The Post (Lusaka)

Zambia: Learn From HIPC Mistakes, Levy Advises IMF And World Bank

Lusaka — THE International Monetary Fund (IMF) and World Bank need to learn from the mistakes of the HIPC process when handling the G8 decision on the poorest countries, President levy Mwanawasa has advised.

And visiting IMF deputy managing director Takatoshi Kato has said his main priority while in the country will be the next national development plan (NDP).

Speaking when Kato called on him at State House yesterday, President Mwanawasa said while the G8 decision on the poorest countries' debt raised hope, there was a danger that its implementation could be problematic.

"We welcome that landmark decision because it offers us and many others a real chance to reorganise ourselves and make progress. We are, however, anxious to know the implementation modalities that will emerge from your institution and the World Bank," President Mwanawasa said.

"HIPC came more or less with similar fanfare. Unfortunately, the implementation modalities that emerged in most instances led to delivery of relief that in some cases was inadequate, late and laborious to effect.

"We urge the IMF and the bank to learn from the mistakes of the HIPC process more swiftly, and decisively implement the G8 decision. In particular, we hope that there will be no conditionalities attached to the implementation of this decision and, if this will not be possible, the conditionalities must be few, reasonable and implementable within reasonable time. The overbearing consideration is that any amount of debt relief delayed has consequences such as creating orphans, because some ill parent has failed to get medicines timely or a potential scientist or doctor fails to get into school."

And speaking on arrival at the Lusaka International Airport, Kato said as a keen follower of Zambia's progress on the economic front, he would use his visit to discuss with the government how the fund could help the country during the NDP that begins next year.

Later, he told President Mwanawasa that the IMF was eager to see Zambia begin to reap the benefits of attaining the HIPC completion point.

"The fund is impressed with Zambia's management of economic affairs and we want to see how we can work together in your efforts to improve the people's lives," Kato said.


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