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Zambia ’ s Development Challenges. A Report to the ITC ILO Course on Trade Union Training on Research and Employment 21 May 2008 Turin, Italy. Structure of Presentation. Background information on Zambia Zambia ’ s development potential Zambia ’ s earlier development challenges(1964-2007)

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zambia s development challenges

Zambia’s Development Challenges

A Report to the ITC ILO Course on Trade Union Training on Research and Employment

21 May 2008

Turin, Italy

structure of presentation
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
background information
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$490
background information1
Background Information
  • GDP (at current US$) = 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]
1 0 zambia s development potential
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
2 0 zambia s earlier devpt challenges 1964 2007
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
2 0 zambia s earlier devpt challenges 1964 20071
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
2 0 zambia s earlier devpt challenges 1964 20072
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
2 0 zambia s earlier devpt challenges 1964 20073
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
3 0 zambia s key challenges in 2008
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
3 0 zambia s key challenges in 20081
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
4 0 in search of a development strategy
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
5 0 trade union reactions
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
3 0 zambia s key challenges in 20082
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
slide15
That’s the end!

Merci beau coup!

Thank you!