In Chinese mythology, the dragon is the most powerful creature but can be benevolent.
Print It is of great concern to note that despite showing a positive picture, the mining industry has not stimulated corresponding growth in other sectors. The performance of this sector will now be assessed on the basis of growth of linkages with other sectors and impact on the lives of ordinary Zambians.
We need to know where to improve and what changes to make so we can harness this wealth to benefit not only current, but also future generations of Zambians. We will strengthen mutually beneficial cooperation with African countries in agricultural, manufacturing and other spheres, helping these countries convert their resource advantages into developmental advantages.
Chinese President Xi Jinping, Both economic theory and recent empirical evidence suggest that FDI has a beneficial impact on developing host countries. But recent work also points to some potential risks: The potential risks do appear to The zambian economy s benefits from foreign a case for taking a nuanced view of the likely effects of FDI.
Policy recommendations for developing countries should focus on improving the investment climate for all kinds of capital, domestic as well as foreign. Alas, ordinary Zambians have not benefited in terms of raising their standards of living with improved education, health, social benefits and other economic benefits.
While the shareholders of foreign companies have become richer, the custodians of copper and other mineral resources and land are wallowing in poverty.
The evidence of the fact that Zambia has not benefited is there for all to see based on the current dire economic statistics of the country, mismanagement not withstanding. The economic growth for is projected at 4.
This clearly shows that FDI has not trickled down into the domestic economy directly and indirectly through multiplier effects. In order to understand properly how Zambia has not benefited from FDI, it is important that the FDI analysis is divided into the two main categories: Both types of foreign direct investments have not sufficiently benefited ordinary Zambians nor sufficiently impacted the economy in a positive way.
Foreign direct investments from Western countries in Zambia are concentrated in mining. Zambia has not benefited sufficiently in four main areas: This view is not only supported by the writer, but also government, civil society, donor agencies and the World Bank.
Job creation Mining Foreign direct investment has not brought much benefit through job creation thus contributing to the high poverty levels in Zambia.
There are a number of factors that have contributed to this. First and foremost, mining technology has advanced in the 21st Century such that most of the tasks that were done by humans are now being done by machines reducing the need for workers in certain areas.
Secondly, unlike in the 20th Century when the old Zambian mining houses like ZCCM used local suppliers located on the Copperbelt towns like Kitwe and Ndola, the current ones import millions worth spares parts and other supplies from outside.
Mining companies have not been interested in the growth of indigenous firms that might supply them with products and services for production but instead have opted to import these goods and services from overseas affiliates thus exporting jobs to foreign countries.
In addition, there have not been any forward linkages in terms of industries developed to add value to copper which could have created additional jobs. Thirdly, there is suspected widespread corruption in the issuing of work and resident permits as evidenced by some foreign workers who have permits and doing jobs that can be done by Zambians.
It is generally agreed that Mining houses are not paying sufficient taxes to cater for social needs such as health, education, water and sanitation and for development projects.
In order to put mining contribution to the Zambian treasury in perspective, it is vital to compare Zambia with two neighbouring countries.
There is no doubt that the mining sector has not been paying its fair share of taxes and have been involved in sophisticated tax avoidance schemes using highly skilled accountants and lawyers.Directly, this will not help the Zambian economy as this will be mainly utilized by businesses and investors for their hedging purposes.
Indirectly they may be some benefits to the Zambian economy; one such area, is it may help provide additional confidence to investors . Directly, this will not help the Zambian economy as this will be mainly utilized by businesses and investors for their hedging purposes.
Indirectly they may be some benefits to the Zambian economy. One such area, is that it may help provide additional confidence to .
Discuss the extent to which the Zambian economy has benefited from using FDI, cite examples Development process must encompass improvements in production of goods and services which essentially aim at raising the standards of living of society’s social, economical, political, environmental and administrative structures (Gabas, ), with development comes improved education, health, .
Zambia’s recent economic performance suffers from The most urgent issue for the Zambian economy is thus a further reduction of its dependency on copper the country derives most of its foreign earnings from the export of minerals.
The mining industry, which. The Benefits of Fdi in Zambian Economy Words Aug 22nd, 11 Pages The essay will discuss the extent in which the Zambian economy has benefited from foreign direct investment.
It was motivated by his patriotic duty as a Zambian, given his experience in the three foreign countries that he lived in for close to three decades, so as to highlight the fact that what is.