Uneven Geography

The United Nations announced recently some success worldwide in reaching key millennium development goals (MDGs) by the lifting more than one billion people out of extreme poverty. However, a report on 110 counties between 2001-11 released by the Pew Research Centre on the number of people lifted out of poverty since the millennium shows that there has been no real rise in the numbers, constituting the global middle class. What has happened is that around 700 million of the world’s population have moved from living on $2 a day or less to the low-income world of $2-$10 a day.

As part of the MDGs many countries, Zambia included, set their sights on becoming middle income countries. China has been the most successful here with 203 million, moving into a middle-income lifestyle, though 75% of it's population still remain poor or low income. While Asia generally has done best, now having half of the world’s new middle class, jumping from 399 million to 784 million; other parts of Asia were less successful. In India for example while the poverty rate fell from 35% to 20% of the population but its middle-class only grew by 3%.

Other areas that improved were South America, Eastern Europe and Russia; with almost half the South American population now at or above middle-income status, while Europe and North America’s world share of the upper-middle income population fell from 76- 63% over the same period and the US’s proportion of high income population fell from 58-56%

In Africa 92% of the population was either poor or low-income in 2011 and according to the report in Cote d’Ivoire, Kenya, Madagascar and Zambia poverty increased significantly.

In Bhutan, Moldova, Ecuador, Argentina and Kazakhstan the poverty rate fell by at least 15% and the middle class increased by 15%

Factors such as conflict and falling oil and commodity prices have affected the findings for a number of economies, in the past few years, the report notes.

The Jesuit Centre for Theological Reflection has reported that the Kwacha’s fall in value this year is adversely affecting people’s standard of living here in Zambia and the Basic Needs Basket continues to rise in the face of a wage freeze for most of the work-force. It is obviously worse for those relying on casualisation or the informal sector with no steady income. The JCCT surveyed 5 towns in 3 Provinces earlier in the year. Its findings are in the table below.

	Mealie Meal 25kg	Basic Needs Basket	Other Living Costs
Kitwe	K71.40	K2817.00	N/A
Luanshya	K66.33	K2687.00	K1676.00
Mansa	K69.33	K2605.00	K1624.00
Ndola	K69.28	K3670.00	K2400.00
Solwezi	K76.00	K3919.00	K2662.00

 Below is the latest Basic Needs Food Basket published by the JCTR.

JCTR BASIC NEEDS BASKET: LUSAKA
JUNE 2015

(A)  COST OF BASIC FOOD ITEMS FOR A FAMILY OF FIVE IN LUSAKA

Commodity	Kwacha	Quantity	Total Kwacha
Mealie meal (breakfast)	64.57	2 x25kgs	129.14
Beans	18.00	3kgs	54.00
Kapenta (dry)	89.51	2kgs	179.02
Bream (dry)	80.71	1kg	80.71
Beef	32.64	4kgs	130.56
Dark green vegetable	4.43	4kgs	17.72
Tomatoes	6.68	4kgs	26.72
Onion, large	8.20	2kgs	16.40
Cooking oil (2.5L)	36.33	3 litres	43.60
Bread wheat, refined flour, baked	5.64	1 loaf/day	169.20
Sugar	17.90	6kgs	53.70
Mlik (fresh)	5.61	4 x 500mls	22.44
Tea, powder	31.90	1kg	31.90
Eggs	8.93	2 units	17.86
Salt	4.23	1kg	4.23
		Sub total	977.20

 

(B) COST OF ESSENTIAL NON-FOOD ITEM

Charcoal	99.43	2 x 90kgs bags	198.86
Soap (Lifebouy/Champion)	3.71	10 tablets	37.10
Wash soap (Boom)	6.08	4x400g	24.32
Jelly (eg Vaseline)	20.21	1x500mls	20.21
Electricity (medium density – fixed)	372.00		372.00
Water & Sanitation (medium cost – fixed)	325.00		325.00
Housing (medium cost – 3 bedrooms)	1,750.00		1,750.00
		Sub total	2,727.49
		Total for Basic Needs Basket	3,704.69

  

 

C) SOME OTHER ADDITIONAL COSTS
Item K                                                                                                                  Item K
Education Transport                                                                                         (bus fare round trip)
Grades 8-9 (User + PTA/year)         K400.00 – K600.00           Chilenje-Town                       K10.00
Grades 10-12 (User + PTA/year)     K650.00 – K1, 300.00       Chelstone –Town                  K10.00
School Uniform (grades 8-12)          K90.00 – K200.00              Matero-Town                        K10.00

Health (clinic)                                                                               Fuel (cost at the pump)
Registration (book)                           K3.00 - K5.00                    Petrol (per litre)                     K8.74
Self-referral (Emergency Fee)         K 5.500                               Diesel (per litre)                     K7.59
Mosquito Net (private)                      K30.00 – K120.00             Paraffin (per litre)                 K5.40

The June Basic Needs Basket is approximately US$497 based upon the exchange rate of US$7.4491

Some approximate Middle Class Salaries in Government Service: 

General Government Worker                                             K2 300

Enrolled Nurse                                                                      K2 900

Clinical Officer/RGN                                                            K3 300                                                                       

            Senior Teacher Nurse Police Officer                                   K4 000

            Medical Officer                                                                     K17 000