Commentary, 19th – 26th June, 09

The continuing strikes by public service workers will have a significant impact on the Zambian economy. Even if public service workers are not directly linked to the production sector, their withdrawal of labour for prolonged periods can have fundamental lasting economic damage to the economic stability. The existing threat is on the attainment of low inflation, low unemployment, low interest rates and high growth rates.

In other words, all the anticipated economic gains in this year’s budget will be significantly affected if the social services sector records low output. The issue of productivity in the public service has for many years been under question. This is testimony to the fact that man-hours in the public service are a critical input towards national growth. And it is for the same reason the public service takes up close to 9 percent of the Gross Domestic Product in expenditure. To tolerate the withdrawal of labour for several weeks is taking risks with socio-economic stability.

It will not be long before the private sector begins to feel the impact of the civil service strikes as the country experiences a huge social burden in terms of costs associated with suspended health provision and other services. In addition, the strikes have posted a level of political and economic uncertainty that will have long term implications on investor perception of the business climate.

It must be appreciated that the efficient provision of public goods such as education, health care, and law enforcement generally lead to sustained levels of economic growth. It is, therefore, important that the government and trade unions should put an end to these strikes immediately and begin to align public service efforts towards economic management and efficient service provision. The longer we allow the current impasse to persist, the more harm we create to the economy both in the short and long term.