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Impediments To The Benefits Of Economic Liberalization In Zambia

Posted on:2006-02-07Degree:MasterType:Thesis
Country:ChinaCandidate:W XiaFull Text:PDF
GTID:2156360152491296Subject:World economy
Abstract/Summary:PDF Full Text Request
The writer, through comprehensive investigation, analyses why the ordinary Zambian people cannot benefit from the reform of economic liberalization. The rationale of this study is to develop awareness that Zambia's wealth is not being fully captured and retained due to diversions and oversights. Zambia would be a rich nation again if its public finances and resources were properly and responsibly managed for the benefit of all. As it is, there is a high incidence of public funds abuse, resource diversion and wastage in Zambia to the detriment of the entire economy. This urgently calls for the Zambian people to realize their potential and to hold public workers more accountable in management of public funds so that they dutifully perform community projects such as construction and repair of roads, bridges, health centers, schools and other infrastructure.The report is organized as follows: In the first section, the researcher provides the introduction and a brief background of Zambia's history, making distinctions in Zambia's economy before and after transforming from a government-controlled or closed-oriented economy to a free market system or open-oriented economy.The second section depicts a general picture of the distinguished roles that governments play in the economy vis-a-vis liberalized economies or private enterprise. This section outlines how a typical command economy functions, and the effects and effectiveness of a typical liberalized economy. The section also discusses the management of economic liberalization and provides insights into the major economic players in Zambia.Section three provides the research findings. Focus is directed onto the core problem of the research; impediments to the benefits of economic liberalization in Zambia. The researcher seeks to ascertain if such factors as economic mismanagement, the debt crisis, empowerment of foreigners over skilful indigenous natives, abuse of power, corruption, resource plundering, tax diversion and capital flight indeed impede upon the economic liberalization process in the country. According to the research findings: Government does not appear to adhere to budget allocations. Several cases of misapplication of public funds are reported. Government spending financed by tax revenues has frequently been linked to campaigns for public votes, rather than being channeled towards productive economic activities. Although Zambia is a democratic government and the concept of Public Choice or majority vote applies, the ruling party is believed to rig elections to go in its favor so that it retains and remains in power. Practices of nepotism or favoritism are reported common as politicians and organizational managers are perceived using their influence to employ or grant favours to their relatives and those with whom they have close ties. Leaders are generally observed acting in pursuit of their own interests. Certain ministers who have been linked with drug trafficking throughout their political careers may continue to be promoted, even to positions of Vice-President of the country. Speculations from observers have come across that the former ruling United Nations Independence Party (UNEP) government was not as unscrupulously corrupt as the presently ruling Movement for Multiparty Democracy (MMD) government, particularly under former President Chiluba. On the contrary, others have argued that corruption was worse, only hidden, when Zambia was a one-party state under UNIP. It may be pointed out that in the past, the Zambian media were somewhat impeached upon and could not freely report on government's wrong- doing. Multi-party democracy brought some degree of press freedom in Zambia. The Auditor General reports several cases of fraud, embezzlement and misappropriation of publicfunds in government departments. Opinion-makers see overly high taxation as the government's ploy to facilitate government spending after government officials have amassed wealth to themselves. The tax burden falls on individuals, households and companies. Contracts involving privatization...
Keywords/Search Tags:Economic Liberalization, Privatization, Parastatals, Capitalist economy, Mixed economy, Free Market Economy, Open-oriented Economy, Controlled/Command/Centrally-planned Economy, Closed-oriented Economy, Economic growth, Capital flight, Investment
PDF Full Text Request
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