By Meluse Kapatamoyo
The Jesuit Centre for Theological Reflection (JCTR) has said the recently increased 15 percent pump price for fuel has the potential to further deteriorate the living conditions of Zambians.
Miniva Chibuye, Coordinator of the Social Conditions programme explained, “This is because the high fuel cost will be passed on to consumers through increased transportation costs translating to an upward adjustment of the prices of goods and services.”
According to the recently released Living Conditions Monitoring Survey statistics, levels of poverty in the country had reduced. For example, the rate of extreme poverty had significantly declined from 44.5 percent in 1996 to 36.5 percent in 2006.
However, the statistics exclude the critical period of 2008 and 2009, marked by the fuel, food and economic crises. The fuel repercussions of the crises are yet to be felt, especially in developing countries.
“Some of the already-known human consequences of the crises worth highlighting include rising unemployment with long lasting effects on poverty, hunger and disease. With this alarming increase in global poverty coupled with human consequences, the government of Zambia cannot afford to be complacent following the recorded decrease in poverty as measured, “Chibuye said. “Without proper interventions, the progress made towards reducing poverty will stall with a possibility of reversing the trends.”
Basic Needs Basket
The JCTR Lusaka Basic Needs Basket (BNB) research recorded reductions in the cost of food in the months of June and October. Despite some recorded reductions in some months, nominal prices did not reduce to the level of December 2008. This trend was also observed in other towns such as Ndola, Kitwe, Livingstone, Kasama, Solwezi, Kabwe, etc.
For the month of December 2009, the nominal cost of the food items in Lusaka was recorded at K822, 100 up by K60, 500 from the January 2009 figure of K761, 550. A major rise in the cost of food was recorded in December, when it rose by K14, 600 from the November cost K807, 500.
Once the cost of essential non-food items such as housing, electricity, water, etc are included, the cost becomes more unaffordable.
“Undeniably, the current and continuing rise in cost of living is reinforcing poverty in such a way that it will be difficult for the majority of the poor people of Zambia to come out of it, ” said Chibuye.