The Global Sociology Blog

I have visited Zambia. It is a beautiful country, plagued with the multitude of issues that afflict peripheral countries since their decolonization and represents a good case of dependency. Lately, there have been many articles in the press regarding various problems that have emerged in Zambia and make it a perfect case study of global dynamics.

Zambia is the only country in the region that has not experienced a civil war since its independence in 1964 (before that, it was called Northern Rhodesia, and under British control). It is a democracy with the same political problems that all poor countries face but it is considerably more stable than its neighbors. So far, it has had three presidents: Kenneth Kaunda (a nationalist who ruled after the independence until 1991), Frederick Chiluba who oversaw the economic reform prompted by the World Bank and liberalized the economy and unleashed unprecedented corruption, and ruled until 2002. And finally, two-term Levy Mwanawasa (reelected in 2006) who focused on eliminating corruption, is well-known for his integrity but is of ill-health.

Zambia is rich in minerals, especially copper. After its independence, copper was to be Zambia’s main entry to the global market but, like most poor countries, it got hit hard by the oil crisis and the decline in the price of copper on the world market. As a result, Zambia got in debt and had to submit to structural adjustment programs from the World Bank in exchange for debt relief. Everything was privatized, from the copper mines, to the schools, to the hospital. All this at the same time that the AIDS epidemic started in the region. The effects of these policies were devastating. The literacy rate fell dramatically, so did the health of the population (the HIV-AIDS infection rate is at a staggering 16% and life expectancy is lower than 40 years old). However, now copper has regained value on the global market because it is in all electronic appliances. The problem is that Zambia does not benefit from this because the mines now belong to foreign companies that laid off a significant share of their Zambian workers and managers. As Kenneth Kaunda put it in 2006, while I was there, the state of the Zambian economy is “terrifying.” Things got indeed so bad that the government had to partially re-nationalize the schools and the health care system. But that is not enough and Zambia, who was a middle-income country at the time of independence, is now one of the poorest and most indebted country.

So, what is the latest for Zambia? First, this item from IRIN that reports a panic caused by rumors that Depo-Provera shots were infected with HIV. In a country like Zambia, with a lack of reliable information, rumors are bound to emerge on a regular basis, especially regarding HIV/AIDS, and along with persistent fear of re-colonization in one form or another create a fertile ground for conspiracy theories:

“Health department spokesperson Dr Canisius Banda said the allegation was made by a laboratory technician working at a public health clinic, who decided to test the hormone-based contraceptive for HIV after noticing that it was labelled ‘for export only’. “

In many parts of Africa, a “for export only” label can, at best, mean an inferior product, and at worst, a deliberate attempt at harming the African population either through infection or through sterilization. Did I mention the drug came from the United States? The health department tested the batches and found no traces of the virus. The problem is that after a real case of contaminated drugs from Swiss pharmaceutical company Roche, the Zambian public is not easily reassured.

“In several other African countries, however, health programmes have been sabotaged by misinformation: in northern Nigeria religious leaders derailed efforts to vaccinate children against polio by suggesting the vaccine was laced with agents causing AIDS and sterility. As a result, three northern Nigerian states suspended polio vaccination in 2004 and in some areas uptake is still low.

In Zambia, as in many other countries, distrust of foreign medicines and health initiatives have combined with persistent rumours about the ‘real’ origins of HIV. “They say [HIV] is something that people created to eliminate the black race,” Raphael Phiri of Family Health Trust, a local non-governmental organisation, told IRIN/PlusNews. “In my view, people don’t have very accurate information about these things.”"

In the meantime, though, the Depo-Provera is no longer distributed. But then, another issue has arisen, this time, one related to Zambia’s policies to attract foreign investors. Again, according to IRIN,

“Zambia’s open-door investment policy is coming under criticism from rights activists for passing on the real cost of development to the poor, who are being evicted to make way for the new prestige projects. (…) Campaigners describe the victims as ‘internally displaced persons’ (IDPs) - a description usually applied to people made homeless as a result of conflict or disaster. “

Actually, according to activists, the situation of Zambian IDPs is worse: conflict 0r disaster-based IDPs have at least some hope to go home once their situation has stabilized. That is not the case for Zambian IDPs. Their homes are permanently gone and while these prestige projects may create jobs for some, they will mean homelessness for others. Moreover,

“The backlog in affordable public housing has compounded the problem and led to mushrooming squatter camps. “We have a deficit of housing units for 1.2 million people, who are now resorting to living in unplanned settlements,” acknowledged Local Government and Housing Minister, Sylvia Masebo. With limited rights, the residents are vulnerable to eviction.”

For instance, informal settlements in Lusaka, the capital, are slated to be destroyed to make room for a Chinese economic zone. People that are in the way are relocated, sometimes fairly far away with no compensation.

China’s investment in Zambia is controversial and perfectly illustrates Amy Chua’s concept of market-dominant minority and the potential for ethnic-based violence, as reported by the BBC:

“Some 500 Zambian mine workers have been sacked after rioting and attacking a Chinese manager. Those sacked have three days to reapply for their jobs, while seven union officials have also been arrested. The Chinese manager at the Chambishi copper smelter in northern Zambia was admitted to hospital after the assault. China has become a major investor in Zambia’s run-down copper sector but workers have complained of low wages and poor conditions.”

The riot was sparked by rumors that, in the middle of working conditions negotiations with the union, Chinese managers were going to leave on vacation. China is the largest buyer of Zambian copper but there have been violent incidents before over pay and conditions. As a result, there has been a rise in nationalist discourse in opposition political parties, for instance, with the use of the slogan “Zambia for the Zambians.” Here again, we clearly see Chua’s point that globalization of the market economy and political democratization do not produce the heaven dreamed of by supporters of the Washington Consensus but rather heighten the risks of ethnic violence as result of general impoverishment and enriching of a minority.

And speaking of the failures of the Washington Consensus policies when they are applied to the real world, back to IRIN:

“International investors are toasting Zambia’s fast-growing economy, but economists and social rights activists point out that it is yet to make a serious dent in poverty. “

Yeah, I know. Big surprise. Sure, there is economic growth, less inflation and Zambia, again, looks pretty stable economically and politically compared to its neighbors, but that is a pretty low standard to apply. This should be repeated as often as possible: there is no such thing as trickle-down economics. Benefits at the top do not reach the bottom of the social ladder.

“But while the macro-economic figures shine, the social indicators that reflect whether Zambians are really having a better life have remained stubbornly negative. The poverty rate, as measured by the government’s Central Statistical Office, has been stuck at 68 percent for years; despite all the foreign investment, only 400,000 formal-sector jobs exist for a population of 11.7 million.”

So, if jobs are not to be found in the formal economy, there will be in the informal economy. By the way, Nobel Prize winner and founder of the Grameen Bank, Muhammad Yunus rejects the distinction between formal and informal economy. For him, any activity that generates income is part of the economy. Period. And considering only the formal economy as the “legitimate” economy is trick that puts poor countries at a disadvantage and dismisses the smart economic strategies the poor use to survive.

In the case of Zambia, the economic growth has not translated into better investments in health, education and other sectors that would truly benefit the poor. On the other hand, the investors’ community are fond of President Mwanawasa:

“President Levy Mwanawasa’s administration has been widely praised by western donors for its pro-market policies, which offer foreign investors generous conditions. This is particularly true of the mining sector, where royalty tax is an exceptionally low 0.6 percent, firms are exempt from customs duty, and there is no ceiling on the amount of dividends or profits that can be repatriated. Oliver Saasa, a consultant economics professor at the University of Zambia, said the impact of copper earnings had been negligible because of the lack of social investment.”

So, truly, what’s the upside for Zambia? Well, like most good IMF / WB students, Zambia saw its debt of $7.2 billion cancelled in 2005. Doesn’t this mean that the capital that used to be spent on servicing the debt should now be available for investments directed as reducing poverty? But in the name of fiscal discipline, wages have not increased, so economic growth has not translated into higher income, better infrastructure or high agricultural yields (Zambia is urbanized but the majority of the population still relies on subsistence agriculture). As a result of all this, and as in many Central and South American countries, nationalist / populist political leaders may be on the rise:

“The man who stands to gain is Michael Sata, the populist leader of the Patriotic Front. He scooped all urban parliamentary and local government seats in Lusaka and the central Copperbelt province in the 2006 general poll, an election marked by his threats to throw Chinese businesses out of the country for their alleged exploitation of Zambian workers. This year the veteran politician has emerged victorious in parliamentary by-elections in both these provinces, pushing a political programme centred on slashing taxes, creating more jobs, and improving housing. “

Let’s not be surprised when the poor vote for candidates whose platform is based on poverty-reduction (even if that means adding a good dose of xenophobia) rather than more of the elusive economic growth which please more foreign investors and global institutions but leave the majority quite cold.

Map Source: CIA World Factbook.