6 Develop a global partnership for development

Where we are?

Zambia has regained and sustained an impressive record of macroeconomic stability, achieved single-digit inflation and consistently had growth rates over 5% for the past five years. Official Development Assistance (ODA) increased from US$754 million in 2002 to US$918 million in 2009, and the Highly Indebted Poor Country Initiative (HIPC) and Multilateral Debt Relief Initiative (MDRI) reduced Zambia’s debt servicing obligations. The stock of external public debt dropped from US$6,005 million in 1999 to US$934 million in 2006. However, since then, external public debt has increased to US$1,521 million in 2009.

In 2010, Zambia was considered the 6th best country in Africa to do business. This context has attracted significant foreign direct investments (FDI). From 1995 to 2005, the country received an annual average of US$211 million of FDI, and from 2006 to 2009, the figure rose to US$960 million annually. The area of focus must now be on improving competitiveness. Zambia is ranked 115th out of 139 countries in terms of competitiveness. Policies should be targeted at easing supply-side constraints in transportation, storage, communications and local entrepreneurs’ easy access to open markets, particularly for agricultural produce. Efforts to expand the domestic revenue base through effective taxation policy and its full administration is a must, as ODA shows greater volatility and even decline in the coming years. The use of the fiscal space for an increase in investments in human development is a strategy used effectively by countries that show significant progress on human development. The easing of regional and global trade barriers through common agreements will be key to a more robust and open trading regime that spurs balanced growth. At the same time, cooperating partners must also meet the ODA target of 0.7% of their GDP as agreed in Gleneagles to support the achievement of the MDGs by 2015.

Targets for MDG8
  1. Develop further an open, rule-based, predictable, non-discriminatory trading and financial system
    • Developing countries gain greater access to the markets of developed countries
    • Least developed countries benefit most from tariff reductions, especially on their agricultural products
  2. Address the special needs of least developed countries
    • Net Official development assistance (ODA), total and to the least developed countries, as percentage of OECD/DAC donors' gross national income
    • Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation)
    • Proportion of bilateral official development assistance of OECD/DAC donors that is untied
    • Market access
    • Debt sustainability
  3. Address the special needs of landlocked developing countries and small island developing States
    • Official development assistance (ODA) received in landlocked developing countries as a proportion of their gross national income
    • ODA received in small island developing States as a proportion of their gross national incomes
    • Proportion of bilateral official development assistance of OECD/DAC donors that is untied
    • Market access
    • Debt sustainability
  4. Deal comprehensively with the debt problems of developing countries
    • Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative)
    • Debt relief committed under HIPC and MDRI Initiatives
    • Debt service as a percentage of exports of goods and services
  5. In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries
    • Proportion of population with access to affordable essential drugs on a sustainable basis
  6. In cooperation with the private sector, make available the benefits of new technologies, especially information and communications
    • Telephone lines per 100 population
    • Cellular subscribers per 100 population
    • Internet users per 100 population