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Periodical article | Leiden University catalogue | WorldCat |
Title: | The International Monetary Fund and the World Bank in the Zambia's agriculture |
Authors: | Gudowski, Janusz Mbewe, Richard |
Year: | 1997 |
Periodical: | Africana Bulletin |
Issue: | 44 |
Pages: | 77-82 |
Language: | English |
Geographic term: | Zambia |
Subjects: | IMF economic policy subsidies agriculture |
Abstract: | As early as 1973 Zambia attempted to implement an IMF stabilization programme in order to decrease the budget deficit caused by the decline of world copper prices and the deterioration of the terms of trade. Zambia's policy focused on the reduction of public expenditure, wage freezing and currency devaluation, coupled with attempts at economic diversification. In 1978 Zambia turned to the IMF for much more substantial help. The IMF offered a short-term rescue package and a longer-term strategy of structural adjustment. The Zambia-IMF accord negotiated in 1985-1986 had two main points: the devaluation of the kwacha through the auctioning system, and the removal of subsidies in agriculture, notably on mealie meal and fertilizers. After two years of successful desubsidization, total subsidies in 1985-1986 were again on the increase as a result of the import-sensitive nature of the Zambian maize farming system. The two sets of IMF demands contained so many contradictions that they were difficult to follow simultaneously. Zambian politicians were unable to pursue consistently their policy of abolishing maize consumer subsidies precisely because of the substantial devaluation of the kwacha. Moreover, it is a sad commentary on the IMF/World Bank programmes that the food sector is treated as a virtual residual. Bibliogr. |