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Impact of GEC on LICs Trade

Impact of GEC on LICs Trade. A case of Zambia. Tina Nanyangwe - Moyo Coordinator: Debt, Aid and Trade Programme JCTR/ Jubilee-Zambia. Impact of GEC on LICs. The impact of GEC on LICs has been substantial and significantly varied

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Impact of GEC on LICs Trade

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  1. Impact of GEC on LICs Trade A case of Zambia Tina Nanyangwe - Moyo Coordinator: Debt, Aid and Trade Programme JCTR/ Jubilee-Zambia

  2. Impact of GEC on LICs • The impact of GEC on LICs has been substantial and significantly varied • Ethiopia: 2 Israeli-owned flower farms put up for auction for failure to service bank loans due to reduced export sales • Uganda: Coffee exports to decline and Direct Budget Support of 60% annually to drop. 80% of workforce in agric at threat of job losses • Congo, D.R – Suffered major job losses of over 300,000 due to closures of copper mines

  3. Impact of GEC on Zambia • Copper prices reached a record high of US $8, 985.0/ tonne in July 2008 before falling to US$2, 902.0/ tonne • At end January, country recorded a severe trade deficit of $42,5bn • Loss of mining jobs • Loss of hospitality industry (no statistics)

  4. Challenges to trade in Zambia • Inadequate access to markets • Huge transport costs for landlocked countries • Dependency on one single export commodity • Lack of value additions to products • Lack of credit facilities for traders • Meager economic growth has not improved capital accumulation

  5. Responses by LICs • Bangladesh; setting up of a core group to assess the impact of the crisis and offer responses • Many waiting for IFIs to help

  6. Responses by IFIs • Increasing financial resources through loans • Increasing technical assistance

  7. Possible responses for Zambia • Improve domestic demand • Invest in agriculture • WB World Devpt Report – GDP growth from agric 4 times efficient in raising incomes • Participation of larger popn • Agric more than fertilizer support • Improved food security • Explore regional markets

  8. Possible responses for Zambia • Targeted infrastructure devpt based on national priorities • Need to constitute a core group to identify priority responses??

  9. I Thank you! • Website: www.jctr.org.zm

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