The economic and social impact of mining-resources exploitation in Zambia

Abstract

Mining resources (mainly copper), whose extraction and export were initiated during colonial times, have played an important role in the economy of Zambia, a landlocked country in central-southern Africa. This country faces serious development challenges, especially regarding economic structural transformation, deficient public goods, and high poverty. The question arises as to what extent the mining natural resource has contributed or not to tackle these challenges. More specifically, how public action has intervened for addressing them. The analysis is based on the A.O. Hirschman's linkages theory and on some of the resource curse assumptions. The general conclusion is that returns from mining resources has been modest in Zambia, even adverse in some respects, and that a hypothetical resource-based development has not taken place in the country.