Zambia ’ s Development Challenges

1. Zambia’s Development Challenges A Report to the ITC ILO Course on Trade Union Training on Research and Employment 21 May 2008 Turin, Italy

2. Structure of Presentation • Background information on Zambia • Zambia’s development potential • Zambia’s earlier development challenges(1964-2007) • Zambia’s development challenges in 2008 • In search of a development strategy • Trade union reactions

3. Background Information • Located in southern Africa, • Former British colony • Gained independence on 24 October 1964 • Total population, 11.7 million(2007) • 65% of population live in rural areas • Relatively young population with about 46% aged between 0-14yrs • Poverty incidence, 64% of total population(2006) • Low income country, GNI/capita is US$490

4. Background Information • GDP (at current US$) = US$11.3 billion(2007) • Predominantly mining economy • Other key sectors: agric,manuf; Construction;Tourism • Main exports: copper and cobalt(account for over 75% of exports) • Main imports: crude oils and machinery • Economic policy regime: pursuing neo-liberal economic policy, currently implementing 2G PRSP [called FNDP]

5. 1.0 Zambia’s development potential • Land surface area of 752,614 square kms • 56% arable land • A human resource base of 11.7 million people • 5 million in the active labour force • Abundant mineral resources • Copper, cobalt + emeralds etc • Abundant fresh water • 35% of fresh water resources in SADC are in Zambia • Potential for increased agriculture + hydroelectric power production • Increased potential for tourism with marketing of victoria falls

6. 2.0 Zambia’s Earlier devpt Challenges, 1964-2007 • 1964-1972: • setting up infrastructure + services • supporting the liberation struggle in southern Africa • taking care of the influx of refugees from neighbouring countries

7. 2.0 Zambia’s Earlier devpt Challenges, 1964-2007 • 1973-1984: • determining an appropriate development strategy ( free market, controlled or mixed mode?) • consolidating the industrialisation drive • Challenge of two rounds of oil shocks, 1972/3 & 1979 • Declining terms of trade • Burgeoning external debt

8. 2.0 Zambia’s Earlier devpt Challenges, 1964-2007 • 1985-1990 • Balance of payment disequilibria • Growing social discontent • Un-sustained stabilisation +fall out with IMF

9. 2.0 Zambia’s Earlier devpt Challenges, 1964-2007 • 1991 – 2007 • Full-fledged stabilisation and austere structural adjustment measures • ‘Liberal democracy’ and ‘constitutionalism’ • Deprivation, debt and disease • Soaring oils prices • Natural disasters: drought, floods • Economic partnership agreements

10. 3.0 Zambia’s Key Challenges in 2008 • Strengthening the link between growth and poverty reduction • Increasing job opportunities for the growing mass of the unemployed • Sustaining the adequate supply and retention of critical human resources, especially in critical shortage areas such as health and education systems

11. 3.0 Zambia’s Key Challenges in 2008 • Ensuring a healthy population in which incidences of major diseases such as TB, malaria and HIV/aids are progressively reduced • Coming up with a generally accepted constitution • Enhancing the enforcement of labour laws

12. 4.0 In search of a development strategy • Country has designed and is implementing vision 2030 • Operationalised by five year devpt plans • Beginning with fifth national development plan, 2006-2010

13. 5.0 Trade union reactions • Have participated in policy design and review of labour laws • Direct involvement in employment promotion through CISEP • Scaling efforts and resources for HIV/AIDs prevention and mitigation • Participating in process to amend national constitution

14. 3.0 Zambia’s Key Challenges in 2008 • Implementing a windfall tax on new mining investors • Resolving the shortage of power / electricity • Bringing down the interest rates • Economic partnership agreements • Establishing new infrastructure and refurbishing and maintaining existing ones

15. That’s the end! Merci beau coup! Thank you!