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ZAMBIA
>> Regional Overview >> Zambia Overview
Development Challenge FY2001 Program /
Activity & Budget InformationSummary Tables
Program Summary
Previous Years' Activities
2000, 1999, 1998, 199701
Introduction
Peace, prosperity, and democratic development in Zambia are important to both the United States and to Zambia. Regional stability is the chief objective of the U.S. Embassy's Mission Performance Plan (MPP). USAID investments support this objective and directly help Zambians to improve their standard of living.
Zambia is a peaceful country that has never experienced civil conflict, war or a military coup. Power has been transferred through democratic elections. Zambia provided courageous leadership in championing majority rule in the region. More recently, it has taken a leading role in mediating regional conflicts in both Angola and the Democratic Republic of Congo.
In 1991, Zambia began a transition from a socialist regime to a market-oriented democracy, with impressive results. An ambitious program of economic liberalization has removed all price controls, subsidies, and restrictions on private-sector participation in the economy. A complementary privatization program, a model for other countries in the region, has helped to transform the economic landscape, generating new foreign exchange and enabling major new investments and employment. The privatization process is not yet complete. Major assets of the large parastatal mining company have not yet been sold, and the delay has had a negative impact on Zambia's external debt and budget deficit. The sale is nearly concluded, however. Continued compliance with an enhanced structural adjustment program may enable Zambia to access the World Bank's Heavily Indebted Poor Country (HIPC) initiative in 2000. Zambia has made positive strides toward democracy since 1991; multi-party politics now is the accepted norm.
Despite these positive developments, much remains to be done. Seven out of ten Zambians live on less than a dollar a day, and one in five adults is infected with HIV/AIDS. Spreading the benefits of the economic reform program throughout society will be a challenge. Rightly, these challenges are the first priority of both the Government of the Republic of Zambia (GRZ) and USAID.
Finally, although landlocked, Zambia's location is pivotal for the long-term growth of the region. Key transport corridors cut across the country. A rich endowment of natural resources offers great potential for exploitation and regional economic integration. The United States works collaboratively with a variety of Zambian and international partners to enhance prospects for peace, trade and stability in the region. Zambia is a key player in the Southern African Development Community and the Common Market for East and Southern Africa. If Zambia stays on its reform program, the country could resume robust growth during 2000 and 2001.
The Development Challenge
Zambia is a large country with good soil, water, rich natural resources and hard-working citizens. Unfortunately, Zambia still is trying to overcome the legacy of socialism, which left the country with inadequate infrastructure, poorly developed human resources, and a debt of almost $8 billion. Cyclical droughts, low productivity of rain-fed agriculture, and a high human disease burden add further challenges.
At the sectoral level, policies are in place to address key issues. A national road sector reform program has made progress in rehabilitating infrastructure. New investments in the power sector have led to new investments in mining. Reorientation within the health and education sectors is placing more responsibility for these services at the community level. Better-targeted safety net programs are addressing the needs of the poorest Zambians. Agriculture activities are encouraging local farmers to cope more effectively with bad weather years and to join in the robust growth in exports. Similarly, the opening up of the political process and other democratic governance issues have advanced significantly since 1991. These and other positive changes have been supported by the international donor community.
Regrettably, much of the positive impact of these changes is offset by the devastating impact of the HIV/AIDS pandemic. With one in five adults infected, the ravages of the disease on all elements of society are increasingly apparent. There are some signs of success in the response to the crisis, particularly in the adolescent age group, but the overwhelming and long-term nature of this threat continues to require priority attention.
Zambia possesses the ingredients for success. There is a clear market for Zambian products, and the country is on an attainable path toward sustainable development, as demonstrated by the strong successes of non-traditional exports and the already privatized assets of the large parastatal copper mining company. Good policies are essential for Zambia to reach its potential, and USAID has encouraged and supported Zambia's reforms.
Other Donors
Overall, development assistance to Zambia fell from $637 million in 1994 to $350 million in 1998. Although donors have been satisfied with progress in technical fields, they have been concerned with governance issues associated with the flawed 1996 national and presidential elections; with events in the wake of a failed coup attempt in late 1997; and over the slow pace of the privatization of the economically important copper mines. Donors are expected to resume much of the balance of payments assistance when the mine sale is concluded. The World Bank continues to be the principal multilateral donor, followed by the U.N. agencies and the African Development Bank. In 1998, the United States was the largest bilateral donor, in part due to the provision of emergency food aid. Other key donors include the United Kingdom, Norway, the European Union, and Denmark. Donors meet frequently to discuss concerns, set priorities, and coordinate approaches.
Country Background Information Resources CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: November 09, 2000 |
