Mismanaged mineral dependence: Zambia 1970–90

Zambia, like other copper producers, took the high late 1960s copper price as the norm and regarded the mid-1970s mineral price fall as an aberration. It adjusted by foreign borrowing rather than by structural change. Consequently, when the early 1980s price shock drove copper revenues even lower, Z...

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Bibliographic Details
Published in:Resources policy 1991-09, Vol.17 (3), p.170-183
Main Author: Auty, R.M.
Format: Article
Language:English
Subjects:
Copper industry
Economic policy
Economic stabilization
External debts
Minerals
Prices
Resource management
Zambia
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Summary:Zambia, like other copper producers, took the high late 1960s copper price as the norm and regarded the mid-1970s mineral price fall as an aberration. It adjusted by foreign borrowing rather than by structural change. Consequently, when the early 1980s price shock drove copper revenues even lower, Zambia had little room for manoeuvre. The cumulative scale of the required adjustment then impeded IMF-backed reforms and further delayed the diversification into farming, agroindustry and labour intensive manufactures which the country's shrinking copper ‘bonus’ dictates.
ISSN:0301-4207
1873-7641
DOI:10.1016/0301-4207(91)90001-C