Zambia, Research Paper Example

Introduction

Zambia, like many other African countries, experienced a painful birthing process of not only gaining independence from previous colonial rulers, but also trying to build an economically sustainable foundation.  Indeed, although Zambia was blessed with tremendous mineral wealth in the form of copper reserves and abundant wildlife, the government also faced notable challenges managing these resources in a sustainable way over the long-term. This paper, in addition to looking at the critical historical background that led to the establishment of modern Zambia, will also look at three critical areas in the country’s overall development: 1) political ecology; 2) economic resource base; 3) environmental constraints.  Overall, while Zambia has undertaken substantive measures to develop a responsive political system, the economy is still over dependent on natural resources (e.g., copper) that expose it to undue volatility and concerns of sustainability over the long-term.

Background

The political economy and history of Zambia, like other countries in sub-Saharan Africa, is largely dependent on the impact of the colonial and post-colonial normalization process. Although David Livingstone was the first foreigner to “discover” Zambia in 1855 under the auspices of the English Commonwealth, Cecil Rhodes, the famed explorer and businessmen from South Africa, was the first foreigner to obtain a mineral rights concession from local chiefs in the country (State Department, 2009). Through a gradual process of regional integration, Northern Rhodesia (the colonial name for modern day Zambia) became part of a larger colonial state (known as Rhodesia); the English prized the state as a key British area of influence and other European countries for its minerals and environmental beauty.  Ultimately, however, as the wave of “decolonization” swept through sub-Saharan Africa, Northern Rhodesia won independence from British rule in 1964.  Due to the geographical and economic importance of Zambia, however, the country remained embroiled in other regional conflicts and civil wars throughout the formative years of its independence.  In particular, Zambia emerged as a valuable “proxy state” vis-à-vis the civil war in Angola and due to its geographical proximity to South Africa (State Department, 2009).

After forming an independent state, however, numerous problems related to the management and allocation mineral wealth came to the forefront.  Copper, the main natural resource found in Zambia,  served as a key source of revenue and political authority in the country.  Indeed, the government’s management of the mineral, and its fundamental place in the economic development of the country, exposed the country to both profit and peril on international markets and trace the trajectory of the country down to the present day (Rakner, 2003).

Political Ecology

The power structure of the Zambian government has gone through continual reform.  After declaring independence from the English Commonwealth in 1964, the government established a series of three republican governments. The First Republic (1964-1972)under the leadership of Kenneth Kaunda stressed social and economic progress that ended in a push for a one-party state.

Although the government was officially organized as a republic, numerous unresolved problems posed notable challenges.  Foremost, copper prices, fell precipitously in the 1970s as economic growth stagnated in the developed world as a function of geopolitical instability and rising oil prices.

During the Second Republic (1973-1990), government power was consolidated in the hands of President Kaunda’s with a new push to increase public ownership of assets, particularly natural resources.  The Zambian government initially tightened the reigns on power and pledged to achieve a “one party participatory democracy” through relying on a strong executive and a unicameral National Assembly (State Department, 2009).  The UNIP, the main political party, held monopolistic power in the system that not only choked off the development of opposition political powers, but also potential innovations in the existing system.   After it became clear that such a monolithic hold on power was becoming untenable, the government undertook further reforms in the 1990s to expand citizen participation in the political process.

As part of the Third Republic (1991- Present), the Zambian government enacted a new constitution in 1991 that enlarged the National Assembly from 136 to 158 members, established an electoral commission and, for the first time, allowed for more than one presidential candidate to run for office.  As a result, the Movement for Multiparty Democracy (MMD) won power in 1991 from the existing government on a reform platform (Bigsten&Kayizzi-Mugerwa, 2001). The new government undertook an extensive macroeconomic and market liberalization program that also kicked off one of the most successful privatization efforts in sub- Saharan Africa including the mining conglomerate- Zambia Consolidated Copper Mines.  Since those reforms were introduced, the trajectory of Zambia (both politically and economically) has flattened.  In addition to increased political gridlock at the federal level in spite of efforts to devolve power to the local level, new problems have emerged to test the government.  For example, the increasing incidence of HIV/AIDS has ravaged the country with nearly 25% of the population at-risk of the disease (Baylies, 2002).

Zambia’s Resource Base

Although Zambia has a robust supply of natural resources, the country has traditionally relied on copper as a main source of revenue.  At the time of independence in the mid 1960s, Zambia’s economy derived 90% of total export earnings from copper (Osei-Hwedie, 2003).  The Zambian government, realizing that the political fortunes of the country would largely depend on the ability to effectively control natural resources, went through a number of phases to nationalize ownership.  The first period of nationalization occurred from 1968 and 1971, was part of the broader “Mulungushi Reforms” (Negi, 2011).  By the beginning of early 1970, the Zambian government has acquired majority holdings in almost all Zambian businesses and major foreign operations.

In addition to the program for nationalization, the Zambian government also undertook a program of import substitution by which it raised the trade barriers for other imports in Zambia.  Although this program was aimed at improving the state of the domestic economy, the policy aimed at decreasing imports gradually hurt the economic development of the country.  While the government’s attempt to use copper revenue as the main foundation of the country didn’t work, eventually, as copper prices rose in the early-to-mid noughties. Indeed, although Zambia built a considerable amount of the economy’s foundation on the future of copper prices, this also exposed the country to the volatility in international price movements. After 2002 the country’s growth was noticeably above-trend, economic growth particularly skyrocketed from 2004-2007 on the back of increased demand from China and India.

Although many sub-Saharan countries have richly profited from the boom in commodity prices (for example- Angola) to the point of fundamentally changing the country’s political economy, Zambia still largely faces the same issues .There are two complementary theories on why many countries in Sub-Saharan Africa have not capitalized on natural resources wealth as a means to boost overall economic growth to diversify the economic base. One popular explanation for this phenomenon is the concept of “Dutch disease”.  In a paper by Cali and Veldi (2009), the authors analyze how Zambia has reacted to the cyclical increase in copper prices starting in 2001.  Overall, the authors find classic symptoms of “Dutch Disease” in the Zambian economy including rampant inflows of capital, a strengthening currency (the Kwacha), and a shift in resources from tradable to non-tradable goods (Cali &Valde, 2009).  Indeed, one of the main phenomenon that has accompanied the rise of natural resource prices is the lagging of Zambia’s agricultural sector (Cali &Valde, 2009).  While the correlation between the development stage of the two sectors is not necessarily due to Dutch Disease, it does suggest a potential trade-offin policy.  In addition, Jeffrey Sachs has suggested the concept of a “poverty trap.” Zambia would be one of the likely candidates to qualify for the “poverty trap” in which landlocked countries without access to markets and a frayed agricultural sector are unable to climb the ladder of economic development.

Environmental Constraints

While natural resources have played a key role in driving Zambia’s economic growth, the cultivation of copper and agricultural resources have also come at a price.  In particular, the (environmental) sustainability of the copper trade and agricultural resources are coming into question.  For example, various media outlets  have reported that Zambia’s Kafue river had suffered serious pollution from chemical run-off due to copper mining in a near-by region that affected nearly 50,000 individuals drinking supply.  The spill is also important because the Kafue Fiver serves as a key tributary for other rivers in the country and to major wildlife areas.  Zambia will continue to face greater challenges to preserve its environment and wildlife in the future.

Conclusion

Overall, Zambia has substantial achievements since declaring independence in 1964.  However, at the same time, the country still faces many of the same obstacles it did during that time including an overreliance on natural resources for economic growth and a lagging agricultural sector.  In addition,  while the high prices from the recent commodity boom led to a rush to mine copper, it also has brought new environmental concerns regarding sustainability into focus.

Citations

Beuran, M., Bahaliand, G., Kapoor, K.  (2011).  Political economy studies: are they actionable? Some lessons from Zambia.  World Bank Policy Research Paper. 5656.

Baylies, C. (2002). ‘HIV/AIDS and Older Women in Zambia: Concern for Self, Worry Over Daughters, Towers of Strength’. Third World Quarterly, 23/ 2: 351-75.

Cali, M. &Velde, D.W. (2009).  Is Zambia contracting Dutch Disease? Overseas Development Institute.

State Department. (2009). History of Zambia.  Available at: http://www.state.gov/r/pa/ei/bgn/2359.htm.

Negi, R.  (2011).  The Micropolitics of Mining and Development in Zambia: Insights from the Northwestern Province.  African Studies Quarterly.  12(2), 28-44.

Osei-Hwedie, B. (2003). Development Policy and Economic Change in Zambia: A Re-Assessment.  DPMN Bulletin, 10(2), 1-6.African Studies Quarterly.  12(2), 28-44.

Rakner, L. (2003).  Political and Economic Liberalization in Zambia 1991-2001.  Nordic Africa Institute.

Bigsten, A. &Kayizzi-Mugerwa, S.  (2001). The Political Economy of Policy Failure in Zambia.  Gotteborg University Department of Economics Working Paper.