Zambia: Emergence of the mixed economy and the one-party state (1964-1974)

Updated January 2006

Zambia became independent on October 24, 1964, with Kenneth Kaunda as its first president (US State Department 2005, Columbia Encyclopedia 2005a). Even prior to independence the government was forced to deal with two crises. The first was created by a rebellion of the Lumpa Church led by its prophetess, Alice Lenshina. The government suppressed the rebellion with force and about 700 people were killed (Lambert Undated, Van Binsbergen 2001). The second turned on the status of the Lozi kingdom in Barotseland. Fearing the loss of autonomy it had enjoyed in the colonial period, Barotseland threatened secession and the fears of the Lozi were put to rest only by a treaty between the National and Barotseland governments guaranteeing autonomy to the Western Province. The agreement was eroded through legislation in the 1960's and finally abrogated in 1969 (Sumbwa 2000).

The government drew up a plan for the period 1965-69 aimed at developing the country's infrastructure and human resources. The end was the diversification of the economy away from its reliance on the mining industry and reducing the importance expatriate skill through the training of Zambian to take their place. The plan envisaged a free market driven private sector alongside a massive expansion of the public sector to improve healthcare and education. (Lambert Undated, Columbia Encyclopedia 2005a). Diversification was to be driven by import substitution and financed by growing copper export revenues. The focus was thus on mining and industry in the urban areas and neglected the contribution that agriculture could make to the growth of economy (Thurlow & Wobst 2004).

The consequence was an influx of foreign investment in mining and an expansion in the mining industry along with a modest rise in per capita income. This did not translate into a rise in income for the population as a whole and inequality increased while living standards for the poor, especially, decreased (Mwanawina & Mulungushi 2002). Over time the government became increasingly interventionist as it attempted to redress the income imbalances wrought by the markets: "The government introduced restrictive fiscal and monetary policy instruments aimed at regulating most economic activities like price controls of essential commodities, interest rate, exchange rate and wage rate controls, regulations governing the borrowing of financial resources and remittance of profits" (Mwanawina & Mulungushi 2002).

Investment in education resulted in an improvement in education at lower levels with the number of children in primary school doubling and the number in secondary schools increasing more than four-fold between 1964 and 1972. However, the expansion of the civil service was not rationally pursued, with jobs been granted on the basis of loyalty and personal connections rather than of expertise and skills. The consequence was a massive drain on state resources on salaries without a concomitant return in outcomes desired (Lambert Undated).

References

COLUMBIA ENCYCLOPEDIA 2005a, "Zambia", Sixth Edition, [www] http://www.encyclopedia.com/doc/1E1-Zambia.html [opens new window] (accessed 26 Oct 2007).

LAMBERT, T UNDATED "A Short History of Zambia", IN Local Histories, [www] http://www.localhistories.org/zambia.html [opens new window] (accessed 26 Oct 2007).

MWANAWINA, I & MULUNGUSHI, J 2002 "Explaining African Economic Growth Performance: The Case Study for Zambia" (DRAFT), Global Development Network, [www] http://www.gdnet.org/pdf/draft_country_studies/Zambia-Mwanawina-RIR.pdf [PDF document, opens new window] (accessed 26 Oct 2007).

SUMBWA, N 2000 "Traditionalism, Democracy and Political Participation: The Case of Western Province, Zambia" IN African Study Monographs, 21(3): 105-146, [www] http://www.africa.kyoto-u.ac.jp/kiroku/asm_normal/abstracts/pdf/21-3/105-146.pdf [PDF document, opens new window] (accessed 26 Oct 2007).

THURLOW, J & WOBST, P 2004 "The Road to Pro-Poor Growth in Zambia", International Food Policy Research Institute, [www] http://siteresources.worldbank.org/INTPGI/Resources/342674-1115051237044/oppgzambia11.pdf [PDF document, opens new window] (accessed 26 Oct 2007).

US STATE DEPARTMENT 2005 "Background Note: Zambia" [www] http://www.state.gov/r/pa/ei/bgn/2359.htm [opens new window] (accessed 26 Oct 2007).

VAN BINSBERGEN, W 2001 "Religious Innovation and Political Conflict in Zambia: The Lumpa rising" [www] http://www.shikanda.net/african_religion/lumpa3.htm [opens new window] (accessed 26 Oct 2007).