Subsidy Example,Inflation,Problems and Solutions by Kampamba Shula

Mealie Meal subsidy example A lot of people have been having trouble understanding the subsidy in simple terms so I decided to break the ice here with a clear example. A farmer has two sons and a brother. Every day he wakes up before everyone and goes into the field to work. Before he leaves, he gives his brother money for house essentials and transport for the sons...

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Mealie Meal Subsidy removal analysed by Kampamba Shula

The Government of the Republic of Zambia has resolved to remove the subsidy on Mealie meal. Agriculture and Livestock Minister Bob Sichinga has announced that cabinet has approved the removal of Maize subsidies He said if the current subsidy was to be maintained, it would mean FRA would continue to be in a loss making position and for it to survive it had to stop depending...

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High Fuel Price & Refinery Industry in Zambia Analysed by Kampamba Shula

The Zambian government last week announced that fuel prices will go up by 21% after removing the subsidies. The removal of subsidies is a good theoretical move but I must disagree in the execution of it. Now most people would ask how come I don’t like the removal of the subsidy even though conventional economics says subsidies bring about inefficiencies. Let’s get...

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China's Economy First Quarter Analysis by Kampamba Shula

China's economic recovery unexpectedly stumbled in the first three months of 2013 with slowing factory output and investment spending forcing analysts to start slashing full-year forecasts despite official insistence that the outlook was favorable. Growth in GDP dropped to 7.7% year-on-year, down from 7.9% in the fourth quarter of 2012. That’s below the consensus...

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