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Presented at: Vienna, July 2, 2009

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

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Presented at: Vienna, July 2, 2009

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  1. Presented at: Vienna, July 2, 2009 Zambia: Governance, Political Economy and Development Strategy 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 1999-2003 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: ZAMBIAGOVERNANCE-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!!!

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