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Understanding the implications of the boom-bust cycle of global copper prices for natural resources, structural change, and industrial development in Zambia

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  • Robert Liebenthal
  • Caesar Cheelo

Abstract

This paper is about understanding the cycle of global copper price booms and busts over Zambia's economic history. We explore how the mining industry has been managed, and wider economic management during boom periods. We find that successive Zambian governments did not use copper revenues to accumulate productive assets, focusing instead on financing consumption subsidies and sustaining inefficient state-owned companies. In recent times, Zambia has accumulated worryingly high levels of sovereign debt with virtually no prospect of official debt relief.

Suggested Citation

  • Robert Liebenthal & Caesar Cheelo, 2018. "Understanding the implications of the boom-bust cycle of global copper prices for natural resources, structural change, and industrial development in Zambia," WIDER Working Paper Series wp-2018-166, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-166
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    References listed on IDEAS

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    1. Bigsten , Arne & Kayizzi-Mugerwa, Steve, 2000. "The Political Economy of Policy Failure in Zambia," Working Papers in Economics 23, University of Gothenburg, Department of Economics.
    2. Marcos Poplawski Ribeiro & Mauricio Villafuerte & Thomas Baunsgaard & Christine J. Richmond, 2012. "Fiscal Frameworks for Resource Rich Developing Countries," IMF Staff Discussion Notes 12/04, International Monetary Fund.
    3. Anand Rajaram & Tuan Minh Le & Kai Kaiser & Jay-Hyung Kim & Jonas Frank, 2014. "The Power of Public Investment Management : Transforming Resources into Assets for Growth," World Bank Publications - Books, The World Bank Group, number 20393, December.
    4. Adam, Christopher & Collier, Paul & Gondwe, Michael (ed.), 2014. "Zambia: Building Prosperity from Resource Wealth," OUP Catalogue, Oxford University Press, number 9780199660605.
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    Cited by:

    1. Rafael Aguirre Unceta, 2021. "Mining revenue, fiscal space and social policies: the case of Zambia," Working Papers 191, International Policy Centre for Inclusive Growth.

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