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71. The Distribution of Household Income and the Middle Class in Zambia

Author:
Zambia Institute for Policy Analysis & Research (ZIPAR)
Publication Date:
12-2013
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
The middle class is increasingly becoming a topical issue in Zambia. However, the lack of a definitive measure of the middle class in the country makes it difficult to have targeted policies on this group of people, perceived worldwide to be the drivers of economic growth. With high and rising income inequality in Zambia, we propose two operational definitions of the middle class by exploring the middle class from a median perspective and from a ‘relative affluence’ perspective. Defining the middle class on the basis of the ‘actual middle’ versus ‘relative affluence’ provides vastly different pictures. The results show that individuals and households that fall in the ‘relative affluence’ group have achieved a modest standard of living and are actually near the top of the country’s income ladder while households in the actual middle of the income distribution in Zambia have a standard of living well below what can be perceived as a ‘middle-class lifestyle’ elsewhere. This requires targeted policy designs when referring to changes in the economic status of the Zambian middle class. We propose a household income distribution framework which combines both the actual middle households and the relatively affluent middle households to create an enabling environment for inclusive growth policies, rather than just pro-poor policies.
Topic:
Income Inequality, Economic Growth, Middle Class, and Household Income
Political Geography:
Africa and Zambia

72. What do the COMESA Customs Union and COMESA-EAC-SADC Tripartite Free Trade Area mean for Zambia’s import trade and trade tax revenue?

Author:
Caesar Cheelo, Njeleka Malata, and Joseph Tembo
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Zambia has participated actively in the Common Market for Eastern and Southern Africa (COMESA) and Southern African Development Community (SADC) regional integration programmes. Within SADC it is now reportedly a full participant in the SADC Free Trade Area (FTA), granting duty-free and quota-free access to goods originating from the SADC region. It is also a founding participant in the COMESA FTA and is now looking ahead to participate in the establishment of the COMESA Customs Union. The country is also committed to participate in the recently announced Tripartite FTA, which will establish a free trade area and then eventually a customs union, consolidating the regional economic communities of COMESA, SADC, and the East African Community (EAC). Quite often the actual or potential short-term or transitional impacts of the tariff reforms associated with regional integration are not well known. This is the case with respect to Zambia’s commitments to further integration under the forthcoming COMESA Customs Union and Tripartite FTA. ZIPAR therefore undertook a study to assess the potential effects for Zambia of the forthcoming trade reforms implied in both the COMESA Customs Union and the Tripartite FTA. The study made two starting-point observations: on the one hand, the Tripartite FTA is expected to consolidate the internal markets of the three regional economic communities and facilitate duty- and quota-free trade within the common market, subject to rules of origin. This means the Tripartite FTA will define Zambia’s internal trade policy position with other member states. On the other hand, the COMESA Customs Union, with its Common Tariff Nomenclature, Common External Tariff structure and common Customs Management Regulations, will define Zambia and other COMESA Member States’ common external trade policy position. Given Zambia’s ratification of these trade arrangements, it is important for policy-makers to understand the significance of the trade policy reforms implied in both the COMESA Customs Union and the Tripartite FTA. This paper therefore seeks to determine the implications for Zambia of the trade reforms that the country will undertake. It applies the following methods of ex-ante analysis: (1) Import trade and tariff profiling using simple descriptive statistical analysis of trade for the period 2000-2010 and of tariff structures in 2010; (2) Analysis of required trade policy reforms; and (3) Analysis of revenue implications and economic effects using the World Bank’s Tariff Reform Impact Simulation Tool (TRIST). Trade and customs data as well as other data were obtained from authentic national and international sources including the Zambia Revenue Authority, COMESA Secretariat, Central Statistical Office, Ministry of Finance, World Trade Organisation and World Bank, among others. The paper’s reference period is 2010.
Topic:
Regional Cooperation, Economy, Tax Systems, Free Trade, and Imports
Political Geography:
Africa and Zambia

73. Resource mobilisation and fundraising in basic schools: A case study of Copperbelt and North-Western province

Author:
Malunga Syacumpi
Publication Date:
04-2012
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Like many other countries, Zambia removed a major barrier to access to primary education when it abolished user fees for Grades 1–7 in 2002. The resulting fall in basic schools’ income, however, has not been relieved by adequate government resources trickling down through the complex school funding system. In an attempt to address their funding problems, some schools have adopted fundraising ventures as a way of supplementing government resources. The successes and practicability of implementation of such ventures remain to be seen. There is a lack of information about the adequacy of such measures and no institutional framework to guide their implementation. This study explores the range of resource mobilisation and fundraising activities adopted by basic schools. It looks into how basic schools are raising funds and how these funds are being utilised based on a sample of 30 basic schools (15 each from Copperbelt and North-Western provinces). The research was conducted through questionnaires with head teachers and school accountants/bursars as well as interviews conducted at the provincial and district level.
Topic:
Development, Education, Natural Resources, Infrastructure, and Mobility
Political Geography:
Africa and Zambia

74. Constraints on the demand for youth labour in Zambia

Author:
ZIPAR, Grayson Koyi, Gibson Masumbu, and Albert Halwampa
Publication Date:
12-2012
Content Type:
Policy Brief
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Zambia is one of many developing countries struggling to create adequate employment opportunities for its people, especially in the formal economy. Unemployment is highest among youths (15–24 years old) and particularly affects those without skills. Unless the challenge of youth unemployment is met, Zambia could face rising poverty levels in the future. Based on a survey of firms in the mining and quarrying, manufacturing, and construction industries, this study analyses constraints on the demand for youth labour and identifies five broad policy areas in which the government could help make it easier for firms to absorb more young people.
Topic:
Poverty, Labor Issues, Youth, Mining, and Unemployment
Political Geography:
Africa and Zambia

75. Salt, Sugar, and Malaria Pills: How the Affordable Medicine Facility–malaria endangers public health

Author:
Mohga M Kamal-Yanni
Publication Date:
10-2012
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Recent progress in controlling malaria is a major development success. Thanks to external aid and domestic financing the proportion of children in sub - Saharan Africa sleeping under a bed net has increased from 2 per cent to 39 per cent in the last 10 years. This has brought down the number of malaria deaths dramatically in many countries, such as Namibia, Swaziland, Ethiopia, Senegal and Zambia, where deaths have been cut by between 25 and 50 per cent.
Topic:
Development, Health, and Infectious Diseases
Political Geography:
Africa, Ethiopia, Senegal, Zambia, Swaziland, and Namibia

76. Creating and wasting fiscal space: Zambian fiscal performance, 2002–2011

Author:
Zambia Institute for Policy Analysis & Research (ZIPAR)
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Following three decades of economic mismanagement and decline, Zambia has experienced sustained economic growth since the turn of the century. The combination of rapid growth, reduced public expenditure, increased mining taxation and debt relief helped the Government establish fiscal discipline and reduce fiscal deficits and debt to sustainable levels. As a result, fiscal space has grown significantly and Zambia is no longer aid dependent. In addition, lower domestic public borrowing has helped cut inflation and interest rates and has reduced crowding out of private sector borrowing. These developments would normally be expected to lead to significant poverty reduction. However, by 2010 there had been little improvement in poverty. This is partly due to fiscal space being wasted on ill-designed agriculture policies and uneconomic road paving projects of little benefit to the poor.
Topic:
Economy, Economic Growth, Fiscal Policy, and Management
Political Geography:
Africa and Zambia

77. The costs and pricing of tourism in Zambia: The case of Livingstone

Author:
Bernard Banda and Caesar Cheelo
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Tourism is potentially one of Zambia’s best prospects for economic diversification and growth. The tourism sector has the potential to play an increasingly important role in stimulating economic growth by contributing to job creation, foreign exchange earnings, entrepreneurial development, infrastructural development, improvements to rural areas and communities, and more. There are questions, however, over the effectiveness of public sector policy and strategic interventions in fostering the realisation of the potential of tourism. In this regard, there are two opposing views of the realities of Zambia’s tourism industry. The operators argue that the business environment is exceptionally difficult in terms of both the odious costs of doing business and the variability of regulations in the industry. In sum, they say, it is a struggle to generate decent profits. Their critics, however, say that such claims are unfounded. They believe that the operators have been deliberately creating information asymmetries, causing immense loss of government revenue and benefitting from considerably higher prices for tourism service packages than do their competitors in the region. It is possible that both arguments contain some truth. Until we gain a better understanding of the cost and price structures and their differences with regional competitors, the mistrust between the government and the private sector will persist. This study seeks to make a modest contribution to informing tourism policy and strategies by taking a disaggregated look at the cost and price structures of tourism service operations in one of Zambia’s key tourism destinations and comparing them with the structures in a proximate competitor region. By benchmarking tourism services in Livingstone against those in Victoria Falls town (on the other side of the Zimbabwean border), it captures detailed data on prices, inputs (labour, main service ingredients), food and beverages, overheads and other establishment performance indicators. The services considered include: accommodation (hotels and lodges); food and beverages (restaurants, diners, pubs/bars, cafes, etc); adventure tourism (water rafting, water cruises, micro flights); and wildlife safaris (nature walks, game drives, safaris).
Topic:
Development, Tourism, and Economic Growth
Political Geography:
Africa and Zambia

78. Estimating Returns to Education in Zambia

Author:
Chrispin Mphuka and Joseph Simumba
Publication Date:
12-2012
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
This paper estimates private returns to schooling among individuals aged 25 to 40 years old residing in Zambia in 2010. Using Instrumental Variable (IV) approach based on Two-Stage Least Squares (2SLS) and Generalised Method of Moments (GMM), we estimate average returns to schooling in the order of 15.1 percent. Proximity to primary and secondary school as well as per capita household educa- tion expenditure at district level in 1991 served as instruments. These instruments correspond to the period when the wage earners in the 2010 Living Conditions and Monitoring Survey (LCMS) were in school. These results provide important infor- mation on incentives regarding accumulation of human capital, e¢ ciency of resource allocation in the education sector and the distributional consequences of di¤erences in human capital.
Topic:
Education, Human Capital, Schools, and Resource Allocation
Political Geography:
Africa and Zambia

79. Resource mobilisation and fundraising in basic schools: A case study of Copperbelt and North-Western province

Author:
Malunga Syacumpi
Publication Date:
04-2012
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Like many other countries, Zambia removed a major barrier to access to primary education when it abolished user fees for Grades 1–7 in 2002. The resulting fall in basic schools’ income, however, has not been relieved by adequate government resources trickling down through the complex school funding system. In an attempt to address their funding problems, some schools have adopted fundraising ventures as a way of supplementing government resources. The successes and practicability of implementation of such ventures remain to be seen. There is a lack of information about the adequacy of such measures and no institutional framework to guide their implementation. This study explores the range of resource mobilisation and fundraising activities adopted by basic schools. It looks into how basic schools are raising funds and how these funds are being utilised based on a sample of 30 basic schools (15 each from Copperbelt and North-Western provinces). The research was conducted through questionnaires with head teachers and school accountants/bursars as well as interviews conducted at the provincial and district level.
Topic:
Education, Resource Management, Public Finance, and Schools
Political Geography:
Africa and Zambia

80. Constraints on the demand for youth labour in Zambia

Author:
Zambia Institute for Policy Analysis & Research (ZIPAR), Grayson Koyi, Gibson Masumbu, and Albert Halwampa
Publication Date:
12-2012
Content Type:
Policy Brief
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Zambia is one of many developing countries struggling to create adequate employment opportunities for its people, especially in the formal economy. Unemployment is highest among youths (15–24 years old) and particularly affects those without skills. Unless the challenge of youth unemployment is met, Zambia could face rising poverty levels in the future. Based on a survey of firms in the mining and quarrying, manufacturing, and construction industries, this study analyses constraints on the demand for youth labour and identifies five broad policy areas in which the government could help make it easier for firms to absorb more young people.
Topic:
Development, Labor Issues, Youth, Mining, Manufacturing, and Unemployment
Political Geography:
Africa and Zambia