:: Zambia Background
Politics & Economics
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Health, education and welfare improved greatly during the first years of UNIP's rule, but the wholesale nationalisation of the economy led to corruption and inefficiency crippling the country. Active support of the independence struggles of nearby South Africa, Namibia, Moçambique and Zimbabwe led to Zambia being isolated from possible trading partners.
Kaunda banned the Zambian African National Congress opposition party in 1972 and announced UNIP as the countries sole legal party, and himself as the only legal president. He subsequently spent 27 years in power.In an attempt to improve the failing economy, the IMF stepped in and offered conditional aid to the country in 1986. Food subsidies were withdrawn and the currency was floated so leading to a large increase in the cost of living for the majority |
of Zambia's people. Food riots followed and a military coup was attempted in 1990. Eventually Kaunda had to concede defeat and an election was held in 1991 in which the newly formed broad coalition party,
Movement for Multiparty Democracy won with an 80% majority. Frederick Chiluba became the countries second president.
A liberal, free market economy was advocated but the new government had inherited US$7 billion of debt and a country in a worse state than at independence. The IMF and the World Bank began to support the country with aid once again, but the liberalisation of exchange controls led to food prices soaring, the currency falling and an increase in unemployment as nationalised industries were privatised. The political situation also suffered and the MMD was accused of unfair practices in the 1996 elections. However, following much discussion it appeared that the majority of Zambia's people were still satisfied with the election results and the MMD remain in power.
Current exports include excellent quality crops of tobacco, cotton, maize, rice, wheat and groundnuts as well as
vegetables, tea and coffee. Zambia holds 6% of the world's copper reserves and many gem quality stones are also exported. These include emeralds, aquamarines, amethysts and tourmalines.
Electricity is generated from hydroelectric schemes including those in the magnificent Kafue gorge, at Victoria Falls and shared with Zimbabwe at Lake Kariba. Coal powered stations are also used.
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