REGIONAL ECONOMY: Zambia (MRB Oct 01 2001): Poverty worst in 10 years.

The Zambian economy is now in a more desperate state than ever before with the local currency at its lowest. Human development indicators continue to deteriorate, reflecting a serious social crisis in this southern African country of 10 million people, where the burgeoning population does not match economic growth.

Vice President Enock Kavindele told a poverty reduction forum the prevailing poverty situation in the country was worse than the levels of 1991, when the ruling Movement for Multi-Party Democracy (MMD) took over as government.

Finance Minister Katele Kalumba and his economic advisers, however, remain optimistic about the economic indicators, and of achieving real growth of 5 per cent by year's end.

Economy watchdogs say that Zambia is in the grip of an extraordinary and enormous socio-economic crisis, underpinned by increasing deprivation, debilitating debt and dissipating disease - mainly HIV/AIDS.

A Southern African Development Community (SADC) human development report says while the region's level of human poverty decreased by 8.4 per cent in the last three years, Zambia was one of the four member countries that did not benefit from the gain.

President Frederick Chiluba maintains his reformist government has done its best to ensure the necessary policy framework and structures have been put in place.

At a rally in Solwezi, Chiluba blamed the lack of development and the state of neglect in such areas on the local people, who he said voted for the opposition during elections. He accused the largely weak opposition of frustrating his government's development programmes.