By Staff Reporter
Dr Charlotte Scott, wife to former Republican vice-president Dr Guy Scott, says she prefers targeted subsidies that are oriented towards the productive sectors rather than blanket subsidies.
Speaking with Daily Revelation, Dr Charlotte said she would rather have subsidies which were targeted towards the productive sector as opposed to blanket subsidies where even one driving a Mercedes Benz would be a beneficiary, in the case of a subsidy on fuel.
She said the complex subsidies on maize for instance during the Dr Kenneth Kaunda administration, where the seed, production, supply and purchase were subsidised, eventually created chaos with resulting riots when the government tried to lift some subsidies.
Dr Scott said a huge proportion of the budget went towards subsidies on maize during that time.
“A subsidy on fuel is entirely different. It’s a policy question. Most of the travel is related to the productive sector. Personally I would be inclined to channel it (subsidy) elsewhere,” said Dr Charlotte. “I think if you are going to have an economy which is subsidised it has to be done carefully. If I want to favour a sector it’s better to incentivize a particular productive sector.”
