Zambia Poverty and Vulnerability - Essay Example

Question Based on the article on company downsizing, there are a few steps one can undertake while considering the ethical aspect of one's business decisions. First, one can hire employees to cover the store. The business ethics consideration of this decision is that one has to make sure that all the employees will be given the right salary and fringe benefits as provided by the labor laws governing the land. The second step is to consider outsourcing some functions or aspects of one's business. The business ethics aspect of this move is that one has to refer one's clients to other respectable businesses so as to ensure continued good will. One also has to look for other reliable businesses so one can outsource one's work properly. The third step is to cut back the business hours. The business ethics component of this move is that if one is in the business of pharmaceuticals and health care, one risks the chance of causing damage to patients who will need your services by cutting back on the business hours. The fourth step is to close one's business for a week or two to actually take a vacation. The business ethics aspect of this decision is that if one has a pharmaceutical or health care business, one risks the possibility of causing inconvenience to one's clients. The fifth step is to bring in a family member to split the current "job load. The ethical consideration of this move is that one has to ensure that his/her relatives or siblings must do business observing fairness, honesty, transparency and accountability to government laws. Question 2 Zambia is landlocked and has a low population composed of 70 ethnic groups, many of them Bantu-speaking. The country boasts of spectacular scenery spanning the Victoria Falls along the Zambezi river, the Bangweulu Swamps and the Luangwa river valley. Millions of Zambians live below the World Bank poverty threshold of $1 a day. Zambia currently receives and provides shelter for tens of thousands of refugees who have fled fighting in the Democratic Republic of Congo. (World Factbook 2008). The World Bank Poverty Assessment Report (2007) has identified these areas of economic concern afflicting Zambia consisting of the high level of international debt, deterioration in the international price of copper, macro instability, the collapse of major manufacturing industries, the scourge of HIVIAIDS, and acute governance and policy failures. Zambia has been one of most heavily indebted developing countries. However, the government has done serious efforts to pare down its international debt stock. Zambia obtained a total of 6.6 billion dollars of debt relief in 2005. (Scotland Aid Agency, 2008). If the Debt to Gross Domestic Product (GDP) ratio is 133%, this means that Zambia is paying millions on debt interest only. This is money that could be used to fund social programs or provide employment programs. Therefore, the unemployment rate is also adversely affected because the government doesn't have sufficient funds to begin or maintain such social programs. The unemployment and underemployment levels are very high. This means that many head of the families are out of work. Many families are hungry and in deep need of aid in social services such as health and education. The country has to contend with an expensive disease which has no long term cure. The high rate of HIV/AIDs incidence also means that the country will need international assistance from the World Health Organization to combat this scourge. In 20013, HIVIAIDS prevalence was estimated at 18 percent for women and 13 percent for men, and Zambia was entering its third decade of double-digit HIVIAIDS prevalence. The country does not have the financial resources to finance health services and medicines to combat HIV/AIDS. The low growth of the GDP is the result of weak government policies, poor business environment, lower foreign and local investments resulting in fewer businesses and fewer jobs available in the market. The literacy rate of Zambia is relatively low (65%) compared to other African countries. The implication of this is that the work force lack the language and technical skills to support the industry and the business enterprises. It also has a weak currency which is constantly devalued. The implication of a weak currency is a high inflation rate and lower values for one's goods and services. The country has a poor balance of trade. The implication of this is that Zambia needs to develop its export and tourism sector in order to generate foreign currency. It has poor balance of payments. Zambia will need to fund social services through grants and loans since it does not have adequate government income to cover all its needs. The taxation system is susceptible to corruption. The country needs to stabilize its tax collection system so as to have funding for social services. In terms of the Human Development Index, Zambia has the lowest life expectancy at birth in the world according to UN estimates. The national poverty headcount in Zambia (percent of population falling below the poverty line) is 56 percent. At current period death rates, less than one in three Zambians born today will survive past his or her 40th birthday. (Human Development Report, 2007). The Human Development Report has published the human development index (HDI) which looks beyond GDP to a broader definition of well-being. The HDI presents a combinded measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and enrolment at the primary, secondary and tertiary level) and having a decent standard of living (measured by purchasing power parity, PPP, income). The index provides a broadened prism for viewing human progress and the complex relationship between income and well-being. The HDI for Zambia is 0.434, which gives the country a rank of 165th out of 177 countries with data. The human development index trends tell an important story in that aspect. Since the Zambia's GDI value, 0.425 should be compared to its HDI value of 0.434. Its GDI value is 97.9% of its HDI value. Out of the 156 countries with both HDI and GDI values, 127 countries have a better ratio than Zambia's. (The Human Development Report, 2007). Question 3 As a newly appointed economic minister of Zambia, I will push for the implementation of five economic reforms aimed at stimulating the economy and getting people back to work. The first economic reform is to achieve overall improvements in the investment climate to develop a private sector led growth. Foreign investors will be provided with one-stop business registration and multiple tax holidays. Economic zones will be established. Priority areas such as tourism and copper mining will be promoted. The second economic reform is to promote rural development in agriculture by implementing road and bridge building, undertaking marketing studies for agricultural products and services in the international and domestic market, implementing consistent investment policies and providing continuous technical and financial assistance to support the development of the small and medium enterprise (SME) sector and the informal sector. The countryside farmers will receive government subsidy for farm inputs such as labor, seeds, fertilizer, farm equipment, irrigation systems, post-harvesting facilities and other productivity-enhancing agriculture inputs. The third economic reform is to encourage foreign investments in tourism and tourism-related investments by promoting massive infrastructure developments. Infrastructure development includes provision for roads, communications, electricity, drinking water and irrigation. These infrastructure investments will provide the proper climate for incoming foreign investments in these sectors. Hopefully, the foreign currency revenues in these two sectors will address the continuing balance of payments deficit. Copper revenues accounts for most of Zambia's foreign earnings and there is optimism about the future of the industry. The fourth economic reform is to implement investment in human resources in the field of health, education and skills training. Adequate access to international funding and grants will be taken to address malnutrition, which covers nutrition information, covering quality and coverage of rural health services, expanding access to clean water, housing in rural areas, targeted food aid, improving micronutrient status, and delaying age at first pregnancy. The fifth economic reform is to invest in the public sector system. Specific priorities for public sector reform include a transparent and efficcient budget and procurement systems; establishing government agencies based on well-identified organizational task and the national budget constraints, pay raise to attract and retain skilled and professional staff, a greater transparency and effectiveness; and an emphasis on decentralization characterized by capacity building for at local and central levels. These proposed economic reforms are the prerequisites for steady progress of Zambia not just against poverty but toward an equitably shared well-being. Zambia will have to harness all her efforts and political will to overcome the interlocking challenges and obstacles to these reforms. References: The World Bank. (2007). Zambia Poverty and Vulnerability Assessment. Washington DC: The World Bank Press. The World Bank. (2007). Human Development Report. Washington DC: The World Bank Press. Online references Ward, Susan. "Small Business: Canada How To Downsize Your Business: Do Less For More Success." Available at URL: http://sbinfocanada.about.com/cs/management/a/downsizetest.htm. Accessed on August 9, 2008. World Factbook. Available at URL: http:// www.odci.gov "Zambia" Finland aid agency. July 10, 2008. http://formin.finland.fi/Public/default.aspxcontentid=80385 "Don't undermind development in Zambia. SCIAF Scottish Development Agency. http://sciaf.live.visionwt.com/news/news_archive/2007_news/don_t_undermine_development_in_zambia Read More