Background

• Zambia became independent in 1964 with Kenneth Kaunda as president.

• It was rich in copper, which became the main economic resource.

• During colonial times, mining was controlled by foreign companies. After independence, Zambia nationalized many industries.

Causes of Zambia’s Economic Decline

1. Falling Copper Prices
   Copper prices dropped after 1975, greatly reducing Zambia’s income.

2. Global Competition
   Countries like Chile and the USA produced better quality copper, which pushed Zambia out of the market.

3. Corruption
   Corruption during the Chiluba era weakened the economy. The privatization process benefited a few individuals instead of the nation.

4. Foreign Debt
   Zambia borrowed heavily from the IMF and World Bank but struggled to repay loans. This drained resources from development.

5. IMF Structural Adjustment Programs (SAPs)
   In the 1990s, Zambia followed policies of privatization and economic liberalization. These reforms removed government subsidies and led to job losses, inflation, and poverty.

6. Geographical Disadvantages
   Being landlocked, Zambia relied on neighboring countries for trade. Conflicts with these neighbors disrupted trade routes.

7. Oil Crisis
   Global oil prices increased, raising transport and commodity costs, worsening poverty.

8. Import Dependency
   Zambia imported food due to urbanization and lack of farming, increasing economic strain.