Aid and Poverty Reduction in Zambia

Zambia, a once prosperous African country, now has 73 percent of its people below the poverty line and by the early 1990s, the country had reached a level where the UN General Assembly included it on the list of the least developed countries. With crippling indebtedness amidst poor economic performance, Zambia is at present one of the world's most heavily indebted low-income countries. And poverty continues to take its toll with the province housing the capital city registering the highest increase in poverty over the 1996 to 1998 period. This means that, although rural areas have the highest poverty levels, Zambia's urban centres are fast catching up. With help from donors, poverty reduction is at the centre stage on the Zambia development agenda after almost two decades of externally prescribed experiments with adjustment and stabilisation as a panacea for welfare improvement. But despite significant aid volumes and structural reforms, the country is getting deeper and deeper into poverty. What is the missing link between aid and positive change? Is the problem mainly that the volume of aid is not sufficient and, as is often heard, more of it would make a difference? Is the sluggish social and economic progress in Zambia appropriately diagnosed and correct remedies and strategies prescribed? This book attempts to address these and related questions.

Keywords: Zambia, Southern Africa, Poverty, Economic conditions, Development aid