1. Presented at: Vienna, July 2, 2009
Zambia:
Governance, Political Economy and Development Strategy
Presented at:
Vienna,
July 2, 2009
Presented by:
Brian Levy
Advisor
PREM Governance

2. RELEVANCE FOR ZAMBIA: I
“By and large, agreeing on policies and programs was the easy part of the Bank’s relations with the government. The really difficult part was and continues to be implementation.”.
- Completion Report for CAS
=> why?

3. SECTORAL REFORM IN ZAMBIA: PROPOSALS AND RESULTS

4. ZAMBIA: GOVERNANCE DRIVERS OF DEVELOPMENT DECISION-MAKING
Authority is centralized in the presidency, which enjoys wide discretion.
Checks and balances institutions create enough space for citizen voice to ensure that impunity is not unbounded
An extreme tilt to the status quo is a consequence of Zambia’s ‘bounded impunity’
Elite economic nationalism is a resurgent part of Zambia’s developmenet discourse

5. ZAMBIA: HOW GOVERNANCE CONSTRAINTS INHIBIT SECTORAL REFORM

6. FEASIBLE WAYS FORWARD 1: GENERAL PRINCIPLES
Seek out incremental POLICY reforms that are feasible given a country’s political economy realilties
Stakeholder interests are key, and….
Stakeholders want better results for concrete goals that matter to them
Draw on knowledge of economically ‘optimal’ policies
…as a ‘north star’ to help navigate change…
….with the best route not necessarily the most direct one…
Consider options for strengthening INSTITUTIONS
….institutions mediate between private interests and public
goals…
….better policy and implementation with stronger capacity and
accountability
….feasibility is also key for institutional reform

7. FEASIBLE WAYS FORWARD 2: ZAMBIA GOVERNANCE-ALIGNED SECTORAL REFORMS
Focus engagement narrowly – targeting very specific interventions where development goals are aligned with incentives of Zambian elites
Electricity generation: incentives of mining companies
Telecommunications: cost-based interconnection
Build local coalitions for change – organized around very specific interventions
Urban water and electricity distribution
Engage consumer groups and business associations

8. RELEVANCE FOR ZAMBIA II: A DIFFERENT APPROACH TO WBG ENGAGEMENT
FROM… …… ”should” ………… (prescription)
TO ……. ….. ”why?” ………….(seek to understand)
TO… “feasible next steps” .. (for poverty reduction),
..an approach, NOT a prescription…(more humility)
…but not a recipe for inaction!!!