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5/1/1993 - Think (capitalist) and grow rich. by Casey C. Kelso

Think capitalist Casey C Kelso Lusaka Zambia May Peter Bird Martin Institute Current World Affairs West Wheelock Street Hanover New Hampshire USA Dear Peter Alfred Chioza greed The Zambian businessman turned farmer planted acres burley tobacco He expected profits market agricultural economy figured acres meant money Maybe But meant tobacco horror proportions Now harvest brown leaves clumps packed thatch roofed barns Zambia Eastern Province Stacks drying tobacco tractor sheds displace carport rafters guest house Inside Chioza leaves ceiling lights Behind little window opening kitchen densely packed tobacco ascends ceiling Last Chioza wheeler dealer selling imported South African goods percent capital Lusaka This lives newly built house countryside where watching tobacco harvest every available space I farmer bearing L badge learner I believe there future farming Chioza change attitude underscores dramatic transformation agriculture taking place Zambia For decades Zambians thought farming demeaning unremunerative peasant unattainable economies scale white owned commercial farms Agriculture pastime retired civil servants Now young African white collar professionals trying their tilling The profit dirty Zambia prompting urbanized Zambians reclaim their forefathers livelihood When President Frederick Chiluba office November after winning percent popular began dismantling social policies institutions created former president Kenneth Kaunda ruled Zambia since independence The capitalist redesign mandated creditors World Bank liberate market forces limit government intervention economy Private Casey Kelso ICWA fellow writing about southern African societies development issues focus production Since Institute Current World Affairs Crane Rogers Foundation provided fellowships enable outstanding young adults outside United States write about international areas issues Endowed bythelateCharlesR Crane theInstituteisalsosupportedbycontributionsfromlike mindedindividualsand foundations commercial farming expected become engine growth It order Today colonial times Zambia economy based single commodity copper It provides percent nation foreign exchange For decade copper mines pulled population villages cities search As result Zambia highest urbanization rates Africa every people population million living towns Seeds fertilizer other inputs heavily subsidized during Kaunda farmers could crops state fixed prices rarely covered production costs Instead often government vouchers honored months later Kaunda declared valueless assumed ownership trust Zambians As white farmers state farms cooperatives sprang floundered mismanagement Large firms nationalized civil bureaucracy became major source By Chiluba Movement Multi party Democracy MMD office government corporations overstuffed staff percent industry Prejudice against rural remained economically rational ecause could living outside towns Under Chiluba however subsidies profit routinely condemned political speeches In elections Chiluba support business community Zambia promising tough economic reforms promote private enterprise In inaugural speech Chiluba nation Let nobody labor under illusion progress easily speedily attained The seized Since taking office former trade union leader introduced tough measures removing subsidies staple foods affordable quadrupling prices devaluing currency percent trimming people government payroll Despite hardships Zambians expect prosper under capitalism Even socialists still loyal Kaunda ventures Down Chioza tobacco fields Ben Zulu incumbent olitician Kaunda United National Independence Party Zulu recently defeated Chioza nephew supports MMD elections become opposition members still parliament Zulu commutes parliament sessions where grows maize beans peanuts sunflowers course tobacco I never Zulu fingered tobacco plant delight This where money During years I politics without thinking Politicians making speeches reality growing The future Zambia mining Copper finished asset We rural areas Despite enthusiasm making money socialist minded Zulu remains skeptical capitalism benefit rural people He foresees crops displacing crops making peasant farmers vulnerable famine international prices plummet drought strikes The could ealized Crops tobacco cotton coffee beans lucrative farmers planting instead traditional crops One kilogram beans earns least percent amount An equivalent amount tobacco worth In addition without subsidies fertilizer expensive crops lower prices And finally leaving agriculture invisible market means citizens their produce Most district Zulu represents reach farmers formerly relied state purchase transport their harvests Middlemen private trucks scarcely exist condition roads appalling Without government Zulu believes harvest wasted because private truckers broken But capitalism proven versatile enough solve these problems least Z ambians Both Zulu Chioza their tobacco through scheme British entrepreneur Graham Younger They among group about small scale farmers received seedlings fertilizer technical advice joint venture between Younger company Kestral Investments multinational corporation Casalee At harvest farmer given string tobacco bundles which company sacks picked company trucks At central depot farmer tobacco weighed graded A state arbitrator stands settle disputes Once price fixed inputs deducted Liberalization marketing system created tremendous incentive production Said Younger Tobacco until recently market If tobacco failed couldn goats After taking National Tobacco Company price Now fight export ourselves prices We nothing state anything state doesn Growing Kestral profitable Each farmer plants average tobacco yielding profit compared nation typical labor wages One farmer earned enough stock small store Another Mozambican refugee bought received Figures Kestral popular At start program there farmers Next could expand growers Kestral enlarge because farmers Peasants cultivating small plots scattered across territory controlled traditional chiefs No needs cleared But Zambia agriculture nation inaccessible expanse opened Only percent llion arable acres cultivated Chiluba government taking action offering about million acres virgin private development along stretches Tanzania The preparing viable farming however would about million dollars according Paddy Fleming business consultant He better might neglected state farms about which being offered On auction block could million acres peasant resettlement Already potential investors inquired about available Also grabs state owned agricultural processing industries which among government enterprises operate about million annually An ambitious privatization program about percent during years In January firms ranging dealer cannery advertised bargains More placed negotiations ongoing Now significant group including National Milling Company Dairy Produce Board Many ready monopolies The controversial aspect Chiluba liberalization agriculture policy foreigners wishing establish farms Foreign investors attracted incentives include percent profits percent retention foreign exchange export earnings But government treats investors caution Hundreds white South Africans Zambia fleeing political turbulence drought But about granted farms We going Boer republic Zambia their initial thrust Wina Kawana Ministry Lands permanent secretary They coming groups caravans South Africa We cannot their communities their schools teaching their language Other Zambian agree caution needed avoid domination outsiders foreign investors capitalism promise better times Shadreck Nyendwa Kestral agricultural extension officer works alongside white South African white Zimbabwean He studied agriculture heavy scientific socialism East Germany today talks Adam Smith green thumb Foreign investment doesn enslave ourselves Nyendwa True exploitation people something nothing Making capitalist profits disciplining minds country developed Received Hanover June