Economic Liberalisation in Zambia

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THE UNIVERSITY OF ZAMBIA NAME: PATRICK CHALWE CONTACT DETAILS: EMAIL: 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…show more content…
More importantly, INDECO failed to advance beyond production of non-durable consumer goods to durable and capital goods. Fourth, the bias against agriculture and rural areas meant the continued dependence on the copper mining industry. Fifth, the bias against exports and import restrictions resulted in higher exchange rates and reduced the gains from exports. Sixth, Zambia’s support for the liberation movements of Southern Africa and the closure of the border following the Unilateral Declaration of Independence by Rhodesia seriously affected implementation of development plans, as alternative export routes had to be built, especially the Tanzania -Zambia Railway. Following the recommendations of the International Monetary Fund and the World Bank, the government undertook economic policy reforms to rejuvenate the economy from 1983. However, the structural adjustment programmes (SAPs) worsened, rather than improved the economy. Agricultural and manufacturing outputs and exports failed to increase significantly. This was attributed to the inadequate incentives for farmers due to uncompetitive exports of manufactures, high inflation, unemployment, and rising external debts. Liberalization The new government that came to power in 1991 adopted
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