Impasse in Zambia

Abstract

Abstract Zambia has economically retrogressed since gaining independence in 1964. While exogenous and historical factors are partly responsible, policy mistakes have probably had a considerable impact, including distorted exchange rates, unrealistic wage levels, careless retrenchment of expenditure, neglect of agriculture, over‐reliance on parastatals, and over‐rapid Zambianization. Reform efforts have so far been unsuccessful. Bottlenecks include the lack of political entrepreneurship, the weakness of public administration, and the failure to build consensus essential for effective implementation. Editorial note. At the suggestion of the author, the editor has combined material from Ravi Gulhati's 1989 EDI case study, ‘Impasse in Zambia: the economics and politics of reform’ with sentences from his 1990 EDI Seminar Report: ‘The making of economic policy in Africa’. Both documents are available from Ms. Edith Pena, EDI, The World Bank, 1818 H St., N.W., Washington, D.C. 20433.