Public Reforms in Zambia

Topics: Macroeconomics, Central bank, Inflation Pages: 6 (2179 words) Published: July 23, 2013
Introduction
This paper will look at the meaning of public service reforms and the developments Zambia has scored from its reforms. A public service reform movement is a kind of social movement that aims to make gradual change, or change in certain aspects of society, rather than rapid or fundamental changes. A public service is a service which is provided by government to people living within its jurisdiction, either directly (through the public sector) or by financing private provision of services. The term is associated with a social consensus (usually expressed through democratic elections) that certain services should be available to all, regardless of income. Even where public services are neither neither publicly provided nor publicly financed, for social and political reasons they are usually subject to regulation going beyond that applying to most economic sectors. Public services tend to be those considered to be so essential to modern life that for moral reasons their universal provision should be guaranteed. They may be associated with fundamental human rights (such as the right to water, shelter, health, education, etc.) Zambia is one of Sub-Saharan Africa's most highly urbanized countries. About one-half of the country's 11.5 million people are concentrated in a few urban zones strung along the major transportation corridors, while rural areas are under-populated. Unemployment and underemployment are serious problems. National GDP has actually doubled since independence, but due in large part to high birth rates and AIDS per capita annual incomes are currently at about two-thirds of their levels at independence. This low GDP per capita, which stands at $1400, places the country among the world's poorest nations. Social indicators continue to decline, particularly in measurements of life expectancy at birth (about 50 years) and maternal and infant mortality (85 per 1,000 live births). The high population growth rate of 2.3% per annum makes it difficult for per capita income to increase. The country's rate of economic growth cannot support rapid population growth or the strain which HIV/AIDS-related issues (i.e., rising medical costs, street children, and decline in worker productivity) places on government resources. For the first time since 1989 Zambia's economic growth reached the 6%-7% mark (in 2007) needed to reduce poverty significantly. Copper output has increased steadily since 2004, due to higher copper prices and the opening of new mines. The maize harvest was again good in 2005, helping boost GDP and agricultural exports. Cooperation continues with international bodies on programs to reduce poverty, including a new lending arrangement with the IMF in the second quarter of 2004. A tighter monetary policy will help cut inflation, but Zambia still has a serious problem with high public debt. Zambia was ranked the 127th safest investment destination in the world in the March 2011. Economic policies soon, after independence.

After independence, Zambia instituted a program of national development plans, under the direction of a National Commission for Development Planning: the Transitional Development Plan (1964–66) was followed by the First National Development Plan (1966–71). These two plans, which provided for major investment in infrastructure and manufacturing, were largely implemented and were generally successful. This was not true for subsequent plans The Mulungushi Economic Reforms (1968).A major switch in the structure of Zambia's economy came with the Mulungushi Reforms of April 1968: the government declared its intention to acquire equity holdings (usually 51% or more) in a number of key foreign-owned firms, to be controlled by a parastatal conglomerate named the Industrial Development Corporation (INDECO). By January 1970, Zambia had acquired majority holding in the Zambian operations of the two major foreign mining corporations, the Anglo American Corporation and the Rhodesia Selection...

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4.Juang, Richard M. (2008). Africa and the Americas: culture, politics, and history : a multidisciplinary encyclopedia, Volume 2 Transatlantic relations series. ABC-CLIO. p. 1157. ISBN 1-85109-441-5.
5.Zambia: Approved Exploration Licences to Boost Mining, Africa: AllAfrica.com, 2013
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