Zambia attained independence from Britain in 1964. At independence Zambia had one of the most poorly developed education systems of Britain's former colonies, with just 109 university graduates and less than 0.5 percent of the population estimated to have completed primary education. Kenneth Kaunda became the country's first president and proclaimed one-party rule. Opposition parties were legalized in 1990. In a subsequent election in 1991, Fredrick Chiluba, the leader of the Movement for Multiparty Democracy (MMD), defeated Kaunda. Zambia's economy is heavily dependent on the mining of copper, cobalt, and zinc. Copper and other metal exports account for about 75 percent of the country's export earnings. A collapse in copper prices, oil price shocks, and static economic policies in the early 1970s had a devastating effect on Zambian economy. This has been compounded by a continual contraction, since independence, of Zambia's food production turning the country into a food-deficit nation. The resulting economic decline has been catastrophic with per capita income falling almost 5 percent annually between 1974 and 1990 (World Bank, 1995). Since taking office in 1991, the new government has been vigorously implementing a Structural Adjustment Program (SAP) under the auspices of the IMF and the World Bank. This program has involved liberalization and privatization of the economy. Controls were removed on imports, interest rates, and exchange rates. The local currency, the Kwacha, has depreciated considerably against other currencies. More than 118 parastatals have been privatized. Zambia's GNP per capita in 1999 was US$320, and its outstanding debt was US$5.5 billion (McCulloch et al. 2000).
Rapid implementation of the Structural Adjustment Program has had a devastating effect on the social sectors. The requirements of the Structural Adjustment Program have resulted in deep cuts on the education and health budgets. In the social sectors the new policy framework has involved the elimination of state subsidies and free social services and the introduction of user fees for schools, clinics, and hospitals. The liberalization and privatization of the economy has been accompanied by retrenchments of the workforce; consequently employment prospects have not risen. These economic changes have affected education investments at the household level in particular. Many families have faced the difficulties of meeting the educational needs of their children. An analysis of household survey data from 1991, 1996, and 1998 shows a dramatic increase in poverty and inequality in urban areas between 1991 and 1996 due to stabilization, the removal of maize meal subsidies, and job losses resulting from trade liberalization and the privatization program (McCulloch et al. 2000). These increases in poverty have severely affected the education of children coming from poor families.
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