PREPARED
FOR THE CONFERENCE ON APARTHEID DEBTS, BONN GERMANY
NOVEMBER
2000
From 1964 to 1990, the financial cost to Zambia in the global fight against racism and apartheid is in excess of $19billion, at 1998 values.
Sanctions and Trade $9,630.0m
Infrastructure and Utility development $2,981.4+m
Defence $5,434.0m
Humanitarian $ 500.0+m
Political Organization $ 500.0+m
19,045.4+m
Sector $, Millions
Infrastructure and Utilities 2,266.2
Sanctions and Trade 377.0
$5,345.2
Current socio-economic facts about Zambia
Economic
End of year inflation (2000) was 30.1%
GDP per capita is around US$300
Declined agriculture and mining production and productivity.
Low income exports from non-traditional exports due to depressed global prices
Formal sector employment by 3.6%
60% of Budget 2000 is financed by outside resources.
External Debt
The total debt stock stands at US$6.5billion and is expected to fall by 3.1% due to some debt repayments and cancellations. But in per capita terms, there is still over US$600 for every Zambian woman, man and child or twice the size of the GDP per capita.
Of the total debt stock, 55% is owed to multilateral institutions such as the World Bank and IMF and 33% to the bilateral creditors with the largest owed to Japan, Germany, United States and the United Kingdom.
Debt servicing in this year (2000) was over US$160m up from US$133m in 1999. This figure is 50 to 60% of the total social expenditures.
Zambia is expected to reach the “decision point” for HIPC relief end of this year. After reaching this point, the annual debt service will remain at US$160m until 2003 before going up during 2004 and 2005.
Because Zambia’s debt is clearly unsustainable, both economically and socially, Jubilee Zambia continues to call for total debt cancellation as the only effective and equitable solution.
Social Indicators
Zambia is one of the poorest countries in the world, ranking 153 out of 174 nations in the UNDP Human Development Report 2000: This was up from 156 in 1999 but down sharply from 136 in 1999.
Of 79 countries for which data is available between 1975 and 1997, Zambia is the only country where the current value of the Human Development Index is lower than it was in 1975.
According to the 1996 and 1998 Living Conditions Monitoring Survey by the Zambian Government Central Statistical Office, head-count poverty levels have increased from 69.2% to 72.9%. Rural poverty some areas of the country is close to 90%. The World Bank estimates that 82% of Zambians live under the a poverty line of one US dollar a day.
A national status of 2000 estimates the population at 10.5 and 11million, growing at an annual rate of around 2.5%.
Life expectancy is approximately 37 years and the World Health Organization reported that the estimated “healthy life expectancy” for the Zambian born today is 30.3% - the fourth lowest in the world.
Under five mortality rate is 202 out of 1000 live births, the 12th highest rate among 194 countries. Over 600,000 children are orphans and about 60% of the children are malnourished while half the Zambian children are stunted and almost 25% underweight.
One third of the primary school age (7-13) are not in school and 75% of the secondary school age group (13-18).
Over 25% of the adult population is HIV-infected.
Background Information to this Case
Apartheid “the ruling system” in South Africa from 1948 to 1990 was declared a “Crime against Humanity” in November 1973 when the United Nations passed the International Convention on the Suppression of the Crime of Apartheid as Resolution 3068 (XXVII).
Zambia was against the apartheid system because of the belief in the equality of human beings regardless of race. This strained the relationship between the governments of South Africa and Zambia from 1964 to 1990 when apartheid was abolished in South Africa.
Zambia stood for a humanitarian, universal and regional cause, especially that by the time Zambia became independent in 1964, out of all the eight surrounding neighbors; only three countries (Tanzania, Malawi and Zaire) were independent. Liberation struggles and civil strife was still going on in the remaining countries (Angola, Zimbabwe, Nambia, Mozambique and South Africa) with the exception of Angola.
As the recognized in the UN Declaration on Apartheid and it Destructive Consequences on Southern Africa (A/RES/S-16), the recognized impact of apartheid on Zambia are:
Economic and Finance
Geographically, Zambia economic and international trade activities and transportation activities were closely linked with South Africa, Southern Rhodesia, Anogla and Mozambique. Zambia shared major economic utilities with Southern Rhodesia such as the Kariba hydroelectric station and the railway to the South African ports.
However, with the collapse of cordial relations between Zambia and South Africa and the conflicts in the entire Southern Region, the Government of Zambia found it necessary to develop economic, trade and transport alternatives. This was aimed at cutting dependence on South Africa and southern routes, which were becoming more unreliable.
So in terms of economic and finance alternatives, Zambia instituted sanctions against South Africa and Southern Rhodesia by cutting all trade and economic ties. The Government also set out to establish alternative routes for imports and exports, to the extent of even airlifting copper for export – a venture that costed Government a lot of money.
A railway line, road and an oil pipeline running to Tanzania, hydro-electric stations, oil refinery and other industrial and manufacturing companies to service the mines were set up to ensure that the internal and external economic activities of the country went on.
In this sector loans and other financial assistances came from Yugoslavia, China Israel, Britain, India, Japan, Ireland, Canada, the Scandinivian and Nordic countries.
Military and Defence
The South African Government attempts to maintain power and the increase need for political liberation for the majority resulted into high levels of conflict in the Southern Region. Zambia has been known as one of the longest standing opponents of the apartheid in the region. The South African racist Government had harsh economic, political and military reprisals against freedom fighters and Governments that supported them.
As a result, from as early as 1965 to the late 1980s, the racist regime in South Africa and its supporters raided Zambia many times. In order to maintain security and defend the country, Government’s expenditure to defence greatly increased, in terms of equipment, size of staff, training and coverage. Government had the duty of ensuring national security, peace and stability.
Humanitarian and Human Costs
Due to widespread conflict in the southern African region, Zambia hosted a lot of refugees and also incurred death and injury cases. In terms of hosting refugees, the Government was responsible for the resettlement and upkeep of refugees. Schools, clinics, houses and other social requirements had to be provided. Government had to set up more refugee centers.
The internal repercussion was that as a result of the conflict between the Zambian Government and the racist regimes, people, especially along the border areas and refugee camps were attacked and displaced. Government sought immediate alternative means of sustaining the lives of the displaced people who could no longer fend for themselves.
Political
As a key player in the liberation struggle of southern Africa, there were political costs incurred through the efforts of organizing logistics to facilitate dialogue and communication for liberation. The Government provided accommodation, communication and social needs to the liberation fighters.
MEETING THE COST
Local resources: Zambia used local resources, which would have been invested in the health, education, sanitation, and farming sectors if the case had been different.
Co-operating partners: supported Zambia in military, social, economic, and other support. Zambia could not sustain the cost of opposing apartheid as well as developing the country, so external assistance was sought. This assistance mainly came in form of loans, aid and grants. The key Governments involved were Yugoslavia, China, India, USSR, OAU, World Bank and IMF.
COST Vs BENEFITS: THE DEBATE
Yes, Zambia stood for what was right: Human equality and peace. This was a noble cause of both regional and universal concern. The opposition of apartheid was centrally aimed at ensuring that all human beings were given an opportunity to progress and nations to freely trade and relate with each other.
However, the role Zambia played has also left another mark:
Financial Crisis: Zambia’s anti-apartheid activities as a necessity could not be sustained at a time when its major export – copper experienced decline in price while the major import – oil short up in price. Zambia, committed to its struggle, had to borrow in order to facilitate both regional and internal development. This has greatly contributed to the existing debt crisis. As of April 1999, none of the big loans borrowed to build big infrastructure such as the railway line, pipeline, hydroelectric stations had been repaid.
THE LEGACY AND LONG-TERM EFFECTS
Displacement: Government has failed to resettle some of the victims of internal displacement during the apartheid struggle because the declined national economic environment.
Lack of infrastructure: Some areas still remain undeveloped in Zambia after being destroyed during the apartheid conflict. This has perpetuated because of lack of resources as most of them were directed towards overcoming apartheid.
Death and Injury: as a result of armed conflict and land mines. Some areas in Zambia are still “no-go” areas because they are still not de-mined.
Basic Needs: As Zambia continued to fight against apartheid, Government’s ability to provide basic needs people was reduced, especially that most resources had to be used for defence and hosting refugees and liberation fighters. It became increasingly difficult for Government to invest in the social and economic sectors. In the midst of declining international economic opportunities, the socio-economic indicators for Zambia kept falling such that by 1990 when apartheid was abolished, Zambia was classified not only as a poor country but also as a heavily indebted poor nation.