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The task is to learn how Zambia was forced to privatize its copper mines and as a result earns much less from its resources that before.
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hours
Introduction:
Zambia is one of several countries in Africa which actually have become poorer<br /> since independence. Since the 1970s, Western private banks, the World Bank and<br /> IMF (International Monetary Fund) have offered African countries loans. The loans<br /> were presented as attractive loans to cover new and basic investments that would<br /> support the development in the countries. However the projects to which the money<br /> was lent were projected to advance the economic development much more than<br /> what was the actual reality. Income from export have steady gone down since 1970s<br /> because of falling prices on raw materials. The falling income from exports and<br /> expensive services on debt from loans that did not pay off as expected trapped many<br /> African countries in debt.<br /> <br /> The countries needed new loans to repay the old ones and the large financial<br /> institutions now required the governments to implement Structural Adjustment<br /> Policies (SAP).<br /> <br /> These policies include demands to sell state-owned companies to private investors<br /> as for example the phone, water and electricity utilities, to abolish price control on basic<br /> food stuffs and open up their borders for so called “free trade”, and to cut budgets in<br /> the health and education sectors. Many African governments have implemented the<br /> Structural Adjustment policies, not because they believed in the policy but because<br /> their country was forced, it had landed in a debt trap.<br /> <br /> In 1999 the Zambian government was forced to privatize the country’s copper<br /> mines. Zambia’s copper reserves had been a main income for the government since<br /> independence. After privatization Zambia gets near to nothing from the copper<br /> mining industry. A national resource that should benefit the population in Zambia is<br /> now enriching a small group of foreign owners.<br /> <br /> It has been estimated that trade liberalization has cost Sub-Saharan Africa US$ 272<br /> billion over 20 years. Money that could have wiped out all the debts of these<br /> countries, and in addition could have covered the costs of all children going to<br /> school and being vaccinated.
Directive:
1. Read the texts (F1, F2, F3, F4) and answer the following questions:<br /> <div style="margin-left: 40px;">- Why the Zambian government sold its copper mines to private companies?<br /> <br /> - What impact did it have on Zambia?</div> <br /> 2. Send your answer to your teacher comments.
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