bad that in England there is a waiting list only for the waiting list! There are 40,000 people in the UK who have waited over a year for surgery. There is a shortage of essential supplies, medicines and equipment doctor. According to the Burton Report, which is so bad in some countries there is a black market for health care. In the Japanese life-saving devices such as defibrillators are rarely available.

socialized medicine has ruined the medical profession in any country where it has been tried. It's basic economics. The increasing product demand and reduce the incentive to respond to this demand and create a shortage. Not only is there a shortage in medical care, there is little to zero innovation and medical progress. There is no money to invest in research and no interest in trying. There is a reason why most medical innovations out United States – is called the free market.

People who support Obama-Reid Pelosi health care system that their plan is different. They say their plan will people a choice, people will be able to maintain their current system and not be forced something we do not want. His words, however, show that this is not the case.

Former Secretary of Labor Robert Reich, who is now an economic adviser to Barack Obama, said in a speech in 2007 at the University of Berkeley. The premise Reich's comments, that's what a presidential candidate said if he was honest about health:

"What I do is I'm going to try to reorganize the health () to be more willing to treat sick people, but it means above all you young people, especially you young people in good health … you have to pay more. And by the way, we will have, if you're too old, not going to give you everything that technology and all these drugs during the past two years of your life and maybe go to another couple months. It is very expensive … then we will let you die. I will also use the bargaining power of the federal government for Medicare, Medicaid … to compel pharmaceutical companies and insurance companies and medical providers to reduce costs. What this means less innovation new products and fewer and fewer new drugs on the market which means you probably will not live very long as their parents. "

Tom Daschle was the Barack Obama's first choice as Secretary of Health and Social Services. In Dashchle 2008 book, "Critical: What can we do about the crisis of care health, outlined some of his ideas on health care: doctors must "learn to drive less as individual professionals and be prepared to accept mandatory government controls and guidelines. Daschle calls for the creation of a brand new bureaucracy called the National Coordinator for Health Information Technology. This organization of the new government to monitor all medical treatment to make sure your doctor is prescribing the right medication and medical treatment that the government federal is considered "appropriate" and "profitable." This would slow the development and use of new drugs and treatments, because it raises costs physicians. According to Betsy McCaughey, Daschle praised the Europeans to be more willing to accept "desperate diagnoses" and "giving up treatments experimental and punishes Americans expect too much of the health system. "The Federal Council based on the advice of the United Kingdom discussed in Daschle's book.'s Advice approve or refuse treatment by a formula that divides the cost of treatment in the number years, the patient may benefit. The treatments for patients Young people are more often than the approved treatments for diseases affecting the elderly, such as osteoporosis. "

Dr. Ezekiel Emanuel is President's special advisor on health care. He believes that people between 15 and 40 should receive preferential treatment. Some quotes from Emanuel: "Suppose than 25 years and are 65-years, a deadly disease. For 25 years, far more potential for life before him, should receive preferential treatment. "The entire life of the system discriminates against the elderly …. Against the allocation by sex or race distribution Age discrimination is not unjust, each person lives through various stages of life rather than a single age. While giving priority 25 years over 65 years, all that 65 and 25 years. "Health services should not be guaranteed people who are irreversibly stopped being or involving citizens. An obvious example is no guarantee health care to patients suffering from dementia. "

Barack Obama: "So that's where I think we just entered in difficult moral issues. But it is also an important factor cost, right? I mean, the chronically ill and those towards the end of their lives are potentially represents 80 percent of the total health care of the bill here … I think it will be a conversation, guided by physicians, scientists, ethicists … It is very difficult to imagine the country these decisions through normal politics. And that's part of why you should have an independent group that can give advice. "

What independent group of Barack Obama to be called? A sign of death by another name is still a sign of death.

People may argue that the above quotes are taken out of context. An example of some something really out of context, ironically, with the participation of Sarah Palin is when Drew Griffin of CNN said Palin, some conservatives have been quite difficult for you … "The National Review" had a story saying that, you know, I can not tell if Sarah Palin is incompetent, stupid, unqualified, corrupt, or all the above? In fact, the National Review article by Byron York, said: "Watching press coverage of the Republican candidate for Vice-President, it is sometimes difficult to determine whether Sarah Palin is incompetent, stupid, unqualified, corruption, back, or Well, all the above. The words "press coverage Watching "completely change the meaning. There is nothing in the quotes above, which can change the context of the meaning or intent of what is said in the way that these three words "Watching press coverage" does.

The health care proposals being pushed into the throat of the American people, in fact, have signs of death. It would be evident if all we had to go in many examples of how the socialized health care works in different countries around the world. In fact they have so much more evidence that, as stated in the words of the same people who are pushing this down our throats immoral debacle. Who the hell these people think they are? If you work and save my own money, have no right to use my own money in caring for my elderly parents? Not available? It is your moral? This plan is pure evil and a moral obligation to stop it.

About the Author

Howard Jacobs
MBA Marketing Pace University
I currently work for a large finacial institution.
I started the blog EndTheChange because I am outraged at the direction our country is going in. People who feel this way want to know “What can I do?” This blog is my little way of trying to set the record straight on the upside-down state of our country.
http://endthechange.blogspot.com

A Communist Quote from Barack Obama?


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President Obama Just Making Healthcare More Expensive

President Obama Just Making Healthcare More Expensive

President Obama’s proposal to allow insurance companies to keep offering consumers plans that would otherwise be canceled under the federal health care law could lead to an increase in premiums,…

Why Politics Matters

why politics matters

Why so many foreigners come to question the policy and the U.S.?

It is as if their opinions are important because they do not vote here.

Despite that bother me and I can not stand the guy from Canada, they certainly have the right to be here ……

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What Americans Know about Politics and Why It Matters


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Body Politics Vancouver

body politics vancouver
"Body parts and selling them as if they were taking" McDonald. What do you think?

Boycotting the Olympic Games in 2008 for studies Human Rights is not Simma Holt, former MP Vancouver Kingsway: "Genocide sounds like a word, but the Chinese communist regime is taking parts of the body, taking body parts and selling them as they McDonald's – you can get cheaper if you buy two, and every time you take an organ from a living person, that person dies. David Kilgour: "The process of killing Falun Gong practitioners for their bodies, then often sell their bodies to foreigners of large amounts of money continues, and it is simply impossible, in my opinion that torture and murder is part of Beijing and the Games were happening in another part of Beijing. The two are simply incompatible. It is totally incompatible with the Olympic spirit … "Http: / / clearwisdom.net/emh/articles/2007/6/3/86404.html

Someone asked: "Ask yourself this. Would it be fair to people who have trained their whole lives to reach the Olympic Games to be denied that opportunity simply because some people here disagree with the practices of the host country? "I said, this guy is so lost that self-centered really cloud your brain. If his mom and dad are victims, I bet these "conventional logic" roll off the tongue like wouldnt.

Eco Fab, with Myriam Laroche – visit with body Politic


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Barack Obama Speech on Healthcare Insurance

Barack Obama Speech on Healthcare Insurance

Barack Obama Speech on Healthcare Insurance Healthcare insurance is human right everyone should have. Healthcare should not be just a privilege for the few who can afford it. Everyone gets sick and needs a doctor. But not everyone can afford a doctor. You should not have to choose between paying your bills or buying healthcare insurance. Fidelis Care is the New York State Catholic Health Plan, providing quality, affordable health coverage to children and adults in 59 counties statewide. The mission of Fidelis Care is to ensure that every resident, regardless of income, age, religion, gender, or ethnic background, has access to quality health care, provided with dignity and respect. Barack Obama Healthcare Reform obama healthcare speech obama healthcare plan obama healthcare insurance obama speech barack obama healthcare speech health insurance quotes online health insurance quotes health insurance obama healthcare health care www.fideliscare.org http www.cordblood.com Learn about cord blood banking from the world’s largest, most experienced cord blood bank. Free cord blood information kits are available.

Town Hall Politics

town hall politics
Who are these thugs who beat SEIU purple shirt on a black conservative, a meeting room outside the city?

Incredible! It is from the president's supporters, who said he wanted to go beyond racial politics in America? Here is the link to watch video raw scene. I am also surprised that the Obama administration accuses the Conservatives of making Resistance to the bill of health when his people that the pre-printed shirts and are probably paid to attend and transported by bus to events. Ago my meeting a few weeks in the municipality of the State of Washington had a lot of zombies and purple shirt. Reba K. I looked at the U have seen the same video? Where did you get Balogna this line.

Yes, the White House has informed the representatives of "coordinate" with the unions, and in this case, union members these shirts were rentals before you start to people who had waited for hours before sitting down. However, they are particularly charged with attacking a man, enraged that a black had opposed ObamaCare. Ironically, the man has come not a protester was attacked, was only at work and try to earn some money by selling "Do not Tread On Me" flags to the crowd. Under what his lawyer said on Fox News I think it should be treated as a hate crime and racially motivated epithets launched at the time.

Politics: Obama’s Town Hall Meeting — nytimes.com


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Mass Politics Senate Race

mass politics senate race
Who would have thought that the race to fill Ted Kennedy's head would be so close? Imagine if Massachusetts?

TS, of all places, to carry ObamaCare load retention, and (non-conservative Republican) possible wave across the country. What you say?

It is the headquarters "of the" people do not, Ted Kennedy, thank you. Or maybe soon again.

Shields and Brooks Examine Mass. Senate Race, US Quake Aid


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Barack Obama Tax Reform

barack obama tax reform
Obama: Social Democrat?

A health reform later this year remains uncertain reform health care in America a year later: more people can get but some of the insurance premiums are higher. Seniors can get checks for drug costs, but taxes to "fake bake" tan are higher. health policy care reform, one year later: a fierce pressure to repeal or de-Fonds the law. Intense aggression difficult legal constitutionality of the law. Republicans angry insisting the federal government …
Would not put multiple tax dodgers in the White House is considered a bad example?

This is the second tax traps in 2 weeks to nominated for a position in Obama administration. Is not this a bad example? WASHINGTON – Former Sen. Tom Daschle, voted for President Barack Obama to run their health reform efforts recently submitted amended tax returns to report 128,203 dollars in back taxes and $ 11,964 in interest, according to a Senate document obtained by The Associated Press. The White House acknowledged Friday that "certain tax issues" have arisen in connection with the nomination, but said a spokesman for the President hopes that the former Democratic leader Senate, be confirmed as secretary of health. "

Apparently not. This says a lot about Obama's character or lack thereof. Daschle will receive a pass as the Secretary of the Treasury. I'm seriously considering not paying any taxes, until there is some intergrity in our tax system.

American Nurses Association Politics

american nurses association politics
Are you surprised that Joe Wilson, the Republic who has called Obama a liar on the floor last night, is ….?

by the companies own insurance and medical industry? throughout his career in Congress, health professionals are contributing Industry Wilson earlier, giving a total of $ 244,196 for campaign, according to the Center for Responsive Politics database OpenSecrets.org. He received another $ 86,150 from drug companies, $ 73,050 firms insurance and $ 68,000 in hospitals and nursing homes. Among the main contributors are the American Hospital Association Wilson, a lobbying group that represents the interests of hospitals and health networks, and the American Medical Association, which represents physicians. Now who exactly is saying that he represents … people elected him or to the highest bidder?

End Barry is a convicted liar and there is nothing in HR 3200 that forces people to give positive proof of citizenship before receiving benefits.

Haitian American Nurses Association Gala Sept 18, 2010 Holiday Inn Suffern, NY


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Progressive Reforms Politics

progressive reforms politics

Economic Liberalisation Reforms and Growth

                                                       CHAPTER 1
INTRODUCTION AND THEORETICAL BACKGROUND

Economists through out the world are searching for what really are the major determinants of growth of an economy and different policies have been used in pursuit of the answers. The world as large has gone through a lot of economic problems, such as depressions of 1930s, 1970s and 1980s. The 1930 depression led to employing of the Keynesian policies of strict government intervention. However, the 1970s depression made policy makers lose faith in Keynesian economics. Nevertheless, most Third World countries continued with their central planning type of economic policies. There was strong disenchantment with this type of policies, which led growing number of economists and influential international development organisations to begin, in recent years, to advocate the increased use of the market mechanism that is to liberalise the markets, as the key instrument of promoting greater efficiency. In this regard economic liberalisation implies minimisation of government intervention in allocating economic resources and letting the market forces play the cardinal role, doing away with all forms of government distortions in running the economy. The market forces should play a leading role in financial, trade, labour, commodity markets and other sectors, increasing reliance in market forces is normally accompanied by stabilisation programs, (Krueger 1978,1985).

        There has been an increasing call for the private sector to take up the challenges of national development. According to Robert Barro (1996), most empirical facts point to primacy of government choices; countries that have pursued broadly free market policies, in particular trade liberalisation and maintenance of secure property rights, have experienced higher growth, than those which pursue central planning type of policies. For this reason, there have been calls for the privatisation programs.

  On the other hand Rodrik, (1992) argues that trade reforms is frequently met with scepticism on the part of the private sector and may lack support, the country implementing them suffers from terms of trade deterioration which may result into reduction of capital inflow and increase capital flights. He goes on to say that this is coupled with inflation and low zero growth. Krueger (1978) points out that to avoid this, appropriate macroeconomic policies need to accompany the increase in price of foreign exchange (devaluation), or else domestic inflation would soar and affect the intended benefits of liberalisation. That is why stabilisation programs, such as reduction in government expenditures, accompany liberalisation by cutting on government consumption, which is often negatively related to the growth of an economy.

         However Wha Lee (1993)’s findings in the case of Korea are very interesting, Korea gave subsidies to some firms manufacturing exports, managed to grow faster. He argues that the theoretical predictions about the link between growth and open trade may be ambiguous and misleading. According to critics, tariffs can either enhance or decrease growth rates, depending on which sector is protected. This is the argument of infant industry. Krueger (1985) notes that LDCs have been protecting infant industries for decades, but they have still remained infants; this is an indication that there is something wrong with the economics of protectionism. Nevertheless Wha Lee (1993) notes that since the current theory of liberalisation is inconclusive, as is the empirical evidence, the link between trade policy and dynamic efficiency is vague, depending on the industry considered.

Kirkpatrick (1995) argues that the orthodox arguments concerning the role of trade policy as the determinant of industrial performance are seen in the major role of creating price incentives. This is because liberalisation and a neutral incentives structure between import substituting and export activities is expected to yield both static and dynamic effects, static in form of technical efficiency and dynamic in the form of switching process. However, many models, both for planning and explaining the development process, according to Krueger (1978), have made a foreign exchange central to determination of the growth rates. This focus is on the role of foreign exchange (forex) in complementing domestic savings needed to support domestic investment. The effect on economic growth will be via an increased volume of exports and reduced imports due to liberalisation and devaluation respectively. It is argued that if trading partners removed tariffs, we expect the market to expand which will ultimately lead to growth of exports. Exports are also viewed as a stimulus to greater capacity utilisation, greater horizontal specialisation, increased familiarity with absorption of new technologies transmitted through trade, greater learning by doing, as a result of the increased market size and output levels and stimulation effects of having to achieve international price and quality. Expanded market economies of scale enable a producer to cast or spread a “net” widely on various consumers who may be helpful by sending back comments on how to improve the quality of the products. Since tariffs tend to be reactionary, if a country adopt liberalisation policies, its trading partners will also do away with tariffs the moment one country scraps trade restrictions, so the market size will expand.

           However, Trade liberalisation alone is not an answer. For this to be successful, there is a need to liberalise the financial sector, so that exporters can have ready capital for re-investment; nuisance taxes have to go, so that most of the foreign exchange earnings are retained by the exporters. This creates incentives to them. Macroeconomic stabilisation also has to be enforced so that inflation will not impede planning, and if this creates confidence in investors, exports should increase.

 Pro-liberalisation economists have argued that more open economies are more efficient in absorbing exogenously generated innovations, since, without barriers, not only will this increase the volumes of essential imports, but it will also facilitate the entry of new technology which developing countries are able to absorb and assimilate easily in order to expand their manufacturing base. Edwards (1992), finds strong evidence supporting the hypothesis that, with other things being equal, more liberal economies tend to grow faster than those which are not. He calls this learning by doing type of process, “technical progress ” where more contact with new commodities and technology enhances efficiency, which result in higher production. He argues that if the rate of technical progress is positively affected by the gap between the stock of the world and domestic knowledge with respect to the foreign source of technological improvement, then the country’s ability to appropriate world technical innovations depends positively on the degree of economic trade liberalisation. Therefore more open economies have an advantage of absorbing new ideas from the rest of the world. He finds that countries with more open and less distortive trade policies have tended to grow faster than those with more restrictive commercial policies. His results are in conformity with the catch up theory effect. Wha Lee (1992), points out that international trade is perceived as a vehicle through which foreign inputs are provided to domestic production. According to him trade distortions caused by tariffs and exchange rate controls decrease the long run growth rates more significantly in a country that needs to import more.

            Therefore, it can be summarised that liberalisation enhances international trade which provides comparative advantage and also provides an additional source of competition to domestic firms. Subsidies to ailing industries, no matter how much they may alleviate economic distress in the short run, represent an effort to decelerate growth, reduce incentives for mobility and lock in resources in the inefficient industries that should contract in the process of economic growth.

 However, there is a problem of measuring the benefits of trade liberalisation, which even Kirkpatrick (1995) acknowledged. Kirkpatrick admits that measuring of trade liberalisation benefits is a difficult and frustrating task. It involves two considerable methodological problems; it is important to assess the extent to which the World Bank’s conditions have been adopted. This is because most of the liberalisation policies of LDCs are not unilaterally adopted, but imposed, and therefore may lack consistency. The other problem is the assessment of the reforms that were implemented. It is complicated by problems of separating causality from association. According to him, it is difficulty to establish counter factual, and separating out the effect of multiple influences on economic performance.

             Larry Sjaastad (1982) noted that the economic liberalisation that swept Southern cone during the 1970s and 1980s was a clear reaction to the failures of preceding economics of protectionism. Uruguay and Argentina, once prosperous nations had fallen on hard times by the mid 1970s. Real per capita income in Uruguay had been declining at a rate of 1 percent in 20 years. Chile, though never a prosperous country, was crippled with a continuos fiscal deficit and an inflation of 1000 percent. Their economies were characterised by inefficient state enterprises, which despite massive tariff protection, regularly required subsidies to sustain their operating loses. Price controls, tariffs, subsidies and export taxes severely distorted relative prices with much of the private enterprises devoted to production of luxury goods. Regulatory bodies administered import duties and quotas, interest rates, credit allocation and wages. The monetary and financial sectors were dominated by the state banks with special rediscount privileges at the central bank. Their economies were in a bad state. Therefore all these countries introduced liberalisation programmes in the1980s, but their results were disastrous. The Southern cone experiences, according to Sjaastad (1982) are widely interpreted as evidence of the failure of economic liberalisation.

Zambia like Argentina, Uruguay and Chile had almost the same type of economic policies, with nationalised economy before the liberalisation program which swept the country in 1991. Its economy was characterised by inefficient state enterprises with massive tariff protection in order to enhance import substitution industries. Price controls, nuisance custom duties, subsidies on production and consumption, export taxes, foreign exchange controls. Private enterprises had to declare all their export earnings to the central bank, as it was illegal to hold forex. Zambia, before privatisation and liberalisation, had regulatory bodies to administer import quotas, interest rates, credit allocation and wages. All the macroeconomic factors were determined by political decree. The monetary and financial arenas were dominated by the state banks, with special rediscount privileges to the Bank of Zambia. According to the advocates of the liberal markets, poor rates of growth, massive inflation and balance of payment problems experienced by LDCs, and Zambia in particular, during the 1970s and 1980s were because of the rising burden of public spending through parastatal companies, excessive price distortion and inward looking trade policies which are the order of the day in the planned economy.

       Zambia today, according to the World Bank Report (December, 1997), has the most liberal and least nationalised economy in Africa. In 1991, more than 80 percent of the economy measured as a percentage of GDP was state owned. Now, as at 1997, more than 80 percent of the economy is in private hands. The one party state, which ruled Zambia since independence in 1964 from the British, chose the path of nationalisation and centralisation. According to the World Bank report (Dec., 1997), this was ruinous. The government and international organisations such as the World Bank and IMF believe that macroeconomic stability and growth are being achieved after years of inflation and decades of stagnation. According to them, the foundation for higher growth have been laid by liberalising the markets, broad tax and tariff reforms, financial sector reforms and by privatising the state enterprises. The key element in the government’s programme has been the reduction of inflation, which has fallen from 200 percent in 1990 to 20 percent in 1997. This helped the GDP to grow by 6.4 percent in 1996/7 period.

         This dissertation investigates whether there are genuine reasons behind economic liberalisation and related austerity measures, using Zambia as the case study, by describing and comparing its economic performance before and after liberalisation. We then use panel data and cross-section regression analysis on selected African countries to see if the econometric analysis results support the calls for liberalisation measures.  The dissertation is organised as follows Chapter 1 has provided introduction and theoretical background to economic liberalisation. In chapter 2, Zambia’s detailed account of its pre-liberalisation economic policies is presented. Chapter 3 looks at post-liberalisation economic policies of the country. Chapter 4 presents econometric analysis and empirical results, and Chapter 5 concludes the findings.  It should be borne in mind that this study is not about the direct measurement of the effects of liberalisation policies on economic performance. This is due to the problems cited by Kirkpatrick (1995) and the unavailability of many of the data required for undertaking a more detailed study of the country.

                                   CHAPTER 2

THE PRE-LIBERALISATION ECONOMIC POLICIES OF ZAMBIA

          Zambia’s economic history traces back to the colonial era. Zambia a former British colony was known as Northern Rhodesia. The British’s main emphasis was the mining of copper, which they exported as a raw material. Zambia obtained independence on 24 October 1964 with an economy characterised by an industrial enclave based on copper mining using British and USA capital (Hawkins, 1991). During this time there was little or no significant investment apart from the mining sector, and before independence most of the copper profits were expatriated and very little was re-invested. However, in the first years of independence 1964-69 the economy unfolded and great progress was recorded (Turok, 1979). The country had a GDP per capita that was amongst the highest in Africa; according to Turok, 1979, it was just below that of South Africa. Copper prices were high and the industry was profitable, so every indication was towards rapid growth and development. The economy was more of a capitalist than a state led.

2.1-Post-Independence Economic Reforms

          Few years after independence in 1968 and 1969, President Kaunda, with the then ruling United Nation Independence Party (UNIP), initiated reforms. According to him, this was to lead state control of the whole economy to enhance growth and equal distribution of income. It was also aimed at empowering the indigenous people to control and decide the destiny of their country’s economy. This was characterised by developmentalist philosophy (command economy) and recognition of political realities (Turok, 1979).

          The 1968 and 1969 Mulungushi and Matero economic reforms were meant to repossess the foreign economic and business interests, which now became under the state control. The UNIP government also introduced indigenous import substitutions in the industrial sector, this was aimed at reduction in the dependence on foreign manufactured goods. Although a small indigenous and foreign private sector was left, a large public sector was created and maintained by copper revenue and protected and supported by government controlled markets. As a result of the state controlled type of the economy, which emphasised the creation of industrial capacity, commercial agriculture perished and the private sector was crowded out.

          According to Turok(1979), it is commonly accepted that the weaknesses of the economy, which levelled off in 1972 and then began declining, cannot be solely blamed on the falling copper prices, though this might have been one of the contributing factors. This is because, even by 1974 before the collapse of copper prices, foreign exchange had started posing a serious constraint on economic development. A major explanation lies in the economic policies of the day. Despite its inheritance of highly concentrated and buoyant foreign owned mining enclave, the Zambian government was determined to use the state for development. The state sector share of manufacturing output was growing almost every year. Four years after Mulungushi reforms in 1968, in which the government announced its acquisition of major companies it was 53 percent of total manufacturing output and this was concentrated on essential consumer goods required by Zambia. However, despite its size and scope, the state sector which included parastatals had not established an integrated economy with forward and backward linkages, parastatals, though they were import substitution industries (ISI) deeply depended on essential inputs from abroad. The government intervened extensively and imposed a number of restrictions on the private sector, while parastatals’ decisions were made by political leaders and ministers who sat on their boards. The parastatals were to be organised on lines of the country’s philosophy of ‘Humanism’, which was coined by the President as an African socialism. There was intervention in pricing policy, which seemed to be concerned more with social welfare than with pursuing economic development goals.

In 1970, barely two years after the Mulungushi and Matero reforms capital expenditure was only growing at a marginal increase, while consumption expenditure soared. Table 2.1 shows the higher government consumption and lower gross domestic consumption from 1964-90. Due to little emphasis which was made on capital expenditure, in 1973, value added in manufacturing recorded only a marginal increase from 106 Million Kwacha to only 107.5 Million Kwacha in 1976, compared to 480 Million Kwacha in 1965 a year after independence (GRZ Economic Report, 1977). Value added by manufacturing in 1978 real terms was 15 percent lower than 1974. Hence by the mid 1970s, the bells of economic doom were loud enough in politicians’ ears, but pretended to be deaf. They instead nurtured and guarded the inefficient parastatals and the command economy. To make the situation worse, some more parastatals were created and added to the list of inefficiency. After 1970, a substantial part of Zambia’s economy was dominated by parastatal organisation, about 60 percent of the economy in terms of GDP was now in parastatal hands. Most larger companies which had been run and owned by foreigners came under government control through Industrial Development Corporation (INDECO), an agency of a government holding company.

These newly nationalised companies were especially active in such industries as food processing, textiles, auto assembly and mining. Through large- scale capitalisation, using copper revenue, these parastatals became the pillar of the Zambian formal sector. They employed 1/3 of the workforce and maintained their employment levels even during the recession, for political reasons. For instance during recession, the number of employees in private manufacturing fell from 27,370 to 23,390 in 1977, about 14.5 percent reductions, while in the parastatals they remained constant over the same period (Turok, 1979). In these parastatal bodies there were rampant and continuing reports of corruption, inefficiency and mismanagement, but government decided to give it a deaf ear. The Kayope Commission (1976), revealed catastrophic failures in major parastatals and widespread misappropriation of funds, but still the government shelved the report, and continued to give subsidies and protection to these inefficient parastatals.  Real Gross domestic fixed investment declined as there was no significant capital formation. The emphasis was put on government consumption while the economy continued   to decline. This can be seen in the decrease in capital expenditure which fell in 1979 to its lowest since independence in 1964 as Table 2.1 shows. This shows that INDECO, on which the government relied as agency of intervention was performing poorly.

 At independence, Zambia’s economy had poor foundation, domestic production supplied less than one third of the local market for manufactured goods, while total manufacturing goods accounted for only 6 percent, the same setting continued even 10 years after independence, domestic economy was not integrated lacking forward and backward linkages. In trying to enhance domestic integration the government after its 1968 Mulungushi and 1969 Matero economic reforms bought out the private share holders in INDECO which was established in 1965, but reinforced after these reforms, and obtained a larger share of profits from copper by means of higher taxation, which was then used for public investment.

TABLE 2.1: GOVERNMENT CONSUMPTION IN COMPARISON TO GROSS DOMESTIC FIXED INVESTMENT 1964-90 (IN KWACHA MILLION)

   Year              Government consumption                     Gross domestic fixed 

                                                                                             investment

1964

309.2

76.2

1965

383.4

120.4

1966

435.8

175.8

1967

558

225.8

1968

594

264.7

1969

589.4

253.6

1970

717.5

279.8

1971

801.9

264.7

1972

857.3

381.1

1973

900.7

426

1974

1083.1

560

1975

1241.8

510

1976

1337

483

1977

1547.8

437

1978

1789.3

450

1979

2045.6

65.8

1980

2473.5

566

 

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