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Developmental State in Zambia: Plausibility, Challenges, and Lessons from South Korea

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Developmental State in Zambia: Plausibility, Challenges, and Lessons from South Korea lbl.$TITUT4 THE DEVELOPMENTAL STATE IN ZAMBIA: PLAUSIBILITY, CHALLENGES, AND LESSONS FROM SOUTH KOREA CAESAR CHEELO MARJA HINFELAAR MANENGA NDULO i 1 SOUTHERN AFRICAN INSTITUTE for POLICY AND RESEARCH :al II THE DEVELOPMENTAL STATE IN ZAMBIA Plausibility, Challenges, and Lessons from South Korea Edited by Caesar Cheelo Marja Hinfelaar Manenga Ndulo Occasional Paper Series of the Institute for African Development Cornell University 2020 The Cornell Institute for African Development (IAD) fosters and strengthens the teaching, research and outreach with the overarching goal of strengthening and expanding the depth and breadth of African development studies. The IAD Occasional Paper Series publishes multi-disciplinary, holistic, policy-oriented articles in fields of African studies relevant to development. All manuscripts are rigorously reviewed by peers on the basis of scholarship, extent of original research, rigor of analysis, significance of the conclusions as well as the scholarship relevance to issues affecting Africa. Copyright © 2020 by the Institute for African Develop-ment. All rights reserved ISBN: 978-1-7344934-1-2 TO THE MEMORY OF VENTAKESH SESHAMANI Professor, Department of Economics University of Zambia (1947 – 2019) PREFACE The elusive quest for a prosperous economy and society has preoccupied Zambian politicians and policymakers since independence in 1964. The post-independence leaders have tried various ways, actions, strategies and practices to bring about sustainable growth but so far to little avail. This is in stark contrast with the experiences of East Asian countries, which were at the same level of development or poorer in the 1960s. One certainty is that achieving a prosperous, sustainable society needs timely, policy- relevant and evidence-based analysis about the past, the present circumstances, and future plans and aspirations. It is in this respect that the Southern African Institute for Policy and Research (SAIPAR), with the support and funding from the African Development Bank (AfDB), assembled a team of sixteen researchers, scholars and academics to analyse the causes of Zambia’s relatively slow pace of development and reflect on the lessons that can be garnered on the process of development from the experience of South Korea and its neighbours in East Asia. The research is a comparative study of the development experience of Zambia and South Korea. It worked across three conceptually distinct but correlated areas of development literature, namely: the political economy of development and the development of the state, the role and interplay of institutions in development, and the transference of development experiences across countries. In this case, we will examine lessons to be drawn for Zambia from the development experience of South Korea. In the study, the role of the state in “nudging” and fostering transformative development has persisted through the past and prevailing political economy. The different degrees of state effectiveness within and across different domains of development are discussed. These include economic growth, employment, poverty, equity and service delivery, and structural transformation. The system of governance, institutions, mechanisms and practices are analysed against the development experience of South Korea. The major focus of the book, therefore, is on lessons drawn from a comparative analysis with the South Korean experience as a developmental state. This offers important insights to policy making in addressing issues of development and structural transformation. How does a successful developmental state use capable institutions to steer and govern transformation and sustainable, inclusive development? We would like to acknowledge the support of the AfDB in funding and peer reviewing the study. In particular, we are grateful to Celestin Monga (Vice President and Chief Economist at the AfDB) and Abebe Shimeles and John Anyanwu, also at the AfDB, for their invaluable guidance, comments and insights. We thank the research team at SAIPAR, who put a great deal of effort into the project. We also wish to express our gratitude to the Developmental State project team of the African Development Bank for the great effort in editing and harmonizing the study. We would like to thank Josephine Chanda, Mwendalubi Makondo, Justine Sichone and Limbikani Mwale for research assistance. We want to express gratitude to Hillary Waters for the editorial work in the face of her heavy research commitments. Caesar Cheelo Marja Hinfelaar Manenga Ndulo List of Contributors1 This study is the outcome of the collaborative efforts of a team of researchers at SAIPAR assembled to study the development processes in Zambia and South Korea over the past fifty years. This book is based on a report entitled “The African Economy: Development Policy in Practice,” submitted to the African Development Bank. The report contains the original chapters by the researchers listed below in alphabetical order. Jessica Achberger BA (Central Florida), MA, PhD (Austin), is a Senior Research Fellow at SAIPAR. She was previously Associate Director of Research and Programmes at SAIPAR. She previously held a post- doc at the African Studies Centre in Leiden, where she is currently a fellow community member. She is on the editorial board of the Southern African Journal of Policy and Development and the Zambia Social Science Journal. Her research spans the range of history and anthropology, centring on Zambia. Her first monograph explores Zambian economic development in the immediate post-independence period vis-à-vis its foreign relations with China, Yugoslavia, and the UK. Alex Caramento BA (York), MA (Waterloo), PhD candidate, Department of Political Science, York University, Canada, is currently a research affiliate at SAIPAR. He is specialized in international development studies, comparative political economy, African studies, and social and political thought. Frank Chansa BA (Zambia), MA, PhD (Dar-es-Salaam), is a lecturer in the Department of Economics at the University of Zambia. His research interest focuses on international trade, poverty and health economics. Caesar Cheelo BA (Zambia), MA (Nairobi), is Associate Executive Director at SAIPAR and Senior Research Fellow at ZIPAR. He is also Associate Editor on the Zambia Social Science Journal and on the Southern African Journal of Policy and Development. His research interests span macroeconomics, international trade, industrial organization and development. Abson Chompolola BA (Zambia), MSc (Zimbabwe), is a lecturer in the Department of Economics of the University of Zambia. He has interest in health economics research with a focus on health systems. 1 While the Report of this study to AfDB had clearly indicated the authors of each chapter, a considerable amount of material was added, switched around, or deleted during the editing and harmonization of the studies from the developmental state project of the African Development Bank. The resulting chapter format is in some ways quite different from the Report outlay. However, the authorship belongs to the sixteen-member SAIPAR team that contributed to the study. Marja Hinfelaar, MA History (Leiden), MSc African Studies (Edinburgh), PhD (Utrecht), is Director of Research and Programs at SAIPAR. She has authored and edited books and articles on Zambian history and politics. She is a member of the Advisory Board of the Journal of Southern African Studies (JSAS), UK, founder and editor of the Lembani Trust, and editor of the Zambia Social Science Journal (ZSSJ). Opa Kapijimpanga, BA (Zambia), MSc (Bradford), is the Founder and current Chairman of the African Forum and Network on Debt and Development (AFRODAD). John Lungu, BA (Zambia), MSc Economics (Wales), PhD (Aberdeen), is Professor of Economics at the Copperbelt University Graduate School. He has published widely on the privatisation and post-privatisation effects of the copper mines in Zambia. He is author of many journal articles. O’Brien Kaaba, LLB (London), LLM (Zambia), LLD candidate (South Africa), has experience in working on a wide range of development, governance, democracy, gender, human rights, and law development issues. He has formerly served as a Human Rights and Rule of Law Advisor for the Germany Development Cooperation (GIZ) and a Political Specialist for the US Department of State at the Lusaka Embassy. He currently serves as an elections manager for the National Democratic Institute for International Affairs (NDI). Edna Kabala-Litana, BA (Zambia), MA Economics (Botswana), is a Lecturer of Economics at the Copperbelt University and an Associate Research Fellow at SAIPAR. She is currently pursuing PhD studies through research at the University of Zambia. Her research interests focus on cross-cutting issues in international economics and ethnographic studies on inclusive financial and economic development. Dale Mudenda, BA (Zambia), MA (Malawi), PhD Candidate (Cape Town), is a Lecturer in the Department of Economics at the University of Zambia. His main interests are in international trade, development, industrial and public-sector economics. He has provided consulting services to the government of Zambia and multilateral institutions among others. Chrispin Mphuka, BA (Zambia), MSc (Manchester), PhD (Cape Town), is the current Head of Economics at the University of Zambia and current President of the Economics Association of Zambia. He teaches development economics and econometrics. His research interests focus on small medium enterprises,
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