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Zambia was a relatively wealthy place in Africa around independence, but the economy relied almost exclusively on copper, which is one of the most volatile comm
by hgh 13y ago
Zambia was a relatively wealthy place in Africa around independence, but the economy relied almost exclusively on copper, which is one of the most volatile commodities around. The pseudo-socialist government led by Kaunda helped unify the country but also drove the economy into the ground by providing massive subsidies all around and failing to create institutions to support long-term growth. The economy declined massively through 70s and 80s. Impending bankruptcy and structural adjustment programmes forced the government to pull back support, and then people protested and rioted to bring down the government and introduce multi-party democracy. The rebuilding process has been continuing (the first democratic handover of power happened a few years ago) and copper prices have been great, led by incredible demand from China.
The politics isn't perfect and economic diversification from mining is still only in it's infancy, but the trends are pointing in the right direction.