Zambia: structural adjustment or downward spiral?

SUMMARY From the early 1970s Zambia experienced one of the most disastrous declines in real income per head of any African state. A very large part of these difficulties are explicable by international events. In 1981, the World Bank estimated that prior to 1980 these explained two?thirds of the fall in Zambia's per capita income. Yet from 1964 to 1970 Zambia experienced boom conditions, there were massive infrastructural and productive investments, and large rises in living standards for parts of the population. Why, therefore, was Zambia not better equipped to withstand the subsequent shocks? And what is now being done to encourage a revival of the economy? SOMMAIRE Depuis le début des années 70, la Zambia a souffert l'un des plus désastreux déclin du revenu réel par personne de tous les Etats africains. Une grande partie de ces difficultés peuvent s'expliquer par les événements internationaux. En 1981, la Banque mondiale estimait qu'avant 1980, ces événements expliquaient les deux tiers de la chute du revenue par personne en Zambie. Pourtant de 1964 à 1970, la Zambie a profité d'une période de prospérité, il y avant d'énormes investissements dans l'infrastructure et la production, et d'importantes augmentations dans le niveau de vie d'une partie de la population. Pourquoi donc la Zambia n'était?elle pas mieux équipée pour supporter les chocs qui suivirent? Et que fait?on maintenant pour encourager une renaissance de l'économie? RESUMEN Desde comienzos de los años 70 Zambia experimentó una de las bajas más desastrosas en ingreso real per capita de cualquier estado africano. Gran parte de esas dificultades se explica en términos de acontecimientos internacionales. En 1981. el Banco Mundial estimó que con anterioridad a 1980 éstos explicaban las dos terceras partes de la caída del ingreso per capita de la población de Zambia. Sin embargo desde 1964 hasta 1970 Zambia experimentó condiciones de boom, se realizaron masivas inversiones infraestructurales y productivas y, también, aumentos importantes en los niveles de vida de sectores de la población. Por qué este país, entonces, no estaba mejor equipado para soportar las crisis subsiguientes? Qué se está haciendo actualmente para estimular una reactivación de su economía

Microfinance regulation and effective corporate governance in Nigeria and Zambia

Purpose: There have been various forms of regulatory intervention by the central banks of countries in order to streamline microfinance activities and ensure effective corporate governance of microfinance institutions. Considering the limited amount of research in this area and the need to ensure regulatory effectiveness, the purpose of this paper is to evaluate the impact of regulatory provisions on the attainment of effective corporate governance in microfinance institutions in Nigeria and Zambia. Methodology: Interviews were conducted with regulators at the Central Bank of Nigeria and the Bank of Zambia, directors and executive management officers of microfinance institutions, and executives of apex associations of microfinance institutions in both countries. Findings: The paper presents 5 significant findings which are that the regulations have enabled negative outcomes in areas such as board composition, the ownership requirements in the regulations have resulted in differing governance implications, the certification requirements for board members are problematic in practice, supervision by regulators is ineffective and impacts on risk management, and the principle of consultation with stakeholders is inadequate in both countries. Practical Implications: Regulatory provisions must be robust and fit for purpose in order to ensure the microfinance initiative in emerging economies achieves the objectives of enhancing financial inclusion and economic development of the society. Originality/Value: The paper addresses an area of limited research and provides empirical findings in relation to regulation and corporate governance in developing economies, which would help to ensure regulatory effectiveness

Stratified ontology, institutional pluralism and performance monitoring in Zambia’s health sector

Purpose: This paper aims to investigate funding and performance monitoring practices in Zambia’s health sector from an institutional and stratified ontology perspective. Such an approach was deemed appropriate in view of pluralistic institutional environments characterising most African economies that are also considered to be highly stratified. Design/methodology/approach: Blended with insights from stratified ontology, the paper draws on institutional pluralism as a theoretical lens to understand the institutional structures, mechanisms, events and experiences encountered by actors operating at different levels of Zambia’s health sector. The study adopted an interpretive approach that helped to investigate the multifaceted and subjective nature of social phenomena and practices being studied. Data were collected from both archival sources and interviews with key stakeholders operating within Zambia’s health sector. Findings: The study’s findings indicate the high levels of stratification within Zambia’s health sector as evidenced by the three sector levels that possessed different characteristics in terms of actor responses to donor influence. This study equally demonstrates the capacity of agents operating under highly fragmented institutional environments to engage in enabling and constraining responses depending on the understanding of their empirical world. Originality/value: Through blending insights from stratified ontology with institutional pluralism, the study contributes to the literature by demonstrating the enabling and constraining reflexive capacity of agents to exercise choices under highly fragmented institutional environments while responding to multiple demands and expectations to sustain the co-existence of diverse stakeholders. Accordingly, the study advances thinking on the application of institutional theory to critical accounting research in line with recent ontological and epistemological shifts in institutional theory

Microfinance regulation and social sustainability of microfinance institutions: the case of Nigeria and Zambia

This study examines the effect of regulations on microfinance institutions in Nigeria and Zambia by focusing on the post-regulation experiences and reflections of the microfinance institutions (MFIs) and their regulators. Based on in-depth interviews with the Central Banks as regulators, MFI managers, practitioners and apex microfinance associations, the study finds that regulations in both countries have managed to professionalize the sector, but their effectiveness in augmenting the centrality of social goals to microfinance and MFIs remains doubtful. The poorly designed regulations are not only undermining social goals but also sending wrong signals to would be social investors, with implications for the social image of the industry. The study further finds that regulations have neither speeded the emergence of sustainable MFIs (especially in Zambia) nor accelerated the sectors’ outreach to the poor and the financially excluded. Additionally, considerable levels of political interference and poor regulation have led to unintended consequences to the sector, further frustrating the ultimate goal of extending financial services to the poor. These findings have policy and practical implications for how microfinance engages with the regulatory logic and continues to serve those at the bottom of the pyramid

How does neopatrimonialism affect the African state? The case of tax collection in Zambia

Following the neopatrimonialism paradigm, it can be hypothesised that in African states informal politics of the rulers infringe on the collection of taxes and in turn reduce state revenue. This article tests this proposition for the case of Zambia. Neopatrimonial continuity in the country is evidenced by three factors : the concentration of political power, the award of personal favours, and the misuse of state resources. Despite this continuity, the revenue performance increased considerably with the creation of the semi-autonomous Zambia Revenue Authority. Donor pressure has been the most important intervening variable accounting for this improvement. Yet, strengthening the collection of central state revenue has been consistent with a neopatrimonial rationale, and may even have fed neopatrimonialism overall, by providing increased resources for particularistic expenditure

Measuring the capability to raise revenue process and output dimensions and their application to the Zambia revenue authority

The worldwide diffusion of the good governance agenda and new public management has triggered a renewed focus on state capability and, more specifically, on the capability to raise revenue in developing countries. However, the analytical tools for a comprehensive understanding of the capability to raise revenue remain underdeveloped. This article aims at filling this gap and presents a model consisting of the three process dimensions ‘information collection and processing’, ‘merit orientation’ and ‘administrative accountability’. ‘Revenue performance’ constitutes the fourth capability dimension which assesses tax administration’s output. This model is applied to the case of the Zambia Revenue Authority. The dimensions prove to be valuable not only for assessing the how much but also the how of collecting taxes. They can be a useful tool for future comparative analyses of tax administrations’ capabilities in developing countries.Die weltweite Verbreitung der Good-Governance- und New-Public-Management-Konzepte hat zu einer zunehmenden Konzentration auf staatliche Leistungsfähigkeit und, im Besonderen, auf die Leistungsfähigkeit der Steuererhebung in Entwicklungsländern geführt. Allerdings bleiben die analytischen Werkzeuge für ein umfassendes Verständnis von Leistungsfähigkeit unterentwickelt. Dieser Artikel stellt hierfür ein Modell vor, das die drei Prozess-Dimensionen „Sammeln und Verarbeiten von Informationen“, „Leistungsorientierung der Mitarbeiter“ und „Verantwortlichkeit der Verwaltung“ beinhaltet. „Einnahmeperformanz“ ist die vierte Dimension und erfasst den Output der Steuerverwaltung. Das mehrdimensionale Modell wird für die Analyse der Leistungsfähigkeit der Steuerbehörde Zambias (Zambia Revenue Authority) genutzt. Es erweist sich nicht nur für die Untersuchung des Wieviel, sondern auch des Wie des Erhebens von Steuern als wertvoll. Die vier Dimensionen können in Zukunft zur umfassenden und vergleichenden Analyse der Leistungsfähigkeit verschiedener Steuerverwaltungen in Entwicklungsländern genutzt werden