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Political Economy Diagnostic Exercise- Zambia POLITICAL ECONOMY DIAGNOSTIC EXERCISE- ZAMBIA Final Report th 5 August 2011 Rachel Flanary, Denis Wood, Craig Mathieson and Diana Cammack Church & Court Barn, Church Lane Tickenham, Bristol, BS21 6SD United Kingdom Tel: +44 1275 811 345 [email protected] www.theIDLgroup.com POLITICAL ECONOMY DIAGNOSTIC EXERCISE- ZAMBIA Final Report 5th August 2011 The IDL Group Ltd Church and Court Barn Church Lane Tickenham Bristol BS21 6SD United Kingdom Tel: +44 1275 811345 Fax: +44 1275 811333 Email: [email protected] Web: www.theIDLgroup.com Prepared by: Rachel Flanary Reviewed by: Rachel Percy Approved by: © theIDLgroup 2011 Political Economy Diagnostic Exercise- Zambia Acknowledgements The study team would like to thank USAID/Zambia and in particular Adam Jung for the support received and the assistance provided in setting up meetings and sending relevant document. Much of this work was carried out during a particularly busy period for USAID staff, as people were preparing for the new country strategy. We appreciate the extra effort that has been taken in meeting us for discussions, answering our many questions and sending through relevant documentation. We interviewed stakeholders in Lusaka and in Eastern Province. We would like to thank the people who were generous with their time, who helped us in the field, and who organised meetings for us. Thanks to you all. Political Economy Diagnostic Exercise- Zambia Contents EXECUTIVE SUMMARY………………………………………………………………………… (i) 1 INTRODUCTION................................................................................ 1 1.1 OBJECTIVES................................................................................................... 1 1.2 APPROACH.................................................................................................... 2 1.3 WHY UNDERTAKE POLITICAL ECONOMY ANALYSIS?............................................. 2 1.4 STRUCTURE OF THE FINAL REPORT..................................................................... 3 2 METHODOLOGY............................................................................... 4 2.1 INTRODUCTION.............................................................................................. 4 2.2 NATIONAL LEVEL ANALYSIS .............................................................................. 5 2.3 SECTOR AND ‘PROBLEM’ LEVEL ANALYSIS........................................................... 5 3 NATIONAL LEVEL ANALYSIS .............................................................. 8 3.1 INTRODUCTION.............................................................................................. 8 3.2 POLITICAL ENVIRONMENT..............................................................................11 3.3 POLITICAL PROCESSES ...................................................................................12 3.4 POLICY AND DECISION-MAKING PROCESSES......................................................13 3.5 STATE AND SOCIETY RELATIONS......................................................................16 3.5.1 Civil Society Organisations...............................................................16 3.5.2 Faith Based Organisations ...............................................................17 3.5.3 Trade Unions....................................................................................17 3.5.4 Traditional Leaders ..........................................................................17 3.5.5 Media ...............................................................................................18 3.5.6 Civil Society Creating Change...........................................................19 3.6 GOVERNMENT AND COOPERATING PARTNER RELATIONS ....................................19 3.7 THE FORTHCOMING ELECTIONS ......................................................................20 3.7.1 The Parties and Presidential Candidates..........................................21 3.7.2 Possible Election Scenarios...............................................................22 4 SECTOR ANALYSIS .......................................................................... 26 4.1 GOVERNANCE..............................................................................................26 4.1.1 Implications for USAID .....................................................................27 4.2 AGRICULTURE SECTOR ..................................................................................30 4.2.1 Outline of the Sector ........................................................................30 4.2.2 Recent performance of Sector..........................................................33 4.2.3 Political Economy Sector Constraints...............................................34 4.2.4 Implications for USAID .....................................................................38 4.3 EDUCATION SECTOR .....................................................................................43 4.3.1 Overview of Sector ...........................................................................43 4.3.2 Sector Stakeholders..........................................................................44 4.3.3 Recent Performance.........................................................................45 4.3.4 Implications for USAID .....................................................................45 4.4 HEALTH ...................................................................................................... 51 4.4.1 Outline of the Sector ........................................................................51 4.4.2 Political Economy Sector Constraints...............................................52 4.4.3 Implications for USAID .....................................................................53 Political Economy Diagnostic Exercise- Zambia 5 A REVIEW OF EASTERN PROVINCE .................................................. 55 5.1 INTRODUCTION ............................................................................................55 5.2 THE REGIONAL CONTEXT ...............................................................................55 5.2.1 Socio-economic Profile of the Eastern Region..................................55 5.3 GOVERNANCE ..............................................................................................56 5.3.1 Introduction......................................................................................56 5.3.2 Issues for USAID Consideration ........................................................57 5.4 AGRICULTURE ..............................................................................................58 5.4.1 Introduction......................................................................................58 5.4.2 Agriculture in Eastern Province ........................................................59 5.4.3 Issues for USAID Consideration ........................................................61 5.5 EDUCATION .................................................................................................61 5.5.1 Introduction......................................................................................61 5.5.2 Issues for USAID Consideration ........................................................63 5.6 HEALTH ......................................................................................................63 5.6.1 Background ......................................................................................63 5.6.2 Issues for USAID Consideration ........................................................66 6 RECOMMENDATIONS..................................................................... 67 6.1 INTRODUCTION ............................................................................................67 6.2 EXTERNAL RECOMMENDATIONS......................................................................68 6.2.1 Understanding and Addressing Political Economy...........................68 6.2.2 Effective Dialogue.............................................................................69 6.2.3 Policy Influencing..............................................................................71 6.3 INTERNAL RECOMMENDATIONS ......................................................................72 6.4 GENERAL CONCLUSIONS ................................................................................73 Political Economy Diagnostic Exercise- Zambia Text Boxes, Figures, Tables, and Annexes List of Text Boxes Box 3-1 Decentralisation in Zambia: A Stalled Process..........................................15 Box 3-2 The NGO Act .............................................................................................18 Box 4-1 The Subsidisation of Fertiliser in Zambia..................................................37 Box 4-2 Corruption in the MoH: The Global Fund Case.........................................53 Box 5-1 Institutional Structure of Eastern Province ..............................................56 Box 5-2 Action for Positive Change........................................................................58 Box 5-3 Key Constraints – Eastern Province Health Office....................................65 List of Figures Figure 2-1: Methodological Process ......................................................................... 7 Figure 4-1: Public Spending in Agriculture..............................................................35 List of Tables Table 3-1 Key Economic Indicators for the period 2003 to 2010 ............................. 8 Table 3-2 Total External Assistance 2006-2009, USD million
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