Crisis And Reform: Economic Reform In Zambia Course Analysis (1975-2008)

Historically, as early as Hundreds of thousands of years ago, there were some human activities in the areas of Zambezi River Basin. Gradually with the Evolution of productivity, early people of Zambia have also started to embark on some simple economic productions and trade activities. Until to the colonization rule was established, Zambia has set up some trade and commercial relationships with the surrounding area and the outside world, making a foundation for the emergence and development of a market economy.The colonial period was an important historical stage for the emergence and development of Zambia's modern economy. Under the guidance of Predatory colonial development policies, Zambia has formed a unitary system, heavily depended on copper mining, manufacturing and agricultural development was relatively backward. And the appeared character of unitary economic structure and dual economic system planted a hidden risk in the Zambia's economic development.The first decade after independence was a golden age of rapid economic development for Zambia. Under the guidance of nationalization, import substitution and other development policies, Zambia's national economy has seen a rapid growth, initially established a mixed economic system based on planned economy, and supplemented by market economy. Yet by the mid-70s of last century, since the slump of the prices of raw materials in the international market, the economic development of Zambia has suffered a heavy blow, and the national economy has got in a continued recession as a result. At the same time, the defects of the development policies initially implemented by the independent Government of Zambia, like nationalization, import substitution, agricultural of gradually emerged, and made the country got into a severe economic crisis.Forced by the pressure of the deteriorating economic situation, the Government of Zambia has to implement a structural adjustment reform of the national economy with the help of the IMF and other international financial organizations, from the early 80s of last century. The economic reform during 1983-1987 was a very short time, but occupies a very important place in the history of economic development of Zambia. The failure of the structural adjustment reforms during the 1980s, have a decisive impact on the Zambia's social and economic development, leading the country into a comprehensive economic and political crisis.After the democratic reform, Zambia's economic development has entered a new historical period. With the strong support of The International Monetary Fund and other donors, Zambia embarked on a new round of structural adjustment reforms, privatization, liberalization, and many other economic reform policies have been fully implemented. To the mid-90s of the last century, after a painful recession, Zambia's economy once appeared stable development. However, lately since the delayed reform of the mining industry and other factors impact on the economic development, Zambia recurrence of signs of deterioration.Entering the new century, because the Mwanawasa's "New Deal", poverty reduction strategies, debt relief plan, as well as the rising raw material prices in international market driven by a series of favorable factors, Zambia's national economy has sustained growth and steady recovery. National economic development has emerged a sign of recovery. However, objectively speaking, there are still many problems in the current national economic development of Zambia. How can Zambia promote the sustainable development of the national economy is still a great challenge.