CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS
by Gustaf Tomanga, Namibia, April 1998
THEME = ECONOMY
A birds eye view of today's Namibia
After independence, Namibia notched up some remarkable successes, include the introduction of a rural water supply, the electrification of remote areas, the establishment of an Exclusive Processing Zone, the construction of a road network - all with a view to boosting the country's economy and ensuring that it can make a positive contribution to the Southern African Development Community.
The Central Statistics Office of the National Commission, indicates that real growth was a mere 1.4% last year compared to 2.5% in 1996. This rate is disappointing because it falls short of the First National Development Plan (NDP-1) target of 5% growth rate per annum. The economy showed real growth rates of 7.4 and 8.2% during the first two years following independence, but it stagnated later, with its growth remaining vulnerable to external factors like recurring drought, volatile markets for minerals, and highly variable output from the fisheries sector.
Unemployment is one of Namibia's burning issues, despite efforts by the government and private sectors to create jobs and alleviate poverty. Unemployment and underemployment remain high, estimated at 60% of the labour force. New entrants to the labour market constitutes about 20,000 people per year. Moreover, about half of Namibia's population of 1.6 million are poor, with an average income of less than 500 Namibian dollars per month.
Recent data from the Health sector showed that about 150,000 people are HIV positive, while some 6,000 of these have full-blown AIDS. About 925 AIDS-related deaths are expected in 1998. Medical costs were estimated at N$21,6 million in 1996. There is no sign of a slowing down in the spreading of this killer disease, although AIDS awareness programmes are given high in this country.
External aid to Namibia reached its highest peak in 1996, according to the United Nations Development Programme's report. The assistance rose from some N$269 million at independence, to N$701 million in 1996. This financial aid was 5.2% of Namibia's Gross Domestic Product, and 16% of the government's expenditure. The country remains among the five highest recipients of external assistance in the Southern African region. Germany with 30% and Sweden with 23%, rank among the top donors, followed by Norway, the European Union, the European Development Bank, the USA.
The Auditor-General's report on government accounts for the 1995/96 financial year, says that over-expenditure by 14 government ministries and departments, violated the State Finance Act, in excess of N$141 million of their approved budgets. Among the culprits were the President's Office, the Foreign Affairs Ministry, Health and Social Services, Defence and the Basic Education and Culture Ministries.
The government recently appointed a Commission aimed at reforming the public services' structure. The Wages and Salaries Commission (WASCOM)'s recommendations were meant to ensure a more efficient but smaller public service, as well as providing higher incomes related to performance. The past few years saw improved incomes, but the implementation of an appropriate grading and efficiency mechanism, as well as streamlining, were not satisfactory. This resulted in protest marches by teachers, led by the Namibian National Teachers' Union (NANTU). The teachers demanded that the Ministry of Basic Education reverse its decision to introduce new staffing norms, which the teachers claim were made without proper consultation with the union acting as their bargaining agent. The ministry plans to move teachers and non-teaching staff from schools with a lower ration of pupils per teacher, to schools with higher ratios of pupils per teacher. This is just one of the many problems facing the education system in Namibia. On the other hand, the high failure rate especially in remote areas, is being blamed on poor performance by unqualified teachers and lack of teaching facilities.
Faced with an increasing crime rate, in February 1998 the private sector and the Namibia Police cooperated in launching a 24-hour information service known as "Crime Stoppers", aimed at helping the police track down criminals. This is an attempt by the police to involve the public in combatting crime. Each piece of information is treated confidentially. Success in fighting crime is important to the economy, to make Namibia's business environment safer for further investment.
Namibia's decentralisation policy was launched to take the government closer to the people. Decentralisation means providing an environment conducive to community participation in decision-making. Decisions relating to the type and quality of service to be provided, will be taken at the very place where these services are to be offered, and by the people who will benefit from them. In order to ensure the efficient carrying out of this policy, larger centres have now been designated as "towns".
Peace and democracy are flourishing, despite territorial claims from the country's eastern neighbour, Botswana. There was a dispute with Botswana over Kaliki, an uninhabited island on the Chobe river. This led to mediation by Zimbabwe's Robert Mugabe, and when this failed in 1995, the matter was referred to the International Court of Justice at The Hague. A more recent dispute concerns ownership of the Situngu Islands and this was referred to a joint technical committee formed by the two governments. However, the bilateral commission was unable to arrive at a satisfactory conclusion.
From 10-12 March, the Council of Churches of Namibia (CCN) discussed the growing dispute over the two islands describing it as "threatening the peace of both nations". The CCN urged both governments to settle the dispute in a peaceful way and committed itself to work with other councils in the region, to find a peaceful solution to the problem.
At the beginning of April 1998, both the CCN and the Botswana Christian Council, proposed their good offices to help in solving the territorial dispute, as it seemed their respective governments were unable to reach a peaceful solution.
Although there is tension between the two neighbouring states, Namibia enjoys the peaceful atmosphere guaranteed in the policy of National Reconciliation - a necessary ingredient ensuring the nation's stability.
But the wounds incurred during the liberation war are not yet healed. One such wound concerns the missing persons' issue. This question is crucial, but the attitude of the ruling elite which ignores or avoids the issue at all costs, makes a mockery of the policy.
Recently, the CCN initiated programmes dealing with such questions as restoring peace and bringing about true reconciliation. Last year's theme was: "The Year of God's Grace". This year, the CCN held a three-day conference (5-7 March 1998) dealing with the two questions mentioned above. To attain true reconciliation, the conference urged the CCN to reassume its prophetic role as the "voice of the voiceless" and appointed a working committee to focus on the formation of a "confession of faith" and to implement the process of true reconciliation in Namibia.
Since coming to power eight years ago, the South West African People's Organisation (SWAPO) leaders have been promising a land of milk and honey. Most of these remain empty promises to this day. Jobs for former freedom fighters are still few and far between. They sit on the kerbs of the Windhoek streets, waiting for any job to come their way. There are a number of SWAPO-led enterprises which formed subsidiary companies so as to guarantee employment to the former combatants. Unfortunately, many of these workers have remained unpaid for five months. This is surely a matter for concern when considering the country's stability.
Finance Minister Nangolo Mbumba has tabled the 1998/99 Budget in parliament. He announced stricter measures to punish those who overspend. But unless a culprit is dismissed, the minister's warnings remain mere verbal threats. At the end of the day, the gap between the rich and the poor, landlords and landless widens. The trust of the people in their leaders erodes. Apathy rules, as was the case in recent municipal elections. It will be difficult to win the confidence of the masses once again.
END
CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS
PeaceLink 1998 - Reproduction authorised, with usual acknowledgement