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President elect  Barack Obama picks Hillary Clinton as Secretary of State.  Priceless
Great minds, are never Insecure. Barack  surrounds himself with big brains. The entire cabinet is a combination of brain powers.                                                                                                                                              

BARACKY II

Baracky 3!

This would have not been possible if there was no freedom of speech. Americans were given the power to elect and vet their leaders.

Each and every candidate’s laundry basket was visited by every American with the help of media and bloggers, without fear that they will be arrested.

In the end America elected the candidate they thought sold more to them,

and yes supporters created all this without fear: Videos like one below shows freedom of speech

I wonder if we do have that kind of freedom of speech in Zambia to be able to vet our leaders before they get elected.

Just looking at the polls tells a lot. Freedom of speech and the process in place in vetting our leaders should be implemented.

 WHAT HAPPENED TO THE ELECTIONS ON OCTOBER 30 2008?

Can you imagine if one of us created Videos that smacked our candidates left, right and center? Guess what would have happened ? Arrested, and possibly jailed for visiting the incoming leader’ s laundry baskets.

Copyrights © 2008 Zambian Chronicle. All rights reserved. Zambian Chronicle content may not be stored except for personal, non-commercial use. Republication and dissemination 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 © 2008 Microplus Holdings Int., Inc.

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Published:Nov 16, 2008

In 1991, after 27 years in power, Zambia’s Kenneth Kaunda decided to do the unthinkable. He called for multiparty elections.

At a time when many on the continent were used to leaders being removed through coups, revolutions and assassinations, the move shocked many.

The nation had been agitating for some time for the country to drop the one-party democracy model. Reeling from an economic crisis they blamed on the ruling United National Independence Party, the people wanted a chance to choose their leaders like people in other democracies.

Against the advice of his ministers and counsellors, Kaunda went ahead — with three years of his term still left.

When he was advised not to stand because he may suffer humiliation, he insisted he had unfinished business and was confident the people would allow him to complete it.

The opposite happened.

On the day the votes were counted, Kaunda quickly sensed that the trend was going against him. He decided not to wait for the final tally and phoned his rival, Frederick Chiluba, to congratulate him. He invited Chiluba over to State House and introduced him to the staff.

This is your president, he told them.

As the results were streaming in, the military chiefs rushed to State House, seeking an audience with Kaunda. They wanted to know what it was they should do about this state of affairs. Clearly, Chiluba could not be allowed to take power, they argued.

Kaunda proceeded to give them a lecture in democracy. He told them that he had sought the opinion of the Zambian people about who should run their country, and the people had clearly indicated that they would rather be ruled by Chiluba than him.

Who are we to think we are wiser than the people, he asked them.

The soldiers left State House dejected and unconvinced. His ministers and aides tried to prevail on him to declare a state of emergency and annul the election. He stood firm. “This is not the outcome I wanted but it is the outcome I must respect,” Kaunda said.

Later that night he conceded defeat in a television and radio address.

And he made sure the military were in attendance so that they, too, would be bound by his concession.

It is said that upon hearing the news of Chiluba’s concession, an aide of Zaire’s Mobutu Sese Seko ran into a cabinet meeting with a note informing the dictator of developments next door.

A shocked Mobutu nearly jumped out of his chair and exclaimed: “I thought KK was smart. How can he lose an election that he himself was running?”

Democracy had arrived in Zambia. But it turned out that, in exercising their democratic rights, the Zambians had made a big mistake.

Upon taking power, Chiluba went on a gluttonous rampage through the fiscus. He ferreted money to foreign accounts and pampered himself and his extended family at the state’s expense.

Chiluba even sought to run for a third term. He used youthful goons to force his party to help him change the constitution to enable him to run. He failed and Zambian democracy triumphed.

His successor, Levy Mwanawasa, turned out to be a better bet than Chiluba. Although he was no inspirational visionary, he consolidated democracy. By the time he died a few months ago, he had become one of the few heads of state on the continent prepared to break the leadership brotherhood’s code of silence on human rights abuses.

Last month, Zambia’s voters went to the polls to elect a new leader again. During the election campaign, the ruling Movement for Multiparty Democracy’s candidate, Rupiah Banda, and his opposition rival, Michael Sata, traversed the country, urging Zambians to back them.

Not a single rally was disrupted. Not a single leader was beaten up. Not a single chair was thrown.After the election there were cries of foul play from Sata and his supporters, who are challenging the results in court.

But that was about it.

The significance of this story is that there is a lot to be learnt from our brethren on the continent. Very often you hear the nonsense that democracy does not, and cannot, work in Africa. These views come from both condescending racists as well as apologists for African dictatorship.

You hear it from many in our ruling party — it is used to justify a one-party-dominant democracy and why we cannot afford to have strong opposition.

We need to develop our own brand of African democracy, some scholars and politicians say, which is a rather racist notion that the people of this continent dare not be trusted with making choices.

This piece is not about praising Kaunda and painting him as an angel and model of modern statesmanship. He was, after all, in power for 27 years, during which he wrecked that country’s economy.

It is also not to paint Zambia as the ultimate model of a working democracy. Zambia is by no means perfect.

Kaunda and the Zambian experience should show us roads we should not walk and mistakes we need not make.

But we can emulate their relatively successful efforts at building a stable democracy.

Our leaders should also take note of the fact that even an iconic leader like Kaunda could accept that the wisdom of the people could be superior to his.

Source: The Times – SA

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The stakes are high and oh, yes they are … the world economy is in shambles and there is very little time for the Banda Administration to honey moon. With the Kwacha depreciating against hard currencies, commodities prices going down and our purchasing parity dwindling, the next few years will call for extraordinary paradigm shifts.

 

The Zambian government has already cut this year’s economic growth forecast to 6% from 7% following a 58% drop in copper prices in London in the last six months. For a country whose 63% of all government revenues depend on the exports from copper and cobalt to the outside world, we don’t envy the Banda Administration taking over the Zambian Enterprise at a time such as this.

 

Even though fiscal year 2007 only gave us a 5.4% GDP growth, government was optimistic the projected 7% was feasible but with the global financial crisis, reduction in foreign investment will impact growth forecasts for a country that relays heavily on FDI.

 

Further, the imposition of a 25% profit windfall tax and an increase to 3% from 0.6% on mining royalties is another factor that may be a huge cause for concern in this economic downturn because technically corporations don’t pay taxes they simply pass them on to consumers.

 

Such higher taxes lead to mining companies imposing wage freezes until such a time that they would increase their operating revenues above the taxable threshold, the resultant being less consumer spending coupled with less factory orders due to stagnant income and or liquidity that lead to other effects.

 

On top of that the global financial squeeze has the capacity to force institutional investors to withdraw foreign exchange in government securities. This has already hurt the kwacha and government has to do double time to stabilize the local currency using other fiscal measures that would curb inflation as well.

 

As the local currency depreciates a lower purchasing parity making goods imported into the Zambian Enterprise more expensive than usual kicks in due to balance of payments in our current accounts. The spiral is long winding and thus the call for more focus from us at the Zambian Chronicle.

 

Fortunately for President Rupiah B Banda, he is an economist who would have a good grasp of the economic issues at hand but what will work against him is what we call the “Expectations Game” from the electorate.

 

With Levy having enjoyed relative growth during a time the world economy was growing, the average Jim and Jack will not buy Rupiah’s story of the world undergoing a recession, in fact every Jim and Jack thinks RB should do better … and who on God’s earth would blame them?

 

We don’t even care how good a team RB may assemble, if such a team misses the crux of the matter, there might be very little the Banda Administration may be able to achieve if it does not use the right mix to turn this global economic malaise to its advantage.

 

Different economic theories apply to different scenarios to leverage and mitigate prevailing circumstances. It’s more like different medicines being used for different diseases and what worked there and then may not in the here and now.

 

Having analyzed all scenarios involved we at the Zambian Chronicle see the normative approaches that are great at offering prescriptions and recommendations on what should be done to not only help lower “expectations” but also help reach the targeted growth and forecast.

 

Neo-Keynesianism might be the best route here. This is because this theory looks more at what government involvement would be in terms of the General Theory of Employment. The Japanese used this theory after World War II captioned it and called it “Total or Full Employment”.

 

By mandating that every Japanese be employed they created revenue through taxation of their able-bodied working citizenry. The Japanese government deliberately embarked on construction of airports, highways, bridges and other infra-structures using borrowed money until they had enough reserves of their own.

 

The Zambian Enterprise has enough reserves to start with and can do with what we have on hand to seriously begin applying Neo-Keynesianism. While this economic theory has other variations like effect(s) of interest rates and money supply, the main impetus though is on total employment deliberately commissioned by government and or using government incentives.

 

Upon completion, government can start levying toll charges on these roads, bridges, airports, etc. to recover construction costs and meanwhile as more people enter the work force, consumer spending increases, government revenue goes up with taxation kicking in a multiplier effect and the rest is history.

 

This will not be easy to achieve though because it will require changing the way we think and operate. Every one has to have a sense of urgency and move in the right direction all pulling for mother Zambia knowing our time is now.

 

These are serious times; the Banda Administration is at the bleak of making it or breaking. Levy’s shoes are way too big for any one to fill and times have changed, what worked for us then may not now and we all owe it to ourselves to move the nation forward.

 

We wish the new administration God’s Speed as the honey moon dies down but time is of the essence otherwise there will never be another MMD administration (not that we are rooting for the MMD) if the right economic mix is not adopted, it is now or never.

 

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. 

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

Copyrights © 2008 Microplus Holdings Int., Inc.

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Meet Hakainde – His Profile

 

Hakainde Thinks Public Service Is A Noble Enterprise – Thus The Decision To Enter Politics

 

Hakainde On The Economy

 

Hakainde On Investments

 

Show Me The Money – Hakainde Excogitates

 

Hakainde On Education

 

Hakainde on Infrastructure Development & Constitution Making

 

Hakainde Talks About Media & Press Freedom

 

Hakainde On Transparency & International Relations

 

Luapula Women Sing – Hakainde Muchele Nowa Mukene Akatobela …

(Hakainde Is Salt Even If You Once Denied It, You Would Dip Into It Nevertheless …)

Disclaimer: Zambian Chronicle looked for clips for other Presidential Candidates but found none, thus the only interview posted is that of Hakainde Hichilema. It is for this reason that we have asked our audience to furnish us with info to the contrary and we are willing to pay for such publication(s) so other candidates would be accorded equal airtime.

 

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.

Copyrights © 2008 Microplus Holdings Int., Inc.

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LUSAKA (Reuters) – Zambia’s parliament has passed a law that will pave the way for oil exploration by international firms before the end of this year, Mines Minister Kalombo Mwansa said on Tuesday.

Mwansa told Reuters the petroleum exploration and production law had been sent to acting President Rupiah Banda to be signed.

Zambia would then invite international oil firms to submit bids for exploration in northwestern Zambia, bordering oil-rich Angola, where soil samples sent to European laboratories confirmed the existence of oil.

Mwansa said Zambia had lifted its suspension of oil exploration, a measure that was imposed pending the passage of a comprehensive law, and had defined oil blocks to enable foreign firms to tender for their areas of interest.

He said the process of issuing tenders should be completed within two months.

Under the new law, oil firms would initially be granted exploration licences and would gain production licences if they made finds big enough to sustain commercial production.

“A holder of a petroleum exploration licence shall commence exploration within 90 days, or such further period as the minister may allow, from the grant of the licence,” the law states.

It also says investors would be given two years to start development and production after gaining production licences.

The foreign firms would be expected to train and employ Zambians and adhere to strict environmental, health and safety regulations, and a state-run national oil firm would be set up.

Mwansa said the government had set up an oil exploration technical committee to supervise and award licences.

The law granted the country’s president powers to repossess land held by influential traditional leaders and award it to foreign investors to conduct oil exploration, in what analysts see as a move to remove barriers to oil development.

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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. 

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

Copyrights © 2008 Microplus Holdings Int., Inc.

 

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To all my fellow Zambians:

Good luck with the Zambian elections in October 2008. I am sure we will pick the right candidate to continue where the late President Levy P Mwanawasa, SC. left from (MHSRIP).

For those of you that are endorsing HH, I hope he carries his nation at heart, and puts the Zambian people first before politics. I have no doubt that with his credentials he can take the Zambian Enterprise to the next level.

Here is a clip candidates should start watching closely, and if HH really wants to preach change, and take the Zambian Enterprise to the next level, he should know it takes people to seek change.

If the smart people of the Zambians Enterprise are looking for change, they need to support the Candidate for change, which in this case I can see most of you are endorsing HH. Take a close look at USA presidential elections.

Does this sound familiar?

Does it sound like Zambian economy? Well it’s happening in America. That is what happens when you put wrong people in office all the time.

Candidates need to lay down their plans in a meaningful, and practical way. Not waffling around same old policies. Ideas, Ideas, the key to success. Here is another example:

 

In Zambia we have had same candidates rotating from one position to another, they all descended from UNIP. We need another president like the late Mwanawasa to continue fighting corruption, and take our country to the next level.

A candidate who would put the Zambian interests first before his own, one who would empower his own people and create jobs. One who would allow foreign investment, but put Zambians that are innovative on top of the list.

I hope we all take time to know the candidates well. The ball is in our hands, people. Pay attention to what our candidates are saying. We need a president who will be able to understand our most needed issues within the Zambian Enterprise as a whole.

A candidate who understands the outside world as well and has foreign policy credentials. One who understands economics, because whether we like it or not, what ever goes on around the world has significant impacts our own economy.

Take time to screen candidates in and out before we cast votes. We need a candidate who is strong, dedicated, never gives up, honest, intelligent, humble, compassionate, innovative and creative. One who sees beyond his nose and makes right decisions at least ninety-nine percent of the time.

Here is another clip.

And for politically minded women, who are aspiring to stand for President in 2011, do not get discouraged, you can do it. Here is a role model for women.  I edge our Zambian men to stay open minded when it comes to women leadership. We women get things done. Hillary ran an incredible campaign …

… and the opposition picked this candidate for VP to overshadow Hillary’s historical campaign. Of course this one is not my choice, though I am sure some Zambian women would like her since she has five children youngest is only 4 months. She is a joke to me because she was handpicked. On a good and humorous note though, she is not afraid to take on a challenge!!!

Having said that, I would like to see women participating in Zambian presidential elections. I am calling upon intelligent Zambian women to take up the challenge in 2011.

I wonder why the Zambian constitution can’t open up for presidential candidates to pick their running mates before they are elected in office. This is an important point for us to seriously think about before the 2011 elections.

It is very crucial to have running mates screened at the same time with their presidential candidates. We have all seen what happens when a sitting president dies in office, the Vice President jumps in to act as president.

Wouldn’t be nice to have the VP get screened before hand? Transparency is very important …

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

 

Belliah K Theise

Chief Operating Officer – 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.  

 

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

 

Copyrights © 2008 Microplus Holdings Int., Inc.

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