Global Competitive Index


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I have been inundated with a lot of questions about the global economy this week; a lot of these questions are to do with the impact of the US economical woes on our global franchise, the Zambian Enterprise included.

 

So, I decided to put on my financial consultant hat and delve into as many econometrical variables as possible to try and explain what a layman may not be told are actually the causes of the economic impasse in the United States.

 

We at the Zambian Chronicle saw this coming as early as last year and in January we published David Frazier’s Global Economic Briefing in US Recession Could Affect Our Global Enterprise, The Zambian Enterprise Included …. This was followed by the Bush Administration’s rebuttal in Bush Sees No Recession Yet the very next month.

 

The argument from the administration has always been that economic fundamental have been sound and therefore much of the attention has been on monetary policy as the Federal Reserve Board has been trying to work on efficacy by reducing Fed Funds Rates. By the way, the Federal Reserve Act of 1913 gave the Fed more power than even the President of the United States when it comes to fiscal policy …

 

The problem with the reduction(s) of the funds rates though was that it created an illusion that by lowering the rates, the cost of borrowing would be lower thereby encouraging market participation by increased credit derivatives (lending and borrowing) in the market.

 

So new buyers were introduced into the system; mortgagee(s) rushed in and started refinancing already existing loans at the new lower interest rates at times cashing in on existing equity and business was booming as finance companies managed to make tones of money from loan origination fees, increased their asset holdings at much higher appraised values while turning around to sell mortgaged backed securities on the secondary market.

 

This illusion missed one point though; liquidity, liquidity, liquidity … the US unemployment rate has steadily been increasing from a “One State Recession” in Michigan at about 12% to the national average of about 6%. This meant that more and more people were getting out of work and despite their new lower mortgage rates and cashed out equity, they had no “ability to pay”.

 

Meanwhile the Federal Reserve kept on lowering the funds rates which eventually became a stimulus that would only encourage further mischief as lenders abrogated their fiduciary duties extending credit to unworthy borrowers and cut corners to close on deals.

 

The Fed regime was an accomplice to that reckless behavior. A fed funds rate of around 3.5% was a detriment particularly with commodities prices soaring and incipient inflation coming to US shores from demand-pull pressures and rising labor costs.

 

A real palliative came in as home owners started defaulting due to their lack of liquidity, leading to foreclosures and short sells. As homes foreclosed and or are short sold, their values declined thereby creating negative equity.

 

But that’s not all, what added salt to the injury is what is called “securitization”. This particularly in the US market comes in the form of Mortgage Backed Securities – MBS. These are asset backed securities sold on the secondary market whose cash flow is backed by collateralized mortgages.

 

Any one with an understanding of basic finance knows that if you borrowed $100,000.00 for 30 years you would probably pay back $300,000.00 on that same mortgage, $200,000.00 of which would be interest income for the lender.

 

These MBSs are backed by that interest income, sold as bonds and or other financial derivatives on the secondary market with a guaranteed yield. Insurance companies, retirement funds and other ultra-virus thrifts like to invest into these marketable securities because of their guaranteed revenues.

 

Well, the problem is if people have no work and thereby are defaulting, then the MBSs are not in actuality guaranteed for the loan term(s) because of foreclosures and or short sells in a downturn economy or prepaids in a vibrant one.

 

These marketable securities (MBSs) are a prerogative of the Securities and Exchange Commission (SEC) and they are regulated by them but they were asleep at the switch. The Federal Reserve Board is in charge of monetary policy and just kept on lowering funds rates and was asleep at the switch.

 

The Department of Treasury has a stake in checking on the yields from MBSs because they affect yields on Treasury Bills but was asleep at the switch; the Bush Administration was busy chasing Bin Laden and was asleep at the switch while the US Congress are supposed to be the watchdog for the tax payers but were busy fighting partisan politics, sleeping at the swath.

 

As of the first quarter of 2006, the total market value of all outstanding MBSs was approximately USD 6.1 trillion, according to The Bond Market Association. These are paper assets in which tax payers’ retirement security has been vested and is likely to be lost if no one takes the right steps going forward.

 

There two schools of thought going on this weekend in Congress, one that says a Government bailout means socializing the markets. Another school of thought wants to lend money to Fannie Mae and Freddie Mac so they can pay back with interest using market forces.

 

We at the Zambian Chronicle see an opportunity for the Federal Government so good to be passed on. The best route would be an outright bailout that places Fannie Mae and Freddie Mac under receivership.

 

This route would not only make the American tax payers shareholders in the $700 billion bailout  enterprise but as these non-performing loans are turned around into performing assets all future interest income can be turned around to be invested into the Social Security and Medicaid/Medicare Trust Funds which are scheduled to go bankrupt by 2045.

 

… problem is I am not running for President of the United States of America; can’t run – not a US born citizen and so they probably would not listen …

 

In closing, this is a dire lesson for all emerging markets, the Zambian Enterprise included. What we have learnt is that greed is bad; using securitization, fund managers increased their income as they lowered their own risks.

 

By cutting corners, greedy loan officers and finance companies made a short term killing and by sleeping at the switch, the SEC, the Feds, the Bush Administration and the US Congress almost crushed the world’s beacon for capitalism.

 

Sometimes, it’s good to know that no one is actually looking out for you after all, you are on your own and you better watch your own back …

 

Live Long & Prosper; that’s this week’s memo from us at the Zambian Chronicle … thanks a trillion.

 

Brainwave R Mumba, Sr.

CEO  & President – Zambian Chronicle 

 

Copyrights © 2008 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom. 

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Copyrights © 2008 Microplus Holdings Int., Inc.

 

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b6_edited.jpegNegative Campaign ,Malicious Rumors, Gossip and Hatred on Aspiring presidential candidates are set backs and can bring a Destruction in Voting for a Great President. 

By Belliah K Theise

Having followed USA presidential debates and making comparisons of what is going on in the entire world with politics, we found similar paterns that has made third world countries be the way they are now, in terms of economy.

Here is what we have to say at Zambian chronicle:

As a presidential candidate aspiring for a public office, or you may be a voter. This is a time to revisit your weaknesses and try to improve on them.

Listed below are some of the things future Leaders should avoid in order to maintain peace and trust in people who they lead.

1.      Negative campaigns that may bring damage to the image of  the country and future leaders.

2.      Malicious Rumors, without meaning or basis

3.      Cheap Gossip

4.      Hatred

5.      Tribal 

6.  Racial discrimination 

  By all means, the above six elements  should not be used as a tool to bring down your rival or to pick a right candidate for president. Positive campaign builds and unites nations. Negative campaigns, brings anger, violent and divisions.

As a voter, learn to validate each rumor, do not be a follower.  Learn to use your own discretion, good sense of judgement and common sense, in critical matters like choosing or picking the right candidate as your commander in Chief.  Avoid operating like robots that are programed to perform certain functions.  Operating like a robot, makes both leaders and their voters look like idiots, when things go sour.

Important factor to Remember :

Separate Hollywood gossip of celebrities to  a presidential candidate gossip. We do understand that, there is no smoke without fire , but on the other hand,  Learn to separate facts from gossip,  Every voter should know that, NOT every rumor or gossip comes out to be 100% true. You as voters only  come to realize when it is too late, after you have voted for a wrong person, because you based your judgement on rumors.  People use rumors and gossip  for many reasons. May be for financial gain, hatred or other things.

Always keep in mind that, we humans always enjoy negatives, We all focus on unproductive rumors and gossip, that diverts us from dealing with serious topics that is affecting the country.  If a negative outweighs a positive side of a candidate, it takes away all the good work he/she has done.

Remember, Media and campaigns are there to help voters to pick the best candidate, but at the same time, politicians uses that as a tool to bring down their rival candidates, depending  how strong one has links to the media.  Many great leaders are brought down in no seconds, and voters end up voting for useless candidates.

Again… use your common sense and your good judgement, when you read negatives that comes flying on potential candidates.

Good luck to all the presidential candidates, as they go on the road to lead their nations with a passion at heart for their people. Stay focused on important issues that affects your country. Do not get rapped up in personal issues, that can bring harm to your country and comes back to haunt you.

You all have one purpose:- To save your nation with integrity. The same people you are trying to persuade to vote for you, will be the same people who will vote you out. Voters always keep a record. Campaign with a passion for your people and country at heart.

For voters, validate your candidates with facts, and basing your votes on malicious rumors or unproductive  gossip , that will not do good to your country in the future, will not help.

Thanks a trillion

Belliah K Theise

Copyrights © 2008 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

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By Belliah K Theise

 b6_edited.jpegThis week ‘s memo is about  the next Zambian president. Who should take the Zambian presidential sit in 2011?

I hate to admit this, the truth is, our leaders are always voted by villagers, marketeers and street boys who have no clue about education and foreign policies. 

 According to our observation, most politicians have a way to get into a mind of a person with little knowledge or no knowledge at all.  This includes developed countries. If you take a close look on politics, you will find that people end up voting for a candidates who keeps preaching what voters want to hear. People will go out to vote just because of a hear say,  without assessing a candidate  in practical terms.

In most cases, political Candidates have a tendency to study what the audience want to hear. Any one can stand and say I will give you jobs, bring rich breakfast, lunch and dinner in your home. Zambian Voters will listen because there are no jobs and are in poverty. As a candidate, you are happy when people vote for you. Are you going to keep your promise once you are voted in office?

 Practically, things always turns out to be different from all the promises that politicians make.

it’s time for candidates who are aspiring, to start preaching on practical issues and not to give fake hopes to people. Talk about real things that affects the economy of every country, and explain, to voters that it is not an easy path to bring stability to the country, it takes hard work and devotion to make things happen.

Disappointments, comes out when a candidate makes fake promises, do something else after being voted into office. We ask all the aspiring candidates to be more practical in the way they make promises to people, to avoid early disappointments.

It is not fair for voters  who have no clue on “Inflation” or economics, who listens innocently and line up to vote for a candidate who later does something contrary to his/her promise.

Zambia has highly experienced ,knowledgeable, and educated people.  Why is it that Zambians ends up voting for wrong leaders?

Could it be that all the educated Zambians, are too frustrated with the system, and has opted to sit back and watch, while the poor Zambian villagers , marketeers and street boys take their stand to vote for what they hear from those who can read their minds and give them fake promises? or could it be that qualified leaders and educated Zambians are  too busy with other duties and other personal stuff, or they are not brave enough to fight for their people or  is it lack of bringing themselves out with a positive approach to their fellow Zambians?

 If you are candidate or a voter. It is time to revisit your weaknesses and try to improve on them.

Our advice is:

Avoid:  Hate, tribal, gossip, and malicious rumors. By all means, should not be used as a tool to pick a right candidate for president. Validate each rumor, use your own discretion and common sense. Avoid operating like robots that are programed to perform certain functions.  Operating like a robot, makes both leaders and their voters look like idiots, when things go sour.

Remember:

Not every rumor or gossip is true. Yes there is no smoke without fire, but you have to remember that humans always enjoy negatives that appear on a candidate without using their good sense of judgement or common sense, they vote basing on those facts. If a negative outweighs a positive side of a candidate, it takes away all the good work he/she has done.

Remember, Media and campaigns are there to help voters to pick the best candidate, but at the same time, uses that as a tool to bring down a candidate, if the opponent has strong links to the media.  Many great leaders are brought down in no seconds, and voters end up voting for useless candidates.

Again… use your common sense and your good judgement, when you read negatives that comes flying on potential candidates.

On that note, we decided to re-visit Inonge Mbikusita Lewanika’s profile, as she seem to be carrying all the package of what makes a great president.

We at Zambian Chronicle, would like to see Dr Inonge Mbikusita Lewanika, contest for president in 2011. We have well rounded Zambian candidates like, HH and Many more, Inonge adds to the package.

For years, Zambians have had a problem when it comes to picking a president. It’s time to check where Zambians go wrong when it comes to voting?

Weakness:

We Vote with emotions, tribal, rumors and hate, Worse more when it comes to gender. 

In the end we get disappointed with our own voting when things go in a different direction. 

May be it is time to turn around, and look seriously inside lives and works of the aspiring candidates, without looking at a tribe, relations, cheap gossips or malicious rumors.

It is even more difficult to convince a Zambian mind, when it comes to women leadership.

When we look at Zambians, we see a lot of potential candidates men and women, that can lead us in 2011, and bring light to Zambia. 

I am not here advocating for Inonge because I am a woman.

Here at Zambian Chronicle, we are looking at the credentials, Education and experience.

Zambia needs a candidate for president, that has both local and foreign policy experience. As an African country we can not rule out education. It should be very cardinal  in this aspect.

 Therefore when it comes to choosing a president, let us open our eyes and pick quality and not quantity.

Inonge Mbikusita Lewanika and Hakainde Hichilema are both quality.

Having said that, Zambian Chronicles will continue to bring out candidates, that we think can make great president for Zambia in the future.

As we pointed out, in our earlier debates, Hakainde Hichilema and Inonge Mbikusita Lewanika, have the real package.

Therefore, without looking at the tribes and gender, we feel Inonge can make a great president for Zambia for 2011. This includes, the appointees of ministers and local government officials.

This forum may help the next Zambian President to pick right candidates for certain roles.

Below is Inonge ‘s profile and credentials:

Copyrights © 2008 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

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Princess Inonge Mbikusita-Lewanika (born 10 July 1943, Senanga) is a senior Zambian politician currently. For more about her check

http://www.inongelewanika.com/family.htm

   1.   Dr. Inonge Mbikusita-Lewanika is currently Ambassador of the Republic of Zambia to the United States of America . Before her appointment to Washington D.C.

 2. She was Ambassador and Special Envoy to the Zambian President during his term as Chairman of the African Union.

3. Dr. Lewanika served as a Member of Parliament in the Zambian Parliament from 1991 to 2001. She was the first Chairperson of the Zambia All Party Women Parliamentarians Caucus and also founding Vice-chairperson of the outhern, Eastern and Horn of Africa African Women Parliamentarian Caucus.

  

4. At a very critical time just before national elections in 2001, Dr. Lewanika chaired the National Crisis Committee of the Alliance of Opposition Political Parties.

5.  She is a former candidate for President of the Republic of Zambia in the December 2001 Elections.

6.  She is an Educator by profession and has worked in various levels of Education.

Prior to her involvement in politics, Dr. Lewanika worked with UNICEF in key leadership roles in Africa overseeing more than twenty countries at a time. Jim Grant, the former head of UNICEF once called her “the most knowledgeable person about the children of Africa .” Dr. Lewanika was among five women from various continents to brief members of the United Nations Security Council on the first and unprecedented debate that resulted in UN Resolution 13 on WOMEN, PEACE and SECURITY in the year 2000. She was among sixteen (16) eminent African Women Members of the Organization of African Unity (now African Union) Committee on Peace and Development, an Advisory Group to the African Union.

She was President of Federation of African Women’s Peace Networks (FERFAP) from 1997 to 2002. As President of the Federation of African Women Peace Networks (FEFAP) she contributed to mobilization of peace activities. In that capacity, she was selected to be among ten prominent African Women Peace Workers that visited Rwanda soon after the genocide. She later led a United Nations delegation to Burundi and Rwanda to assess the effects of the genocide on women and children and recommend intervention strategies. She led the Electoral Institute of Southern Africa (EISA) Observer Mission of 96 Southern African

Academicians, Researchers and Members of Civil Society to the Zimbabwean Presidential, Mayoral and Council Elections in 2002. She was one of the International Youth Foundation’s founding board members.

Dr. Lewanika holds a Ph.D. in Early Childhood and Primary Education from New York University . She is a mother of two grown daughters, a grandmother to four boys and a grand daughter. She has lived in five countries and speaks eight languages.

——————————–

A look at more of  Inonge Mbikusita Lewanika’s work Below: 

After 30 years of promoting girls’ education in the less-developed world, aid workers are now realizing that it is not enough to simply open the school door to girls. Unemployment, clean water and HIV/AIDS are now also on their agenda.
Inonge Mbikusita-LewanikaWASHINGTON (WOMENSENEWS)–Like many aid workers and activists trying to improve the lives of women in developing countries, Inonge Mbikusita-Lewanika has long viewed education as the key to solving many of her countrywomen’s problems.Mbikusita-Lewanika, a former member of Zambia’s parliament and now the country’s ambassador to the United States, says the benefits of educating girls are so numerous– from raising marrying ages and lowering birth rates to stemming health and economic problems–that she would like to install a plaque reading “Send the Girls to School” in every village.But 30 years after the U.S. government and other aid-givers began to promote gender equality in their programs, they, like Mbikusita-Lewanika, have learned that relieving the burdens of poor women is more complex than once thought. Foreign aid officials from the United States, United Kingdom, United Nations and various nongovernmental organizations say that it is not enough to open the school door to girls if their families are besieged by unemployment, unclean water, labor-intensive household chores and, increasingly, debilitating health problems such as HIV/AIDS. Nor is it enough to get a few women elected to the parliament or congress while women in the countryside still suffer age-old discriminations.To succeed, say aid experts, gender-equality programs must be integrally incorporated into the aid process from top to bottom, beginning with constant attention to gender issues at the policy level and ending with a wide distribution of burden-relieving aid in the rural areas where discrimination is often most ingrained.In Africa, for instance, women perform about 75 percent of agricultural work, according to Mark Blackden, the lead economist in the World Bank’s Poverty Reduction and Management of Gender Equity Division. He estimates the continent’s per-capita income would have doubled over the last 30 years if women had been given more aid and education to help with crop production. But aid givers have only recently realized that “one does indeed need to talk about the African farmer and her husband,” Blackden said.Instead, because of cultural misunderstandings, they have often directed agricultural education and technology to men. As a result, Mbikusita-Lewanika said, it is not uncommon to see men sitting on tractors as women and girls continue to cultivate with a hand hoe nearby.Clearing a small plot of land in this manner can involve 18-hour days, leaving women little time to raise their children, gather fire wood, walk long distances to find potable water and, increasingly, care for the sick. With such intensive household labor needs, Mbikusita-Lewanika said girls often have little time for school.”The average woman takes care of everyone else but herself,” Mbikusita-Lewanika said at a recent Capitol Hill briefing for legislative staff.In countries where economies have been destroyed by conflict or AIDS, another factor diminishes the rationale for education: The lack of jobs when a girl graduates. As a result, Mbikusita-Lewanika said that, while education “may be the most important investment, it may not necessarily be the first investment” that donors should undertake. For instance, providing drinking water would save women in many Zambian villages 1 1/2 hours a day, she said.In 1973, the U.S. Congress passed the Percy Amendment requiring that the nation’s foreign aid help integrate women into the mainstream of developing countries’ societies. Since then, the U.S. Agency for International Development–the main administrator of U.S. development aid–and other organizations have progressed from conducting a few gender equality projects a year to considering gender issues as a part of nearly every decision. While women’s issues once were often segregated in a separate office or set of discussions, all programs are now expected to address their impact on women.”The progress can be summed up in one sentence: It is no longer a separate thing,” USAID administrator Andrew S. Natsios told a Washington foreign aid conference earlier this month.

More Work to Be Done

Still, aid officials and activists say there is much more to do. According to the World Bank, more than 20 percent of the world’s population still lives on about $1 per day. The majority are women. And women’s burdens, especially in AIDS-stricken Africa, are growing as they bear bigger social and financial burdens.

One way donors can begin to lift that burden, Mbikusita-Lewanika told legislative staff, is to bypass governments and distribute aid money to local faith-based organizations and other groups that work at the local level and already know the intricate problems the women in their community face. Many central governments have not established effective ways to distribute help in the countryside, she said.

Other officials suggest increasing funding to fight HIV/AIDS in Africa. The $2 billion the Bush administration is prepared to spend in 2004 “is not enough,” said Kathryn Wolford, president of Lutheran World Relief, based in Baltimore.

Wolford also suggests an increased focus on debt relief for poor countries, which would free funds for social programs and infrastructure that could relieve women’s burdens.

Other activists say aid organizations need to collect and process more data showing the positive link between women’s participation and economic development. While many activists suggest that there is already too much talk about women’s problems and not enough action to solve them, economists say that more convincing evidence of the link between women’s progress and economic progress could be found.

At the foreign aid conference, Phil Evans, the senior social development adviser for the United Kingdom’s U.N. mission, said that statistical gender analyses are often riddled with “methodological problems,” in large part because researchers have focused on studying women instead of placing them in a societal context.

Some say the United States should signal its commitment to gender equality by ratifying the Convention on the Elimination of All Forms of Discrimination Against Women, an international treaty that aims to outlaw discrimination against women and requires signatory countries to periodically report on their progress. President Carter signed the treaty in 1980 but the U.S. Senate has not ratified it as 174 nations have done.

Ratifying the treaty would send a powerful signal that the United States will join the world to “use the instruments available to us to hold countries accountable” for improving women’s lives, Geeta Rao Gupta, president of the Washington-based International Center for Research on Women, told legislative staff.

New Solutions in Afghanistan

In Afghanistan, USAID is attempting to deal with these challenges and its methods are not always very subtle. To encourage families to educate their daughters, USAID gives extra rations of vegetable oil to girls who attend school every day for a month, Natsios said. The number of girls attending school has increased overall from 6 percent to 35 percent, Natsios said, and is reaching 50 percent in some towns.

Not all of USAID’s work in Afghanistan is so targeted at women and girls but Natsios said he has found that nearly every project is having an impact on women’s status. For instance, the U.S. program that is building a 300-mile road from Kandahar to Kabul is unexpectedly improving women’s health in southern Afghanistan. Now mothers in childbirth and women in other forms of medical distress can be driven to medical facilities in Kabul in a matter of five to six hours. Before the road was built, the trip could take two days, Natsios said.

In addition, USAID has installed day-care centers in all Afghan government ministry buildings. Natsios said women who work for the ministries–many now widows with young children–said they would not return to their jobs unless their children had a safe place to go.

While many activists and government officials say gender issues are no longer seen as women’s alone, they hope the next 30 years will bring a greater resolution to age-old problems.

“It has taken a very long time to get as far as we are and (we) have a very long road to go,” said Julia Taft, assistant administrator and director of the United Nation’s Bureau for Crisis Prevention and Recovery.

Lori Nitschke is a freelance journalist living in Washington, D.C. She was recently a Knight-Bagehot fellow at Columbia University in New York, where she received master’s degrees in journalism and business administration. Previously, she covered economic issues for Congressional Quarterly.

Copyrights © 2008 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

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ben-ali.jpgZine El Abidine Ben Ali was born on September 3, 1936 in Hammam-Sousse, to a family of moderate means, which brought him up to respect tradition and imbued him with a sense of dignity, patriotism and respect for others.

From these values he developed a propensity for simplicity, hard work and rigor, as well as a sense of moderation and tolerance. While still in the Sousse secondary school, Ben Ali responded to the call of patriotic duty.

Outraged by colonial oppression, he became active in the nationalist movement, acting as liaison between the regional structures of the Neo-Destour Party and the armed struggle. As a result, he was imprisoned and excluded from all educational establishments in Tunisia.

Yet he did not give up his studies and soon resumed them with enough energy and determination to persevere into tertiary education after completing high school. Recognizing Ben Ali’s outstanding qualities, the party sent him abroad to pursue his higher training as part of a group that was to form the nucleus of the future national army.

He first graduated from the Special Interservice School in Saint-Cyr (France), then from equally prestigious schools: the Artillery School in Châlons-sur-Marne (France), the Senior Intelligence School (Maryland, USA) and the School of Anti-Aircraft Field Artillery (Texas, USA).

He also holds a degree in electronic engineering.“My interest in computer science,” he was later to say, “has had a considerable impact on the way I work, giving me a definite taste for Iogic, rigorous analysis and long-term planning which shuns improvisation.”

The second stage in Ben Ali’s career was marked by a steady increase in responsibilities, due to his sense of duty, his readiness to Iisten to others and his capacity for rigorous analysis. Prior to making any decision, he would carefully consider available information, analyze situations and compare results.

Once the decision is made, he personally sees it through to a successful conclusion thanks to diligent action and close follow-up.Summarizing this process to an American newspaper, he said in a nutshell: “I listen, I ponder, I act.”

In 1964, while still a young staff officer, he created the Military Security Department which he directed for 10 years. ln 1974, he was appointed military attaché to Morocco and Spain. He was then assigned to the office of the Defense Minister before becoming Director General of National Security (December 1977).

In April 1980, he was appointed Ambassador to Warsaw. At the end of his tour of duty in Poland, he returned to Tunisia in 1984, to serve, first, as Director General, then as Secretary of State (October 29, 1984), then as Minister of National Security (October 23, 1985). On April 28, 1986, he became Minister of the Interior, and in June of the same year a Member of the Political Bureau of the Socialist Destourian Party (PSD).

He was soon appointed Assistant Secretary General of the PSD. Promoted to the rank of Minister of State in charge of the Interior in May 1987, he was appointed as Prime Minister on October 2, 1987, at the age of 51, while keeping the Interior portfolio.

By the same token, he became Secretary General of the PSD.President Habib Bourguiba at the time was weakened by old age and illness, and was surrounded by seraglio intrigues. Ben Ali, however, remained above rivalries, and acted rather to ease the political climate, to promote openness to organizations such as the Tunisian League of Human Rights and to establish contacts with opposition parties.

This won him the sympathy and respect of the entire political class, which considered him a man of dialogue and openness.As Prime Minister, Ben Ali took charge of a country in crisis. He confronted the situation with determination, foiled intrigues and took endless calming measures.

He strove to restore confidence, advocated logical and realistic solutions, and invariably made the higher interests of Tunisia prevail. During that disturbing period, President Bourguiba was increasingly subject to frequent lapses and was eventually disconnected from the realities of the country.

On the strength of a medical report drawn up by seven specialists treating President Bourguiba, attesting to the latter’s incapacity, and by virtue of Article 57 of the Constitution, Prime Minister Zine El Abidine Ben Ali assumed the highest executive office on November 7, 1987.

The ensuing transition went smoothly and in full respect of constitutional legality, and the former president was treated with all due respect.From the moment of his investiture, President Ben Ali has made every effort to honor the commitments contained in his Declaration of November 7th: rule of law, sovereignty of the people, national reconciliation, respect for fundamental freedoms, democracy, pluralism, social justice, solidarity, hard work, openness and modernity.

This program received the support of the overwhelming majority of Tunisians as it met their expectations.First of all, Ben Ali restored the vitality and credibility of the old Socialist Destourian Party (PSD), which had fallen into lethargy.

Renaming it the Democratic Constitutional Rally (RCD), he renovated its structures, modernized its action methods and reformulated its discourse. The RCD opened up to the young, renewed its cadres, and restored free debate and a sense of initiative for the rank-and-file. This reinforced its credibility and its grassroots outreach, and widely enlarged its constituency.

On the political plane, a climate of détente and national concord set in and numerous measures were taken to establish true democracy and lay the groundwork for the rule of law. The Constitution was amended to do away with lite presidency and automatic succession.

The Economic and Social Council was re-structured, its prerogatives extended and its representation broadened to promote national consensus on major development options. A Constitutional Council was created soon after the Change of November 7th to guarantee, in both letter and spirit, the constitutionality of the laws.

In 1998, a constitutional law provided that the opinions of the Constitutional Council be binding on all powers and all authorities.Freedom of expression was guaranteed, and the Press Code amended three times to modernize and liberalize public reporting conventions, and to provide journalists with adequate conditions to exercise their profession.

Specific measures were taken in favor of the opinion press. A new reform of the Press Code was announced in 1999.A new law on parties was adopted in 1988. It redefined the procedure governing the establishment of political groups, giving pluralism a new impetus and an irreversible character. The early presidential and general elections of April 2, 1989 were the first in the country’s history to take place in absolute transparency and perfect conformity with the law.

As a candidate of all Tunisians, across party fines, Zine El Abidine Ben Ali was elected that year President of the Republic. The consensus in support of President Ben Ali was confirmed by his re-election on March 20, 1994, and on October 24, 1999, with a very large majority.

The amended Electoral Code also promoted the multi-party system in the 1994 general elections, as it enabled, for the first time since Tunisia’s independence, the entry of the opposition into the Chamber of Deputies.

The introduction in 1998 of new amendments into the Electoral Code allowed the opposition to win 20% of the seats in the Chamber of Deputies after the legislative elections held on October 24, 1999. The opposition won the same proportion of seats in the municipal elections held in the year 2000.

Other amendments lowered the minimum age of candidates for the office of Deputy and guaranteed the right to run for office for all electors born of a Tunisian mother while, previously, only the elector born of a Tunisian father could be a candidate.

The Constitution was also amended to allow for several candidates to run in the country’s presidential elections. For the first time in Tunisia’s history, the incumbent president was challenged by opposition candidates, during the elections held on October 24, 1999.

President Ben Ali made Tunisia a pioneer country in the protection of human rights, seeing to the implementation of a comprehensive policy combining economic, social and cultural rights with civil and political rights.Just two weeks after the Change, a bill laying down the rules for pre-trial custody and preventive detention was adopted.

The State Security Court and the office of State Prosecutor were abolished and so was hard labor.The 1984 United Nations Convention against Torture and other Cruel, Inhuman and Degrading Punishments or Treatments was ratified without reservation. The rights of the child are now protected by law, and the culture of human rights is promoted and widely disseminated.

A new law was enacted in 1999 with the aim of reducing the period of pre-trial custody, instituting public service work as a sentence instead of imprisonment (provided that the convicted person accepts it freely); and defining torture according to international standards.

The purpose of the law was to harmonize national legislation with the relevant United Nations Convention which Tunisia had ratified unreservedly. Moreover, a bill was submitted to the Chamber of Deputies to establish the rule of dual jurisdiction in criminal cases and to create the position of magistrate in charge of the implementation of sentences.

Authority over detention facilities and their administration were also transferred to the Ministry of Justice. Since November 7, 1987, President Ben Ali has expressed his unwavering commitment to the emancipation of women and his determination to further women’s rights.

The National Pact, a culmination of the national reconciliation drive engineered by Ben Ali, was endorsed by all the country’s political and social tendencies and currents, thus sanctioning national consensus. A general amnesty law was decreed.

President Ben Ali announced, on February 13, 2002, the introduction of a major constitutional reform bill aimed at consolidating the bases of the republican system of government, further anchoring democracy and promoting human rights and public freedoms. The proposed reform is considered the broadest and most far-reaching in the history of post-independence Tunisia.

The reform bill gives a high profile to human rights and freedoms within the body of the Constitution, consecrates pluralism in presidential elections, and introduces a greater role of Parliament in the oversight of government activity, while preserving the characteristics of the presidential system of government.

Among the other provisions of the reform bill is the creation of a second legislative body beside the Chamber of Deputies. The reform bill broadens the role of the Constitutional Council, consolidates its independence and entrusts it with the task of monitoring presidential and legislative elections at all stages.

Based on his deep belief in the will of people as an over-riding imperative, President Ben Ali decided to submit the bill, after its adoption by Parliament, to a popular referendum, so as to make sure that the intended reform truly reflects the people’s choices and aspirations.

To put the country back to work, President Ben Ali succeeded in clearing the social climate by rehabilitating the Tunisian General Labor Union (UGTT), instituting dialogue between management and labor, and making labor a cardinal value.

This was done out of the conviction that there cannot be any social justice or progress without the creation of wealth and without a concerted effort to ensure production and creativity.The economic reforms introduced against this background have enabled the country to achieve a sustained economic growth rate of about 5 percent and to lower the inflation rate to 2.7 percent.

A national program for modernization and upgrading of the industrial fabric has been developed in collaboration with the European Union, with which Tunisia signed an association and free-trade agreement in 1995.

The country’s modern infrastructure, favorable legislation and climate of stability and growth have attracted an increasing number of foreign investors. The economic success of the Tunisian model is recognized all over the world and some observers have even called it “the Tunisian miracle.

In June 2000, Tunisia was ranked as the most competitive country in Africa by the World Economic Forum 2000-2001 Report. in 2006, it reiterated the,feat by being ranci ed.as the most competitive country in Africa and in the Arab world by the same WEF. For period 2007-2008 Tunisia still took first place in Africa.

No doubt the humanistic approach to social realities will prove to be one of the dominant features of President Ben Ali’s personality and record. A man of the people, he constantly listens to citizens, and espouses their concerns and expectations. What he has accomplished in this respect is based on a genuine sympathy with the underprivileged and a rejection of exclusion, together with investing in disadvantaged regions and creating equal opportunities for all.

As a result, the poverty rate has been lowered to 4.2 percent and the middle classes now account for 80 percent of the population. Thus it is deep appreciation, even affection, that Tunisians feel when they see their president making impromptu visits to deprived districts, steep mountain areas or social, educational and economic institutions.

Ben Ali strives to give concrete expression to the concept of national solidarity, which is the foundation of his social policy. His visits are invariably followed with immediate action, sometimes in the form of a cabinet meeting the same day, which he chairs in person, to make appropriate decisions.

It was after such a visit to one of the remote areas of the country in December 1992 that the president decided to create the National Solidarity Fund, commonly known as “26-26 Fund” after its bank account number.

This decision was warmly welcomed by Tunisians, who demonstrated their solidarity by responding to the appeal of the president with generous donations to the fund.The mission of the “26-26 Fund” is to end isolation, improve living conditions in deprived areas and enable their inhabitants to undertake income-generating projects.

Building on the exceptional success of this fund in fighting poverty, a new fund, the National Employment Fund, also known as the “21-21 Fund”, has been launched for the purpose of creating job opportunities.In addition, the creation of the Tunisian Solidarity Bank and the establishment of a micro-credit system have made it possible to finance thousands of small projects every year, create jobs for young graduates and promote enterprise.

The educational reform which made school attendance compulsory until the age of 16, has raised the schooling rate for 6 year-old children to more than 99 percent, fostered openness, tolerance and innovation, and has further promoted equality between men and women.

Such equality has been reinforced by a host of avant-garde measures taken by Ben Ali. The Code of Personal Status, one of the most advanced in the world with respect to women, has been strengthened and gender equality is now a feature of daily life. After the 1999 legislative elections, the number of women in the Chamber of Deputies has virtually doubled.

As a result of the numerous presidential initiatives in favor of women, and particularly the measures of August 13, 1992, Tunisian women, more than just having their gains and basic rights guaranteed, became full partners to men in all fields of development.On the foreign plane, President Ben Ali has instituted an active and dynamic diplomacy.

Working for the integration of the entire Maghreb, the establishment of an inter-Arab consensus and the creation of a Euro-Mediterranean area of co-development, Ben Ali is actively contributing to the search for a just and lasting peace in the Middle East. His chairmanship of the Organization of African Unity highlighted his commitment to seeking negotiated solutions to the conflicts afflicting the continent and to preventing new ones.

In September 2000, the UN General assembly adopted this humanitarian project, paying tribute to this initiative which aims at establishing a mechanism for the consecration of universal values and ensuring a better future for the whole mankind.

UNESCO’s designation of Tunis as Regional Cultural Capital in 1997 marked Tunisia’s growing cultural influence and its ability to contribute to dialogue among civilizations. At the instigation of its president, Tunisia’s entry into the arena of new communication technologies has been facilitated by numerous government incentives.

All universities and high schools are connected to the Internet. A program has been launched to connect public libraries to the worldwide web.In 1998, upon an initiative of Tunisia’s President, the International Union of Telecommunications( ITU), an organization affiliated to the United Nations, decides to hold a World Summit on the Information Society.

The Summit took place in two distinct phases, being hosted by Geneva in 2003 and Tunis in November 2005. By many accounts, the Tunis Summit which is also known as the ” Summit of solutions” was a tremendous success both at the organizational and the conceptual levels. It will be crowned by the adoption of two major texts: the ” Tunis commitment” and the ” Tunis Agenda”.

President Ben Ali is married and is the father of six children. His wife, Mrs Leila Ben Ali, is active in a number of Tunisian and international charities, working to promote the causes of women, families and children.

The other presidents in the running included Zambian President and current Chairperson for SADC nations, Dr. Levy P Mwanawasa, SC. who came in second, Namibian President Nifikepunye Pohamba in third place, President Armando Guebuza of Mozambique in fourth place, President Mamaduo Tandia of Niger for fifth classy-daddy-3.gifplace, President of Botswana Dr. Festus Mogae in sixth and President John Agyekum Kufuor of Ghana as seventh …

Special thanks go to our friends at Tunisia Online, the World Economic Forum, The Global Peace Index Group, Global Competitive Index Group, Economic Times, Time Magazine, Financial Times, CBS, WSJ Online and many others too numerous to mention … thanks a trillion. Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

Copyrights © 2007 Microplus Holdings Int., Inc.         

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Somehow it gets ingrained in our African minds that a culture of suffering, poverty and an unassuming nature is synonymous with life. For us for the most part, we tend to shun away from success, we tend to consider it a pariah. 

As long as we are getting along just fine, as long as life is not ducking a bad blow to us, it tends to be hallelujah all the way. It looks like we are fine with a life of a paycheck to another paycheck … an employee and not an employer, a worker not an owner; just listen to our politicians and you will get the grip. 

In fact, African nations are ranked at the bottom when it comes to prosperity by the World Economic Forum as revealed in Zambia’s Global Competitiveness Stinks, World Economic Forum Reveals …  not due to lack of resources and expertise, no, no, no. 

It is due to a lackluster approach to the basics and the tenants of human aspirations. We get into these group thinks that tell us that aspiration and ambition are wrong; and we buy into it. This is one of the major fallacies that have kept us behind for centuries. 

Does it surprise you that while Caucasoids, Australoids and Mongoloids were still living in curves, Negroids were busy building pyramids, inventing trigonometry, moving from Stone Age to the Iron Age, discovering astronomy and creating sundials, calendars, etc? 

But just what went wrong is the billion dollar question. Part of the answer lies in analyzing our culture and as long as we keep the same aspects of our cultural tenants, we will forever be at the receiving end in human civilization. 

What we need is a cultural revolution, one that tells our kids its okay to be a millionaire, its okay to be filthy rich as long as you are level-headed about it. I don’t know about you, but for me money is one thing I don’t like to worry about … there is too much of it around the world for me to be an outsider. 

We have been analyzing our blog stats and one area with the greatest number of hits per day has to deal with people wanting to read more about wealthy people around the world. This means that more people really want to be wealthy but just want to keep a low profile about it …

We will soon start exploring ways in which any person that visits our classy-daddy-3.gifsite can learn to start generating wealth at grand scales. We will be looking at ways to become rich using your current resources, starting businesses, networking and how that education is the easiest way to increasing one’s net worth. 

It is because of the above that we like to publish stories about some of the world’s wealthiest individuals. And that’s this week’s memo from us here at the Zambian Chronicle … thanks a trillion.

Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

Copyrights © 2007 Microplus Holdings Int., Inc.  

   

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The Zambian Enterprise came out close to near bottom of the Global Competitive Index for the period 2007 – 2008. In this year’s report to be released on October 31, 2007, Zambia is ranked 117 out of the 128 countries evaluated for the period.  

The World Economic Forum, which compiles the report, is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas. 

The Report will include The Global Competitiveness Index featuring the 12 pillars of competitiveness, The Business Competitiveness Index, detailed country profiles and data tables covering more than 100 social and economic indicators.  

The rankings are drawn from a combination of publicly available hard data and the results of the Executive Opinion Survey, a comprehensive annual survey conducted by the World Economic Forum together with its network of Partner Institutes (leading research institutes and business organizations) in the countries covered by the Report. 

This year, over 11,000 business leaders were polled in a record 131 economies worldwide. We wonder whether Zambia sent any of our business and or political leaders to this forum to represent our enterprise and make sure we were adequately represented.

That aside, human inclination tends to dispel such a poor overall performance by stating that Zambia needed to be given a fair stake in the matter considering all the purported strides since made on the economic front. Well, for Africa alone for instance, Zambia does not even appear in the top 10 most competitive countries for crying out aloud.

  Rankings For Africa – 2007

Growth Competitiveness Index

*** Zambia Not Even In Top 10 ***

Rank
1
2
3
4
5
6
7
8
9
10
Country
Tunisia
South Africa
Mauritius
Egypt
Morocco
Libya
Algeria
Botswana
Namibia
Kenya
Score
4.72
4.42
4.22
4.09
4.02
4.00
3.98
3.83
3.76
3.61

It is worth mentioning here that our own analyses at the Zambian Chronicle have always been in line with the World Economic Forum’s assessments. We have been in the forefront on advising our Zambian Franchise that we have a great deal of competition around us. 

In Zambia we tend to over-dramatize issues; beating ourselves on the chest if you like. We beat our own drums without taking into account other externalities that really matter. It is this kind of myopic prescience that usually leaves us hanging when actual results are brought to bear. 

You cannot set your own standards as a country and want the world the judge you by those when the entire globe uses a different set of scenarios, such as ISO 9001.

For instance, around the world, productivity is a real measure of competitiveness and competitiveness leads to prosperity. As Jennifer Blanke, Senior Economist at the World Economic Forum explains in the video below, there are institutions, factors and policies that are required to be in place for a nation to be competitive. For the period under review, twelve pillars were used and only nine could relate to the Zambian Enterprise. To make matters worse, those that could relate painted a very sad picture in terms of scores. 

The first four pillars were classified under basic requirements and they included institutions required for normal business practices and we were ranked 56 out of 128 (perhaps one of our best in overall grading). 

The next pillar was infrastructure and we were ranked 90; third pillar was macroeconomics and we came out 122 (imagine that) while the fourth pillar in this category was health and primary education in which we came out as 118 (remember our article about how spending on education was pathetic?). 

In the efficiency enhancer, category three pillars were under consideration and they included the fifth pillar, which was higher education, and training and we came out 120; the sixth pillar of market efficiency earned us 86 and the seventh pillar of technological readiness we came out at 96. The last category we participated in was innovation enhancers, in which we actually came out to be at the bottom of the barrel. The eighth pillar was business sophistication and we had 128 out of 128 meaning we were the worst in the world. The ninth pillar is actually innovation; we came out 121 out of 128. 

It is no wonder we are always asking others to come and develop Zambia on our behalf.  The fact of the matter is, Zambia shall be developed by the Zambians for the Zambian but our current crop of politicians seems to denigrate Zambian ingenuity always looking outside for others to come and take the lead. 

classy-daddy-3.gifThe thumper mentality needs to end, the business of beating our own drums needs to end, the beating of ourselves on the chest needs to end and our state of mind needs to change if we have to play in the big league.

Let us for a change focus on what our institutions, our factors of production and our policies are before we can look elsewhere. 

Let us for a change use our debt-repayment savings and invest those into our children by providing quality education at all levels, providing exemplary health care for all our citizenry, and investing in our technological areas that encourage local innovation; that’s this week’s memo from us at the Zambian Chronicle … thanks a trillion. 

Brainwave R Mumba, Sr.

CEO & President – Zambian Chronicle

Copyrights © 2007 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and redissemination of Zambian Chronicle content is expressly prohibited without the prior written consent of Zambian Chronicle. Zambian Chronicle shall not be liable for any errors, omissions, interruptions or delays in connection with the Zambian Chronicle content or from any damages arising therefrom.

Zambian Chronicle is a wholly owned subsidiary of Microplus Holdings International, Inc.

Copyrights © 2007 Microplus Holdings Int., Inc.