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The road to pro-poor growth in Zambia

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Thurlow, James
Wobst, Peter

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Abstract

"Zambia is one of the poorest countries in Sub-Saharan Africa. Almost three-quarters of the population were considered poor at the start of the 1990s, with a vast majority of these people concentrated in rural and remote areas. This extreme poverty arose in spite of Zambia's seemingly promising prospects following independence. To better understand the failure of growth and poverty-reduction this paper first considers the relationship between the structure of growth and Zambia's evolving political economy. A strong urban-bias has shaped the country's growth path leading to an economy both artificially and unsustainably distorted in favor of manufacturing and mining at the expense of rural areas. For agriculture it was the maize-bias of public policies that undermined export and growth potential within this sector....Sustained investment and economic growth during recent years suggest a possible change of fortune for Zambia. In light of this renewed growth, the paper uses a dynamic and spatially-disaggregated economy-wide model linked to a household survey to examine the potential for future poverty-reduction....Although agricultural growth is essential for substantial poverty-reduction, the country's large poor urban population necessitates growth in non-agriculture. The findings suggest that returning to a copper-led growth path is not pro-poor and that non-mining urban growth, although undermined by foreign exchange shortages and inadequate private investment, is likely to be preferable for reducing poverty." Authors' Abstract

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Paper provided by International Food Policy Research Institute (IFPRI) in its series DSGD discussion papers with number 16.

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Date of creation: 2004
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Handle: RePEc:fpr:dsgddp:16

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Related research
Keywords: Copper mines and mining ; Poverty alleviation Africa Zambia ; Manufacturing industries ; Spatial analysis (Statistics) ; Household surveys ;

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  1. Bigsten , Arne & Kayizzi-Mugerwa, Steve, 2000. "The Political Economy of Policy Failure in Zambia," Working Papers in Economics 23, Göteborg University, Department of Economics. [Downloadable!]
  2. Bigsten, Arne & Levin, Jorgen & Persson, Hakan, 2001. "Debt Relief and Growth: A study of Zambia and Tanzania," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  3. Agenor, Pierre-Richard & Chen, Derek H.C. & Grimm, Michael, 2004. "Linking representative household models with household surveys for poverty analysis : a comparison of alternative methodologies," Policy Research Working Paper Series 3343, The World Bank. [Downloadable!]
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  1. Diao, Xinshen & Fan, Shenggen & Yu, Bingxin & Kanyarukiga, Sam, 2007. "Agricultural growth and investment options for poverty reduction in Rwanda:," IFPRI discussion papers 689, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Nin Pratt, Alejandro & Diao, Xinshen, 2006. "Exporing growth linkages and market opportunities for agriculture in Southern Africa:," DSGD discussion papers 42, International Food Policy Research Institute (IFPRI). [Downloadable!]
  3. Arne Bigsten & Sven Tengstam, 2008. "Smallholder Income Diversification In Zambia: The Way Out Of Poverty?," International Development Collaborative Working Papers ZM-FSRP-WP-31, Department of Agricultural Economics, Michigan State University. [Downloadable!]
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  4. Blasco, Lorea Barron & Devadoss, Stephen & Stodick, Leroy, 2006. "The Doha Round Declaration on Cotton: A Catalyst for Poverty Reduction in Africa?," 2006 Annual meeting, July 23-26, Long Beach, CA 21161, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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