Economic Growth In Zambia

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Exceptionally in the case of the Zambia, the promotion and encouragement of policies fostering growth and development can substantially benefit the economic and social conditions of the country. The former colony gained complete freedom from its colonisers in 1964. The economic situation after independence had remained stagnant until a sharp decline in the overall economic activity was experienced from 1980. Zambia is a landlocked country surrounded by countries like Zimbabwe, Mozambique, and Botswana etc. Notably, Zambia was able to maintain political and social stability, when the surrounding neighbours were struck with terror and political volatility. Despite being a landlocked country, the tropical climate of the region allows for…show more content…
The state remained unchanged after this. As a consequence of the government’s financial position, the country faced an overall deficit of 115% in 1991. The incompetence of the government in revenue generation as well as the lack of allocation of grants and funds in the form of foreign aid resulted in negative growth in India. Considering, the over-dependence on copper and decline in financial position, figure: 1 depicts the real GDP growth in Zambia between 1980 and 1992.In the mid-1970s, the cost of copper, Zambia's prime export commodity, endured an extreme decrease in prices around the world. In Zambia's circumstance, the cost of transporting the copper to the market was an extra strain for the Zambian economy. During this period, Zambia turned to foreign assistance, however, as copper costs remained at an all- time low, it turned out to be progressively difficult to repay the debts, due to the accumulating debts. By the mid-1990s, in spite of limited debt relief, the per capita foreign debt of the country remained amongst the highest in the global economy. The decrease in copper prices and the severe…show more content…
Remarkably, implementation of policies, allocation of resources and careful management of foreign aid, can consequently result in progressive economic growth and development for the country. Furthermore, this allows for growth in intellectual environment as well as promotion of domestic manufacturing. The “culture of aid” that has emerged in the recent past and the view on African countries, such as that of Zambia, has led to economical degradation of the countries. The over-dependence on aid in these countries reduces the chances of sustainability and growth. For example, tied aid, which is a common form of bilateral trade, leads to demotion of domestic production, as they lack incentive and are unable to face the competition in the global market. The altruistic nature of foreign aid often hides its harmful effects on the recipient country. Thus a new perspective needs to be taken into consideration and the detrimental effects of foreign aid are required to be understood in order to better policy implementation.In the mid-1970s, the cost of copper, Zambia's prime export commodity, endured

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