Prof Lungu attacks growth without development in Solwezi

This article in The Post this morning. I have posted further details on the meeting rationale, agenda and participants below the message, and will post up a final report on it when it is ready. It's wonderful to see such pro-active minewatching going on from Zambian civil society. Surely this is precisely the kind of pressure needed to ensure the 'New Copperbelt' turns out better than the old one.

'Zambia's growth lacks development'
By Mulimbi Mulaliki in Solwezi

Zambia is experiencing growth without development, Copperbelt University (CBU) lecturer in the School of Business Professor John Lungu has disclosed.

Presenting a paper dubbed ‘The old Copperbelt and the new Solwezi Copperbelt’ at a round table mine watch discussion jointly organised by Caritas-Solwezi and German Technical assistance to Zambia (GTZ), Prof Lungu said growth must be accompanied by development.
Prof Lungu said the old Copperbelt’s development was led by developmentalist corporations such as Anglo American Corporation (AAC) who obtained licences to mine copper in the whole area.

“The situation was helped by the fact that the companies had a long-term perspective of copper mining. Guided by this view, they invested in both the social and economic sectors,” Prof Lungu said.

He said the corporations invested in the social sectors, education, health centres, hospitals, recreation centres and housing for miners and they also provided food rations and maintained roads and water infrastructure in the townships.

“They provided training for the miners recognising that skilled people were rare apprentice; they transformed an area of bush to modern towns and paid taxes to the state,” he said.

Prof Lungu added that communities were given access to mine facilities such as sports facilities and also sponsored sports - football, rugby, tennis and swimming.

“What is taking place currently is that the country is experiencing growth without development. I have not seen any basic change, access to shelter, health and education, these services are still lacking,” he said.

Prof Lungu explained that this model failed because of falling copper prices on the international markets leading to lower revenue.
“This led the country into heavy borrowing and entangling itself in the debt trap because of low forex earnings and borrowing led to debt crisis of 1980s,” he said.

Prof Lungu said the development agreements signed between the government and mining companies were illegal as they were above the Constitution.

“These agreements were just done in State House and our National Assembly had no power to legislate. The agreement can’t be above the Constitution,” he said. “These agreements have been accorded special status. They are protected from alteration for periods ranging from 15 to 20 years from the time they were signed. They established the terms under which mines were sold.”

Prof Lungu urged the civil society to capture government from powerful business organisations who were currently controlling the running of the economy.

He said despite the government reforming the laws in the mining sector, there were concerns on how it would handle the additional revenue.

“What does it do for the new Copperbelt especially Solwezi where Kansanshi has no obligation for social service provision? Should government handle Lumwana the same way as other companies? Should the government end at reforming the tax regime? What of other aspects of development agreements?” asked Prof Lungu.

He suggested that the government should adopt a differentiated approach to the mining companies depending on their corporate social responsibility policies and reward companies that were socially responsible.

“The new Copperbelt must avoid some pitfalls of the Old Copperbelt. Diversify the economy of the province, take government to task on how they are using money realised from these mining companies,” said Prof Lungu.

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Round Table on “Mining Watch” Workshop by CSPR in Conjunction with Caritas Solwezi and GTZ

Solwezi has become synonymous with the new Copper Boom in Zambia. Kansanshi and Lumwana mines have poured billions of investment dollars into the district, resulting in far-reaching social, economic, and environmental impacts in an area in which such impacts were minimal just three years ago. As a seemingly endless influx of investors and job seekers arrives in Solwezi, economic growth is evident. There is, however, little sign of the pro-poor development that such growth has the potential to create.

Within this context, civil society and scholarly researchers have turned their attention to the impacts of the mining sector in the Northwestern Province. Relevant findings and recommendations including a pilot assessment by CSPR and an academic study by CK Haanyembe have recently become available. Caritas Solwezi is on the threshold of a multi-year project aimed at strengthening the voice of impacted communities.

The upcoming one-day workshop “Mining Watch” will gather key actors (30 participants) from the angles of civil society, research, government, traditional leadership, the private sector, and the media in order to meet the following three

Workshop Objectives:
· to facilitate the dissemination of available research findings (by CSPR, C.K. Haanyembe, Prof. Lungu)
· to strengthen the network and synergies between key CSOs pro-active in “mining watch”
· to enrich ongoing and future mine watch work (research and pro-poor advocacy) through dialogue, feedback and inputs by all speakers and participants

Date: Tue. 12th August 2008

Venue: The Boma Conference Hall, Solwezi

Morning sessions will emphasize recent findings, conclusions, and recommendations. The afternoon sessions will focus on upcoming research initiatives and advocacy activities.

Agenda: Round Table: Northwestern Mining Watch, Tuesday, 12.8.2008
8:30 hours: Registration
9:00 hours: Welcoming Remarks (Mr. K. Kakunta, CSPR)
Opening remarks (Bishop)
Official Opening (PS) Introduction (CARITAS Solwezi)
9:30 hours: CSPR NWPPMT; Pilot Assessment on the Impact of Mining on living conditions and livelihoods of the poor in Solwezi and Kasempa Districts (Mr John Kinuna)
10:00 hours: Cheelo Kingsley Haanyembe; “Behind the economic figures: Large-Scale Mining and Rural Poverty Reduction in Zambia - the Case of Kansanshi Mine in Solwezi”
10:30 Plenary Discussion
11:00 hours: Teak Break
11:30 hours: Prof. John Lungu; "Old Copperbelt vs. New Solwezi Copperbelt"
12:00 hours: Chief Mumena: Experiences with Lumwana (TBC)
12:30 hours: Plenary Discussion
13:00 hours: Lunch Break
14:00 hours: Caritas Solwezi; "ZEIP - Zambia Extractive Industries Project"
14:30 hours: CSPR: upcoming assessment on “Mining and Food Security”
15:00 hours: Final Plenary Discussion: the way forward
16:00 hours: Closing

Participants:
CSPR: NWPPMT (five members, Provincial Coordinator), Saul Banda (Secretariat, LSK),
Rt. Rev. Dr. Alick Banda, Bishop
Caritas Solwezi: Mr. P. Phiri, Mr. F. Nabanda, Mr. J. Weber; Michek Kaonda, Diocose Ndola, Paul Macek, Peter Sufeli, Felix Ngose, CRS, Sam Mulufuluta, Edmond Kamangozi, Caritas Zambia,
Albert Chifita, DC Solwezi,
Cheelo Kingsley Haanyembe (Researcher, Provincial Planning Department),
n.n., District Agriculture Coordinating Committee, Municipal Council,
Prof. John Lungu (CBU),
Chenga Kaputo, n.n., GTZ LSK, Andreas Kahler, DED
Brenda Tambatamba, n.n., Lumwana Mine, Richard Zyambo, Kansanshi Mining,
ZCTU, Ian R Mkandawire, MUZ?, ACC,
Community members from Solwezi-Mushitala or Kafukuma,
SNV,
Senior Chief Mumena
Media member