Article Link: https://www.africanews.com/2020/10/26/debt-crisis-to-overshadow-zambia-s-high-stakes-election/
With national elections in Zambia approaching, opposition leader Hichilema is running for the sixth time in an attempt to beat incumbent Lungo in a race to become the prime minister.
Zambia’s economy is extremely reliant on copper mining, so the coronavirus pandemic has had a tremendous effect on them due to a decreasing demand for copper. The economy is in severe decline and the national debt has risen to a crippling $12 billion, which is 80 percent of Zambia’s entire GDP. The currency is falling and rampant inflation has caused panic throughout the country, leading the IMF to believe that Zambia’s economy will contract by about 4.5% this year.
In a desperate attempt to hold his position as prime minister, Lungo has accused Hichilema of stealing from the state over 20 years ago. Though Hichilema denies this allegation, it has proven to be a significant obstacle to his success.
Most Zambians are in economic distress, and Zambia’s poor economic situation might very well set Hichilema up for victory in the coming election. This crisis is interesting, because you would think that after so many years of poverty under the current administration, people would be willing to try something else. Because most of Zambia’s money is going to repay its debt, Zambian citizens don’t have the resources that they need for education and health services, significantly decreasing their quality of life. Though Zambia is democratic in many categories of the democracy index, it scores extremely low for “functioning of government,” thus giving them the title of “hybrid regime.”
This article connects to class in that it features the International Monetary Fund (IMF), an economic IGO. IGOs, or inter-governmental organizations, are international organizations that work to promote some sort of common good. In this case, the IMF is responsible for the surveillance of world economies in order to predict and prevent economic issues. Now that the IMF has identified an economic issue in Zambia (massive external debt), they will likely come up with a plan to get the country back on its feet.