Unbalanced growth and dependency theory in Zambia: A post-independence survey

Abstract

This paper outlines the trajectory that Zambia's economic development followed after the country's independence in 1964 up until the full onset of privatization in 2000. This is presented in terms of both dependency theory and Hirschman's 'unbalanced growth theory'. After providing a brief overview of Zambia's economic history, the article argues that Zambia's undue reliance on mining exports afforded a classic instance of unbalanced growth which proved to be too much of a high-risk strategy to be sustainable. This is followed by an analysis of where, in the centre-periphery ordering posited by dependency theory, Zambia found itself situated. It demonstrates that Zambia provides one with a textbook case of a country that proved to be highly vulnerable to the volatility and vagaries of global capitalism.

Asymmetric Effects of Oil Price Volatility on Government Expenditure in Oil-Importing African Countries: Evidence from Zambia

“…This period corresponded to low copper prices, and subsequently, relatively low government spending. According to Ingle, due to increasing poverty; unemployment; illiteracy; social unrest; food shortages; and political instability in Zambia, multi-party democracy was introduced in 1990, followed by the subsequent undertaking of an IMF tailored Structural Adjustment Programme (SAP) that was aimed at macro-economic stability; public reforms in the public sector; economic liberalization; privatization of state assets; and agricultural reforms [9]. In 1998, public sector spending significantly increased due to infrastructure development programmes, particularly the Presidential Housing Initiative which targeted the construction of 4,000 housing units for the low/middle class, as well as widespread road infrastructure development.…”