What are the Constraints to Inclusive Growth in Zambia?

What are the Constraints to Inclusive Growth in Zambia?

Despite positive, relatively broad-based and stable growth record in recent years and immense untapped potential in agriculture, mining and services, Zambia's poverty rates have not declined significantly and remain high. Income growth is limi...

Full description

Bibliographic Details
Main Author:	World Bank
Format:	Policy Note
Language:	English en_US
Published:	Washington, DC 2014
Subjects:	ACCESS LEVEL ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO EDUCATION ACCESS TO FINANCE ACCESS TO MARKETS ACCESS TO SAVING ACCOUNTING ADMINISTRATIVE PROCEDURES AGRICULTURAL CREDITS AGRICULTURAL MARKETS AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTS AGRICULTURAL SECTOR ARABLE LAND BANK ACCOUNT BANK ACCOUNTS BANK BRANCHES BANK DEPOSIT BANK LOANS BANKING SECTOR BINDING CONSTRAINT BUSINESS ACTIVITIES BUSINESS OWNERS CAPITAL FORMATION CAPITAL GOODS CAPITAL INVESTMENTS COAL COMMERCIAL BANK COMMERCIAL BANK BRANCHES COMMERCIAL BANKS COMMERCIAL FARMERS COMMERCIAL FARMING COMMODITY PRICES COORDINATION FAILURES CORRUPTION COST OF CAPITAL COUNTRY COMPARISONS CREDIT OPPORTUNITIES CREDITWORTHINESS DEBT DEBT PAYMENTS DEBT RELIEF DEBT SERVICE DEPOSIT DEPOSIT ACCOUNT DEPOSITS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DIVERSIFICATION DOMESTIC CREDIT ECONOMIC ACTIVITIES ECONOMIC AGENT ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENTS ECONOMIC GROWTH ECONOMIC OPPORTUNITIES ECONOMIC POLICY ECONOMIC SITUATION EDUCATION LEVELS EMPLOYER EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT STATUS ENDOWMENTS ENROLLMENT ENTREPRENEURIAL ACTIVITIES EXCESS DEMAND EXCESS SUPPLY EXCHANGE CONTROLS EXCHANGE RATE EXPENDITURE EXPORT PERFORMANCE EXPORT SHARE EXPORT SHARES EXPORTERS EXTERNAL DEBT EXTERNALITIES FARMER FARMERS FINANCIAL INFRASTRUCTURE FINANCIAL INTERMEDIATION FINANCIAL RESOURCES FINANCIAL SERVICE FINANCIAL SERVICES FISCAL POLICIES FISHERIES FISHING FIXED COSTS FOREIGN CURRENCY FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FORESTRY GLOBAL ECONOMY GOVERNMENT BUDGET GOVERNMENT BUDGET DEFICIT GOVERNMENT EXPENDITURE GOVERNMENT INTERVENTIONS GOVERNMENT REVENUE HEALTH SERVICES HIGH INTEREST RATES HOLDING HOUSEHOLD INCOME HOUSEHOLDS HOUSING HUMAN CAPITAL HUMAN DEVELOPMENT INCOME DISTRIBUTION INCOME GROUPS INCOME GROWTH INCOME LEVEL INDIRECT COST INDIVIDUALS WITHOUT ACCESS INEQUALITY INFLATION INFORMAL BORROWING INFORMAL ECONOMIC ACTIVITIES INFORMAL FINANCIAL INSTITUTIONS INFORMATION ON BORROWERS INSECURE PROPERTY INSTRUMENT INSURANCE INTEREST RATE INTEREST RATE SPREAD INTEREST RATE SPREADS INTERMEDIATE GOODS INTERNATIONAL FINANCE INTERNATIONAL MARKETS INVESTMENT CLIMATE INVESTMENT FLOWS IRREGULAR INCOME JOB CREATION LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKETS LABOR MOBILITY LABOR PRODUCTIVITY LACK OF CREDIT LAND RIGHTS LEGAL FRAMEWORK LENDERS LEVY LIMITED ACCESS LIMITED ACCESS TO FINANCE LIVING STANDARDS LOAN LOCAL CURRENCY MACROECONOMIC ENVIRONMENT MACROECONOMIC INSTABILITY MACROECONOMIC RISKS MARKET ACCESS MARKET CONSTRAINTS MARKET FAILURES MARKET INFRASTRUCTURE METALS MFI MICRO CREDIT MICRO ENTERPRISES MICRO FINANCE MICRO FINANCE INSTITUTION MICRO-CREDIT MICROFINANCE MICROFINANCE INSTITUTIONS MIGRATION MINES MOBILE PHONE MONETARY POLICY NATURAL RESOURCES OIL PENSION PERSONAL LOANS PLEDGES POOR ACCESS POSITIVE EXTERNALITIES PRIVATE LOANS PRIVATIZATION PRODUCERS PRODUCTION COSTS PRODUCTIVE RESOURCES PRODUCTIVITY GROWTH PROPERTY RIGHTS PUBLIC INVESTMENTS PUBLIC REGISTRIES REAL ESTATE REAL EXCHANGE RATE REMITTANCES RETURN RETURNS RISK PREMIUMS SAFETY NETS SAVINGS SELF EMPLOYMENT SELF-EMPLOYMENT SETTLEMENT SMALL ENTERPRISES SMALL FARMERS SMALLHOLDER SMALLHOLDERS SOCIAL SAFETY NETS SOCIAL SERVICES STATISTICAL ANALYSIS SUSTAINABLE GROWTH TAX TAX ADMINISTRATION TAX CODE TAX COLLECTION TAX EXEMPT TAX EXEMPT STATUS TAX INCENTIVE TAX POLICY TAX RATES TAX SYSTEM TAXATION TRADE FACILITATION TRADE TAXES TRADING TRANSPORT URBAN AREA URBAN AREAS URBANIZATION VILLAGES WAGE DIFFERENTIAL WAGES WAREHOUSE WAREHOUSES
Online Access:	http://documents.worldbank.org/curated/en/2008/07/9940525/zambia-constraints-inclusive-growth-zambia http://hdl.handle.net/10986/18925

Description
Summary:	Despite positive, relatively broad-based and stable growth record in recent years and immense untapped potential in agriculture, mining and services, Zambia's poverty rates have not declined significantly and remain high. Income growth is limited by coordination failures such as poor access to domestic and international markets, inputs, extension services and information. High indirect costs - most of which attributable to infrastructure service-related inputs into production including energy, transport, telecom, water, but also insurance, marketing and professional service - undermine Zambia's competitiveness limit job creation and therefore serve as a major constraint to pro-poor growth. Continued real appreciation is another serious threat to the competitiveness of export-oriented and import-competing sectors and to job creation. For Zambia to stay competitive and sustain the growth momentum it will be critical to improve productivity - including the productivity of its labor force, and to lower indirect production costs related to basic services. Carefully crafted monetary and fiscal policies will also be critical in responding to the real appreciation pressures. Improving the quality and access to secondary and tertiary education is essential if the poor are to benefit from future growth of the non-farm economy. Weak governance and in particular poor government effectiveness, are factors behind the market coordination failures and the identified government failures, and are as such major obstacles to inclusive growth in Zambia.