Zambia particularly in the field of gemstone and industrial mineral, which offer great potential. Political and economic liberalisation in zambia 19912001. Due university of illinois, urbana champaign summary. The region is the most urban and the most industrial in the country, with the. It is also sometimes used as a synonym for deregulation when a heavily regulated private company or industry becomes less regulated. The impacts of privatisation on copperbelt communities social impacts of privatisation 15% of zambias 10. Privatization issues this section addresses the issues, and the decisions which governments themselves must make prior to embarking upon a privatization process. How can globalisation work for the poor pambazuka news. Privatization, which is an integral part of an extensive public sector reform policy. The impact of privatisation on the zambian economy 54 sarpn.
Privatization of public enterprises in zambia african development. The impact of privatisation on the zambian economy from 1975 zambias economy underwent a world record breaking decline. Goldstein this paper is available upon request from oed. History examples, and issues page executive summary i i.
Business, international energy industries political aspects energy industry privatization privatization business. Control in the parastatal section in zambia 231 interests to minority partners was almost two to one. Indeed, each element of privatization from its apparent costsaving properties to its possible negative impact on minority workersprovokes strong. The initial groundwork and clarification of objectives recommended herein should enable. The impact of privatisation on the zambian economy from 1975 zambia s economy underwent a world record breaking decline. Lessons from, zambia article pdf available in journal south african institute of mining and metallurgy 11110. Public enterprise reform became gradually discredited. President frederick chiluba of zambia, utilities, brief article by african business. That privatisation has led to increased supply of quality goods and services on the market especially essential commodities sugar, salt, soap, e. Zambia liberalized her economy in 1991 because she saw there was a need for a new approach to economic management, which would place emphasis on trade liberalization, privatization, better governance, and favorable investment climate i.
Indeed, each element of privatizationfrom its apparent costsaving properties to its possible negative impact on minority workersprovokes strong. The data were analyzed with respect to industrial sector, mode of sale, dependence on the zambia consolidated copper mines. Tanzania and zambia were chosen for this research because of the socialist political philosophies in each country since the late 1960s called humanism in zambia and because of the large number of government parastatals to be privatized. The board of zambias privatization agency zpa therefore terminated the negotiations and issued a new invitation to bid for the sale of 49 percent equity in. Privatisation of public enterprises in developing countries. However, in a narrower sense, privatization refers to a transfer of state activities into the private sector by sale full or partialof ongoing concerns or by sale of assets following liquidation. Southern african peoples solidarity network sapsn, 2007. Today, soe reform is again on the agenda in zambia. Zambia deregulation and the denial of human rights submission to the committee on economic, social and cultural rights full report. Zambia postprivatization study independent evaluation group. Zambia postprivatization study john serlemitsos harmony fusco 2003 the world bank washington, d. Liberalization and privatization in tanzania and zambia. To contribute more effectively during this years development forum 2002 and add zambias voice to the uk development policies, zambia think tank forum members are encouraged to make their contributions and views on the issues raised by this author.
Only one person in zambia has benefited from privatization. Privatization or privatisation in british english can mean different things including moving something from the public sector into the private sector. Request the article directly from the author on researchgate. Any denationalisation programme should be designed to seek pareto improvements, meaning that employees, consumers, government and new. It is defined as the transfer of state owned resources to private control. Th figure e for 1978 is closer to 84 per cent of total assets based on a. Zambia has achieved important progress in terms of strengthening its policy framework for investment over the past few years.
Kabwa discuss issues not persons we are tired with. The zambian government has kept an interest in some of the larger enterprises which it intends to sell to zambians at a later date. The board of zambia s privatization agency zpa therefore terminated the negotiations and issued a new invitation to bid for the sale of 49 percent equity in zncb instead of the original 51 percent equity. A realization of the significant ongoing role played by soes in the economy, and the importance of many of these companies for poverty reduction and overall economic growth. I was very pleased indeed to note your formal acceptance of your appointment to the position of director of the zambia privatisation agency. This set of fact sheets look at privatisation, the process by which the government of zambia is selling off state owned industries and enterprises to new private. Zambia post privatization study john serlemitsos harmony fusco 2003 the world bank washington, d. At independence in 1964, zambia inherited a private sector driven economy dominated by the foreignowned mining sector contributing almost 50% of gdp and even more of government revenues. The international community led by the united nations has been working with other donors to try and meet the so called development targets which is a vision and strategy. A large share of the blame for this disaster can be put at the feet of the collapse of the world price of. Privatisation or privatization in american english can mean different things including moving something from the public sector into the private sector. Zambia was one of the earlier countries to embark on a major privatization exercise as part of its economic reform program started in 1992. Pdf silent privatisation of customary land in zambia.
Between 1992 and 1996 it examined a number of different methods through which the privatisation of the company could be implemented. The world bank operations evaluation department directorgeneral, operations evaluation. In the final section of the paper i will attempt to draw useful conclusions regarding privatization as an economic growth policy. Selling a countrys natural resources is not a gain. The world bank seeks to assess the effectiveness of the privatization program which was initiated in zambia in 1992 with significant assistance from the world bank and other donor agencies.
Zambia private sector development reform program psdrp. In line with other newly independent african countries, the. That privatisation has led to increased industrial capacity utilisation, profitability and. Privatization is a fuzzy concept that evokes sharp political reactions. It covers a great range of ideas and policies, varying from the eminently reasonable to the wildly impractical. The region is the most urban and the most industrial in the country, with the highest share of its population in formal employment.
Zambia postprivatization study english the world bank. The impacts of privatisation on copperbelt communities. The programme of state enterprise privatisation pursued by the zambian government since 1992 has been subject to a number of conflicting evaluations. Then it gained independence in 1964, and from that point on it was all downhill.
An evaluation of the policies, procedures and experiences caleb m. Government functions and services may also be privatized. Abstract the note analyzes zambia s reasons, and measures for success in privatization. Privatization has not helped zambia ngesa lusaka times. The board of zambias privatization agency zpa therefore terminated the negotiations and issued a new invitation to bid for the sale of 49 percent equity in zncb instead of the original 51 percent equity. In lusaka, meetings were held with the zambia privatisation agency. Privatization was wrong, zambia could have learnt how to build the economy from emerging economies such as china, japan etc. Indeed, each element of privatizationfrom its apparent costsaving properties to its possible negative impact on. The privatisation of the zambian consolidated copper mines zccm in 1997 resulted in. Business, international energy industries political aspects energy industry privatization privatization business public utilities utility regulations zambian foreign relations. Th figure e for 1978 is closer to 84 per cent of total assets based on a calculation of state shareholdin eacg oh largf e enter. Introduction privatization is thought to improve overall economic efficiency, hence improving general welfare. Inefficient and undercapitalised soes in these sectors have kept.
Zambia began to liberalize its trade regime in the early nineties, and embarked on a privatization programme in 1992, initially by targeting a few, smallscale companies. The clearest impact of privatisation is that it places ownership of the copper mines in private hands, rather than being in the control of. Initialpostcolonial developments zambia in general and the copperbelt district. The note analyzes zambia s reasons, and measures for success in privatization. There was little attempt to educate the colonys african population until shortly before zambias independence in 1964.
The effect of structural adjustment programmes on the delivery of veterinary services in africa 3 officially recognized as part of the animal health delivery system. For example, a government can sell the controlling interest to a private sector company, but still keep a significant shareholding itself. In zambia the contribution of mining to gdp fell from 32. Government functions and services may also be privatised which may also be known as franchising or out.
Agriculture, fishery and forestry, which account for 20 per cent of zambian gdp, shrunk by 2. The privatization of the zambia sugar company in 1994 brought in new investments and changes in management which resulted in about 20% growth of sugar production between 1994 and 2000. The privatization process has led to the closure of many companies on the government should set up contracts with mining companies, not sale. March 23, 2011 alastair fraser, china and africa research, copperbelt, imf, john lungu, neoliberalism, privatization, world bank, zambia jannychang1 for whom the wind falls. How effective is waste management by private companies in. Abstract the note analyzes zambias reasons, and measures for success in privatization. How effective is waste management by private companies in lusaka, zambia. Compared to many other southern african countries, zambia has relatively abundant land and water. An act to provide for the privatisation and commercialisation of state owned. It stipulates the following key indicators for assessing the performance of divestiture programs in africa. Mining investment and the copper price boom further supported this growth.
Political and economic liberalisation in zambia 19912001 lise rakner the nordic africa institute, 2003 rakner i page 1 wednesday, october 1, 2003 2. The zambia sugar industry has experienced significant growth of. The effects of privatization in zambia janny chang, phd. Privatisation has become an integral part of procompetition programme and has now become a familiar feature of new consensus economic policy. Six problems with privatization in zambian copper mines by professor john lungu and alastair fraser. The note analyzes zambias reasons, and measures for success in privatization. Mar 23, 2011 zambia was originally colonised by the british, and enjoyed prosperity and stability for many years.
Yet however varied and at times unclear in its meaning, privatization has unambiguous political origins and objectives. In line with other newly independent african countries, the goz transferred ownership to. This can be achieved through direct sale of the assets to the private sector. Privatization of copper mines in the late 1990s and the implementation of fiscal discipline in 2004 transformed zambias economic performance, leading it to sustained economic growth. The zambian government sought to promote competitive industrial structures. Zambia privatisation strategy has been hesitant when dealing with some crucial sectors particularly those considered strategic institutions. Zambias dependency on copper makes it vulnerable to depressed commodity prices. Zambia was designed to function only for children of white settlers. Advantages and disadvantages of privatization the merits and drawbacks of privatization have been subjects of considerable debate among businesspeople, city leaders, and public employees alike. Between the periods 19701975, 19761990 and 19911999, per capita gdp fell by 0. The findings from this desk research provide a basis for the analysis of the impact of privatization, corporatisation and various forms and degrees of. Reserved jobs for zambians only, nationalisation of the mines, nepotism to an enormous extent, bribery and corruption. Fundanga and andrew mwaba introduction the term privatization is often loosely used to mean a number of related activities, including any expansion of. The state, privatisation and the public sector in zambia.
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