Economic Liberalisation in Zambia
THE UNIVERSITY OF ZAMBIA
NAME: PATRICK CHALWE
CONTACT DETAILS: EMAIL: pchalwe@gmail.com
Introduction
This essay seeks to critically analyze the statement that “Economic liberalism is a prerequisite for economic development in development economies.” This paper will begin by outlining the concept of economic liberalization and its effect on the development agenda for Zambia. An analysis of these experiences is then made in order to derive lessons regarding the linkage between economic liberalization and economic development. It will then draw the pros and cons; positives and negatives effects of economic liberalism in the Zambian economy and will finally conclude by establishing the way forward for developing economies.
Zambia is located in the central part of southern Africa. This country of 11.5 million people, once among Africa’s wealthiest, long has suffered with one of Africa’s worst performing economies. Zambia’s real per capita gross national product GNP) has fallen roughly two pent per year since 1965, and was a meagre $380 in the early 1990s (Thomas P Sheehy, 1992). Zambia had one of the world’s largest per capita recipients of foreign aid throughout the 1970s and much of the 1980s.
Nationalization and Industrialization
At independence, Zambia’s economy was mainly dependent on copper mining that accounted for 90 per cent of its export earnings (Republic of Zambia 1996). The leadership was committed to the promotion of economic development and restructuring the economy. The government, therefore, undertook rapid nationalization of the economy shortly after independence, paving the way for state-led development. State intervention in the economy was set in motion with the 1968 Mulungushi Economic Reforms that allowed the government to acquire 51 per cent shares from private retail, transportation, and manufacturing firms (Republic of Zambia 1968). The Industrial Development Corporation (INDECO), a state industrial holding
NAME: PATRICK CHALWE
CONTACT DETAILS: EMAIL: pchalwe@gmail.com
Introduction
This essay seeks to critically analyze the statement that “Economic liberalism is a prerequisite for economic development in development economies.” This paper will begin by outlining the concept of economic liberalization and its effect on the development agenda for Zambia. An analysis of these experiences is then made in order to derive lessons regarding the linkage between economic liberalization and economic development. It will then draw the pros and cons; positives and negatives effects of economic liberalism in the Zambian economy and will finally conclude by establishing the way forward for developing economies.
Zambia is located in the central part of southern Africa. This country of 11.5 million people, once among Africa’s wealthiest, long has suffered with one of Africa’s worst performing economies. Zambia’s real per capita gross national product GNP) has fallen roughly two pent per year since 1965, and was a meagre $380 in the early 1990s (Thomas P Sheehy, 1992). Zambia had one of the world’s largest per capita recipients of foreign aid throughout the 1970s and much of the 1980s.
Nationalization and Industrialization
At independence, Zambia’s economy was mainly dependent on copper mining that accounted for 90 per cent of its export earnings (Republic of Zambia 1996). The leadership was committed to the promotion of economic development and restructuring the economy. The government, therefore, undertook rapid nationalization of the economy shortly after independence, paving the way for state-led development. State intervention in the economy was set in motion with the 1968 Mulungushi Economic Reforms that allowed the government to acquire 51 per cent shares from private retail, transportation, and manufacturing firms (Republic of Zambia 1968). The Industrial Development Corporation (INDECO), a state industrial holding
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